R/€ = 14.22
R/$ = 11.16
Au 1240.10 $/oz
Pt 1243.50 $/oz
Jun 30, 2006
Construction|Engineering|Natal|Africa|Central Energy Fund|CoAL|Diesel|Engineering News|Eskom|Intelligent Energy|Mining Weekly|NuPlanet|Sasol|System|Systems|Africa|France|India|Malaysia|South Africa|The Netherlands|United Kingdom|United States|Saulspoort Dam|Electricity|Energy|Mining|Open-cycle Gas-turbine|Systems|As River|Eastern Cape|Western Cape|John Perlman|Martin Creamer|Now Martin|Power|Eastern Cape|Engineering News|Mining Weekly|Diesel
© Reuse this Every Friday morning, SAfm's AMLive's radio anchor John Perlman speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday's At the Coalface transcript:
Perlman: We have talked a lot about power provision - two new peaking power stations to be built at the coast by October 2008. Interestingly it is not Eskom doing it.
Creamer: Yes, the two new peaking power stations that are due to be built on the coast will not be built, owned and operated by Eskom, as we have become accustomed to, but these will be owned by the private-sector. Enter the acronym IPP, Independent Power Producer, which is now coming in on the scene. IPP is still on a very moderate scale, of course, but significantly five international companies have been prequalified to bid for this and they are coming from the United States, UK, India, Malaysia and France. They will be asked to put up two power stations, not of huge megawattages at this stage and both on the coast. One in the Eastern Cape and one in Kwazulu Natal, producing a collective 1 000 MW of electricity. They won't be using coal, as we have been used to up to now; they will be oil-fired - open-cycle gas-turbine (OCGT). These are due to come in during the last quarter of 2008 and they will follow those peaking power plants that are being built of a similar type, also OCGTs and also oil-fired, but in the Western Cape and not built by the private sector, but by Eskom.
Perlman: Now Martin, the private-sector again getting involved in power. This time, though, it is hydroelectrical and it is in the Free State. Tell us about that.
Creamer: Hydro-electricity is a rarity in South Africa and in the Free State even more so. We see a very small, again a moderate entry of an IPP coming in on two sites, one on the As river and one on the Saulspoort dam. There they will collectively produce about 6,4 MW of electricity, again moderate, but again showing a new trend towards IPP and they will sell this electricity off to the local authority, which will rely to extent of 20 % on hydroelectric power. That will be the Bethelehem local authority receiving this from the end of next year. Construction is due to begin in September on these two micro power plants. NuPlanet is the company involved, a Netherlands-South African amalgam, supported by an off-shoot of the Central Energy Fund, which is State-owned.
Perlman: Staying with energy, Sasol, a company with an increasing global reach, has some US-related developments.
Creamer: In a surprise development and again related to energy, we see that an American company, Intelligent Energy, has produced a system that generates electricity using the diesel that is produced by Sasol. Again, we see the inching along of the so-called hydrogen age and hydrogen economy. The Americans have chosen Sasol's fuel because it is so ultra-clean and has a low sulphur content. They have put it into their systems, which is a real-world demonstration of how a fuel-cell can produce electricity. They have actually sold their excess electricity into the Southern Californian electricity grid, having used fuel from South Africa's Sasol. We know that oil is a finite commodity and has got to exit as a pervasive fuel at some stage. A lot of people are working on the fuel-cell, which is regarded as the engine of the future. What is fascinating is that conventional fuel, coming from South Africa's Sasol, can be the chemical energy that is converted into electricity, in a very efficient way, using a fuel cell.
Perlman: A fast-changing sector. Keep an eye on it for us. Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he'll be back with us at the same time next week.
Edited by: Yolande Botes© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...