Kingdom Mugadza helps explain why Tirisano Partners are deciding to withdraw from coal.
JOHANNESBURG, SOUTH AFRICA, May 31, 2019 /24-7PressRelease/ — Tirisano Partners, an African investment and advisory firm, with a known reputation of expertise in various sectors particularly infrastructure, real estate, mining, and energy, has withdrawn its advisory practice on coal, as stated by Kingdom Mugadza and according to a recent announcement.
Kingdom Mugadza, a managing partner of Tirisano Partners for the past six years, emphasized that there is still space and high demand for coal base load, but alternative sources of energy should be explored.
Significant contributors to air pollution such as fossil fuels and coal have claimed 7 million lives annually, according to WHO. In 2014, approximately 91% of the global population lived in places that have poor air quality. Coal plants contribute to releasing harmful substances in the air such as mercury, sulfur dioxide, and nitrogen dioxide posing as both a health and environmental risk.
With the world’s increasing awareness of climate change, this decision will be highly beneficial to help reduce the earth’s carbon footprint and decrease the incidence of deaths related to air pollution. Lesser carbon emissions diminish the risk of diseases such as heart disease, chronic obstructive pulmonary disease, and lung cancer. Chronic obstructive pulmonary disease, a common lung disease, can be worsened by air pollution.
As coal is one of the precipitating factors for global warming, the future generations will experience the advantage of lesser carbon emissions as companies drop their advisory practice on fuel, including Tirisano Partners’ recent directive.
Tirisano was established in 2011 and maintained a good track record of employment with other companies. The company also specializes in corporate advisory services, especially impact projects. Tirisano Partners’ past projects include Investron, Fiesta Royale Hotel, Mwiza Corporate Lodge, Botswana Power Corporation, and Junior Contract Miners.
Tirasano served as an advisor to Marubeni, a Japanese general trading company. Marubeni headed the Thabametsi coal-fired power station in South Africa.
However, the Japanese energy conglomerate announced a new policy regarding the resolution to gradually halt the construction of coal power plants worldwide last September 2018. A spokeswoman from the company said that Marubeni will transfer assets and will no longer renew contracts.
The decision was made to prevent the progression of climate change and promote the company’s status as a renewable energy company. The Thabametsi coal-fired power station will still retain its operation despite the new policy decision.
After halting its coal investments, Marubeni reallocated its employees to renewables development. Aside from planning to sell its stake to a Chinese consortium, Marubeni already sold a portion of its assets to a U.S. based oil developer for an undisclosed amount. This was done to diversify its list of assets to strengthen the company financially. Marubeni’s transition was a little smooth due to their extensive portfolio of both coal and renewable energy sources. Marubeni’s objective is to divide stakes in coal power facilities and increase the ratio of power created by renewable energy by 2030.
Kingdom Mugadza said that Tirisano Partner’s future should focus on developing energy alternatives with lesser carbon emissions.
Examples of renewable energy sources include solar, geothermal, wind, and hydropower. These alternate sources of energy won’t run out as they are easily attainable in the environment. A lot of companies have already followed suit by shifting to renewable energy. Although renewable energy still holds a significant challenge due to high cost, storage issues, and geographical limitations, it still has more advantage than drawbacks.
Kingdom Mugadza previously served as the strategies fund portfolio supervisor for Old Mutual’s Infrastructure, Environmental Property, and Growth. The project focused on enhancing the Beitbridge Border. Mugadza also spearheaded Tirisano’s several advisories of the development of over 1,000 MW in green energy development in Africa.
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