The project will see the NEF invest ZAR2.2 million in venture capital alongside Astrum Energy and EAB New Energy of Germany in a scoping study towards development of a wind farm in Hluhluwe, northern KZN. The deal has been structured such that the NEF will subscribe for 40% of the participation interest, Astrum Energy for 31% whilst EAB New Energy will subscribe for 29% through an un-incorporated JV. The total scoping study costs for the Hluhluwe Wind Farm are currently estimated at ZAR5.5 million.
Astrum Energy and EAB New Energy from Germany approached the NEF Strategic Projects Fund with this project targeting cooperation in one or more projects. The SPF confi rmed to be interested in a Wind Farm development close to the town of Hluhluwe, South Africa.. Some of the reasons why the NEF was excited about Hluhluwe were because of its strategic location, early phase of development, scalability and local communities having offered farms in return for potential equity participation once project is constructed.