Zambezi Gas and Coal Mine power station

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Zambezi Gas and Coal Mine power station is a power station in the pre-permit stage in Hwange, Matabeleland North, Zimbabwe.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Zambezi Gas and Coal Mine power station Hwange, Matabeleland North, Zimbabwe -18.421241, 26.532968 (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 pre-permit coal - unknown 150 unknown
Phase II pre-permit coal - unknown 600 unknown

Table 3: Unit-level ownership and operator details

Unit name Owner
Phase I Lafrica Resources, Zambezi Gas and Coal Mine
Phase II Zambezi Gas and Coal Mine, Lafrica Resources

Background

According to Zambezi Gas and Coal Mine Company’s website (July 2020), Zambezi Gas Zimbabwe (Pvt) Ltd was incorporated in 2002 and is a wholly owned Zimbabwean private limited company operating in the coal mining and coalbed methane exploration industry. The company has in its portfolio an operating mine with a mining licence expiring in 2042 and an on-going CBM exploration project. Both are situated in the Entuba Coalfields in Hwange, Matabeleland North Province. The Entuba Rail Siding is located just 2km from the Company’s mining operation which is approximately 12km from Hwange town.”[1]

In November 2020, it was reported Zambezi Gas had been awarded a license to venture into energy generation with a 750 MW power station. The company expected to produce 150 MW in the first phase of the power project by 2024, followed by 600 MW in 2027. [2]

In November 2021, The Herald reported the proposal was a response to calls for more independent power producers to invest in the energy sector and sell power to Zesa for distribution. Zambezi Gas and Coal Mine Company had already mobilized US$60 million of the required US$250 million from internal resources for the initial phase of the project. Construction of site offices in Hwange was underway so “the work on the first phase to generate 150MW within 24 months can start.”[3]

In addition, operations director Menard Makota said the Environmental Impact Assessment was 99% complete. He also stated: "We have had a drawback due to recent announcement by China that they are no longer funding thermal power stations, and so, we are trying to change that technology to first change the coal into gas then from there we do energy." Water for the project would be drawn from boreholes and Zambezi River. Zambezi Gas was reportedly only a minor shareholder in the project, with sister company Lafrica Resources as the major shareholder.[4] Lafrica Resources may be a South African company.[5]

In December 2021, the Zambezi Gas and Coal Mine operations director announced that plans for the underground mining venture were being pushed until 2023. The first phase of the mine's associated 750 MW thermal power plant was "hoped" to be up and running by 2025.[6]

As of November 2022, the company was facing operational challenges caused by strained cash flow. Zambezi Gas and Coal Mine's biggest customer was the Zimbabwe Power Company (ZPC), which reportedly owed US$1.3 million for coal supplied by Zambezi Gas and Coal Mine Company.[7] This money, plus significant additional capital, would be required for planned expansions and upgrades. Among these plans was a thermal power station with capex requirements of US$ 1.5 billion, according to the company.[8]

As of December 2023, there have been no apparent developments on the power station project.

Financing

  • In 2021, Zambezi Gas and Coal Mine Company stated that it has mobilized US$60 million of the required US$250 million for the initial phase of the project from internal resources and the company was in the process of attracting other funders.[3] In November 2022, the company stated that capex requirements for the thermal power plant (presumably, the 750MW) were estimated to be US$ 1.5 billion.[8]

Articles and Resources

References

  1. “What Is Zambezi Gas Zimbabwe?,” Zambezi Gas and Coal Mine Company, July 2020 (archive)
  2. “Zambezi Gas to double coal output,” November 20, 2020
  3. 3.0 3.1 “Work on 150MW coal project starts,” November 23, 2021
  4. "Zambezi Gas shelves gas mining project," The Chronicle, November 22, 2021
  5. "Lafrica Resources," b2bhint, last updated July 10, 2021
  6. "Zambezi Gas and Coal Mine shelves plans," The Herald, December 29, 2021
  7. "Zambezi Gas battles to recover US$1,3m from ZPC," Zimbabwe Independent, November 30, 2022
  8. 8.0 8.1 "Zambezi Gas targets US$2bn for capital expenditure," Zimbabwe Situation, November 21, 2022

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.