Agriculture 20 Aug 2024

Standard Bank gives Dungay Trust a financial energy boost for sustainable farming

Standard Bank partners with Dungay Trust to implement a solar energy solution, driving sustainable farming and a greener future

The context

Dungay Trust, better known as Sutherland Farms, embodies the spirit of sustainable agriculture in the heart of KwaZulu-Natal.

This diversified farming operation cultivates 620 hectares of sugarcane and 90 hectares of macadamia nuts using efficient drip irrigation techniques.

Their commitment to sustainability extends beyond traditional crops, encompassing a thriving forestry division dedicated to growing eucalyptus trees for cellulose pulp.

The challenge

Dungay Trust, despite its commitment to sustainable farming practices, found themselves at a crossroads. The increasing importance of international sustainability standards, particularly the EU Carbon Border Adjustment Mechanism (CBAM), posed a significant challenge to their export-orientated business.

Their reliance on coal-based energy resulted in a high carbon footprint, jeopardising crucial offtake agreements with international buyers and risking the loss of important contracts to sell their products in other countries. Furthermore, the operational strain of an unstable electricity grid and the high cost of traditional generators compounded their difficulties. It was clear that a shift towards a more sustainable and reliable energy solution was crucial for Dungay Trust to maintain its competitive edge and commitment to responsible farming.

The solution

Recognising these pressing challenges, we were proud to partner with Dungay Trust in financing a tailored renewable energy solution.

Working alongside SBS Energy, a trusted supplier in our network, we facilitated the installation of a 100kWp solar PV system coupled with a 260kWh lithium-ion battery. This robust system was designed not only to significantly reduce their carbon footprint, comply with international standards, making them more attractive to international buyers, but also to provide a more reliable energy source and reduce their overall operational costs.

“With a longstanding relationship with Standard Bank, finding a solution for Dungay Trust was a straightforward process,” says Bruce Polkinghorne from SBS Energy.

The outcome

The results of this collaborative effort have been nothing short of remarkable. Our conservative projections indicate that the solar installation will save Dungay Trust approximately R 4.9 million over the next decade, not even factoring in the substantial tax benefits they are eligible for.

Since the system's implementation, their reliance on costly and polluting generator fuel has been slashed by an impressive 90%. This dramatic reduction in their carbon footprint has not only strengthened their position in the international market but also solidified their commitment to environmentally responsible farming practices.

The success of this project has resonated throughout the region, with neighbouring farms now looking to Dungay Trust as a shining example of sustainable agriculture in action. We are incredibly proud to have played a role in this transformative journey.

Polkinghorne concludes, “Standard Bank did exactly what was required, unlocking the funding and trusting SBS Energy to complete the job effectively.”