Project detail - ACWA POWER SOLARRESERVE REDSTONE SO

Who is our customer

The Project’s Sponsors are ACWA Power and SolarReserve. ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants with operations in 12 countries in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (IFC). SolarReserve, the technology provider, has its headquarter in Santa Monica, California with regional offices in Australia, Chile and South Africa . It was formed in 2007 to develop utility-scale CSP and PV projects. SolarReserve will be supplying its proprietary molten salt technology into the Redstone project.

What is our funding objective?

The project entails the construction and operation of a concentrating solar thermal power (CSP) plant the Hay District, 30 km from Postmasburg in the Northern Cape Province, Sout Africa. The project includes associated infrastructure and services, for the generation of renewable electricity to the national power grid. It will be capable of producing approximately 480 gigawatt-hours (GWh) net of renewable energy annually, with a nominal net generating capacity of approximately 100 megawatts (MW).

Why do we fund this investment?

The project is fully aligned with FMO’s strategy. Redstone will not only add emission-free production capacity to the South African energy system but will also provide additional employment and skills development during construction. Moreover, the project will benefit local communities, by providing financial benefits flowing from a 7.5% shareholding to be held via the local community trust.

What is the Environmental and Social categorization rationale?

This is a category B+ project. The following IFC Performance Standards (“PS”) are triggered: PS 1 -- Assessment and Management of Environmental and Social Risks and Impacts; PS 2--Labor and working conditions PS 3 -- Resource Efficiency and Pollution Prevention; PS 4 -- Community Health, Safety and Security; PS 6--Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS 8 -- Cultural Heritage: Dedicated management plans have been prepared for mitigation and management of impacts; PS 5 -- Land Acquisition and Involuntary Resettlement, is not triggered since the Regional Land Claims Commission Office confirmed that there are no land claims lodged against the property. The Sponsors have secured land through a long-term lease with the owner. The site is unoccupied and has road access; historical land use has been for horse breeding and sheep/cattle grazing and represents no intrusion on agricultural production in the surrounding areas; and The Project will similarly have no adverse impacts on PS7: Indigenous Peoples, as none are found in the project area of influence. In addition to the ESIA, an independent sensitivity mapping analysis was undertaken. This analysis characterized the development site with regards to the significant environmental aspects in order to reflect the sites suitable and unsuitable development areas. This action guided the final footprint of the CSP Plant. If FMOs investment proceeds, FMO will periodically review the project’s ongoing compliance with the Performance Standards.