Leading renewable energy producer Scatec ASA will lease an 8.5 MW solar plant to gold mining company Torex Gold for the supply of renewable power to its Morelos Media Luna and El Limon Guajes projects in the Guerrero Gold belt 180 km southwest of Mexico City. (International Mining)
According to Hans Olav Kvalvaag, SVP, the agreement represents a milestone for ‘Release by Scatec’ and its flexible solution for delivering low-cost, clean, and reliable power through pre-assembled and containerized solar PV.
The solar plant is movable and its capacity can be expanded, including by adding battery storage.
The lease term is ten years. However, the contract allows for an extension, as well as the option for a buy-out after three years.
“Factoring in the installed cost of the plant together with the ongoing lease fee, we expect to save approximately US$1 million per year in energy costs over a 20-year lease period, with full payback of the solar plant realized within approximately seven years,” says Jody Kuzenko, President & CEO of Torex.
Further, the Scatec solar plant is expected to cut the miner’s Scope 2 greenhouse emissions by up to 8.6% compared to 2019.
The new solar plant is expected to come online by the fourth quarter of 2021, approvals permitting.
Read the International Mining article HERE.
Image Source: Release by Scatec