Shumba shifts to renewable energy
With several energy assets in the advanced development stage on the local market, Shumba Energy has shifted focus to the fast growing renewable energy sector.
Though previously active in coal mining, the company is now focusing on renewable energy, as the calls to change the country’s energy mix rise.
“There have been no mining development activities with regard to any of the licenses held by Shumba Energy,” said Shumba Energy Managing Director, Mashale Phumaphi in the company’s latest market update.
Shumba energy’s two projects - Morupule South Resources Project and Mabesekwa Project with 2.45 billion tonnes gross in- situ and 0.9 billion tonnes gross in- situ respectively remain on the brink, as the company eyes Tati Solar project.
The 100 MW solar project in the late stage of developing sits on 295 hectares land. And so far the project has already obtained the environmental approvals from the Departments of Environmental Affairs and a generation license for the project from Botswana Energy Regulatory Authority ( BERA).
Though the company has suspended mining, it believes its portfolio of projects is aimed at servicing energy poor Southern Africa with emphasis on those with the least energy access.
However, another junior miner, Minergy has reiterated that coal will remain an essential component of national energy mix for years to come, as the company ramps up production at its Masama Coal Mine, the country’s first private owned coal miner.
The company is on record proactively campaigning for clean coal use and its operations have recently hit profits following the Ukraine, Russia standoff that has led to increased global coal demand.
With the local economy looking to diversify the country’s energy mix from coal fired power plants, the company warned that coal will not be easily discarded.
The company says coal is not only for baseload electricity generation but also for the prosperity, considering the baseload power that the fossil resource creates for developing nations.
“Notwithstanding the desire to switch to greener options in developing countries, it is in no way affordable.
We believe that the solution lies in considering clean coal technologies such as HELE which is a process of High Efficiency, Low Emissions,” said Minergy Chief Executive Officer, Morne du Plessis.
Minergy says a HELE plant will burn less coal, emit less carbon dioxide and release fewer pollutants, giving it a smaller environmental footprint.
“This, coupled with carbon storage, will support the coal narrative going forward,” Du Plessis said.
He said coal and renewables are not enemies, citing that the use of coal has to be managed in a responsible manner by all parties, working towards a sustainable mix of coal and renewables.
“To opt only for renewables is irresponsible and has significant economic implications, especially for developing continents such as Africa and Asia.”
Minergy believes transition to renewable energy sources cannot take place without coal, as it will deny those living in poverty, access to affordable energy.
“Any energy transition impacts not just the mining and power generation industry, but also peripheral industries such as cement, breweries, hospitals and any boiler operations,” said Du Plessis.