Tronox Inks Long-Term Power Purchase Deal With NOA

Tronox Holdings plc TROX has entered into a long-term power purchase agreement with NOA Group ("NOA"), an integrated energy utility, for roughly 497GWh of total contracted energy. NOA's plants with capacity in excess of 200MW of renewable wind and solar power will serve Tronox's mines and smelters in the Republic of South Africa through fixed and flexible arrangements. The project is expected to be fully implemented by the end of 2027, reducing Tronox's total Scope 1 and 2 greenhouse gas emissions by an additional 12% globally.
The announcement is another testimony of Tronox's ongoing projects and investments aimed at achieving its publicly stated objective of net zero greenhouse gas emissions by 2050. This arrangement is in addition to the 200MW solar power agreement announced in 2022 with SOLA Group ("SOLA"), which was implemented as of April 2024 and is already delivering power to Tronox's operations as well as significant employment and other economic advantages to the surrounding community.
Following the completion of the most recent project, renewable energy will provide about 70% of Tronox's South African electricity needs, while in-country emissions will be reduced by 54%. Tronox is executing renewable energy projects in various countries to advance its decarbonization agenda, including South Africa.
With an innovative solution that combines solar and wind power generation to optimize the penetration of renewable energy, NOA stated that it is honored to collaborate with Tronox in achieving its long-term decarbonization objective.
Tronox's solar and wind renewable energy agreements with SOLA and NOA will lower the company's global Scope 1 and 2 greenhouse gas emissions by 25% compared to the 2019 baseline, a significant step forward on its decarbonization roadmap to net zero carbon emissions.
Shares of Tronox have gained 60.6% over the past year against a 3.4% decline of its industry.

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Zacks Rank & Key Picks

Tronox currently carries a Zacks Rank #3 (Hold).
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