Chariot Ltd's (AIM:CHAR, OTC:OIGLF) part-owned transition energy venture Etana Energy has now entered into a Power Purchase Agreement with Growthpoint Properties.
The agreement sees Etana, which is 49% owned by Chariot, deliver some 195 gigawatt hours (GWh) of renewable energy per year to Growthpoint in South Africa.
It is expected to result in 32% of the property firm’s power requirements being satisfied by Etana’s renewables.
The deal covers commercial property buildings across South Africa and the electricity will primarily come from wind power generation supported by solar and hydro managed by Etana.
A hydroelectric plant developed by Serengeti Energy and managed by Etana is expected to generate around 30GWh per year with start-up slated by the second quarter of 2025.
This new deal is an excellent example of the Etana model, Chariot Transitional Power chief executive Benoit Garrivier highlighted.
“In linking renewable power sources to customers through our trading platform we provide access to sustainable energy solutions and help underpin development fundamentals of new projects - both with and without Chariot's direct participation, including the ongoing maturation of a 400 MW gross portfolio of wind projects - by establishing robust offtake commitments,” Garrivier said in a statement.
"Through Etana, we are directly facilitating the expansion of South Africa's energy mix as well as providing energy that will have a positive impact on customers and their carbon footprints.
“This business is highly scalable, driven by tangible demand and we will continue to build on this exciting growth platform going forward."