Weda Bay power station

From Global Energy Monitor

Weda Bay power station covers the 1,000-megawatt (MW) coal-fired power station and 2,400 MW of coal capacity under development at the Weda Bay Industrial Park on the coast of Halmahera Island, North Maluku, Indonesia.

The Weda Bay Industrial Park includes an open-pit nickel and cobalt mine and production plant in a protected forest area. The ambition of the project goes beyond open-pits. It has been pitched as an industrial park, one which would, according to the company’s job postings, “be the first vertical, from mine mouth to finished products, integrated Electric Vehicle battery and stainless steel Industry complex in the world.”[1][2]

Planet satellite imagery from 2018 to 2021 (timelapse also available here) shows the extensive development at the site.

Location

The map below shows the site of the Weda Bay Industrial Park in Weda, Central Halmahera Regency, North Maluku, Indonesia. As noted above, Planet satellite imagery from 2018 to 2021 (timelapse also available here) shows the extensive development at the site.

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Background

The total coal-fired power capacity operating or under development at Weda Bay is reportedly 3,400 MW (6 x 250 MW + 5 x 380 MW).[3] However, there are various other capacity numbers documented online, including 8 x 250 MW figures and 3 x 380 MW figures.

Ownership

In 2020, it was reported that a joint venture between French company Eramet and Tsingshan – PT Weda Bay Nickel (PT WBN) – owned 90% of Weda Bay. Eramet had a 43% of that venture while Tsingshan had a 57% stake.[4] An Indonesian miner Antam reportedly owned the remaining 10% of Weda Bay.[5]

Tenant companies

The first nickel smelter at the park is reportedly run by PT Weda Bay Nickel (PT WBN), while a second is operated by Yashi Indonesia Investment, which is co-owned by Tsinghan and Zhenshi.[6]

In terms of the captive coal-fired power units, they appear fairly uniformly developed and constructed. They are typically a joint ownership by Tsingshan and tenant companies.

The known tenant companies involved at the site include, but are not limited to, the following:

  • PT Weda Bay Nickel (WBN) – 印尼纬达贝镍业有限公司[7]
  • PT Yashi Indonesia Investment – 印尼雅石投资有限公司[8] (Zhenshi Holding Group 振石控股集团有限公司,Shanghai Decent Investment Group 上海鼎信投资(集团)有限公司, Zhejiang Huajun Investment Co., Ltd. 浙江华骏投资有限公司)[9]
  • PT Libai Indonesia Metal Co – 印尼李白金属有限公司 (The English name is a translation from Chinese)
  • PT Weda Bay Energi – 印尼纬达贝能源有限公司
  • PT Youshan Nickel Indonesia – 印尼友山镍业有限公司 (Huayou Group and Tsingshan Group)[10][11][12]


Deep dive on PT Angel Nickel Industry

In October 2020 Nickel Mines Limited signed a memorandum of understanding (MOU) with PT Angel Nickel Industry, a subsidiary of Shanghai Decent Investment Group (SDI), to acquire 70% of its planned nickel smelter and planned coal-fired power plant in Weda Bay Industrial Park (IWIP). The purchase price was USD 490 million. The project is expected to be fully operational by the third quarter of 2022.[13]

In April 2021, Nickel Mines Limited acquired a 50% stake in PT Angel Nickel Industry for USD 347.6 million. It intended to acquire a further 30% stake for $210 million, taking its total interest to 80%.[14]

A March 2021 prospectus by Nickel Mines Limited, the parent company of PT Angel Nickel, stated that site preparations and foundation works for construction of the Angel Nickel Project were underway, and that commissioning was contractually required to occur by October 16, 2022.[15]

Nickel Mines Limited completed its 80% equity purchase in October 2021, with a total investment of US$527.6 million. The full Angel Nickel project is valued at approximately US$1.5 billion. Nickel Mines had a financing commitment of up to US$700 million. SDI will cover construction costs exceeding $700 million.[16] IJGlobal estimates that the 380 MW power station is worth US$750 million.[17]

