Petra signs PPAs to purchase circular renewable energy for Cullinan, Finsch

Diamond producer Petra Diamonds has entered into long-term power purchase agreements (PPAs) to purchase circular renewable energy for its Cullinan and Finsch diamond mines from licensed South African energy retailer Etana Energy.

Etana provides competitively priced clean energy from new, large-scale renewable energy projects, primarily using wind energy, by transferring power to the existing South African grid. The company has a portfolio of multiple construction-ready and grid-secured wind and solar projects scheduled to come online in 2025 and 2026.

Under the terms of the PPAs, Etana will supply each of the two operations with between 36% and 72% of expected load requirements beginning in fiscal year 2026.

With this solution, Petra will achieve its goal of reducing Scope 1 and 2 greenhouse gas (GHG) emissions by 35-40% compared to the 2019 baseline, well ahead of the 2030 target.

In addition to reducing the company’s carbon footprint, a portion of the energy sourced from Etana will also contribute to predictable energy costs and savings over the life of the PPAs.

“This will result in a significant reduction in our greenhouse gas emissions, well above our 2030 target, and will further strengthen the sustainability credentials of our diamonds. We believe this is an important aspect, alongside the traceability and origin of our diamonds, that differentiates Petra’s product offering.

“The secured tariff is expected to lead to a sustainable reduction in our energy supply costs, which will further reduce fixed costs at our facilities in South Africa,” Petra CEO Richard Duffy he said on May 23.

He added that the company remains committed to generating net zero Scope 1 and 2 emissions by 2050, but hopes to achieve this goal as early as 2040.

“These agreements with Etana also demonstrate how Petra creates shared value through partnerships, and we look forward to entering into a long-term relationship with them,” Petra noted.

“This is a key step towards fulfilling our mission to accelerate the deployment of new renewable energy capacity in South Africa in a way that creates value for our customers and has a positive impact on the country and our planet,” Director Etana Reyburn Hendricks he said.