http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.73Change: -0.12
R/$ = 12.44Change: -0.07
Au 1155.72 $/ozChange: -16.17
Pt 1041.50 $/ozChange: -19.70
 
 
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 Contact 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.
 
 
 
Engineering|Africa|CoAL|Eskom|Gas|General Electric|Generators|Installation|PROJECT|Projects|SECURITY|System|Turbines|Africa|Energy|Power Generation|Power-generation|Power|Turbines
Engineering|Africa|CoAL|Eskom|Gas|General Electric|Generators|Installation|PROJECT|Projects|SECURITY|System|Turbines|Africa|Energy|Power Generation|Power-generation|Power|Turbines
engineering|africa-company|coal|eskom|gas|general-electric|generators|installation|project|projects|security|system|turbines-company|africa|energy|power-generation|power-generation-industry-term|power|turbines-person
© Reuse this



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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 4 hours ago The South African market has been included as one of Spain’s 16 “priority markets” as the European country intensifies its efforts to raise exports in the wake of the global economic crisis and as its companies move to diversify their foreign direct investments to...
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy of becoming a leading black industrial enterprise, which could ultimately seek a listing on the JSE. CEO Itumeleng Kgaboesele,...
Article contains comments
A theoretical analysis conducted by a leading global renewable-energy company indicates that electricity generated from a combination of South African wind and solar resources “closely follows” the country’s electricity demand profile and could, therefore, make a...
Article contains comments
More
 
 
Latest News
Updated 5 hours ago The South African market has been included as one of Spain’s 16 “priority markets” as the European country intensifies its efforts to raise exports in the wake of the global economic crisis and as its companies move to diversify their foreign direct investments to...
Updated 5 hours ago Advisors to Nigerian President Muhammadu Buhari have recommended a root and branch overhaul of Africa's biggest oil industry and increased borrowing to help pay off $20-billion of government arrears, a reform proposal document shows. Buhari, who won a shock election...
Finance Minister Nhlanhla Nene
Updated 5 hours ago Following its submission to Finance Minister Nhlanhla Nene in December, the Davis Tax Committee (DTC) on Tuesday publicly released its first interim report on value-added tax (VAT) for public comment. Interested parties had until September 30 to comment on the report...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96