THE CONSORTIUM OF EDF - TOTALENERGIES - SUMITOMO CORPORATION ENTERED INTO JOINT DEVELOPMENT AGREEMENT WITH THE GOVERNEMENT OF MOZAMBIQUE FOR THE 1,500 MW MPHANDA NKUWA HYDROPOWER PROJECT

Paris/Maputo/Tokyo, December 14, 2023 – The consortium of EDF (40%) TotalEnergies (30%) and Sumitomo Corporation (30%) is pleased to announce that it has been selected as strategic partner by the Government of Mozambique. The public and private sponsors entered together into a joint development agreement for the development of the Mphanda Nkuwa hydropower project (MNK). 

Located on the Zambezi River, 60 kilometers downstream from Cahora Bassa and 60 kilometers from Tete City, MNK is currently foreseen as a 1,500 MW run-of-river hydropower project.

EDF, who is acting as Lead Member of the consortium, brings extensive hydropower experience, including in sub-Saharan Africa. EDF will especially make available its reputable technical expertise. TotalEnergies will leverage its know-how in developing large and complex integrated energy projects, especially in Africa.  Sumitomo Corporation will contribute to access to the strategic financing by leveraging its past global experiences of IPP projects including in Sub-Saharan Africa. 

The Consortium will jointly develop MNK with the Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (GMNK), Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB). EDM and HCB will own 30% of the project while the consortium will own 70% of it.

The consortium, EDM and HCB, also entered into a framework agreement with the Ministry of Mineral Resources and Energy (MIREME), paving the way for the future concession agreement.

The MNK project would increase Mozambique’s available electricity production capacity by more than 50% and could power more than 3 million households in Mozambique and the surrounding region, helping to promote economic and social growth in Southern Africa. It would also make a significant contribution to the region’s energy transition by providing reliable, competitive, renewable electricity.

The next development step will consist in performing additional studies, which output will help defining the best options in terms of environmental and social impact while ensuring the technical and financial viability of the project. Supported by the African Development Bank and the World Bank through IFC (International Finance Corporation), the project will implement the highest international standards in environmental, social and governance criteria. In particular, the consortium will follow rigorously the required steps and methodology as well as work closely with all stakeholders prior to project implementation.  

“We are looking forward to contributing to Mphanda Nkuwa project which is a great opportunity to bring our technical expertise in hydropower and our strong environmental and social commitment in favor of local communities and biodiversity. This project will significantly enhance the access to electricity in the region and is fully in line with EDF’s ambition to build a net zero energy future with electricity and innovative solutions that drive economic development.” said Béatrice Buffon EDF Group Senior Executive Vice-President, International Division.

“TotalEnergies is delighted to be able to expand its presence in Mozambique beyond the Mozambique LNG project with a large investment in renewable energy, which will benefit to the people of Mozambique. It is a new example of TotalEnergies’s ability to implement its multi-energy strategy in oil & gas countries to support them in their energy transition”, said Mike Sangster, SVP Africa and Vincent Stoquart, SVP Renewables at TotalEnergies. 

“We are pleased to get involved the Mphanda Nkuwa Hydropower Project. This project will contribute to the increase of access to the electricity around the regions as well as becoming green energy hub in southern African countries. Sumitomo Corporation focuses on achieving carbon neutrality in 2050. In order to achieve the target and contribute to the realization of a sustainable society, Sumitomo Corporation will further endeavor to be part of renewable energy projects.” said Koichi Taniguchi, Corporate Officer, General Manager, Global Power Infrastructure Business Division.

Site location: the Zambezi River

About EDF
As a major player in energy transition, the EDF Group is an integrated energy company active in all businesses: generation, transmission, distribution, energy trading, energy sales and energy services. EDF group is a world leader in low-carbon energy, having developed a diverse production mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support energy transition. EDF’s raison d’être is to build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development. The Group is involved in supplying energy and services to approximately 40.3 million customers (1), of whom 30.3 million in France (2). It generated consolidated sales of €143.5 billion in 2022. 
(1) Customers are counted per delivery site. A customer can have two delivery points: one for electricity and another one for gas. 
(2) Including ÉS (Électricité de Strasbourg) and SEI. 

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, more sustainable, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

About Sumitomo Corporation
Sumitomo Corporation is a leading Fortune 500 global trading and business investment company with 131 locations in 66 countries and regions. The entire Sumitomo Corporation’s group consists of around 900 companies. Sumitomo Corporation conducts commodity transactions in all industries utilizing worldwide networks, provides customers with financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. Our corporate message, “Enriching lives and the world”, was created to encapsulate our vision for sustainability in the next 100 years. Our mission is to grow sustainably alongside society, pursue development for the world, and enable better lives for all.