Engineering News and Mining Weekly
PROJECTSINPROGRESS
Battery Energy Storage Independent Power Producer Procurement Programme – Bid Window 2
Name of the Project
Battery Energy Storage Independent Power Producer Procurement Programme – Bid Window 2 (BW2).
Location
North West, South Africa.
Project Owner/s
Department of Mineral Resources and Energy, and the Independent Power Producers (IPP) Office.
Project Description
The request for proposals for the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) – BW2 was released in December 2023 and calls for 615 MW battery energy storage capacity.
Eight storage facilities in closest proximity to dedicated substations – Mercury, Carmel, Hermes, Ngwedi, Midas, Marang, Bighorn and Ararat, in the North West supply area – will be procured.
Under BW2, the IPP Office is aiming to procure 77 MW of battery energy storage systems at every substation, with four hours of storage. A minimum availability of 95% over 8 760 hours per contracted year is also stipulated and the facilities will be expected to provide instantaneous, regulating and supplementary reserves.
The closing date for bid submissions under BW2 is April 30, 2024.
The preferred bidder will be announced about three months after the bid submission date.
Potential Job Creation
Not stated.
Capital Expenditure
Not stated.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
IPP Office, email query@ipp-storage.co.za.
Gas Independent Power Producer Procurement Programme – Bid Window 1
Name of the Project
Gas Independent Power Producer Procurement Programme (GASIPPPP) – Bid Window 1 (BW1). Location
The gas-to-power (GtP) facilities can be located anywhere within the borders of South Africa. Project Owner/s
Department of Mineral Resources and Energy. Project Description
Following the promulgation of the Integrated Resource Plan 2019, the Minister of Mineral Resources and Energy determined that the procurement of new-generation capacity is required to ensure energy security, and that about 3 000 MW would be generated from gas. The GASIPPPP has been designed to procure 2 000 MW of new-generation capacity, including ancillary services and energy output, that will be derived from land-based gas-fired power generation facilities.
The remaining 1 000 MW has been reserved for a separate procurement process, which will be undertaken to establish new-generation capacity by one or more facilities, to be located in the area known as Zone 13, in the Coega Special Economic Zone, near the Port of Ngqura, in the Eastern Cape.
The GASIPPPP BW1 limits bidders to the construction of greenfield facilities, ruling out the conversion of the diesel-fuelled Avon and Dedisa open-cycle gas turbines to gas.
Projects can, however, share infrastructure with existing facilities, but such infrastructure must have unconditional and irrevocable rights in the shared infrastructure.
Plants of between 300 MW and 1 000 MW will be considered and they will be expected to operate at a maximum load commitment of 65% and a minimum of 40%, with State-owned power utility Eskom to dispatch the facility, in line with an agreed monthly load commitment.
The facilities, which will sell electricity to Eskom for 20 years, will be compensated for capacity, energy and ancillary services.
Potential Job Creation
Not stated.
Capital Expenditure
Not stated.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Independent power producer project officer, email Query@ipp-rm.co.za.
Renewable Energy Independent Power Producer Procurement Programme – Bid Window 7
Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window 7 (BW7). Location
South Africa. Project Owner/s
Department of Mineral Resources and Energy. Project Description
In December 2023, the DMRE invited interested parties to register prospective bids under the REIPPPP – BW7.
A total of 5 000 MW will be procured from projects using solar photovoltaic (PV) and onshore wind technology. The new generation to be procured will include1 800 MW of solar PV and 3 200 MW of onshore wind. Potential Job Creation
Not stated. Capital Expenditure
Not stated. Planned Start/End Date
Bid submission is scheduled for April 30, 2024.
Bid evaluation is expected to take up to three months following submissions and preferred bidders will be given six months to advance their projects to financial close. A period of 24 months has been set for construction, despite growing concerns about the country’s logistics constraints, particularly at the ports.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Independent Power Producer project officer, email query@ipp-renewables.co.za.
Sanbrado underground gold project
Name of the Project
Sanbrado underground gold project.
Location
Burkina Faso.
Project Owner/s
West African Resources.
Project Description
A scoping study has proposed the development of an underground development beneath the M5 South openpit at the Sanbrado gold mine.
The study envisages average underground production of 35 000 oz/y of gold over a five-year life-of-mine (LoM). The addition of the M5 South underground to the production plan at Sanbrado is expected to displace close to two-million tonnes of lower-grade openpit material over the LoM, resulting in an increase in production by up to 25 000 oz/y over the current ten-year plan from 2026. Consequently, Sanbrado will maintain production above 200 000 oz of gold. M5 South underground is expected to deliver 1.8-million tonnes at 3.1 g/t for 188000 oz of gold over a five-year LoM. It has been designed to use mining equipment in use at M1 South to maximise operational synergies between the two mines. West African Resources’ unhedged ten-year production outlook estimates production of more than 200 000 oz/y of gold in 2023 and 2024, and more than 400 000 oz/y from 2025 to 2032.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Not stated. Capital Expenditure
Preproduction capital expenditure is estimated at $20-millon. Planned Start/End Date
West African Resources is working on the proposed underground development of M5 South, which includes further drilling, geotechnical studies and mine planning. Subject to a positive outcome being achieved from the studies, West African Resources aims to start portal establishment and underground development in the second half of 2025, leading to full underground production by mid-2026. Latest Developments
None stated. Key Contracts, Suppliers and Consultants
None stated. Contact Details for Project Information
West African Resources, tel + 61 8 9481 7344 or email info@westafricanresources.com.
