Rukwa Coal to Power Project

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Tanzania and coal.
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The Rukwa Coal to Power Project is a proposed 120-megawatt (MW) coal-fired power station by Edenville Energy in Rukwa, Tanzania.

The project is separate from Kibo Mining's Mbeya Coal to Power Project, which was previously known as the Rukwa project.

Location

The map below shows the location of Rukwa, Tanzania, but not the exact location of Mkomolo power station.

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Background

In January 2016, miner Edenville Energy agreed on a work program with engineering, procurement, and construction company Runh Power of China to advance Edenville's Rukwa coal-to-power project during the first quarter of 2016. The work program sought to expand on Edenville’s Lahmeyer Rukwa power plant feasibility study from 2015.[1]

In February 2016, Tanzania awarded a coal mining license to Edenville Energy, which plans to invest US$176 million in an open cast coal mine at the Mkomolo area in the southwestern Tanzanian town of Rukwa. "After commencing coal mining activities in June 2016, the company plans to build a 300-megawatt power plant between 20 and 22 months after getting an environmental impact assessment certificate," the ministry said in a statement.[2]

In May 2016, Edenville said it had completed the feasibility study for the power plant at Rukwa, but said it was finding it harder than expected to raise the money needed for the project as the company reported "a wider loss during 2015 due to higher impairments."[3]

In September 2016, Edenville CEO Rufus Short said that the second stage of its environmental and social assessment would be completed in the fourth quarter of the year. If approved, the EISA would move into a third stage comprising detailed investigation and reporting. Regarding the size of the plnat, Short said, "We are reviewing all options to increase the potential of the project beyond the 120 MW power plant that was outlined in the power plant feasibility study, carried out by engineering company Lahweyer."[4]

An August 2016 investor presentation described the project as 120 MW in size.[5]

According to a February 2017 press report, Edenville Energy signed a Memorandum of Understanding with Chinese hydropower company Sinohydro Corporation for codevelopment of the Rukwa project. Under the MOU, Sinohydro will be the engineering, procurement, and construction (EPC) contractor for the project. The MOU is valid until July 19, 2018. The announcement also noted that Sinohydro had already carried out extensive review work on the project. Edenville will retain all its ownership rights and control of the coal deposit and will be responsible for the coal mine portion of the project along with the permitting and legal aspects of advancing the power plant.[6]

According to the Edenville Energy website (December 2017), the EIA for the power plant is under way, and coal mining operations at Rukwa have begun.[7] On June 25, 2018, Edenville extended the validity of its memorandum of understanding (MoU) with China's Sinohydro over the Rukwa coal project to December 2019.[8]

In October 2018, the company submitted the Request for Qualification documents for the project to the Tanzania Electricity Supply Company (TANESCO), in line with the government’s new initiative regarding the development of independent power projects.[9]

In August 2020, Edenville announced plans for coal mining at Rukwa,[10] but did not mention a coal plant. Plans for the coal plant appear to be shelved.

In March 2021, the company noted that it is working with its strategic partner Infrastructure and Logistics Tanzania Ltd (ILTL) regarding a proposed handover of operations at Rukwa. In addition, "the company has received new East African enquiries regarding power generation capacity and is continuing discussions with the Tanzanian government regarding a future power plant development at Rukwa."[11]

Financing

Edenville Energy appointed International Finance Corporation (IFC) Advisory as the financial adviser for the project.[12]

Project Details

  • Sponsor: Edenville Power Tanzania Ltd[5]
  • Parent company: Edenville Energy
  • Developer: Sinohydro Corp.
  • Location: Mkomolo, Rukwa region, Tanzania
  • Coordinates: -7, 31.5 (approximate)
  • Status: Shelved
  • Gross Capacity: 120 MW
  • Type:
  • Start date:
  • Coal Type:
  • Coal Source: Rukwa coal deposit
  • Source of financing:

Articles and resources

References

  1. "Edenville advancing coal-to-power project in Tanzania," Mining Weekly, Jan 11, 2016
  2. "Tanzania awards coal mine contract to UK firm," Reuters, Feb 29, 2016
  3. "Edenville struggles for investor backing for coal-to-power plant," Energy Voice, May 10, 2016
  4. Anine Kilian, "Edenville’s Rukwa project progressing into second-stage ESIA," Mining Weekly, 16 September 2016
  5. 5.0 5.1 "Edenville Energy plc Investor Presentation August 2016," Edenville Energy
  6. "China to Support Rukwa Coal to Power Project Development," TanzaniaInvest, 7 February 2017
  7. "Operations," Edenville Energy, accessed December 2017
  8. "Edenville, Sinohydro extend MoU to December 2019," Mining Weekly, 25TH JUNE 2018
  9. "Tanzania Receive Application for Coal-Fired Power Projects," Tanzania Invest, Oct 30, 2018
  10. "Edenville Energy announce agreement with strategic partner". World Coal. 2020-08-28. Retrieved 2020-11-10.
  11. "Edenville Energy provides Rukwa update," World Coal, March 3, 2021
  12. "EPT – Rukwa Coal to Power Plant 300 MW – Tanzania - Project Profile". www.marketresearch.com. Retrieved 2020-12-04.

Related GEM.wiki articles

External resources

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