Novo Energy launches R130m gas compression facility

20th March 2019

     

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From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:

Energy solutions company Novo Energy earlier this month launched a R130-million large-scale natural gas compression facility, in Mpumalanga. Marleny Arnoldi tells us more.

Marleny Arnoldi:

Novo Energy’s thirteenth and biggest gas facility could help alleviate South Africa’s power constraints, while reducing carbon intensity in power generation and transport. For this site, Novo gets methane-rich gas that is locally produced from coal by Sasol through a pipeline. The facility has a 1.8-million gigajoules a year compression capacity, which equates to between 60-million and 80-million litres of fuel a year. Novo CEO Andri Hugo shares details about the plant.

Novo Energy CEO Andri Hugo:

Marleny Arnoldi:

The facility is based in the Highveld Industrial Park, which used to be Evraz Highveld Steel’s manufacturing facility, up until it closed in February 2016. The site is surrounded by industrial activity. Hugo tells us more about the site.

Novo Energy CEO Andri Hugo:

Marleny Arnoldi:

Consumers’ concerns about the national power supply and grid connection challenges have increased the demand for off-grid embedded power generation from natural gas. Hugo explains Novo’s market for natural gas.

Novo Energy CEO Andri Hugo:

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.

Edited by Creamer Media Reporter

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