Nov 11, 2011
Evraz Highveld may move ahead with first cogen plant in 2012Back
Cogeneration|Evraz Highveld|GM|Witbank|South Africa|Cogeneration|Electricity|Electricity Bill|Energy-savings Initiatives|Power Producer|Steel|Steel Facility|Vanadium Producer|Cogeneration|Johan Nel|Malcolm Simpson|Mike Garcia
© Reuse this
CEO Mike Garcia tells Engineering News that the energy-savings initiatives form part of a larger cost-savings drive that aims to shave 15% off the company’s fixed costs by the end of 2012.
A key project currently under review is the possible incremental introduction of cogeneration at the eMalahleni (previously Witbank) steel facility, in Mpumalanga, which could eventually yield up to 200 MW of electricity for own consumption.
A prefeasibility investigation has been completed and the project is poised to move into a full feasibility-study phase, with an investment decision likely during 2012.
Deputy COO Johan Nel says the company is likely to introduce the power capacity in 40 MW increments, beginning with the easiest and lowest-cost options first.
A preferred implementation model is yet to be decided, but Nel indicates that it is likely to contract with an independent power producer to build and operate the facilities, with Evraz Highveld providing the offgases and an offtake agreement.
With South African power prices rising at a rate of 25% a year between 2010 and 2013 and with prospects of yet more increases thereafter, Garcia says the economics of cogeneration are becoming increasingly appealing.
Further, project GM Malcolm Simpson says there could be the added benefit of reducing the mill’s carbon footprint, which is relatively high owing mainly to the unique steel- and vanadium-making process deployed.
The plant, which has signed up to the Carbon Disclosure Project, currently produces about eight tons of carbon dioxide for every ton of steel produced, which compares unfavourably with an industry norm of around three tons.
However, Simpson is convinced that its various energy efficiency initiatives could bring the mill within industry norms over the coming ten years.
Besides emissions, the group also aims to “aggressively” accelerate a number of other environmental remediation programmes, from water to its waste depositions, to ensure full compliance with South Africa’s increasingly stringent environmental regulations.
Garcia says the initiatives are business critical, as any noncompliance would be growth limiting. In fact, he places the environmental programmes on a par strategically with its costs savings, plant stabilisation and mine design priorities.
Many of the recent investments made have had twin efficiency and environmental benefits and Garcia says its recent winter maintenance and upgrade programmes have helped stabilise plant performance, which has been affected in recent months by operational and industrial relations problems.
“The immediate priority is to move down the cost curve,” he says, adding that it also has a number of low-capital growth prospects. But these will be pursued in line with market development.
Evraz Highveld is currently forecasting moderate yearly steel market growth of around 5% for South Africa and its neighbours over the coming five to ten years.
However, it is assessing some niche growth prospects as well as the possibility of doubling steelmaking capacity to around 1.8-million tons over the next ten years, from around 900 000 t/y currently.
“But the immediate priorities are environmental remediation reducing fixed costs by 15%, and increasing our yield by 5%,” Garcia concludes.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
Other Carbon Steel News
Specialist foundry Steloy Castings will complete a multimillion dollar order for stanchion support assemblies, this month, which will be sent to a petrochemicals refinery in China. “The order comprised an assembly of castings, the bulk of which consists of tubes,...
Lifting equipment and service company Konecranes Southern Africa (SA) is manufacturing nine overhead cranes, with an estimated value of R8-million, for the steel industry and continues its inspection and service contracts for local and multinational steel...
Engineering components distributor Bearing Man Group (BMG) has recently completed the installation of a new steel cable carrier system, of undisclosed value, at a straightening mill of one of the largest steel producers in Africa. “This project in Newcastle,...
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
Updated 5 hours ago A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Updated 5 hours ago Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Updated 5 hours ago Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
Updated 5 hours ago The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Updated 5 hours ago Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...