Page 9 - AfrElec Week 29

AfrElec
NEWS IN BRIEF
AfrElec
COAL
South Africa secures funds forhardcokingcoalproject
e Industrial Development Corp. (IDC) of South Africa has approved a term loan facility that will be used to fund the construction
of Phase 1 at the Makhado hard coking coal project.
e Makhado project is 69% owned by Baobab Mining & Exploration, which is a subsidiary of MC Mining. e IDC holds a 5% interest and, in compliance with South African black economic empowerment (BEE) requirements, seven local communities own 20% while 6% is held by an industrialist.
MC Mining’s CEO, David Brown, said
that the loan rea rmed the economics of the Makhado project and followed the conclusion of o -take agreements for the coal that will be produced during Phase 1 of the scheme.
“ e loan re ects the IDC’s support for the development of the Makhado Project and replaces the 2017 nancing that was utilised to fund pre-project activities, including securing the numerous regulatory licences and approvals,” said Brown.
e loan will be used to fund the development of the west pit and modify the existing Vele Colliery processing plant at the project. Construction is anticipated to take nine months, with rst coal production expected in the tenth month.
e total funding requirement for both Phase 1 and the settlement of the existing 2017 loan facility is $50mn. e loan will cover $17.5mn of this, leaving a residual equity requirement of $32.5mn. MC Mining expects that an equity raise to secure the additional requirement will be completed soon, enabling construction to begin later in the third quarter of the year.
GENERATION
Siemens signs Nigerian generationdeal
Siemens has signed an electricity agreement with Nigerian government in a bid to generate 25,000 MW of electricity in the country by 2025.
Nigerian President Muhammadu Buhari, speaking during the signing of the agreement, said the increase would be achieved through a three-phase programme. e country is targeting 7,000 MW by 2021 during the rst phase, a further 11,000 MW by 2023 during the second phase and 25,000 MW by 2025 for the nal phase.
Nigeria currently generates around 4,029 MW.
According to Buhari, the government is also committed to the development of the Mambilla hydroelectric project and various solar schemes as it sets about raising Nigeria’s power generation capacity.
Calls come for Nigeria
to step up efforts to address power generation challenges
Nigeria LNG (NLNG), and the Lagos Chamber of Commerce and Industry (LCCI) have called for greater e orts to address power generation challenges.
ey have also called for the industry to explore other energy sources and trying out new ideas that may help improve Nigeria’s energy e ciency.
e LCCI’s president, Babatunde Ruwase, said there was an urgent need to focus on
innovative ideas that can enable practical solutions.
“Reforming the power sector in Nigeria must align with the global energy direction of increasing renewables in the energy mix,” Ruwase said.
e comments were made at a forum that was organised in honour of the NLNG Nigeria Prize for Science, featuring the 2018 winner, Peter Ngene.
His work focuses on nanostructured metal hydrides for the storage of electric power from renewable energy sources and for explosion prevention in high-voltage power transformers.
“Dr Ngene’s award-winning work further presents an opportunity for Nigeria to harness new discoveries in solving her power supply challenges,” Ruwase said. “His invention has positive implications on renewable energy development that the country can bene t from. It is believed that Dr Ngene’s work will expand the energy market in Nigeria with e cient energy storage.”
Nigeria ready to deploy biogas for power generation
e Nigerian government has a rmed its readiness to deploy biogas for power generation in the country.
e head of the Department of Environmental Biotechnology and Bioconservation, as well as the National Biotechnology Development Agency (NABDA), Gloria Obioh, said the government had fabricated bio-digesters adapted to local conditions to generate 20,000 MW through the conversion of organic waste.
“ e key areas are design and fabrication of bio-digesters to local condition, local patenting of products, and contribution to organic wastes management which accounts to a minimum of 50% municipal solid wastes,” she said.
Obioh said that investment in the bio- digesters, also called Anaerobic Digestion Technology, would enhance environmental sustainability.
She also expects the use of the bio- digesters to create jobs across a number
of spin-o industries including digester fabrication, energy generation, waste management and bio-fertiliser production. She anticipates that they will also enhance food security through the use of bio-fertiliser to boost soil fertility.
Week 29 24•July•2019
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