Building on our history of firsts to establish the:
- First biomass technology project in the South African Government programme, and
- First REIPPP project to be developed in Mpumalanga.
Sappi and consortium partners KC Africa and African Rainbow Energy and Power are establishing a 25 MW biomass energy unit at Ngodwana Mill, known as Ngodwana Energy. The project falls under the South African Government's Renewable Energy Independent Power Producer Programme (REIPPP).
- Sappi will have a 30% stake in Ngodwana Energy.
- The plant will use biomass recovered from surrounding plantations and screened waste material from the mill production process.
- The power plant will burn up to 35 ton per hour of biomass in a boiler to generate steam and drive a turbine to generate electricity which will be fed into the grid.
- The plant will contribute to the national grid from July 2020.
- Sappi already contributes to the national grid by producing surplus energy at Ngodwana Mill.
- Financial impact: ZAR15 billion direct value add over 20 years.
- The project will cost ZAR1.5 billion with 44% local spend.
- 350 people will be employed during construction.
- 91% of procurement spend will be empowerment spend.
- In terms of preferential procurement spend, ZAR400 million will be with small-, medium- and micro enterprises and ZAR200 million on women vendors.
- The collection of biomass from surrounding plantations will result in around 50 new jobs.
- The total electricity produced will support 20,000 households.
- The operations and maintenance of the boiler will create 130 new jobs.