Tata, Exxaro in South African energy JV
7 March 2012
South African-based diversified resources company Exxaro and India's Tata Power have launched a joint venture company that aims to take advantage of renewable energy projects in South Africa and on the continent.
The new company, Cennergi (Pty) Limited, will be a 50:50 joint venture between Exxaro and Tata Power through its subsidiary Khopoli Investments.
Based in South Africa, Cennergi will focus on acquiring and developing electricity generation projects in South Africa, Botswana and Namibia, starting with renewable energy projects in South Africa.
An expanding energy market
"Cennergi has been created by companies from developing nations to serve developing nations," Exxaro CEO Sipho Nkosi said in a statement on Monday. "We expect Cennergi to play a key role in the African electricity generation market."
Nkosi said Cennergi aimed to be the leading cleaner energy independent power producer (IPP) in southern Africa, serving an expanding energy market.
"This partnership with Tata Power will add the skills and capabilities necessary to create a world-class energy company in this region with enormous growth opportunities."
'High-quality, sustainable projects'
Tata Power MD Anil Sardana said the joint venture was in line with the company's strategy of pursuing exploration opportunities for energy development in growing markets.
"We look forward to working together with Exxaro to jointly develop efficient, high-quality and sustainable projects that will bring significant benefits to the region as well as local communities.
"Through this partnership, we will be able to pursue business opportunities holistically and make a responsible contribution in this high-potential region."