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
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...
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 Built Environment unit at the Council for Scientific and Industrial Research (CSIR) has developed a cost-competitive ultrathin concrete pavement surface that, for the upgrading of unpaved roads to paved roads, is more durable than many other pavement alternatives...
The Southern African Large Telescope (SALT), based at Sutherland in the Karoo region in the Northern Cape province, is promising to become an important instrument for research into dark matter. "SALT is shaping up to be very important for answering questions about...
The South African tool, die and mouldmaking (TDM) industry is being revitalised to locally produce the tools, dies, moulds and fixtures required by the manufacturing sector. Local TDM capability is key to enable the manufacturing industry to remain competitive, says...
Misfortune often finds its roots in the smallest of things. Such as a centimetre or two. Or is that in inch? Perhaps a foot? Swedish or Dutch? The French had reason to blush in May as it became apparent that national rail operator SNCF had ordered 2 000 trains that...
The repositioning of the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) and its business processes will ensure improved performance in reaching strategic targets and in providing customer service.