Ngodwana Energy was, in April 2015, selected as a preferred bidder in round four of government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
It is one of 27 REIPPPP projects for which power purchase agreements were signed on Wednesday, after a long delay in the signing of such agreements by power utility Eskom.
The project will take 27 months to build and commission.
The consortium will erect a 25 MW biomass power plant alongside the Sappi Ngodwana mill. The plant will use waste material from the surrounding plantations to generate power.
The power plant burns the biomass in a boiler to generate steam and drive a turbine to generate electricity, while a high-efficiency air pollution control system will be used on the boiler flue gas to ensure the emissions are well below the new South African requirements.