Exxaro and Eskom Partner to Accelerate South Africa’s Low-Carbon Transition

“This collaboration marks a significant step forward in our mission to build a climate-resilient and low-carbon future,” said Ben Magara, CEO of Exxaro Resources.

In a landmark move aligned with South Africa’s climate commitments, Exxaro Resources and Eskom, the country’s largest power utility, have signed a Memorandum of Understanding (MoU) to collaborate on a broad range of strategic projects focused on decarbonisation, environmental stewardship, and social transformation. This partnership aims to align corporate and national efforts with the global climate agenda, especially the targets set under the Paris Agreement, and domestic environmental and energy transition frameworks like the Integrated Resource Plan (IRP).

A Bold Step Towards a Greener Future

According to a joint statement issued by both entities, the MoU, signed on Monday, underscores the urgency and importance of reducing greenhouse gas emissions across all scopes—Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain). The agreement outlines a shared commitment to not only reduce emissions but also invest in innovative technologies that support environmental sustainability and a Just Transition.

“This collaboration marks a significant step forward in our mission to build a climate-resilient and low-carbon future,” said Ben Magara, CEO of Exxaro Resources. “By leveraging our extensive expertise in mining and energy, we aim to drive meaningful innovation that supports decarbonisation, while also uplifting the communities we serve through skills development, job creation, and stakeholder engagement.”

Eskom’s Research Arm Takes the Lead

The initiative will be spearheaded by Eskom’s Research, Testing & Development (RT&D) division, a unit dedicated to exploring and implementing emerging technologies. RT&D will guide the implementation of this partnership with a focus on emissions management, efficiency improvements, and GHG abatement.

“We remain committed to balancing South Africa’s energy security with sustainability,” said Dan Marokane, Eskom’s Group Chief Executive. “This MoU is part of a broader strategy to integrate low-emission technologies and diversify our energy mix to include renewables, nuclear, gas, and storage solutions. We are focused on identifying global best practices that can be tailored to our unique challenges.”

Key Areas of Collaboration

The MoU includes several strategic focus areas that will shape the joint initiatives between the two organisations:

• Measurement, management, and reduction of carbon emissions across Scopes 1, 2, and 3

• Investment in cutting-edge technologies for decarbonisation, such as renewable energy systems, carbon capture and storage, and digital emissions tracking tools

• Inclusive Just Transition projects, focusing on green job creation, upskilling of workers, and support for affected communities

• Stakeholder engagement to foster transparent dialogue on climate issues and socio-economic development

• Data sharing and transparent reporting, ensuring accountability and continual progress evaluation

These efforts will directly contribute to national policies aimed at climate adaptation and mitigation, particularly as South Africa seeks to strengthen energy security and meet its emissions reduction targets.

Powering Better Lives—Sustainably

Exxaro’s commitment to sustainable growth is evident in its long-term strategy, which places Environmental, Social, and Governance (ESG) at the heart of its operations. The company is actively working toward becoming carbon-neutral by 2050, a goal that will be significantly bolstered by its partnership with Eskom.

As a diversified resources company, Exxaro is expanding beyond its coal-based roots into new minerals and energy ventures, aiming to align its business model with the green economy. The MoU will initially focus on identifying necessary investments and partners to co-develop viable technology solutions that can be scaled nationally and potentially beyond.

Building the Foundation for a Just Transition

Both Exxaro and Eskom recognize that a successful energy transition must also be socially inclusive. The partnership therefore places heavy emphasis on Just Transition principles, ensuring that workers and communities dependent on coal are not left behind. Initiatives will include reskilling programs, support for local economic diversification, and inclusive policy-making.

“This is not just about reducing emissions; it’s about empowering people and building climate resilience in a way that aligns with our purpose—Powering Better Lives in Africa and beyond,” Magara added.

Looking Ahead

As South Africa navigates its transition to a cleaner energy future, partnerships like this set a precedent for cross-sector collaboration. By combining Exxaro’s industrial capabilities with Eskom’s energy infrastructure and research capacity, the collaboration aims to unlock scalable solutions that contribute to national and global climate goals.

With implementation plans already in motion, the coming months will likely see the rollout of pilot projects, stakeholder workshops, and joint research programs. Both companies are confident that this partnership represents a turning point in South Africa’s journey toward sustainable development.