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  8. Powering green steel: Coega Steels financed by Fedgroup Private Capital
Announcements

Powering green steel: Coega Steels financed by Fedgroup Private Capital

By Fedgroup

May 27, 2026

news3 min
Powering green steel: Coega Steels financed by Fedgroup Private Capital

Fedgroup has closed a R51.8 million private capital deal with Coega Steels, funding 75% of a 7.1 MWp solar PV installation through an Instalment Sale Agreement. With Coega Steels contributing a 25% deposit of R17.3 million, the deal reflects a practical funding structure built around a real operating asset and a business with clear energy needs.

Delivered in partnership with Emergent Energy, the installation combines rooftop and ground-mounted solar across the Coega Steels site in the Coega IDZ. Once fully live, the system is expected to generate about 9.3 GWh in year one, using 11 420 panels across multiple installation areas. For a manufacturer operating around the clock, that is not a decorative sustainability line in a deck. It is a material shift towards lower-cost, more resilient energy. 
 
Coega Steels operates in an environment where energy reliability and cost control are business-critical. This installation helps reduce reliance on grid electricity while supporting the company’s move towards greener steel production. It also gives the business access to solar generation at a scale that matches the reality of its operations, rather than treating industrial demand like it can be solved with a handful of panels and a hopeful headline. 
 
The system includes a 2.5 MWp installation on the new building, a 1.4 MWp installation on the existing building, and a 3.2 MWp ground-mounted component. Together, these are expected to deliver first-year electricity savings of roughly R19.2 million. That makes the environmental case compelling, but it also makes the commercial case difficult to ignore, which is usually where the real conversation starts. 
 
For Fedgroup, the deal is another example of private capital being used where it can do tangible work in the real economy. For Coega Steels, it is a large-scale renewable energy installation designed to support industrial growth, energy resilience and a more sustainable production model. In other words, this is not capital sitting politely on the sidelines. It is capital with its sleeves rolled up. 

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