South African steel producer Scaw is inviting expressions of interest from independent power producers (IPPs) willing to build, own and operate what could be a 55-MW cogeneration power plant at the company's Union Junction site, located in Germiston, Gauteng province.

Scaw says that it is embarking on the project - which would seek to convert kiln exhaust gas and the combustion of fumex dust and char into power - so as to reduce its carbon footprint and secure electricity supply for its operations.

The company is willing to enter into a long-term power purchase agreement with the IPP, which should attempt to register the project under the Clean Development Mechanism so as to improve its economic viability.

The carbon financial benefits from such registration and operation would revert to Scaw.

The IPP will also be expected to secure finance, prove capability and demonstrate an acceptable track record on previous similar projects.

Interested IPPs have until May 24, 2010, to submit letters of interest.

Thereafter, Scaw will issue a request for proposals to selected bidders.