Petra Diamonds Secures Long-term Renewable Energy Agreements with Etana Energy for Sustainable Operations

In a significant move towards sustainability, Petra Diamonds has signed…

In a significant move towards sustainability, Petra Diamonds has signed long-term power purchase agreements (PPAs) with Etana Energy to procure wheeled renewable energy for its Cullinan and Finsch diamond mines in South Africa. This step is set to significantly reduce the company’s carbon footprint and energy costs.*

Strategic Partnership for Renewable Energy

Petra Diamonds, a prominent diamond producer, has entered into landmark long-term PPAs with Etana Energy, a licensed South African energy trader, to source renewable energy for its Cullinan and Finsch diamond mines. This agreement marks a critical milestone in Petra’s journey towards sustainable mining operations.

Etana Energy specializes in providing cost-competitive clean energy primarily from wind-based projects. The energy will be wheeled over the existing South African grid, leveraging Etana’s extensive portfolio of ready-to-build and grid-secured wind and solar projects, expected to become operational between 2025 and 2026.

Commitment to Greenhouse Gas Reduction

Under the terms of the PPAs, Etana will supply between 36% and 72% of the expected energy load requirements for Petra’s operations starting from the 2026 financial year. This significant shift to renewable energy will enable Petra to achieve its ambitious target of reducing Scope 1 and 2 greenhouse gas (GHG) emissions by 35% to 40% against its 2019 baseline well ahead of the 2030 deadline.

“This will result in a considerable reduction of our GHG emissions, well ahead of our 2030 target, and will further strengthen the sustainability credentials of our diamonds,” Petra CEO Richard Duffy said. “We consider this to be an important facet, alongside the traceability and provenance of our diamonds, in differentiating Petra’s product offering.”

Economic and Operational Benefits

Beyond environmental benefits, the renewable energy sourced from Etana is expected to contribute to predictable energy costs and significant cost savings over the duration of the PPAs. Petra’s CEO highlighted that the secured tariff would lead to a sustained reduction in energy supply costs, thereby lowering fixed costs at their South African operations.

“The tariff secured is expected to lead to sustained reduction in our energy supply costs, which will further reduce fixed costs at our South African operations,” Duffy noted. He further expressed optimism about achieving net zero emissions for Scope 1 and 2 by 2050, with a potential to reach this goal as early as 2040.

A Partnership for Shared Value

The collaboration with Etana Energy represents a strategic partnership aimed at creating shared value. Petra’s commitment to sustainability is reinforced through this agreement, demonstrating how the company creates value through partnerships that benefit both the business and the broader community.

“These agreements with Etana also demonstrate how Petra creates shared value through partnerships and we look forward to embarking on this long-term collaboration with them,” Petra stated.

Accelerating Renewable Energy in South Africa

Etana Energy, on its part, views this agreement as a crucial step towards accelerating the deployment of new renewable energy capacity in South Africa. Reyburn Hendricks, Etana’s director, emphasized the positive impact of this initiative on the country and the planet.

“This represents a key step towards fulfilling our mission of accelerating the rollout of new renewable-energy capacity in South Africa in a way that creates value for our customers and has a positive impact on the country and our planet,” Hendricks said.

Petra Diamonds’ strategic move to secure renewable energy through long-term agreements with Etana Energy highlights the company’s dedication to sustainability and operational efficiency. By significantly reducing its GHG emissions and securing cost-effective energy, Petra not only enhances the environmental credentials of its diamonds but also sets a benchmark for responsible mining practices. This partnership underscores the potential for collaborative efforts to drive significant environmental and economic benefits in the mining industry and beyond.

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