Manganese Metal Company (MMC), a key player in the global manganese industry, has entered into an energy supply agreement with the NOA Group to secure an estimated 70% of its electricity from renewable sources. This deal, which leverages NOA’s portfolio of wind and solar photovoltaic facilities with a combined capacity of 86 MW, underscores MMC’s commitment to sustainability and alignment with global decarbonisation efforts. As the custodian of the world’s largest manganese reserves, South Africa plays a central role in producing high-purity manganese metal and manganese sulphate monohydrate for battery electric vehicles.
Under the 20-year agreement, NOA will provide renewable energy equating to some 245 GWh per year to MMC.
Karel Cornelissen, CEO of NOA Group, commented: “The Master Energy Supply Agreement supports MMC’s strategy to minimise its environmental impact by securing clean, renewable energy in line with the decarbonisation goals of its global customer base.”
The Master Energy Supply Agreement effectively decouples the generation of renewable energy from the point of consumption through NOA’s aggregation model and trading platform. Unlike many bilateral agreements that are tied to individual generation facilities, this model offers greater flexibility, efficiency, and certainty in energy supply, according to NOA, as the energy is supplied from its portfolio of generation facilities.
Under the 20-year agreement, NOA will provide a renewable energy profile equating to 245 GWh per year, facilitated by Eskom’s wheeling framework. By sourcing energy from multiple generation facilities across the country, NOA ensures increased reliability of renewable energy delivery. This approach optimises generation profiles by leveraging diverse geographic and resource-specific characteristics.
In response to growing pressures to adopt environmentally friendly energy sources, mining and other industrial sectors are increasingly turning to energy aggregators for sustainable solutions. As much as they require a reliable energy supply these sectors also need to reduce their carbon footprints, to meet regulatory standards and corporate sustainability goals.
NOA's 10.1 MW Eland Solar PV plant, in Welkom in the Free State.
Bernard Swanepoel, Executive Chairman of MMC, said: “This landmark agreement with the NOA Group marks a significant step in MMC’s sustainability journey, ensuring a reliable and renewable energy supply that aligns with our commitment to decarbonisation and environmental stewardship, and reinforcing our role as the largest global supplier of high purity, selenium free (99.9% Mn) manganese metal. It will also enable our high purity manganese sulphate monohydrate product to be credited with industry-leading low carbon emission intensity.”
As the sole non-Chinese producer of refined manganese metal, MMC is consolidating its position as a leading western supplier of high-purity manganese variants, which are needed for battery production. Additionally, through its commitment to renewable energy solutions, enhanced water conservation measures, and improved waste recycling processes, MMC is demonstrating its environmental stewardship and its continuing pursuit of net-zero emissions.
“Driven by the growing emphasis on environmental sustainability, mining and other industrial sectors are taking proactive strides towards adopting clean energy solutions. By partnering with energy aggregators, like NOA, these industries are securing material long-term energy savings and significantly reducing their carbon footprints. This positive shift aligns with regulatory standards and corporate sustainability goals, and supports the transition to a more sustainable future in South Africa,” Cornelissen said.
Licensed to trade
In a recent statement the NOA group announced that its trading subsidiary, NOA Group Trading (Pty) Ltd (NOA Trading), has been awarded its long-anticipated trading licence by the National Energy Regulator of South Africa (NERSA). The approval was granted at NERSA’s Executive Committee Meeting on 31 January 2025.
The licence greenlights the implementation of NOA Trading’s innovative business model and energy aggregation offering, designed to aggregate energy from geographically dispersed renewable generation facilities and supply it to customers across the country.
This model supports the deployment of renewable energy projects in high-yield areas, maximising generation potential and improving energy security, while meeting a critical need for clean energy and cost savings for NOA’s customers. It steps towards increased competition providing choice to customers, as envisaged in the Electricity Regulation Amendment (ERA) Act.
The first agreements concluded under NOA Trading’s new licence are two Generator Power Purchase Agreements (GPPA) for 140 MW and 94.5 MW wind projects. Under these long-term agreements, NOA Trading will purchase power from the wind farm and supply a portfolio of large and small customers through various, flexible energy supply arrangements.
By enabling trading entities to procure additional energy from new generation facilities, this model helps Eskom reduce generation costs while contributing to grid strengthening, transmission, and distribution development. These benefits are further supported by self-build agreements between independent power producers (IPPs) and the state utility.
“NOA Trading is now positioned to serve a national customer base, aggregating demand across the electricity supply sector. In line with the ERA Act, traders are licensed without geographic limitations. This signals a transition to a more open, competitive, and liberalised energy market – consistent with global regulations, including EU legislation, where trading activities are not restricted to specific locations or customer groups,” Cornelissen noted.
For more information visit: https://noagroup.africa/