In May 2022, the Company's AGM shareholders approved the change of company name from Nickel Mines Limited to Nickel Industries Limited.[18]

Units Commissioned (4 x 250 MW)

In August 2018, Jiangxi Construction was awarded a contract to build a 4 x 250 MW coal-fired plant in the Weda Bay Industrial Park.[19] In May 2019, PT Indonesia Weda Bay Industrial Park (IWIP) announced that construction had begun in December 2018 on a 3 x 250 MW plant.[20] The Park would be used for nickel-based industry.[20] Unit 1 was commissioned in March 2020.[21] The nickel production facilities became fully operational in May 2020.[22] A June 2021 report stated that 750 MW of capacity operated by Tsingshan was in use at Weda Bay, but that the Indonesian Ministry of Mines and Energy had blocked Tsingshan from building a fourth 250 MW coal-fired unit.[23]

However, by June 30, 2021, 4 x 250 MW was reportedly operating,[24] with the first unit going into operation in 2020,[25] the third in January 2021 (Youshan Nickel),[26] the fourth in June 2021 (Libai Metal Company),[27] and details about the second unit uncertain.

Capacity under development

An additional 2 x 250 + 3 x 380 MW of capacity appeared under construction as of January 2022. For example:

  • Unit 7 (380 MW) began construction in March 2021.[28] The unit's ownership was uncertain.
  • Unit 9 (380 MW) began construction in September 2021.[3] The unit's ownership was uncertain.


The status of two proposed 380 MW units remained uncertain.

Project Details

  • Owner: Unit 1: PT Weda Bay Energi[29]; Unit 2: PT Yashi Indonesia Investment[30]; Unit 3: PT Youshan Nickel; Unit 4: PT Youshan Nickel; Unit 5: Huayue Nickel Cobalt; Unit 6: PT Huake Nickel Indonesia; Unit 7: PT Sunny Metal Industry[31]; Unit 8: ANI[32]; Unit 9: PT Angel Nickel Industry; Units 10-12: PT Indonesia Weda Bay Industrial Park
  • Parent: Unit 1, 3, and 10-12: Tsingshan Holding Group, Others[33]; Unit 2: Tsingshan Holding Group, Zhenshi Holding Group, Zhejiang Huajun Investment Co., Ltd.; Unit 4: Tsingshan Holding Group, Zhenshi Holding Group, Zhejiang Huajun Investment Co., Ltd.; Unit 5: Zhejiang Huayou Cobalt Co., Ltd., Tsingshan Holding Group; Unit 6: Zhejiang Huayou Cobalt Co., Ltd. 70%, Tsingshan Holding Group 30%[34]; Unit 7: Walsin Lihwa 50.1%, Tsing Shan Holding Group (unclear); Unit 8: Walsin Lihwa 50.1%, Tsing Shan Holding Group (unclear); Unit 9: Nickel Industries Limited (80%), Tsingshan Holding Group (20%)
  • Location: Weda, Central Halmahera, North Maluku, Indonesia
  • Coordinates: 0.478894, 127.984206 (exact)
  • Status: Units 1-3: Operating; Unit 4: Operating[35]; Unit 5: Construction; Unit 6: Operating[36]; Unit 7: Construction[37]; Unit 8: Construction[38]; Unit 9: Construction[39]; Units 10-11: Construction; Unit 12: Construction[40]
  • Gross capacity: Units 1-6: 6 x 250 MW; Units 7-11: 5 x 380 MW
  • Type:
  • In service: Unit 1-2: 2020; Units 3-4: 2021; Unit 6: 2022; Unit 9: 2022; Units 5-8 and 10-11: unknown
  • Coal type:
  • Coal source:
  • Source of financing:

