http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: -0.03
R/$ = 10.68Change: -0.07
Au 1295.46 $/ozChange: -0.59
Pt 1439.50 $/ozChange: 1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 21, 2012

Australian power firm mulls SA unit listing as it raises stake

Back
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
Engineering|Expertise||Africa|Engines|Gas|Industrial|Projects||Africa|||Energy|Mining|Power Generation|Power-generation|Services|Steel|Power
engineering|expertise|johannesburg|london|melbourne|aap-carbon-holdings|africa-company|arcelormittal-south-africa|engines|gas-company|hernic-ferrochrome|industrial|mogale-alloys|projects|tata-steel|wasabi-energy|africa|australia-country|south-africa|turkey|mw-power-plant|energy|mining|power-generation|power-producer|power-generation-industry-term|services|steel|alex-berger|diane-bettess|power
© Reuse this



The decision by independent power company Wasabi Energy, which is listed in both Australia and London, to raise its shareholding in South African energy company AAP Carbon Holdings to 62.5%, from 25%, could be the precursor to an equity raising or listing of an independent power producer (IPP) in the coming 12 months.

Wasabi COO Diane Bettess tells Engineering News Online that the South African and sub-Saharan African markets, along with Turkey, are receiving priority attention from the company, which has projects in either operation or development involving more than 50 MW of new power capacity.

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
Five City Power employees have been arrested for allegedly stealing drums of cable worth R4.5-million from the Randburg depot in Johannesburg, the power utility said on Tuesday. The three electricians and two team leaders were arrested on Friday and charged with...
JSE-listed Altron subsidiary Powertech Transformers, in collaboration with State-owned power utility Eskom and the Department of Science and Technology, through the Council for Scientific and Industrial Research’s Technology Localisation Implementation Unit (TLIU),...
Mandela Institute for Development Studies founder and director Dr Nkosana Moyo has urged African governments and the private sector to embrace a different “architecture” for economic integration, arguing that the current all-inclusive model had all but...
Article contains comments
More
 
 
Latest News
Western Cape Minister of Economic Opportunities Alan Winde
The Western Cape Department of Agriculture on Tuesday launched a dedicated research fund, with an allocation of R3-million for the current financial year, aimed at boosting exports and bolstering land reform in relation to the province’s alternative crops....
Metropolitans have consistently underspent their public transport infrastructure grants nearly every year since 2010, Transport Minister Dipuo Peters has revealed in a Parliamentary reply. The Department of Transport’s (DoT’s) effort to roll-out quality public...
Simon Freemantle
A new report by a leading South African banking group confirms that the middle class has expanded materially in 11 key sub-Saharan African countries over the past 14 years to around 15-million households, from less than 5-million in 2000. But it also cautions that by...
More
 
 
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...
HENK SNYMAN TDM supports broader industrial activity that has a multiplier-effect on the potential to beneficiate raw materials in many industries
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.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks