Timber IPP to build 25MW biomass plant

Source: http://www.esi-africa.com/timber-ipp-to-build-25mw-biomass-plant/

In South Africa, the country’s biggest sawmill, York Timbers, has announced plans to develop a 25MW biomass power plant in Mpumalanga.

The project is expected to cost $106 million and will feed the generated power back into the national electrical grid.

According to the African Review, the plant will be fuelled by the waste produced after processing the timber.

York Timbers’ CEO Pieter van Zyl said, “We will be using a huge volume of biomass that would otherwise be useless. It’s a key game-changer for the company, as, in the past, we simply burned the biomass or left it to turn into compost.”

From a business perspective, this initiative will boost the independent power producer’s revenue before interest, taxes, depreciation, and amortisation (Ebitda).
Biomass developments

The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) awarded the country’s first and largest biomass project in 2013 to Italian firm Building Energy.

The Mkuze project in KwaZulu-Natal, has a generation capacity of 14MW and will be fuelled primarily by the combustion of sugar cane waste.

In the fourth round of the REIPPP programme, South African pulp and paper solutions company Sappi, announced a power purchase agreement for its 25MW Ngodwana Energy Biomass Project in Mpumalanga.

Sappi said in a statement that the Ngodwana Energy project, which is situated on the Sappi Ngodwana Mill Site, will feed electricity into the national grid near its plant within Elands Valley, between Emgwenya (formally Waterval Boven) and Mbombela (formerly Nelspruit).