R/€ = 14.90
R/$ = 10.73
Au 1339.50 $/oz
Pt 1482.00 $/oz
Jun 30, 2006
Natal|Central Energy Fund|Engineering News|Eskom|Intelligent Energy|Mining Weekly|NuPlanet|Sasol|France|India|Malaysia|South Africa|The Netherlands|United Kingdom|United States|Saulspoort Dam|Electricity|Open-cycle Gas-turbine|As River|Eastern Cape|Western Cape|John Perlman|Martin Creamer|Now Martin|Eastern Cape|Engineering News|Mining Weekly
© 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
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
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...
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...
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...
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...
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...