Name of the Project
Rukwa coal-to-power project (RCPP).

Location
Tanzania.

Client
Edenville Energy.

Project Description
A feasibility study completed on the project has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant. There is the possibility that the power plant could be scaled up to 300 MW.

The project hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on coal into Tanzania.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s RCPP.

The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.

It has resulted in a 14% increase in the project’s pretax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
Edenville Energy has received a formal request from the Tanzania Ministry of Energy and Minerals (MEM) for the company to proceed with the development of its 120 MW RCPP.

Earlier this year, government released an updated power master plan, which included the project. This plan is now being progressively rolled out to provide further power generation and transmission for the country over the long term up to 2040.

The MEM has now indicated that a larger facility of up to 300 MW can be built at Rukwa, assuming that technical, financial and commercial parameters can be satisfied.

Edenville has also received permission to upgrade and, where necessary, build a new access road that will connect the site with the main north-south sealed highway to the west of the project.

The road will be 16 km long and allow coal trucks to reach the site more efficiently than the current transport infrastructure and would also be used as part of the power plant access infrastructure.  Work has started on the road, with completion expected by end-June.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.