The Ngodwana Energy project is situated 50km west of Mbombela in the Mpumalanga Province on the Sappi Ngodwana Mill Site and will feed electricity into the national grid near its location within Elands Valley, between Emgwenya (formally Waterval Boven) and Mbombela (formerly Nelspruit).
The Project will contribute to the growth and development objectives of the National Government, Mpumalanga province, the communities and businesses in the vicinity as well as Eskom and the citizens of South Africa. The value added by Ngodwana Energy to the Mpumalanga region and National Government over the term of the PPA is significantly higher than alternate renewable energy technologies due to the extent and impact of value creation. Significant ongoing value is created due to the nature of biomass projects and the monetary and job creation spend across the project value chain; from collecting biomass in the plantations, through plant and equipment contracts, to community impact through the Trusts and the economic development and socio-economic development spend as well as shareholder returns.
"Sappi is pleased to be able to contribute to the increased availability of renewable energy in South Africa" commented Alex Thiel. "Sappi will continue to focus on extracting maximum value from the renewable and sustainable wood fibre that we grow. This project builds on our earlier R3bn investment at Ngodwana Mill and further strengthens our presence in Mpumalanga province".
Globally Sappi has developed and constructed five hydro, two gas and 31 steam turbines which generates around 800MW of renewable power on 14 sites across seven countries.