Saudi's ACWA Power to lead coal-fired plant scheme

The 306MW plant will be the first of its kind in South Africa featuring modern circulating fluidised-bed (CFB) technology

NEWS, Business, Acwa Power, Saudi Arabia

A consortium led by Saudi Arabia's ACWA Power is the preferred bidder for the Khanyisa Coal-Fired Project in South Africa.

The preffered bidder status was announced by the department of energy minister Tina Joemat-Pettersson.

Part of the first round of the coal base-load Independent Power Producers Programme, the 306MW plant will be the first of its kind in South Africa featuring modern circulating fluidised-bed (CFB) technology.

Located in Mpumalanga Province, the country’s coal hub, the Khanyisa power plant is ACWA Power’s first foray into the coal space in South Africa. Khanyisa will make use of the discard coal abundantly available as waste piles in the nearby Anglo American collieries thereby significantly reducing the environmental impact of the waste mountains on the surrounding region and will in addition avoid the need and eliminate the consequences of mining new coal seams.

Paddy Padmanathan, president and CEO of ACWA Power, reconfirmed the company’s commitment to increasing its investment in the power sector of the country.

He said: "ACWA Power has been fortunate to participate in both the Renewable Energy IPP and the coal base-load IPP program both of which are well structured and professionally managed, providing us confidence to invest for the long term in the South African energy sector.

“Following on from the Bokpoort CSP project which is now fully operational and the Redstone CSP project where construction is expected to commence soon, the Khanyisa award demonstrates ACWA Power’s commitment to the South African IPP market and our ambition to create a strong, self-sustaining multi-fuel portfolio."

The local partners in the ACWA Power led consortium include Thebe Investments, Pele Natural Energy, Mazi Capital and Palace Group.

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