Netherlands-based Aeolus Associated (AA) has big plans for Africa and renewable energy. The company is expanding across the continent funding the development and implementation of renewable energy projects, technology transfer, and helping to create more local-based jobs.
AA began its work with wind and solar projects in Greece, Italy, and China; however, Africa soon became its priority after a visit to Namibia in September 2005. That trip resulted in the 92 MW wind farm with the first phase already completed. Supported by local and foreign investors and partially funded by the Dutch government, the plant totaled around N$1 billion with operation beginning at the end of 2008.
The company began to see that while financial institutions were keen to support renewable energy projects, there was also hesitation to fund the development phase of such projects. Therefore, AA created Aeolus Africa Development Corp. (AADC) in order to overcome this obstacle and accelerate the implementation of economically viable RE projects. AA, in collaboration with its local JVs in sub-Saharan Africa, identify and select project opportunities and applies to the AADC for development funding. The AADC will grant funding and resources if the project fundamentals and parameters indicate a probability ratio of over 85% for a future financial closing and a successful completion of the project. AA has agreements with the Dutch FMO for debt funding and financial lead arrangements. Similarly, it has also made deals with equity investors and the Dutch government on carbon credits.
Wind energy projects were the heavy hitter for the company in 2008, with seven projects totaling 439 MW and an additional 10 projects in 2009. The company is currently in the process to add to its portfolio hybrid and distribution systems for rural areas as well as biofuel plantations. So it’s no surprise that it has gotten onboard for South Africa’s Saldanha Bay Industrial Development Zone (IDZ).
A pre-feasibility study was conducted in South Africa’s Saldanha Bay in the Western Cape to determine potential industry opportunities with renewable energy making the list. The study found that if an Industrial Development Zone (IDZ) was established, three industrial clusters could be formed: a renewable energy production and manufacturing sector; land-based dry dock, floating dry dock, and oil supply hub and a maritime ship building and repair cluster; and a steel and minerals production and manufacturing center.
The pre-feasibility study was carried out by Demacon Market Studies, Bigen Africa, and Plan Associates in October 2009 with Wesgro, the Cape’s official trade and investment agency, completing the project’s feasibility study. Currently, AA is planning to have the first phase complete and operational by 2013. Engineering News reported that the overall project would involve combined cycle gas turbine (CCGT) power plants and renewable energy sources to generate up to 1,060 MW of electricity by 2019.
The renewable energy sources will mainly entail solar power (200 MW) and wind energy (100 MW). The company is also looking into creating an osmosis plant for desalination at the Saldanha IDZ.
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