Name of the Project
Kelvin power station coal-to-gas conversion project.

Location
Kempton Park, in Gauteng, South Africa.

Client
Aldwych International, a subsidiary of Harith General Partners.

Project Description
The Kelvin power station is South Africa’s only coal-fired, independent power producer, backed by a 20-year power purchase agreement (PPA) with Johannesburg’s electricity utility, City Power.

The coal-fired power station was initially developed and owned by the City of Johannesburg in the 1950s and 1960s.

The two-station facility has a nameplate capacity of 600 MW, but only one of Kelvin’s two stations is currently operational.

A feasibility study has been initiated into the prospect of converting the Kelvin power station into a 450 MW to 600 MW gas-fired power station. Gas sourcing will form a major portion of the study and various options will be examined, including tapping into the Rompco pipeline, which transports gas from Mozambique to South Africa.

The study will also assess prospects for using liquefied natural gas (LNG), which could, in future, be imported through Richards Bay, in KwaZulu-Natal. Pipeline and rail logistics solutions will be assessed to transport the gas from Richards Bay to Kelvin.

In addition, the study will assess the potential for developing the Kelvin site into a gas distribution hub for Gauteng.

The PPA with City Power is due to expire in the next few years. However, the US Trade and Development Agency (USTDA), which is funding the feasibility study, believes there will be a strong incentive for the power utility to enter into a new contract, particularly if Kelvin were in the position to produce lower-emission electricity from gas rather than coal.

Potential Job Creation
Not stated.

Value
The feasibility study will cost about $1.3-million and will be funded through a USTDA grant, which has been awarded to NOVO Energy, a South African integrated natural gas company, owned by Harith General Partners.

Duration
The study is expected to take 12 months to complete.

Latest Developments
None stated.

Key Contracts and Suppliers
EHS Support and PrimeAfrica (feasibility study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Aldwych International, tel +44 20 7776 1900, fax +44 20 7726 8590 or email contact@aldwych-international.com.