Shumba to establish IPP
Shumba plans to establish an Independent Power Project ( IPP) with 300MW under a Special Economic Zones Authority ( SEZA) Investment Licence to produce minimum 25,000bpd clean burning liquid fuels through its second Mabesekwa project.
The company highlighted in its quarterly report ended June 2022 that it is re- engaging Coal to Liquids ( CTL) technology and equipment partners which were involved historically with the project.
“Before the Pandemic, Shumba secured a principal agreement and a term sheet for 100 percent of the project cost in 2019 money terms with a UK Private Equity Giant. Accordingly, the company is seeking to re- engage with these funders to proceed as originally planned.”
The Mabesekwa Export Independent Power Project ( MEIPPP) is planned to be a 600MWp minemouth power plant using coal from the first Mabesekwa mine for which Environmental and Social Impact Assessment ( ESIA) and pre- feasibility studies have already been completed.
The Mabesekwa Power Plant will be configured as a 4x150MW coal fired power plant with a minimum 25- year operating life with ability to expand development to 1200MWp.
Shumba Energy, Managing Director, Mashale Phumaphi said Mabesekwa No. 2 mine is planned to be developed to feed Ikaegeng ( CTL)
Plant. “As a result, Shumba is seeking to establish the project independently with a 300MWp IPP under a Special Economic Zones Authority ( SEZA) Investment Licence to produce minimum 25,000bpd clean burning liquid fuels and associated petrochemical by- products such as BT ( Benzyltoluene) for LOHC ( Liquid Organic Hydrogen Carrier) energy storage technologies.”
Shumba Energy’s Mabesekwa project area contains two elements, the Mabesekwa No. 1 Mine and
Independent Power plant to be developed within subsidiary, Kibo Energy Botswana Pty Ltd ( 65 percent owned) and the Mabesekwa No. 2 Mine and Ikaegeng Coal to Liquids Plant to be developed under the subsidiary Coal Petroleum Ltd ( 80percent owned). Circa 30percent of the in- situ resources c. 300Mt will be mined and used for the 600MWp MEIPP and the 70percent balance of the in- situ resources c. 560Mt will be mined and used for a 300MWp power plant and CTL liquid fuels plant feed.