Rukuru power station

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Rukuru power station is a power station in Mzuzu, Northern, Malawi with multiple units of varying statuses none of which are currently operating. It is also known as Rukuru Coal Project, Rukuru Coal Fired Power Project.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Rukuru power station Mzuzu, Northern, Malawi -11.45807, 34.015131 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Phase I Unit 1 pre-permit coal - unknown[1] 50[1] subcritical
Phase I Unit 2 pre-permit coal - unknown[1] 50[1] subcritical
Phase II Unit 3 announced[1] coal - unknown[1] 150[1] unknown

Table 3: Unit-level ownership and operator details

Unit name Owner
Phase I Unit 1 Rukuru Power Co [100.0%]
Phase I Unit 2 Rukuru Power Co [100.0%]
Phase II Unit 3 Rukuru Power Co [100.0%]

Project-level coal details

  • Coal source(s): Mchenga Coal Mine

Background

In December 2017, China's Hubei Electric Power Construction Engineering Co signed an EPC contract with Mchenga Coal Mines of Malawi to build a 2 x 50 MW coal plant in northern Malawi. The Rukuru project was planned for the Long Pi area, 120 km north of Mzuzu city in northern Malawi and close to the Mchenga Coal Mine area. There was the possibility of a phase II for an additional 100 MW.[2][3]

In November 2019, Mchenga Coal Mines said the project was progressing and a feasibility study had been submitted.[4]

In a July 16, 2020 letter, newly-appointed board member for Malawi Revenue Authority (MRA), Lincoln Bailey – who runs Rukuru Power Company Limited, an Independent Power Producer (IPP) – opposed the government issuing a single buyer license to yet another state power company, Power Market Limited (PML).[5]

In June 2022, the Mchenga Coal Mines disclosed that plans were moving forward despite a multi-year pause in progress. The power station was to begin construction within two years using a $287 million loan from the Export Development Bank. "We are getting a loan which will soon be signed though it will take 24 months before the construction of the plant because there are some engineering-related decisions and some EIAs", the source said.[6] As of June 2022, the Malawi Investment and Trade Centre (MITC) website stated that a possible phase II would be 150 MW.[7]

In July 2022, the company said that they plan to increase their mines' production capacity from 12,000 to 19,000 metric tons per year, with several new mine sites opening by the end of 2024.[8]

The power station project was included in a March 2023 Malawi government report on the country's investment projects.[9]

As of March 2024, the Rukuru power station project still appeared on the MITC website,[10] but information on the project had remained unchanged since June 2022.[7]

Financing

In June 2022, Mchenga Coal Mines stated that the plant will be built using a $287 million loan soon to be signed from the Export Development Bank.[6] It was unclear which Bank was being referred to.[6] Another source from July 2022 referred to a loan from Chinese banks and a total project cost of $287 million, including the power plant construction as well as mine mechanisation.[8] In the report of the Government of Malawi from March 2023 on the country's investment projects, it was reported that a term loan of $146.4 million was being sought to fill the project funding gap. The project promoters were also seeking equity/strategic investors.[9]

The search for strategic investors was still ongoing, as per September 2023 reporting.[11] The same source also referred to a partial risk guarantee that was previously secured from the African Development Bank (AfDB), but it was later withdrawn due to pressure from the AfDB’s funders who have imposed bans on coal-related funding.[11]

Articles and Resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "Malawi 100 mw Coal-based Thermal Power Plant". Malawi Investment and Trade Centre. 2022-06-25. Retrieved 2023-10-24.
  2. "马拉维100MW燃煤电站总包合同完成签约," 湖北工程公司, December 26, 2017
  3. "中国电建马拉维100MW燃煤电站总包合同完成签约," BJX, December 28, 2017
  4. "Malawi: Mchenga Coal Mine On Course for Rukuru Power Plant - to Reduce Load-Shedding," All Africa, November 28, 2019
  5. "MRA’s board member Lincoln Bailey opposes Power Market Limited: ‘Malawi power sector focus is wrong’," Nyasa Times, July 23, 2020
  6. 6.0 6.1 6.2 "Miner in $287 million coal-fired project," The Times, June 9, 2022
  7. 7.0 7.1 "Malawi 100 mw Coal-based Thermal Power Plant," Malawi Investment and Trade Centre, archived June 25, 2022
  8. 8.0 8.1 "Mchenga Coal Mine to increase production," Mining & Trade News, July 18, 2022
  9. 9.0 9.1 "MALAWI INVESTMENT PROJECTS (Volume 4)" (PDF). www.akib.org.tr. March 2023.{{cite web}}: CS1 maint: url-status (link)
  10. "Malawi 100 mw Coal-based Thermal Power Plant," Malawi Investment and Trade Centre, accessed March 22, 2024
  11. 11.0 11.1 "Mchenga seeks strategic investors for coal fired power plant project". miningtradenews.net/. September 2023. Retrieved via the Wayback Machine. {{cite web}}: Check date values in: |access-date= (help)CS1 maint: url-status (link)

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.