Supply Chain News South Africa

Hulett in talks to supply Eskom with power

South African agri-processing company Tongaat Hulett is in negotiations to supply Eskom with electricity generated at its plants, in answer to the government's call for co-generation projects by industrial players.

According to a statement released by the company last month, Tongaat Hulett has the ability to co-generate electricity at its sugar and starch operations, supplying the national grid with up to nine megawatts of electricity during the crushing season.

"The company's sugar and starch operations have pre-qualified to participate in Eskom's co-generation pilot programme," Tongaat Hulett Chief Executive Officer Peter Staude said at the time, reports SouthAfrica.info.

"The potential electricity that we would be able to generate, assuming co-generation projects at four South African sugar mills and two starch plants, was initially indicated as 209 megawatts and, if all the biomass of cane and the emerging technologies were used, it could increase to approximately 600 megawatts."

He added that, as the programme was currently in the bidding phase, no further specific information was being made public with this regard.

In his State of the Nation Address earlier this month, President Thabo Mbeki said: “Over the next five years Eskom's capital expansion plans will amount to R343 billion, with about 73% earmarked for power generation projects.”

The return-to-service of previously mothballed power-stations, Camden, Grootvlei and Komati, will add a combined 3,677MW of generating capacity by 2011 and other smaller projects will produce about 2,000MW.

President Mbeki added that two major new coal-fired plants, Medupi in Lephalale and Bravo near Witbank, will each cost in excess of R80 billion and produce about 4,500MW each.

To improve transmission capacity, Eskom is strengthening the Cape grid, and building new lines from Majuba to KwaZulu-Natal.

“We are also setting aside R2 billion over the next three years to support programmes aimed at encouraging more efficient use of electricity, generation from renewable sources, installation of electricity-saving devices and co-generation projects,” said the President.

Article published courtesy of BuaNews

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