Hwange partner commits $7m to new power plant

26 Jul, 2016 - 00:07 0 Views
Hwange partner commits  $7m to new power plant

The Herald

Business Reporter

HWANGE Colliery Company‘s says its partner, Co-Ash Resources (CAR), has committed $7 million towards the pilot stage of its authorised 1 000 megawatt coal waste fired power plant. “Co Ash provided a letter of confirmation of $7 million capex funding. The pilot project of a 20MW power plant was meant to have commenced in December 2015,” Hwange said.However, the coal mining giant said the revised start date for the project was later shifted to the first quarter of this year to allow for completion of the EIA study.

Hwange and CAR have also completed a feasibility study with Group Five, Hatch, GE and Alter NRG on a $6 million upfront investment to confirm the technical and base framework for the implementation of a 250MW integrated plasma gasification combined cycle (IPGCC) first IPP licensed unit on 1 000MW IPP licence in Zimbabwe.

The coal waste fired power plant will be developed to the authorised licence level of 1 000MW over a 10-year period and seeks to address the power deficit within SADC.

“Grid impact studies have been completed for the 375 kilometre Hwange Insukamini evacuation line for regional connection. CAR has started work on 1 x 20MW CBM pilot plant and 1 x 25MW advanced coal fines carbonification plant,” CAR said.

Co-Ash says it has positioned itself firmly as the leading IPP private solutions provider for electricity supply capacity building, as part of Zim-Asset and southern Africa Power Pool independent power producer’s SADC governmental mandate.

Its core activity is power generation using syngas as primary energy source and participation in transmission networks strengthening to facilitate energy exchange between power utilities.

Co-Ash Resources is the project developer in partnership with Hwange Colliery Company, Transmission Grid EPC partner Grupo ACS, technical preferred partners GE, Westinghouse Plasma Corporation, Hatch-Goba, Emprotec and Group Five.

Africa needs smarter technologies to bridge the emerging market gaps faster and catch up with its needs that supersede those of the rest of the world, Co-Ash Resources said.

Gas and induction plasma technologies applied to electricity generation would enormously contribute to start this accelerated development and alleviate electricity supply shortage in a short period and at relatively low capital investment.

As such, CAR said it has agreed with Hwange Colliery and Discovery Investments to utilise coal bed/mine methane and coal fines and other hazardous waste streams to provide a cocktail of gas resource-based business opportunities authorised on Zimbabwe’s current licensing legislative framework at Hwange Colliery.

Zimbabwe, which faces serious

power shortage like many other SADC countries, requires 1 400MW at peak periods of demand, but is only able to generate about 1 000MW.

This capacity has been further constrained by limited rainfall this year, resulting in limited generation at the 750MW Kariba South hydro power plant, situated on the Zambezi River.

Water consumption has been revised downward to avoid depleting Lake Kariba, which is also located on Zambezi River and also used by Zambia for power generation.

Government is undertaking several projects, including Kariba South power plant and Hwange power station capacity extensions to ameliorate the power deficit in the country.

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