Exxaro On-Site

Prana and Exxaro (see www.Exxaro.com) formed a joint venture with the purpose of developing and operating on-site power generation facilities. The JV company is called “Exxaro On-Site” as Exxaro controls the JV with 51% of the shareholding.

Exxaro On-Site’s business model is to primarily Build, Own and Operate the power generation facilities but we are open to discuss various ownership structures such as JV’s or structures under which ownership is transferred to the customer once the power generation facility is in operation.

Exxaro On-Site is an environmentally responsible company targeting the development of projects which result in lower carbon emissions than would have been the case otherwise. Our power generation facilities are typically fuelled by on-site industrial waste such as furnace off-gas, mine methane, excess process heat, biomass, industrial waste or other sources of waste energy. We also use natural gas (where available) as fuel as this is considered to be clean relative to the power produced by Eskom. We target power-generation facilities in the range between 5MW and 200MW.

The electricity (and steam) produced is typically sold back to the supplier of the fuel under a power purchase agreement for on-site consumption or for wheeling to other subsidiaries in the group. The cost of the electricity sold to the customer is increasingly competitive with the cost of electricity from Eskom, especially so if carbon finance is added to the financing mix and we routinely assist customers with the preparation of a quantified business case for the project.

There are a number of reasons why energy decision-makers prefer to work with Exxaro On-Site. Exxaro offers the financial stability and longevity that is essential in a relationship which typically spans in excess of 10 to 15 years. Exxaro On-Site typically funds the cost of developing the project through to a bankable feasibility level and also offers the ability to fund large projects, proven project development expertise, proven operational expertise and excellent BEE credentials.