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NERSA
PRESENTATION
ESTABLISHMENT OF A NEW
10.7 MW POWER STATION
PRESENTERS
James Muchongwe
Vicus Esterhuizen
DATE: 7 October 2010
POWER ALT PROJECT
10.7 MW POWER STATION
Project Developer for 30.7 MW
– ADC (Pty) Ltd.
1ST Phase – 10.7 MW
2ND Phase – 20 MW
Client
– Thos Begbie Holdings (Pty) Ltd
Site
– Middelburg, Mpumalanga, South Africa
Contract Basis
– BOO 12 Year Take Or Pay
Technology
– GE Jenbacher Reciprocating Engines
PROJECT STRUCTURE
LOAN CAPITAL
79% DEBT
SHAREHOLDERS
21% EQUITY
POWER ALT
ORIGINAL
EQUIPMENT SUPPLIER
EQUIPMENT
SUPPLY
PROJECT
DEVELOPER
PROJECT
MANAGEMENT
SERVICES
OPERATIONS
CONTRACT
MAINTENANCE
CONTRACT
EPC
CONTRACT
LUBRICATION
CONTRACT
LEGAL REVIEW
CONTRACT
GEOTECH
&
SURVEY
CONTRACTS
ELECTRICITY SUPPLY
CONTRACT
LONG-TERM CONTRACTS
EXECUTION CONTRACTS
SHAREHOLDING STRUCTURE
ADC: 10%
Investec: 20%
Astra: 19%
Jubilee: 51%
– Jubilee has an option to acquire Astra’s total
shareholding.
POWER ALT PROJECT
TECHNICAL FEASIBILITIES
Assessment of Client demand and technical interface
requirements
– Measurements of harmonic distortion done and recorded
– Measurements of electrical currents done and recorded
Technology matching and decision
– Matched specific demand requirements with Technology
– Technology Provider supply all spare parts and do all
major services and overhauls over 12 years
Control philosophy to operate in parallel with Municipal grid
done in conformance with Grid Code
POWER ALT PROJECT
LONG TERM CONTRACTS
Gas Supply
– Sasol : 18 year contract
– Tolling arrangement whereby Thos Begbie buys gas from Sasol
and supply to Power Alt (Gas take off point on Thos Begbie site)
Maintenance, Overhauls and Spare Parts Supply
– GE Jenbacher: 12 year contract
Oil Supply
– Engen: As required
Operations and Business Administration
– ADC: 12 year contract
POWER ALT PROJECT
ENVIRONMENTAL IMPACT
ASSESSMENT
Thos Begbie site
– Power Plant on Thos Begbie site
– Industrial zone privately owned
Emissions
– In full conformance to European Standards
No public/government assets
– No overhead systems
– No roads
– No underground systems
EIA
– Approval in Place from Dept of Environmental Affairs
POWER ALT PROJECT
THOS BEGBIE STATUS
6 MW available from Municipality
– Weekly power shedding
– Cannot operate all furnaces at same time
– Desperately needs additional power
Expansion for Ferromanganese
– 1st 2.5MVA arc furnace installed
– Converter bought and on site
– Other furnaces on order
– Jubilee expansion plans envisaged
THANK YOU

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Power Alt application on establishment of a new 10_7 MW Power station- NERSA presentation 07 October 2010

  • 1.
  • 2. NERSA PRESENTATION ESTABLISHMENT OF A NEW 10.7 MW POWER STATION PRESENTERS James Muchongwe Vicus Esterhuizen DATE: 7 October 2010
  • 3. POWER ALT PROJECT 10.7 MW POWER STATION Project Developer for 30.7 MW – ADC (Pty) Ltd. 1ST Phase – 10.7 MW 2ND Phase – 20 MW Client – Thos Begbie Holdings (Pty) Ltd Site – Middelburg, Mpumalanga, South Africa Contract Basis – BOO 12 Year Take Or Pay Technology – GE Jenbacher Reciprocating Engines
  • 4. PROJECT STRUCTURE LOAN CAPITAL 79% DEBT SHAREHOLDERS 21% EQUITY POWER ALT ORIGINAL EQUIPMENT SUPPLIER EQUIPMENT SUPPLY PROJECT DEVELOPER PROJECT MANAGEMENT SERVICES OPERATIONS CONTRACT MAINTENANCE CONTRACT EPC CONTRACT LUBRICATION CONTRACT LEGAL REVIEW CONTRACT GEOTECH & SURVEY CONTRACTS ELECTRICITY SUPPLY CONTRACT LONG-TERM CONTRACTS EXECUTION CONTRACTS
  • 5. SHAREHOLDING STRUCTURE ADC: 10% Investec: 20% Astra: 19% Jubilee: 51% – Jubilee has an option to acquire Astra’s total shareholding.
  • 6. POWER ALT PROJECT TECHNICAL FEASIBILITIES Assessment of Client demand and technical interface requirements – Measurements of harmonic distortion done and recorded – Measurements of electrical currents done and recorded Technology matching and decision – Matched specific demand requirements with Technology – Technology Provider supply all spare parts and do all major services and overhauls over 12 years Control philosophy to operate in parallel with Municipal grid done in conformance with Grid Code
  • 7. POWER ALT PROJECT LONG TERM CONTRACTS Gas Supply – Sasol : 18 year contract – Tolling arrangement whereby Thos Begbie buys gas from Sasol and supply to Power Alt (Gas take off point on Thos Begbie site) Maintenance, Overhauls and Spare Parts Supply – GE Jenbacher: 12 year contract Oil Supply – Engen: As required Operations and Business Administration – ADC: 12 year contract
  • 8. POWER ALT PROJECT ENVIRONMENTAL IMPACT ASSESSMENT Thos Begbie site – Power Plant on Thos Begbie site – Industrial zone privately owned Emissions – In full conformance to European Standards No public/government assets – No overhead systems – No roads – No underground systems EIA – Approval in Place from Dept of Environmental Affairs
  • 9. POWER ALT PROJECT THOS BEGBIE STATUS 6 MW available from Municipality – Weekly power shedding – Cannot operate all furnaces at same time – Desperately needs additional power Expansion for Ferromanganese – 1st 2.5MVA arc furnace installed – Converter bought and on site – Other furnaces on order – Jubilee expansion plans envisaged