http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.34Change: -0.02
R/$ = 10.71Change: -0.02
Au 1282.85 $/ozChange: 0.60
Pt 1461.50 $/ozChange: 0.50
 
 
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 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|SECURITY|Africa|CoAL|Energy|Eskom|Gas|General Electric|Generators|Nersa|PROJECT|Projects|Sasol|Security|System|Turbines|Africa|Mozambique|South Africa|MW Power Plant|Secunda Facility|Security|Chemicals|Electricity|Electricity Tariff|Energy|Frame 9E Technology|Gas Turbine|Open-cycle Gas Turbines|Power Generation|Power-generation|Security|Utility Energy|Power|Security|Turbines|Van Staden|Mpumalanga|Frame 9E Technology
Engineering|SECURITY|Africa|CoAL|Eskom|Gas|Generators|PROJECT|Projects|Security|System|Turbines|Africa||Security|Energy|Power Generation|Power-generation|Security||Power|Security|Turbines|||
engineering|security|africa-company|coal|energy-company|eskom|gas-company|general-electric|generators|nersa-company|project|projects|sasol|security-company|system|turbines-company|africa|mozambique|south-africa|mw-power-plant|secunda-facility|security-facility|chemicals|electricity|electricity-tariff|energy|frame-9e-technology|gas-turbine|opencycle-gas-turbines|power-generation|power-generation-industry-term|security-industry-term|utility-energy|power|security-person|turbines-person|van-staden|mpumalanga|frame-9e-technology-technology
© 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
An aloe plant in the foreground as construction gets under way at the Amakhala Emoyeni wind farm project site
Work has officially started at Cennergi’s R3.5-billion Amakhala Emoyeni wind farm, located near Bedford, in the Eastern Cape. The 138 MW project was among the 19 renewable-energy and seven wind projects selected following the second bid window under the South...
South African electricity tariffs are likely to increase by more than the 8% already sanctioned for the year starting April 1, 2015, after the energy regulator determined on Wednesday that Eskom had under recovered R7.82-billion in revenue between 2010 and 2013. The...
Article contains comments
Article contains comments
More
 
 
Latest News
Independent, black-owned and managed investment holding company Southern Palace Properties has acquired an 8% stake in Growthpoint Properties from the Public Investment Corporation’s (PIC’s) Government Employees Pension Fund (GEPF) for R4.5-billion. Standard Bank...
Shareholders of JSE-listed real estate investment trusts (REITs) Octodec and Premium Properties have approved the proposed merger of the two companies, creating a combined property fund that will attract a market capitalisation in excess of R5-billion and comprise...
The Metal and Engineering Industries Bargaining Council (MEIBC) this week called on employees and employers to exercise restraint as the metals and engineering industries resumed operations following a four-week strike, stating that it regretted the strike’s...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Updated 1 hour 35 minutes ago South African construction company Group Five says work on the rehabilitation of the 800 km stretch of the Plumtree–Mutare highway, in Zimbabwe, should be completed by the end of this year. Giving evidence before the Parliamentary Porfolio Committee on Transport...
SINGLE EXPERIMENT An artist’s impression of OCO-2 in orbit
Updated 1 hour 38 minutes ago The Space Operations division of the South African National Space Agency (Sansa) revealed on July 17 that it had supported the successful launch of the US National Aeronautics and Space Administration’s Orbiting Carbon Observatory-2 (OCO-2) satellite on July 2. The...
RICE TAG The real costs of operating Rea Vaya have become clear
Updated 1 hour 38 minutes ago Phase 1A of Johannesburg’s Rea Vaya bus rapid transit (BRT) system should carry around 42 000 people a day, while it was been expected that Phase 1B, rolled out last year, would add another 60 000 daily passengers. However, the entire system is currently carrying...
Updated 1 hour 38 minutes ago A stormwater project in Bedforview, east of Johannesburg, has stalled for eight months after project managers in the Ekurhuleni municipality resigned and municipal managers were placed on special leave without designating replacements. Construction to reinforce the...
Updated 1 hour 38 minutes ago The design of the Beit Bridge border post is the biggest impediment to efficient freight movement between Zimbabwe and South Africa, says Cross-border Road Transport Agency CEO Sipho Khumalo. Beit Bridge is the busiest border post in Africa. A research study on the...
 
 
 
 
 
 
 
 
 
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