Thabametsi independent power producer coal-fired power station project, South Africa

17th March 2017 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Thabametsi independent power producer coal-fired power station project, South Africa

Name of the Project
Thabametsi independent power producer coal-fired power station project.

Location
The project will be built near Lephalale, in South Africa’s Limpopo province, adjacent to Exxaro’s Grootegeluk coal mine.

Client
Exxaro Resources, in joint venture with Marubeni Corporation (lead developer) and Korea Electric Power Corporation (co-developer).

Project Description
The power project was selected as a preferred bidder in the first bid window of the South African Department of Energy’s Coal Baseload Independent Power Producer Procurement Programme in October 2016.

The power plant will produce 557.3 MW (net) of electricity for the national grid from coal supplied by Phase 1 of Exxaro’s Thabametsi mine. The new mine is scheduled to produce its first coal in the second quarter of 2021, in line with the development ramp-up schedule of the power station.

Jobs to be Created
Not stated.

Value
Not stated.

Duration
The power plant is expected to be operational in 2021.

Latest Developments
Environmental justice organisation Earthlife Africa (ELA) won South Africa’s first climate change court case in March 2017.

The North Gauteng High Court ruled in favour of ELA regarding the organisation’s appeal against the environmental authorisation granted to the proposed Thabametsi independent power producer coal-fired power station project.

In his judgment, Judge John Murphy reviewed and set aside Environmental Affairs Minister Edna Molewa’s decision to grant the environmental authorisation for the power station until she considered the full climate- and paleontological-impact reports, along with public comment thereon, before deciding whether to re-issue the authorisation.

The outcome of the court case could have wider implications for the consideration of climate impacts in the authorisation of future coal-fired power stations.

Thabametsi’s own reports indicate that the power station, if it proceeds, would have an operational life span of 40 years. It would emit 8.20-million tons of carbon dioxide equivalent each year, thereby contributing up to 2% to South Africa’s total greenhouse-gas emissions by 2020, and up to 3.9% by 2050.

The proposed power station still requires an air emission licence, a water use licence, and a licence to generate electricity from the National Energy Regulator of South Africa.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Exxaro executive head: strategy and stakeholder engagement Mzila Mthenjane, tel +27 12 307 4481 or email mzila.mthenjane@exxaro.com.