Name and Location
Ngodwana biomass-to-power project, Mpumalanga, South Africa.
Client
Sappi will hold 30% of the development that is being pursued in partnership with KC Africa (30%), which is owned by KC Green Holdings, of South Korea, and Fusion Energy (30%), part of black- and women-owned Johannesburg investment holding company Fusion Global.
Project Description
The project involves the construction of a 25 MW biomass-to-power plant at Sappi’s Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The project is the only biomass project chosen during the fourth REIPPPP bid window, which closed in August 2014.
The biomass will be supplied from Sappi’s plantations and from the Ngodwana mill.
The plant will use standard technology – a boiler that generates steam and is passed through a steam turbine generator – to produce baseload electricity that will be fed into the national grid.
The operation is expected to produce 200 000 MWh/y, representing 90% availability, which compares favourably to other renewables sources, which typically have capacity factors of between 30% and 40%.
Value
The value of the project has not been disclosed. Financial close is not expected before July 31, 2015, following which construction will begin.
Duration
Sappi expects the plant to be operational in 2018.
Latest Developments
ELB Engineering Services has been appointed the engineering, procurement and construction (EPC) contractor.
Key Contracts and Suppliers
ELB Engineering Services (EPC).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Sappi group head: corporate affairs André F Oberholzer, tel +27 11 407 8044 or email Andre.oberholzer@sappi.com.
ELB Engineering Services, tel +27 11 772 1400 or fax +27 11 325 6680. 