LONDON – African energy firm Chariot Ltd (AIM: CHAR) said on Tuesday it has signed a Memorandum of Understanding (MoU) with Saudi Arabia’s ACWA Power to explore creating a sustainable energy business focused on southern Africa.
The partnership will aim to develop, own and operate a portfolio of transitional power assets, including renewable energy, battery storage and gas-to-power projects. The generated electricity will be sold to national grids, corporate customers and energy traders.
Initial target countries for the joint venture include South Africa, Botswana, Namibia, Mozambique, Zambia and Tanzania, Chariot said in a statement.
The collaboration is designed to leverage the technical, operational and financing expertise of both companies to unlock investment opportunities and build a portfolio of scalable energy projects in the region.
“We see significant potential in combining our respective strengths to build a meaningful and impactful energy business across southern Africa,” said Chariot CEO Adonis Pouroulis.
ACWA Power, a global leader in renewables and green hydrogen, brings a massive renewable footprint to the partnership. The company, listed on the Saudi Exchange, has a portfolio of 108 assets representing an investment value of $114.6 billion.
Pouroulis also noted that the partnership could form a key part of Chariot’s future power generation platform as the company advances plans to split its upstream oil and gas and renewable power businesses into two distinct entities.
With initial principles agreed, both parties are now working to conclude binding agreements. Chariot cautioned that there is no certainty the MoU will lead to a definitive agreement but said good progress is being made.