http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.92Change: 0.01
R/$ = 12.69Change: -0.03
Au 1093.17 $/ozChange: -2.01
Pt 979.00 $/ozChange: -3.00
 
 
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 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)
 
 
 
 
 
 
 
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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