http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.12Change: -0.11
R/$ = 15.00Change: -0.09
Au 1279.49 $/ozChange: 2.67
Pt 1063.50 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 28, 2010

Secunda to produce 800 MW of own power, sell 200 MW to Eskom

Back
Sasol will be producing 800 MW of its own electric power at its giant Secunda facility by the middle of next year, of which 200 MW is set aside for purchase by State-owned utility Eskom. Sasol's Piet van Staden and Leon Smit tell us more.
 
 
 
Africa|CoAL|Efficiency|Engineering|Eskom|Gas|General Electric|Generators|Installation|Power|PROJECT|Projects|SECURITY|System|Technology|Turbines|Africa|Energy|Power Generation|Power-generation|Turbines
Africa|CoAL|Efficiency|Engineering|Eskom|Gas|General Electric|Generators|Installation|Power|PROJECT|Projects|SECURITY|System|Technology|Turbines|Africa|Energy|Power Generation|Power-generation|Turbines
africa-company|coal|efficiency|engineering|eskom|gas|general-electric|generators|installation|power|project|projects|security|system|technology|turbines-company|africa|energy|power-generation|power-generation-industry-term|turbines-person



Energy and chemicals group Sasol will be producing 800 MW of its own electric power at its Secunda facility, in Mpumalanga province, from 2011, of which 200 MW is set aside for purchase by State-owned utility Eskom.

The JSE-listed group has already increased its power generation to beyond the 500 MW it previously produced, which represented about one-third of Secunda's 1 500-MW power demand.

It recently completed the installation of two open-cycle gas turbines (OCGTs), which added 200 MW to its generation mix. The plants are fuelled by gas piped to Secunda from Mozambique and are based on standard General Electric frame 9E technology.

Manager for strategic sourcing of utility energy Piet van Staden says that work is now proceeding on the installation of heat recovery steam generators that will convert the facility into a combined-cycle gas turbine by June and add a further 80 MW of capacity.

In total, the 280-MW capacity expansion will cost about R2,5-billion to complete, but is considered a sound investment from both an economic, as well as from a security of supply perspective.

The project has been approved by the National Energy Regulator of South Africa (Nersa) to access Eskom's medium-term power purchase programme, or MTPPP, which is funded through the tariff.

The Secunda facility is one of only a handful of plants that have been sanctioned as MTPPP recipients, whereby power will be sold to Eskom at rates better than the prevailing electricity tariff up to the point where the price path intersects with that of the incentivised tariff.

Van Staden says that Sasol is interrogating a range of other electricity-related projects in order to contribute to mitigating what could be a consolidated shortfall of 1 500 MW in South Africa between 2011 and 2016, ahead of the introduction of new Eskom base-load capacity.

Besides the 280 MW from Secunda, Sasol is considering various demand- and supply-side projects that could reduce that deficit by about 200 MW.

Another own-generation option could include the development of gas-fuelled generating capacity of 140 MW at Sasolburg. However, part of that capacity would be used to replace a 70-MW power plant at the complex -  the existing plant has been operating for 55 years and needs to be retired.

Van Staden acknowledged that the Secunda project had been made less complicated by the fact that "no electrons" would be fed into the Eskom grid - Sasol was effectively buying back all it sold to Eskom in real time.

Therefore, no wheeling is necessary, while dispatching was internalised.

By contrast, projects being considered by Anglo American and Xstrata to produce electricity using discard coal would have to be wheeled. Xstrata confirmed its own-generation plans when announcing that it would be proceeding with a R4,9-billion ferrochrome expansion.

The Secunda OCGTs began operating in July, after Nersa licensed them in May and Eskom confirmed a power purchase agreement under the MTPPP.

Gas turbines commissioning manger Leon Smit tells Engineering News that the project was completed in 21 months, which is better than the global benchmark for similar OCGT projects of between 22 and 26 months.

At full capacity, Smit reports, that the two gas turbines will consume some 60 000 m3/h of natural gas. That translates to yearly consumption of about 20 petajoules, with a petajoule being the equivalent to 1015 Joules.

The efficiency of the system will increase from 36% to 42% once it is fully converted to a CCGT system next year.

Smit also reports that 35 Sasol employees participated on the project, which also involved some 300 contractors.

Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 5 hours ago The New Development Bank, a multilateral lender formerly known as the Brics Development Bank, will provide $811-million in a first round of loans for clean energy projects in four nations.
BRAND PRESENCE Rand-Air has a fleet of more than 700 Atlas Copco compressors and generators, which include electric and diesel compressors
Updated 5 hours ago Compressor and generator rental company Rand-Air has appointed power generation and mining equipment and parts supplier Outdistance, which services the mining, engineering, power and construction industries in Botswana as an agency of choice in the market. Rand-Air,...
DE BUYS SCOTT As long as the nuclear project remains affordable, South Africa can look forward to a cleaner, larger source of baseload energy
Updated 5 hours ago The development of the proposed nuclear energy project in South Africa could become increasingly difficult to complete, should the economy be downgraded to junk status by credit rating companies. According to advisory firm KPMG global infrastructure major projects...
More
 
 
Latest News
Emira CEO Geoff Jennett
The JSE-listed Emira Property Fund has invested over R250-million in acquiring new centres and upgrading its shopping centres to strengthen its retail assets, according to Emira CEO Geoff Jennett, who stated on Thursday that the company was investing strategically....
Equites CEO Andrea Taverna-Turisan
JSE-listed Equites Property Fund achieved an 18.3% year-on-year increase in distributions to 96.6c a share for the year ended February 29. “The distribution growth reflects the strong property fundamentals of the Equites logistics portfolio,” Equites CEO Andrea...
It takes a coherent company to successfully and sustainably close the gap between strategy and execution in Africa, and one of the key factors in doing so is unconventional leadership, which is needed to foster the behavior required of coherent companies, according...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
Updated 5 hours ago Following the drop in commodity prices and China’s demand for Africa’s resources, African economies were slumping and gross domestic product growth was stagnating in most of the continent’s emerging markets, said the New Partnership for Africa’s Development, or...
Updated 5 hours ago The New Development Bank, a multilateral lender formerly known as the Brics Development Bank, will provide $811-million in a first round of loans for clean energy projects in four nations.
Updated 5 hours ago South African car and bakkie exports into Africa declined for the third year in a row in 2015, falling from 79 228 units in 2012, to 77 589 units in 2013, 60 189 units in 2014, and 41 446 units last year – this according to the Automotive Industry Export Council’s...
Updated 5 hours ago Networking systems multinational Cisco is training 75 people as part of a pilot project to develop specialist networking skills in South Africa, says Cisco South Africa CTO Vernon Thaver. The trainees were nominated by and selected from Cisco’s local partners and...
Updated 5 hours ago The threat landscape is changing, along with technologies, impacting on new fields, such as industrial infrastructure, which is becoming increasingly connected. Smart cities are also developing fast through connected devices, Web services and cloud solutions, but...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149