Mabesekwa Export Independent Power Plant

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Botswana and coal
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The Mabesekwa Export Independent Power Plant is a proposed 300 to 600-megawatt (MW) coal-fired power station, a 300 MW coal-to-liquids (CTL) project, and a mine near Francistown, Botswana.

Location

The map below shows Francistown, the approximate location where the projects would be built.

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Background

Mabesekwa Export/Coal Independent Power Project (MEIPP or MCIPP) - KP2

In March 2015, Botswana's Shumba Coal partnered with a South African firm, Mulilo Group, for the joint development of the 300 MW Mabesekwa Export Independent Power Plant (MEIPP). The MEIPP includes coal mining at Mabesekwa coal field, located some 60km south-west of the town of Francistown and 40km west of Tonota /Shasheis. About 40 MW will go to power mining activities, and the rest exported to South Africa.[1]

Shumba said it plans to apply for South Africa's next round of independent power producer (IPP) programme, and look for a strategic partner for mine development at the Mabesekwa coal field site.[2] The project is also shortlisted in the Government of Botswana Greenfield Coal Baseload IPP Programme, which will be a parallel bid submission. The plant may be two or four generating units, each with an output of 150 MW gross with a maximum capacity of 600 MW gross total depending on grid integration and evacuation constraints, according to Shumba.[3]

In July 2016, Shumba Energy said it had obtained the "environmental thumbs up for its coal mine and associated 600 MW mine-mouth power station independent power project (IPP) at Mabesekwa."[4] In October 2016 South Africa's Department of Energy announced that the successful bidders for the 1st coal-based IPP Programme were the Thabametsi power station and the Khanyisa power station.[5]

In July 2017, Shumba Energy said it planned to begin mining of the Mabesekwa coal field in 2018, with development of the initial 2 x 150 MW coal plant (phase I) to follow.[6]

In February 2018, Kibo Mining and Tanzania’s state-owned utility company TANESCO signed a memorandum of understanding (MoU) on a PPA for the plant.[7]

As of March 2019, the project was seeking financing. The mining license was outstanding for the Mabesekwa coal mine.[8]

A corporate presentation from Q4 2020 noted that the final project capacity will be dependent on grid integration and evacuation constraints. A 40km water pipeline will be constructed from Shashe Dam to provide raw water for process and sanitary use, and back-up water provided will come from well fields. The project will either involve Pulverized Fuel Fired Boiler or Circulating Fluidised Bed Boiler. The units appear to be waiting for a Definite Agreement to conclude, the business plan to advance, feasibility studies to commence, and mining rights to be issued before they can move to an advanced project development phase.[9]

Coal-to-Liquids (CTL) Project - KP1

In August 2019, Shumba Energy signed an agreement with two Chinese EPC companies Powerchina International Group and Wison Group for the development of a US$1 billion coal-to-liquids plant (CTL), initially known as the Tsosoloso power station. The CTL plant will use coal from Shumba's Mabesekwa prospect in Botswana.[10] As of 2019, Coal Petroleum Ltd (CoPet), a private Botswana company focused on the development of the commercial scale liquid fuels production facility, was working with Shumba on regulatory permitting and environmental impact assessment activities.[11]

A corporate presentation from Q4 2020 noted that the project will be 300 MW (2 x 150 MW), and will exclusively supply power to a Shumba petrochemical project. The units appear to be waiting for a Definite Agreement to conclude, the business plan to advance, feasibility studies to commence, and mining rights to be issued before they can move to an advanced project development phase.[9]

Financing

As of 2016, Mabeswekwa was planned to be 70% debt-financed, with the balance funded through equity, possibly through development agencies such as the South African government-owned Industrial Development Corporation and the Development Bank of Southern Africa.[12]

Ownership

In November 2017, Kibo Mining acquired an 85% interest in the Mabesekwa project from Shumba Energy. Shumba will retain a 15% interest in the Project (KP2).[13] In December 2019, Kibo Energy PLC announced an update to its agreement with Shumba Energy Ltd that repositioned its interests in Botswana.[14] Kibo currently has a 35% interest in the CTL Project (KP1), and Shumba a 65% interest.[15]

Project Details

  • Sponsor: Kibo Energy PLC & Shumba Energy Ltd
  • Parent company:
  • Location: near Francistown, North East District, Botswana
  • Coordinates: -21.173611, 27.5125 (approximate)
  • Status: Announced
  • Capacity: 300-600 MW (2 or 4 x 150 MW), 300 MW (2 x 150 MW, CTL)
  • Type: Unknown
  • Projected in service:
  • Coal Type:
  • Coal Source: Mabesekwa coal field
  • Source of financing:

Articles and resources

References

  1. "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed June 2015
  2. David McKay, "Shumba Energy eyes electricity export deal with Eskom," Mining Mx, April 29, 2016
  3. "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed May 2016
  4. "Botswana gives enviro thumbs up for coal-to-power export IPP," Mining Weekly, July 7, 2016
  5. "Coal-based Independent Power Producer programme announcement," Department of Energy, October 10, 2016 (pdf)
  6. "Shumba plans to fast-track Mabesekwa into production," Crown, July 15, 2017
  7. "Kibo Mining repositions as an African energy company," Mining Review, April 24, 2018
  8. "Mozambique: Kibo provides update on four key projects," IEA Clean Center, March 28, 2019
  9. 9.0 9.1 "Multi-Asset International Energy Development Company Corporate Presentation," Q4 2020, Kibo Energy PLC
  10. "Kibo and Shumba reorganize strategy for MCIPP," Mining Review, September 25, 2019
  11. "Shumba Energy spends USD 233,416 on projects and asset development in FY2019P," African Financials, Dec 4, 2019
  12. "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed May 2016
  13. "Evolving Strategy to Re-Position as an Energy Company With Acquisition of Strategic Botswana Power Project," Kibo Mining, November 30, 2017
  14. "Kibo Energy to reorganise Botswana interests,", World Coal, December 9, 2019
  15. "Multi-Asset International Energy Development Company Corporate Presentation," Q4 2020, Kibo Energy PLC

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