Gas-to-power station for Coega IDZ

2016-10-12 06:00

  • THE Department of Energy (DoE) has

With 1 000 MW of the programme allocated to Coega, the investment into Nelson Mandela Bay is expected to total R25-billion, according to the Coega Development Corporation.

It will also create direct and indirect job opportunities.

Richards Bay is the second selected site with a proposed generational capacity of 2 000 MW.

“This project will allow the Coega IDZ to become a diverse energy user, in conjunction with building the local energy sector,” said Sandisiwe Ncemane, CDC Business Development Manager - Energy Projects.

“The project will also serve as a significant source of socio-economic growth,” said Ncemane. Ncemane added that the CDC has proved its readiness for gas-to-power and has established itself as the ideal location for both renewable and conventional energy.

The CDC conducted a Pre-Feasibility Study under the guidance of the DoE which confirmed suitability and viability (strategic, technical, financial, regulatory, legal and commercial) of a gas-to-power station to be located at the Coega IDZ.

The Coega IDZ, consisting of 14 zones with a total of 11 500 hectares, is already home to the 342 MW DEDISA Peaking Power Plant (PPP), designed for conversion to gas. The DEDISA PPP became operational in 2015 after its construction was completed in record time.

The Nelson Mandela Bay Business Chamber said in a media statement that it welcomed the announcement, and in particular the job creation possibilities that will be associated with a megaproject of this nature, as well as the energy security that a gas-to-power project will bring for the region.

“In order to grow the economy for the people of Nelson Mandela Bay we need alternative sources of energy to counter the burden of above inflation electricity prices and ensure security of supply to the broad representation of manufacturers and businesses in the region that necessitate electricity at a globally competitive price,” the statement read.

The Chamber said the Eastern Cape has the potential to host a basket of strategic energy projects securing the future energy supply of the region.

“Not only will converting more gas to electricity at Coega relieve pressure on the country’s electricity grid, but having gas as an additional utility in the mix, would make industry more cost competitive and therefore boost investor confidence in the region,” the statement read.

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