Xina Solar One (Pty) Ltd

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The project consists of the construction and operation of a 100 MW greenfield concentrating solar power (“CSP”) project near the town of Pofadder, in South Africa’s Northern Cape Province (“Xina CSP,” or the “Project”). The Project is being developed by Abengoa Solar S.A. through its affiliate Xina CSP South Africa Proprietary Limited (“Xina Ltd”) and in partnership with the Industrial Development Corporation (“IDC”), the GEPF Renewable Energy Investment 1 Proprietary Limited (or “GEPF,” a vehicle incorporated by the Government Employees Pension Fund and represented by the Public Investment Corporation (“PIC”)) and the Broad Based Black Economic Empowerment Trust (“BBBEE”). Abengoa Solar’s parent company, Abengoa S.A. (“Abengoa”) is a leading developer of renewable energy projects. CSP is a term used to describe a variety of technologies by which solar energy is concentrated onto a receiver to heat steam for use in industrial or electricity generation applications. The Phase 1 projects currently being developed in the Northern Cape Province consists of one 100 MW plant “!KaXu Solar One”, situated in Pofadder (adjacent to the site of Xina CSP) and one 50 MW plant “!Khi Solar One”, situated in Upington.!KaXu Solar One will utilize parabolic trough (“PT”) CSP technology. PT technology involves a field of pivoting concave mirrors tracking the sun, and concentrating the reflected sunlight onto a closed circuit network of piping that contains synthetic oil. The heated oil cycles through a generator creating steam to drive a turbine. The electricity generated is transmitted through a high voltage substation for dispatch to the grid. The plant design includes a molten salt thermal energy storage (“TES”) system that allows for extended electricity generation of up to 2.5 hours for controlled dispatch during cloud cover or to meet evening electricity demand. !Khi Solar One” will employ slightly different technology known as solar power tower technology. The tower technology captures solar radiation in a field of dual axis mirrors that track the sun, and concentrate the reflected sunlight onto receivers (steam generators) located on top of a single 200m tower. Superheated steam is piped to a 50 MW net capacity turbine that generates electricity, which is transmitted through a high voltage substation and dispatched to the grid. The plant design includes a high pressure steam storage system, which like the molten salt TES of the !KaXu plant, allows for controlled dispatch during cloud cover or to meet evening electricity demand._x000B_The Phase 2 100 MW plant (“XiNa CSP”, or “The Project”), like !KaXu Solar One will utilize parabolic trough (“PT”) CSP technology. The electricity generated will be transmitted through a high voltage substation for dispatch to the grid. The XiNa CSP plant design includes a molten salt thermal energy storage (“TES”) system that allows for extended electricity generation of up to 5 hours after sunset._x000B_The shareholders of Xina CSP will be Xina Ltd, a wholly owned subsidiary of Abengoa Solar S.A (holding 40%), IDC (holding 20%), GEPF (holding 20%) and BBBEE trust (holding 20%). Each of the shareholders is referred to below as the “Company” and together as the “Companies”)._x000B_The actual footprint of the XiNa CSP plant covers 490 ha. Infrastructure components include: a solar field equipped with mirrors; a power island/tower housing a steam generator, steam turbine, power generator, transformer, auxiliary boilers and associated equipment (including thermal storage); an overhead power line feeding to an on-grid substation; a water abstraction point, supply pipeline and reservoirs to provide water for steam generation and mirror cleaning and storage of blow down water; and access roads and service buildings.