SolGold PLC has signed a Memorandum of Understanding (MOU) with Grupo Empresarial Semaica (Semaica Business Group), Enerhydra, and Constructora Nacional S.A for the development of a hydro-solar initiative to power SolGold's flagship Cascabel Project in Northern Ecuador.
The MOU outlines the shared objectives and responsibilities of each party towards the development of a sustainable power project that will deliver approximately 200MW of clean, renewable energy to the Cascabel site. Key considerations within the agreement include a potential Power Purchase Agreement (PPA), financing arrangements, construction responsibilities, technical aspects, project operation, and the ultimate end-user of generated energy.
SolGold's role in the partnership will focus on leveraging its position as an end-user to qualify for discounted power rates upon project completion. Moreover, the company is committed to supporting its partners in fundraising efforts. Environmental stewardship and sustainable economic development are central to all terms of the agreement.
Scott Caldwell, CEO and President of SolGold Ecuador, expressed his enthusiasm for the initiative, highlighting the potential for Cascabel to become one of the world's largest copper-gold mines with a carbon-neutral footprint.
"Cascabel is already a remarkable project, but the prospect of harnessing clean hydroelectric and solar energy elevates its potential even further. When we speak of world-class mines, it is about more than tonnes of ore; it is about the impact and legacy of the project locally and globally,” Caldwell said. “This endeavour could position Cascabel as one of the world's largest copper-gold mines aiming to achieve a carbon-neutral footprint. By embracing green energy to extract copper, we are actively contributing to the green revolution and leading the way for others to do the same. I am delighted to formalize this MOU with Semaica Business Group, Enerhydra, and Constructora Nacional, esteemed innovators and leaders in their fields."
Financing for the Project is expected to be secured through various sources, including international financial institutions specializing in sustainable energy investments. The utilization of hydroelectric and solar power sources is anticipated to provide significant cost savings over traditional energy sources, ensuring long-term operational efficiency and sustainability.
The initiative is poised to have a positive impact on local communities surrounding Cascabel, through job creation, skill development, and infrastructure improvements.
Ing. Mauricio Martinez Fernández, President of Semaica Business Group, commented: "We are thrilled to embark on this partnership with SolGold. The world's demand for copper is ever-growing, and Ecuador requires increased energy capacity. Semaica is honoured to address these global and local needs by collaborating on one of Ecuador's largest private energy initiatives. We are dedicated to advancing this Project sustainably in cooperation with all stakeholders involved."
“This MOU marks an auspicious beginning for what we envision as a world-class renewable energy project in Ecuador,” added Bénard Torres, CEO of Enerhydra. “With our engineers' extensive experience in hydro projects across the Americas, this initiative holds immense promise for Ecuador's energy security, supporting its economic and social development goals."
"The proposed energy solution presents an exceptional opportunity for all collaborating entities and carries profound significance for Ecuador's energy landscape,” said Constructora Nacional Executive President José Rafael Armijos. “The integration of clean hydro and solar energy holds the promise of substantial benefits for local communities and the environment."
The project will adhere to stringent regulatory standards and environmental safeguards throughout every development phase, the companies said. Stakeholder engagement will be prioritized, involving local communities, government agencies, and environmental organizations in the project's planning and implementation to build trust and create shared value for all involved parties.
