Tronox Announces Significant Renewable Energy Project in South Africa

Rhea-AI Summary

Tronox Holdings plc (NYSE:TROX) has announced a significant 200 MW solar project with SOLA Group, expected to supply around 40% of its electricity needs in South Africa. The project aims to lower the company's global scope 1 & 2 emissions by approximately 13% from its 2019 baseline, aligning with its goal of achieving net zero GHG emissions by 2050. This initiative marks a key step in Tronox's sustainability strategy, supported by executive measures to reduce emissions further by 15% by the end of 2025.

Positive

• The solar project is projected to reduce Tronox's global carbon emissions by approximately 13%.
• The initiative aligns with Tronox's target to achieve net zero GHG emissions by 2050.
• The project is expected to supply approximately 40% of Tronox's electricity needs in South Africa.

Negative

• None.

200 MW solar project is expected to provide approximately 40% of Tronox's South African electricity needs and lower its worldwide scope 1 & 2 emissions by approximately 13%

Project represents a major step forward by Tronox to meet its emission reduction targets

STAMFORD, Conn., March 22, 2022 /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), the world's leading integrated manufacturer of titanium dioxide pigment, today announced that it has entered into a long-term power purchase agreement with the South African independent power producer, SOLA Group, to provide 200 MW of solar power to Tronox's mines and smelters in the Republic of South Africa.  The Company anticipates the project should be fully implemented by the fourth quarter of 2023.  Today's announcement is only one example of numerous projects and investments being pursued by Tronox to meet its publicly announced goal to align with a global warming scenario below 2° C and achieve net zero GHG emissions by 2050.     

"Tronox's renewable energy project with SOLA Group will reduce our global carbon emissions by approximately 13% compared to our 2019 baseline and has the full support of our Board of Directors and senior management," commented Melissa Zona, Tronox Holdings plc's Senior Vice President, External Affairs and Chief Sustainability Officer.  "This is yet another example of how Tronox is committed to being a leader when it comes to corporate sustainability and protection of the environment. In the past 18 months, we have taken a number of significant steps that demonstrate this leadership: restructuring our Board to designate a committee with specific responsibility for oversight of Environmental Social Governance (ESG); including annual carbon emission reduction targets in our executive compensation plan; publicly announcing a detailed roadmap for reducing emissions, including a target to reduce emissions by 15% by the fourth quarter of 2025; and, committing to being fully aligned to both TCFD and SASB reporting for 2021," concluded Ms. Zona.  

The execution of the agreements comes at a time when South Africa is in need of extra capacity to be added to its electricity network.

"We are delighted to see that large scale energy consumers like Tronox are making use of the opportunity to convert to clean and cost effective energy," says Chris Haw, Director and co-founder at the SOLA Group. "These types of projects are the fastest way to bring new generation capacity online and not only contribute to closing the electricity supply gap in our country, but also support the much needed transition to clean energy and modernization of our electricity grid."

Switching from coal-based to renewable power in South Africa is just one way Tronox is implementing innovative technologies and best practices at its operating sites to protect our land, water, air and ecosystems and operate more sustainably.  Tronox is also investing in fundamental research and development to improve its feedstock upgrading and TiO₂ production technologies to reduce emissions and developing tangible projects to reduce the amount of solid waste generated and water consumed.  Tronox strives to establish itself as a role model for ESG in the mining and chemical sector. Through continued investment in emission reduction projects, Tronox is strengthening its commitment to sustainability in clear and tangible ways.

About Tronox

Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals; and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals. With approximately 6,500 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.

About SOLA Group

SOLA Group is a 100% South African owned vertically integrated independent power producer offering renewable energy solutions to the private and public sector in Southern Africa. Since 2008, SOLA has pioneered the first large commercial solar projects, both on and off grid, first electricity wheeling projects and now with Tronox, the first large scale utility projects for private consumers.  With a track record of over 330MW of operational projects and having developed and been awarded over 1082 MW of solar assets, SOLA is a market leader in financed solutions and power purchase agreements for private off-takers. SOLA's mission is clear: "to transform Africa through clean energy". SOLA believes in enabling the private market to play its role in the transition away from fossil fuel based energy sources. SOLA has offices in Johannesburg, Cape Town and Durban and a presence in five African countries. Using its core staff of 80 highly experienced professionals, SOLA is currently implementing over 1GW of awarded independent power projects for private energy consumers.

Cautionary Statement about Forward-Looking Statements

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated synergies based on our growth and other strategies, anticipated completion of extensions and upgrades to our mining and manufacturing operations, anticipated trends in our business, anticipated costs and benefits of project newTRON and Atlas Campaspe and the Company's anticipated capital allocation strategy. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual synergies, or achievements to differ materially from the results, level of activity, performance, anticipated synergies or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, business and market disruptions related to the COVID-19 pandemic, including supply chain disruptions, market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as the need to obtain Board approval for the declaration of future dividends and the authorization of additional share repurchases, global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission.

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.

Media Contact: Melissa Zona
+1.636.751.4057

Investor Contact: Jennifer Guenther
+1.646.960.6598

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/tronox-announces-significant-renewable-energy-project-in-south-africa-301508022.html

SOURCE Tronox Holdings plc

FAQ

What is the significance of Tronox's solar project in South Africa?

Tronox's 200 MW solar project with SOLA Group will provide around 40% of its electricity needs in South Africa, reducing global carbon emissions by approximately 13%.

How does the solar project impact Tronox’s emissions goals?

The project is a crucial step towards Tronox's aim to achieve net zero GHG emissions by 2050 and includes a commitment to cut emissions by 15% by Q4 2025.

When is the solar project expected to be fully implemented?

Tronox anticipates that the solar project will be fully implemented by the fourth quarter of 2023.

What role does SOLA Group play in Tronox's renewable energy project?

SOLA Group is the independent power producer partnering with Tronox to supply the 200 MW solar power for its South African operations.