Renewable energy independent power producer (IPP) Red Rocket has reached financial close on the first 242-MW phase of the Overberg Wind Farm, which will be built on 15 farm portions covering 8 721 ha of land near Swellendam in the Western Cape.

The project, which is expected to begin commercial operations in early 2027, will deliver an estimated 750 GWh yearly of wheeled electricity to the Rio Tinto Group’s Richards Bay Minerals (RBM) under a 20-year power purchase agreement (PPA).

Red Rocket confirms that the grid connection and wheeling agreements are in place to facilitate the project and the PPA.

The electricity produced will cut the KwaZulu-Natal-based heavy mineral sands miner and refiner’s yearly greenhouse-gas emissions by about 30%, or some 0.7-million tons of CO₂-equivalent emissions.

Red Rocket says the Overberg Wind Farm, construction of which is set to begin soon, will be South Africa’s largest privately developed single wind farm. It is being developed in two phase and will have a capacity of 380 MW once completed.

The first phase will feature 39 Goldwind 6.2 MW turbines and is being financed through a club deal involving Absa Bank, acting through its Corporate and Investment Banking division; Standard Bank, acting through its Corporate and Investment Banking division; and the Development Bank of Southern Africa.

No investment value has been provided for the project.

Red Rocket CEO Matteo Brambilla described the collaboration with RBM as a landmark project that highlighted the potential of private-sector-led renewable-energy developments to help reshape the South African energy landscape.

It would also add impetus to the IPP's own pursuit of a diversified portfolio of renewable assets, encompassing a wide range of geographical locations, and currently including wind, solar, and hydropower technologies.

RBM MD Werner Duvenhage said its collaboration with Red Rocket aligned with the company’s long-term sustainability goals and demonstrated its commitment to reducing its carbon footprint and dependence on coal-fired electricity.

“This is our largest PPA to date, and we are excited to be a part of this groundbreaking project and look forward to the positive impact it will have on the environment and the community," Duvenhage added.