Articles and resources

References

  1. Weda Bay, Earthworks, accessed January 2022
  2. Home, IWIP, accessed January 2022
  3. 3.0 3.1 印尼纬达贝工业园区6×250MW+5×380MW火力发电建设项目9号机组顺利开工, 中国火力发电网, September 22, 2021
  4. Weda Bay Nickel: The Emergence Of A Leading Producer Of Nickel Ferroalloys, Eramet, accessed January 2022
  5. Antam mulls boosting stake in biggest nickel deposit owner, Bloomberg News, October 23, 2020
  6. Global race for electric car components is threatening indigenous peoples in North Maluku, Ekuatorial, November 27, 2021
  7. PT Weda Bay Nickel, IWIP, accessed January 2022
  8. 印尼雅石投资有限公司, accessed in 2021
  9. PT Yashi Indonesia Investment IWIP, accessed January 2022
  10. Youshan Nickel Indonesia Company, IWIP, accessed January 2022
  11. IWIP Jamin Smelter Freeport di Weda Bay Rampung 2023, Ini Alasannya, Dunia Energi, April 5, 2021
  12. International Nickel Study Group, Fastmarkets MB - 7th International Nickel Conference, June 5, 2019
  13. Nickel Mines secures more capacity, Mining Weekly, Oct. 16, 2020
  14. Arundhati Dutta, Australia's Nickel Mines raises stake in Indonesian project to 50%, Nasdaq, April 20, 2021
  15. Prospectus, Nickel Mines Limited, March 29, 2021
  16. Nickel Mines completes 80% stake in Angel Nickel project, IJGlobal, October 7, 2021
  17. Angel Nickel Industry Coal-Fired Power Plant (380MW), IJGlobal, updated July 10, 2021
  18. About Us, Nickel Industries, accessed July 2022
  19. 中国电建江西院中标印尼两火力发电项目, BJX, August 10, 2018
  20. 20.0 20.1 Kawasan Industri Weda Bay Siapkan Pembangkit 750 Megawatt, Ekonomi, May 28, 2019
  21. 纬达贝园区:1号机组并网发电成功,1#、2#电炉起弧熔炼顺利, Tsinghshan Group, March 8, 2020
  22. Weda Bay Nickel Project, NS Energy, accessed June 2021
  23. Joko Widodo, Indonesia’s dirty way of coal is proving difficult to break, Title Press, June 23, 2021
  24. Whhbxh, accessed in 2021
  25. 纬达贝园区:1号机组并网发电成功,1#、2#电炉起弧熔炼顺利, Tsingshan News, March 10, 2020
  26. 印尼纬达贝工业园区|多台电炉顺利投运投产,3#机组成功并网发电, DRCNET, February 3, 2021
  27. 印尼纬达贝园区4#机组成功并网发电, 力源不锈钢网, June 5, 2021
  28. 印尼纬达贝工业园区电厂#7机组顺利开工, 中国火力发电网, March 17, 2021
  29. TSS Group, TSS Group, accessed July 6, 2022
  30. Indonesia Weidabe Industrial Park No. 2 generator set was successfully connected to the grid for power generation, Zhenshi Holding Group, Sep. 21, 2020
  31. 华新丽华:斥资2亿美元入主印尼镍厂 布局下一波成长动能, Sina, Apr. 12, 2022
  32. 杭钢菲达环保为青山印尼项目制作的除尘器交货, csteelnews, Sep. 8, 2021
  33. Indonesia’s First Integrated Weda Bay Industrial Park Construction Begins, The Insider Stories, August 31, 2018
  34. afinance, afinance.cn, Mar. 10, 2022
  35. 印尼纬达贝园区4#机组成功并网发电, chxgy.lyssp.com, Jun. 5, 2021
  36. 中冶南方承建的印尼纬达贝火力发电建设项目群6#机组成功并网发电, MCC, Mar. 23, 2022
  37. 印尼纬达贝工业园区火力发电建设项目#7机组顺利开工, Henan Province Second Building Engineering Development, Mar. 16, 2021
  38. 印尼纬达贝项目8号汽机岛浇筑顺利完成, Henan Province Second Building Engineering Development, Apr. 7, 2022
  39. 印尼纬达贝工业园区6×250MW+5×380MW火力发电建设项目9号机组顺利开工, jnejfz.com, Sep. 18, 2021
  40. 印尼纬达贝工业园区电厂建设项目12号机组顺利开工, Henan Province Second Building Engineering Development, May 5, 2022

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