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Kathu concentrated solar power project, South Africa

12th April 2019

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Kathu concentrated solar power (CSP) project.

Location
Northern Cape, South Africa.

Project Owner/s
The project is being led by Engie (48.5%) and includes a group of South African investors comprising the SIOC Community Development Trust, Investec bank, Lereko Metier and the Public Investment Corporation.

Project Description
The project involves the construction of a 100 MW greenfield CSP facility with parabolic technology and a molten storage system that allows for 4.5 hrs of thermal energy storage. This will enable the plant to supply power for longer periods.

The CSP plant comprises eight solar fields, with mirrors reflecting sunlight onto tubes, which absorb the heat, before it gets transferred through a pipeline to a molten salt tank containing 47 000 t of salt to store energy.

It is estimated that the Kathu solar park will save six-million tonnes of carbon dioxide over 20 years.

Kathu Solar Park was awarded under Round 3.5 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme on December 15, 2014.

Potential Job Creation
About 1 700 people were employed during the peak of construction, with 42% of those hired from the local community. The project has retained 25 of those people as permanent employees.

The project will permanently employ 81 people over the next 20 years.

Capital Expenditure
The project is estimated at R12-billion.

Debt funding will be provided by Rand Merchant Bank, Nedbank Capital, ABSA Capital, Investec and the Development Bank of Southern Africa.

Planned Start /End Date
The project started construction in May 2016 and was synchronised to the grid in December 2018.

Latest Developments
Having been commissioned in February, the Kathu Solar Park was officially inaugurated by Northern Cape Premier Sylvia Lucas earlier this month.

The plant marks Engie’s first CSP plant of this magnitude and is its sixth CSP plant in South Africa.

The project achieved a 43% local-content mark.

As part of the project’s socioeconomic development plan, it will invest 1% of its revenue for the next 20 years in advancing the local community of the John Taolo district.

Kathu Solar Park already spent R8.5-million on 27 socioeconomic development projects during the construction of the project.

Key Contracts and Suppliers
Sener and Acciona Industrial (EPC, installation of electrical and mechanical components for all the reflective mirrors and central power processing plant).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Engie investor relations, tel +33 1 44 22 66 29 or email ir@gdfsuez.com.

Edited by Creamer Media Reporter

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