Scatec enters into agreement with Torex Gold in Mexico

Release by Scatec, the company’s flexible solution for pre-assembled and containerised solar PV delivering a low cost, clean, and reliable power solution.

22 April 2021: Renewable power producer Scatec has entered into a lease agreement with mining company Torex Gold for a 8.5MW solar plant to provide renewable power to the Morelos Media Luna and El Limon Guajes projects in the Guerrero Gold belt 180km southwest of Mexico City.

“We are pleased to have entered into this agreement with Torex Gold. The agreement is a landmark deal for Release by Scatec, our flexible solution for pre-assembled and containerised solar PV delivering a low cost, clean, and reliable power solution”, says Hans Olav Kvalvaag, SVP Release at Scatec.

The initial contract term is ten years with the possibility of extension and options for buy-out starting after the expiry of year three. The solar plant can at any time be expanded, including adding battery storage to further increase the use of renewable energy. It can also be moved to a new location if needed. The new solar plant is estimated to be completed in fourth quarter 2021 subject to permitting approvals.

“The agreement is an important milestone for us in delivering reliable and renewable power to the mining industry. We have had a good cooperation with Torex in designing the solution to adapt to challenging topography. The Release model is designed to provide flexibility both with regards to contract term and capacity, and thus has great potential in mining”, adds Kvalvaag.

The new plant is expected to reduce Torex’ Scope 2 greenhouse emissions by up to 8.6% using 2019 as the baseline year and is Torex’ first major foray into renewable energy at its operations.

“As is often the case with innovative and sustainable solutions, in addition to the environmental benefits the solar plant will provide, there will also be economic upside and benefits to the local communities. Factoring in the installed cost of the plant together with the ongoing lease fee, we expect to save approximately USD1- million per year in energy costs over a 20-year lease period, with full payback of the solar plant realised within approximately seven years”, says Jody Kuzenko, President and CEO of Torex.

Scatec develops, builds, owns, and operates solar, wind and hydro power plants and storage solutions. In the first half of 2021, Scatec will have a total of 3.3GW in operation on four continents and more than 500 employees. The company is targeting 15GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more about Release by Scatec, visit www.releasesolar.com.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180km southwest of Mexico City.  The company’s principal assets are the El Limón Guajes mining complex comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep and the processing plant and related infrastructure, which commenced commercial production on 1 April 2016, and the Media Luna deposit, which is an advanced stage development project.

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