Aug 21, 2012
Australian power firm mulls SA unit listing as it raises stakeBack
Engineering|Expertise|Johannesburg|London|Melbourne|AAP Carbon Holdings|Africa|ArcelorMittal South Africa|Engines|Gas|Hernic Ferrochrome|Industrial|Mogale Alloys|Projects|Tata Steel|Wasabi Energy|Africa|Australia|South Africa|Turkey|MW Power Plant|Energy|Mining|Power Generation|Power Producer|Power-generation|Services|Steel|Alex Berger|Diane Bettess|Power
© Reuse this
No value was attributed to the all-share acquisition of AAP Carbon, at its unveiling in mid-August. But the deal has increased Wasabi’s domestic capacity and enabled the two entities to consolidate their respective pipeline of projects.
These projects are located primarily within South Africa’s metals and minerals sector and are being pursued together with companies such as ArcelorMittal South Africa, Hernic Ferrochrome, Mogale Alloys and Tata Steel.
The consolidated portfolio also includes AAP Carbon’s flagship 20 MW power plant at International Ferro Metals, which is in the final stages of being registered under the Clean Development Mechanism of the Kyoto Protocol.
Bettess, who is a geologist by training and who has held various senior positions at Australian engineering and mining services companies, has joined AAP Carbon as an executive director – AAP Carbon’s Alex Berger is leading the enlarged entity.
She says the African unit, if a listing is sought, is likely to be dual listed in London and Johannesburg. But she stresses that the pace at which projects are advanced and market sentiment will dictate the timing.
“In order to build these plants, whether we do it through a debt/equity combination or through straight equity, we are going to require additional equity to build the business,” Bettess explains, adding that a listing would be among the options explored.
The domestic market for on-site chemical and thermal energy conversion, involving plants ranging in size from 5 MW to 30 MW, is considered to be material. It is being spurred by rising electricity prices and a desire by industrial companies to improve the energy efficiency of their operations.
AAP Carbon has developed particular expertise in configuring GE Jenbacher gas engines to capture off-gases to generate power. Wasabi, which is domiciled in Melbourne, Australia, is the proprietor of the Kalina Cycle – an efficient way of turning low- to mid-temperature heat to power. The Kalina Cycle can add a further 10% to 20% of capacity by capturing exhaust gases emerging during the power generation process.
There is a growing appetite in South Africa industry for the combination of chemical and thermal energy conversion and Bettess says she has found South African business people, as well as the regulatory authorities to be “strongly supportive” of such endeavours.
“We believe that there is going to be a strong pipeline of opportunities in the coming years,” she concludes.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 1 hour 28 minutes ago Reiterating that the target date for synchronisation of the first unit at the 4 764 MW coal-fired Medupi power station remained December, Eskom senior general manager Andrew Etzinger has further updated the market on the plant’s progress, saying on Thursday that...
Updated 2 hours 46 minutes ago While energy utility Eskom’s build programme continues at pace – with the first unit (Unit 6) of the long-awaited coal-fired Medupi power station to finally be synchronised to the grid in December – Eskom senior general manager Andrew Etzinger believes this...
Updated 4 hours ago Three Chinese firms led by Shanghai Electric Group are considering setting up a coal mine and a 1 200 MW thermal power station in western Zimbabwe, company officials said. Industries and households in the southern African country have endured electricity cuts for...
Updated 3 minutes ago South Africa's Reserve Bank left interest rates unchanged at 5.75% as expected on Thursday, saying the domestic growth outlook had deteriorated further. "Despite the 75 basis point increase so far this year, monetary policy remains accommodative, and will continue to...
Updated 25 minutes ago National government was committed to supporting all struggling municipalities to become functional and efficient, President Jacob Zuma said on Thursday, opening the 2014 Presidential Local Government Summit (PLGS), in Midrand. Also speaking at the PLGS, Cooperative...
Updated 53 minutes ago Uganda is hoping to secure an $8-billion loan from China to build a railway network to revamp the country's transport infrastructure as it prepares to start oil production. As in other areas of Sub-Saharan Africa, China has become a major investor in Uganda. It has...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse. Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm Fischer Consortium the contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...