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Seriti will pay US$55 million for a 51% controlling interest in Windlab Africa.
Windlab Africa consists of 100% Windlab South Africa and 75% of Windlab East Africa.
"This acquisition is a significant landmark on Seriti's journey to becoming a diversified energy business and supports our ESG objectives and commitments to a just energy transition," CEO Mike Teke said.
Seriti requires 750 GWh to mine coal that is used to drive South Africa's power stations. Seriti signed an MoU in October 2021 with South Africa power utility Eskom and coal miner Exxaro to start using wind and solar energy. Seriti will sign power purchase agreements in 2023.
"We need to be moving towards a larger carbon future through investing capital from coal into green energy," Teke said. "It is not only the right thing to do, but it makes business and societal sense."
Seriti will partner with Standard Bank, RMB, Ntiso Investment holdings and Windlab Managing Director Peter Venn to develop and expand the business.
"The business will now be able to accelerate the development of its significant pipeline to assist in alleviating the electricity shortages on the African continent," Windlab CEO John Martin said.
Windlab is developing two renewable projects in South Africa and east Africa, which will generate a total of 3.5GW.
