Sable cuts power consumption by 75pc

Martin Kadzere Senior Business Reporter
SABLE Chemicals, the country’s sole ammonia producer has reduced power consumption by 75 percent after closing its electrolysis plant, chief executive Mr Jack Murehwa said.

This was after Zesa Holdings, Sable and Government reached an agreement to take off the factory from the national grid. The company’s operations now requires 10MW from 40MW.

While the electrolysis is regarded as one of the best way to produce ammonia, its downside is that the technology is power intensive and has become unsustainable in a country faced with power shortages.

Zimbabwe, where six in 10 people have no access to electricity, is experiencing severe load- shedding worsened by low water levels at Kariba Hydro Power Station and recurrent breakdowns at Hwange Thermal Power Station.

Already, Government has asked mining companies to cut power consumption by 25 percent to mitigate the rolling power cuts. The use of geysers will also be outlawed.

Mr Murehwa said after discontinuance of the electrolysis factory, Sable has introduced a new business model, based on total importation of ammonia used in production of AN fertiliser.

The adopted business model is the same, which the company used since its establishment in 1969 through 1972 when the electrolysis plant was commissioned.

“Based on this model, production at Sable is going to ensure that there is enough AN in the country into the future,” said Mr Murehwa during a familiarisation tour of the plant last Friday.

“Production is going to increase as additional funding is channelled towards the purchasing of more tank cars thereby increasing the total volume of AN that can be produced at Sable.”

The company has already secured $24 million for purchasing more tank cars.

Sable has 82 tank cars and plans to increase the fleet to 94 by mid-2016 to improve availability if ammonia. As production increases, a further price reduction will be effected,

The company, with installed annual capacity of 240 000 tonnes is operating at 35 percent.

“We are slightly down to 35 percent from about 40 percent since we stopped the electrolysis plant, but we are hoping to be around 50-60 percent by 2017,” said Mr Murehwa.

Industry and Commerce Minister Mike Bimha said the new model testifies to the fact that Sable has put the needs of the country first and the outcome will be to fulfil the needs of farmers.

“I am hopeful that your pursuit of the long- term plan to migrate to a technology that manufactures AN using less power intensive methodology of coal bed methane, will be pursued vigorously,” said Minister Bimha.

Sable has already completed feasibility study for the factory and pipeline to carry gas from Lupane to Kwekwe.

About $2,1 billion will be invested to set up gas mines in Lupane, Finance and Economic Development Minister Patrick Chinamasa said when he presented the 2016 Budget.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey