(Alliance News) - Centamin PLC on Tuesday said it has awarded engineering, procurement and construction contracts to two companies for a 36 megawatts solar farm and 7.5 megawatts battery energy storage system at the Sukari gold mine in the Egyptian desert.
Centamin were up 1.1% at 108.55 pence on Tuesday in London.
Worrstadt, Germany-based renewable energy firm juwi AG has been chosen to design, supply and integrate the Sukari solar and battery plant into the current diesel power plant. Also, Cairo, Egypt-based systems integrator Giza Systems has been contracted to install the Sukari solar plant itself.
Centamin said the solar plant is expected to reduce diesel fuel consumption at Sukari by an estimated 22 million litres per annum and lower carbon emissions by an estimated 60,000 tonnes carbon dioxide equivalent per annum. It also is expected to reduce operating costs, including an estimated USD9 million to USD13 million savings in annual fuel costs and reduced exposure to fuel price volatility.
The solar plant is scheduled to be commissioned late in the first half of 2022, and the total project capital expenditure is estimated at USD37 million.
"With phase one of the project near complete, including completion of the pioneering works across the 85-hectare site, concluding these definitive engineering, procurement and construction contracts was the next significant milestone in delivering the Sukari solar plant. Working with our partners we will deliver the largest hybrid solar project of its kind, which will reduce our fuel consumption and greenhouse gas emissions from 2022 onwards," said Chief Executive Officer Martin Horgan.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Centamin PLC (CEY)