The new company, Cennergi Ltd, will initially focus on renewable energy projects in South Africa. The longer-term strategy is to create a balanced portfolio of generation assets.
"Cennergi aims to be the leading cleaner energy independent power producer in Southern Africa," said Sipho Nkosi, Exxaro’s chief executive officer.
While it has no operating assets to date, Exxaro has been building a portfolio of wind, solar and co-generation projects and was looking for equity partners. It will now transfer the portfolio to Cennergi.
According to local media, Exxaro planned to submit three bids for wind power projects in the second round of the government tender, which closed yesterday.