Independent power producer (IPP) Independent Power Southern Africa’s (Ipsa’s) initial plan is to bring 2 000 MW of new generating capacity on stream in South Africa. The company is currently completing its first project in New-castle, in Kwazulu-Natal, and expects to produce the first power from a proposed 1 600 MW power gene- ration project in the Coega Industrial Development Zone (IDZ) in 2008.
Ipsa CEO Peter Earl tells Engin-eering News that the Coega project will support the development of the mooted smelting operations in the IDZ.
The South African government and Canadian aluminium producer Alcan have been in negotiations concerning the construction of a multibillion-rand aluminium smel-ter in the Coega IDZ for the last three years.
“All of the agreements that have been concluded to date have been done with the aim in mind that there will be a power plant located in the IDZ that will provide uninterrupt-ible power supply to smelting opera-tions,” Earl says.
Another company that is investigating the possibility of building a smelter in Coega is Russian aluminium producer Sual.
Earl points out that disruptions in power supply can cost smelting companies millions of dollars, even if they are relatively small, as even a temporary shortage can damage equipment.
Ipsa is managed by a team with an established record in developing new power projects.
In a previous position, Earl was part of the team that supplied power to the world’s largest copper smelter in Kazakhstan, then owned by electronic goods giant Samsung.
“In 1996, Kazakhstan produced electricity that was even cheaper than Eskom’s.
“However, Samsung was willing to pay a premium for a reliable and uninterrupted source of power from an IPP, as a disruption in power supply would have been even more expensive in light of the damage that it could cause,” Earl says.
Ipsa has obtained the right to lease a 20-ha property adjacent to the mega liquefied natural gas (LNG) import terminal that is planned for the Coega IDZ. The company pro- poses to build a 1 600-MW combined-cycle LNG-fired power station next to the import terminal.
“The Coega project will be a flagship technical project in the local power generation sector.
“Nobody has ever used gas on this scale to generate electricity in South Africa,” Earl says. In South Africa, where State-owned Eskom currently generates about 95% of electricity, it is govern- ment policy that IPPs should generate 30% of new capacity. At the time of going to press, Ipsa planned to become the first IPP to list on AltX, and the first company listed on Aim to have a secondary list- ing on AltX. Its listing was sche- duled for Thursday, October 19.
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