Name and Location
Ncondezi power plant project, Tete, Mozambique.

Client
Ncondezi Energy. The power plant is expected to be developed in partnership with a power plant developer and operator.

Project Description
The definitive feasibility study (DFS) on the Ncondezi power plant project has confirmed the economic and technical viability of an 1 800 MW mine-mouth, thermal coal-fired power plant, consuming 7.2-million tons a year of coal.

The power plant is expected to be built in phases of 300 MW units using domestic coal from the proposed Ncondezi coal mine.

Each 300 MW power block will comprise a steam generator using circulating fluidised-bed technology, a steam turbine and a generator, as well as a wet-type cooling condenser system and electrostatic precipitators. It is proposed that the cooling system  includes wet mechanical draft cooling towers, which will enable the units to operate at higher thermal efficiency.

Value
Initial 300 MW power plant capital expenditure (capex) is estimated at $504-million, with additional capex of $50-million for transmission.

Phase 1B (600 MW) will cost about $1.1-billion.

Phase 2 (1 800 MW) will cost about $2.25-billion, with a further $247-million for transmission.

Duration
The initial 300 MW Phase 1A unit is expected to be commissioned in 2017. Expansion to 1 800 MW is targeted for 2023.

Latest Developments
Ncondezi has launched the engineering, procurement and construction (EPC) contract binding proposals process for its 300 MW integrated thermal coal mine and power plant project, near Tete, Mozambique.

The EPC preselection process was completed in June, with Ncondezi having received 16 nonbinding indicative bids from power plant EPC firms. This followed the selection of a prequalified shortlist of seven EPC firms to tender in the final binding proposals process that will be managed by Steag Energy Services, a wholly owned subsidiary of Germany's fifth-largest electricity generator Steag.

The EPC preselection process is based on a single 300 MW boiler unit, however, subsequent discussions with Electricidade de Mozambique (EdM) have resulted in specifications being revised to include two 150 MW boiler units. The prequalified EPC firms have confirmed that they will be able to meet the revised technical specifications. A preferred EPC firm is expected to be selected during the first quarter of next year, and the binding bid will play a key role in completing the project’s power purchase agreement with EdM, as the recovery of the final binding capital cost will be included in the agreed tariff rate.

The emerging Mozambican power development company expected to commission the first 300 MW of the planned 1 800 MW thermal coal mine and power plant project in 2017, followed by commercial operations during the first half of 2018. Expansion to 1 800 MW is targeted for 2023.

Meanwhile, the Mozambique Ministry for Coordination of Environmental Action has approved the environmental and social impact assessment (ESIA) for Ncondezi Energy’s planned power plant.

Ncondezi Energy is continuing its application process for an environmental permit, while the transmission assessment is well advanced, with submission to the Ministry and public consultation planned for the first quarter of 2014.

Key Contracts and Suppliers
Parsons Brinckerhoff (DFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Ncondezi Energy, tel +44 207 183 5402, fax +44 207 183 5411 or email info@ncondezicoal.com.
Parsons Brinckerhoff, tel + 1 212 465 5000 or fax +1 212 465 5096.