Molo graphite mine expansion
Name of the Project
Molo graphite mine expansion.
Location
Province of Toliara, southern Madagascar.
Project Owner/s
NextSource Materials.
Project Description
A feasibility study has confirmed the highly attractive economics for a large-scale expansion of the Molo mine and processing facility.
The study proposes an expansion to the mine’s current Phase 1 production capacity of 17 000 t/y through the construction of an additional and standalone processing plant, which will increase the steady-state production rate of SuperFlake graphite concentrate to 150 000 t/y over a 25year life-of-mine. The feasibility study assumes the additional processing plant will be built adjacent to the current Phase 1 processing plant, presently in the ramp-up stage of production. The expansion will use the company’s unique, fully modular build approach, which significantly reduced build time and associated costs with regard to conventional mine construction, to build its Phase 1 processing plant.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $424.1-million and an internal rate of 31.1%.
Capital Expenditure $161.7-million.
Planned Start/End Date
Not stated.
Latest Developments
NextSource has not yet decided on the expansion and will discuss the feasibility study results with its strategic partners to determine the optimal timing, and assess the available funding options with respect to potential mine expansion.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
NextSource Materials, tel +1 416364 4911 or email info@nextsourcematerials.com.
Falchani lithium project
Name of the Project
Falchani lithium project. Location
Puno, south-western Peru. Project Owner/s
American Lithium Corp.
Project Description
An updated preliminary economic assessment (PEA) has demonstrated that, with low initial capital expenditure, the project can potentially become a substantial, low-cost, long-life producer of high-purity lithium carbonate equivalent and a producer of sulphate of potash and cesium sulphate by-products, alongside lithium carbonate equivalent.
The PEA reports that the project is highly amenable for development by conventional openpit, drill-and-blast, and truck-and-shovel methods.
Envisaged is a mine and processing operation producing 2.64-million tonnes of lithium carbonate equivalent over a life-of-mine of 43 years.
Average steady-state production is estimated at 23145 t/y of lithium carbonate equivalent in Phase 1, 45084 t/y in Phase 2 and 72 624 t/y in Phase 3.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The pretax net present value is estimated at $8.41-billion, at an 8% discount rate. The pretax internal rate of return is estimated at 40.7%. Payback is estimated at five years.
Capital Expenditure
Phase 1 is estimated at $2.57-billion.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
DRA Global.
Contact Details for Project Information
American Lithium Corp, tel +1604428 6128 or email info@americanlithiumcorp.com.
Tarragona hydrogen plant
Name of the Project
Tarragona hydrogen plant.
Location
An industrial area in Vallmoll, Catalonia, Spain.
Project Owner/s
Lhyfe.
Project Description
The project entails the development of Lhyfe’s first green hydrogen production site in Spain. The project will include a 5 t/d green hydrogen plant.
The plant will address demand for green hydrogen from different industrial companies in the area. Potential Job Creation
Not stated.
Capital Expenditure
The project has been awarded a grant of up to €14-million from the H2 Pioneros programme. The grant represents about half of the total estimated investment in the project, and will fund the design phases, the supply of equipment and construction work.
Planned Start/End Date
The first kilograms of green hydrogen are expected to be produced in 2026.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Nouvelles Graines – industry press relations, Clémence Rebours, on behalf of Lhyfe, tel +33 6 60 57 76 43 or email c.rebours@nouvelles-graines.com.
Piquette Avenue– US Advanced Manufacturing Center
Name of the Project
Piquette Avenue– US Advanced Manufacturing Center.
Location
Michigan, in the US.
Project Owner/s
Fortescue Metals Group.
Project Description
The proposed manufacturing centre will become a major hub for Fortescue’s production of automotive and heavy industry batteries, hydrogen generators, fast chargers and electrolysers.
The new manufacturing centre is expected to directly benefit from the US Inflation Reduction Act tax credits for battery modules of up to $10/kWh.
Potential Job Creation
The facility has the potential to create up to 600 jobs in its first phase.
Capital Expenditure $35-million.
Planned Start/End Date
Production is expected to start in 2025. Latest Developments
Not stated. Key Contracts, Suppliers and Consultants
None stated. Contact Details for Project Information
Fortescue Metals Group communications, email media@fortescue.com; or email investor relations, tel +61 8 9230 1647 or email investors@ fortescue.com.