Page 12 - AfrElec Week 24 2021

AfrElec NEWS IN BRIEF AfrElec

Sasol set for green said it will now proceed with a previously
ESKOM In line with its refocused strategy, Kibo
Eskom insists that Kusile hydrogen announced transaction to jointly develop a
portfolio of waste-to-energy projects in South
will be finished by 2025 Sasol is in a position to be able to produce Africa following positive due diligence results.
The transaction, announced in May, will
green hydrogen within the next 24 months,
The SA government has been given the Sasol CEO Fleetwood Grobler said this week. see it take a majority stake in a project that
assurance that the Kusile power station will be Grobler was responding to Absa group will convert plastic waste into syngas that will
completed within the 2024/25 financial year industrials research head Christina Steyn, who in-turn fire gas engines to generate electrical
and within the budget of ZAR161.4bn. moderated an SA Tomorrow panel discussion power.
Responding to questions in the National that included HySA Infrastructure director The company said that its South Africa deal
Council of Provinces this week, Deputy and head Professor Dmitri Bessarabov and would provide the core of its new business,
President David Mabuza said the project Anglo American Platinum (Amplats) CEO though it anticipates further investments and/
budget remains unchanged, South Africa’s Natascha Viljoen, Creamer Media reported. or acquisitions in the renewable sector.
Fin24 reported. Grobler told the conference that it would Formerly a developer of coal mining assets
Construction on the controversial power involve Sasol advancing from its current high- in Botswana, the company now sees itself as
plant – which was supposed to contribute 10% carbon grey hydrogen to the new low-carbon a ‘multi-asset, Africa & UK focused energy
of Eskom’s electricity supply - started in 2008, green hydrogen. company’.
and was supposed to have been finished by His comments followed Bessarabov earlier In October 2019, the company launched a
2014. The initial budget was around R81bn. pointing out that Sasol’s production of 2% of venture to build flexible power plants in the
But by 2015, while far from being the world’s grey hydrogen represented “a very UK, focused on small-scale reserve power
completed, the estimated cost of the project large number”. generation. It presently also retains interests in
was increased to R118.5bn. Various reports Sasol has a collaboration agreement with ‘clean coal’ fuelled power projects in Tanzania,
found corruption and mismanagement at vehicle manufacturer Toyota to focus on Botswana, and Mozambique.
Kusile, which was also beset by technical heavy duty vehicles and the infrastructure Kibo believes such projects will still
problems. required for the refuelling of these with green be necessary to support Africa’s rapidly
Two years ago, Eskom again increased the hydrogen. increasing energy needs over a decades
estimated cost - this time to R161.4bn. “We believe we have an opportunity to set long transitional period. Nevertheless, it has
Almost 13 years after construction up refuelling of hydrogen stations and we can decided to dispose its coal related assets and
started, only three of six units at Kusile are in do that within the next year or two because we advisors will be appointed to oversee the sale.
operation. can move currently from grey hydrogen for “Since early 2020 and the onset of the
Mabuza said this week that said delays that purpose, and we can within the next 24 COVID-19 global pandemic, the renewable
at Unit 4 to Unit 6 were due to contractor, months be ready to produce green hydrogen energy drive has gathered pace with
financial, commercial and contractual issues. from repurposed facilities in our Sasolburg governments worldwide pledging to reduce
Like the Medupi power station, Kusile has operations and to really get that going with the reliance on carbon fuels within their
been hampered by serious design flaws, heavy duty trucks and buses and the like,” energy strategies,” the company said.
particularly affecting their enormous boilers. Grobler said. “With this background, the company
He said that Unit 4 should be operational There were opportunities to collaborate in undertook a review of operations to establish
by January 2023, followed by Unit 5 a similar manner with others, including Anglo the best way to extract the substantial value
(December 2023) and Unit 6 (May 2024). American along the proposed hydrogen it had created in its coal-fuelled projects for
Mabuza told Parliament that the Eskom corridor and with regard to heavy mining shareholders.”
board and management have been driving equipment.
efforts to complete Kusile to meet the target “You can look at quite an interesting value
date. Further he said, the project team is chain that you can get going and let that
pursuing rigorous schedule recovery plans for kickstart the development of infrastructure, NUCLEAR
achievements of milestones that are at risk. albeit from a very small base. It will be a
“The Eskom board and management progressive journey,” Grobler told the SA Kenya makes nuclear
are committed to completing Kusile power Tomorrow virtual conference sponsored by
station within the revised, board-approved the JSE, Citibank and Absa infrastructure progress
completion date in the 2024/25 financial year,
and within the project budget of R161.4bn, The International Atomic Energy Agency has
excluding interest during construction. provided an update on Kenya’s progress since
“This project budget remains unchanged,” COAL its 2015 Integrated Nuclear Infrastructure
said Mabuza. Review (INIR) mission.
The Kusile power station is situated in Kibo Energy to offload of INIR missions enable IAEA member
the Nkangala District of Mpumalanga, while states to have in-depth discussions with
its twin, the Medupi power station, is in the coal-based power projects international experts about the conditions
Lephalale district of Limpopo. and best international practices in the
Kibo Energy has said it will refocus development of a nuclear power programme.
its business towards renewable energy Kenya - which has Africa’s seventh-largest
opportunities following an extensive review of economy and a population of 52mn people - is
HYDROGEN its operations. considering the introduction of nuclear power

P12 www. NEWSBASE .com Week 24 17•June•2021