Chariot Ltd (AIM:CHAR, OTC:OIGLF) this week saw its renewables business Etana Energy seal a significant and impactful financial breakthrough, securing $100 million worth of ‘guarantee’ finance to support new power generation coming online.
Chief financial officer Julian Maurice-Williams joined the Proactive studio to talk through the deal, and what it means for its ‘early mover’ business in South Africa’s renewable energy sector.
Maurice-Williams explained how Etana’s trading license supports renewable projects by enabling electricity purchases from wind and solar generators, transmitting it through South Africa's grid, and selling it to industrial users.
Here, we take a closer look at what was said.
Proactive: Chariot announced a $100 million guarantee financing from BII and GuarantCo. How will this impact your renewable energy initiatives?
Maurice-Williams: This financing is a pivotal step for us. It provides guarantees for up to $500 million in renewable energy projects, allowing us to accelerate our efforts in building sustainable energy infrastructure in Africa. It also enables us to strengthen our Power Division and support innovative ventures like Etana Energy.
Proactive: Can you tell us more about Etana Energy and its role in South Africa’s energy sector?
Maurice-Williams: Etana Energy is our joint venture that focuses on electricity trading in South Africa.
The country’s energy market faces significant undersupply challenges. With our trading license, Etana facilitates renewable energy adoption by purchasing electricity from wind and solar generators, transmitting it through the national grid, and selling it to industrial customers.
It’s a game-changer in a deregulating market.
Proactive: What opportunities do you see in South Africa’s deregulated energy market?
Maurice-Williams: South Africa’s energy market deregulation is transformative.
It allows independent players like us to operate, providing alternatives to traditional energy suppliers.
As a first mover, we’re uniquely positioned to support the country’s shift toward cleaner, more reliable energy solutions while creating value for our stakeholders.
Proactive: Could you provide an update on Chariot’s gas projects in Morocco?
Maurice-Williams: Our recent drilling results in Morocco didn’t meet initial expectations, but the overall economic potential of the project remains strong.
We are confident in its long-term value and will continue to refine our approach to ensure optimal outcomes.
Proactive: How does Chariot’s vision align with Africa’s energy transition goals?
Maurice-Williams: Our focus has always been on driving sustainable energy solutions across the continent.
Whether through renewable energy projects or gas infrastructure, we aim to address Africa’s energy deficit while contributing to global carbon reduction targets.
Partnerships like the ones with BII and GuarantCo further enhance our ability to deliver on these commitments.