Exxaro, Eskom Mou To Reduce Carbon Emissions, Improve Air Quality And Ensure A Just Energy Transition

Dan Marokane, group chief executive, Eskom and Ben Magara, CEO of Exxaro Resources. the two organisations have signed a MoU to reduce carbon emissions, improve air quality and ensure a just transition to a low-carbon economy

The agreement focuses on jointly measuring, managing, and reducing Scope 1, 2, and 3 emissions and potentially investing in innovative technologies to drive decarbonisation.

It also emphasises inclusive and focused transition initiatives such as skills development, job creation in green sectors, and stakeholder engagement to ensure climate resilience.

Additionally, the MoU includes provisions for data sharing and transparent reporting to track progress and ensure accountability.

The initial focus in the collaboration will guide the necessary investments and stakeholders needed to find technology-based solutions to the challenges associated with the transition to a low-carbon economy, aligned with the country’s Integrated Resource Plan (IRP).

Eskom Research business unit

The Eskom Research, Testing & Development (RT&D) business unit will lead this partnership at Eskom.

The unit is dedicated to finding technology solutions that can be applied primarily within the company to embrace innovation, namely enhance efficiency and improve operations, improvements related to emissions management, Green House Gas (GHG) abatement, and beyond,

One of the key areas of focus for RT&D is assisting the business in a differentiated approach with multiple pathways to move from high-carbon to low-carbon energy sources through identifying technology and processes that enable the economy to be competitive and sustainable while enabling Eskom to be as efficient as possible.

Enabling a just transition

“This collaboration marks a significant step forward in our commitment to enabling a just transition (known as an impactful transition at Exxaro) and building a climate-resilient and low-carbon future,” says Ben Magara, CEO of Exxaro Resources.

He adds that leveraging their deep experience in the diversified mining and energy solutions sectors, they aim to drive innovation that not only decarbonises and reduces air pollution in their operations but also delivers meaningful socio-economic benefits for the communities they serve.

“The collaboration with Eskom is important as we work to accelerate practical and scalable solutions that support South Africa’s energy security and environmental ambitions as part of our purpose of Powering Better lives in Africa and beyond.”

Explore practical, scalable solutions

Dan Marokane, group chief executive of Eskom, says,” Both organisations are committed to driving the transition to a more sustainable energy future, while ensuring the country's electricity supply remains secure and we wanted to bring together our decades of experience in the coal value chain to explore practical, scalable solutions.

He adds that this initiative forms part of Eskom’s focus in this country and internationally to identify the latest developments and strategies to reduce carbon emissions and other air pollutants.

The MoU is consistent with South Africa’s commitment to achieving the goals of the Paris Agreement, international environmental standards, and national regulatory frameworks.

Exxaro on sustainable impact

Exxaro remains steadfast in advancing its Sustainable Growth and Impact strategy by embedding key ESG priorities into its operations.

Exxaro’s sustainable mining practice focus areas include decarbonisation and climate resilience, improving air quality, rehabilitating mined land, protecting biodiversity, and enhancing energy and water efficiency.

This also includes a commitment to minimising waste through circular economy practices and by proactively fostering strategic partnerships to amplify its impact.

These initiatives reflect Exxaro’s dedication to building a sustainable and inclusive future for our business, communities, and the environment as part of powering better lives in Africa and beyond.

A balanced and diversified energy mix

Eskom remains focused on a balanced and diversified energy mix based on existing coal and nuclear and introducing gas for baseload power as well as renewables, energy storage systems including BESS (Battery Energy Storage Systems) and pumped hydro, to achieve overall security of supply and to meet South Africa’s growing electricity demand in a sustainable manner.