Edenville Energy, the African coal exploration and development company, has announced its intention to progress the company’s Rukwa coal project with the aim of supporting a power station capable of producing 100 MW of electricity and supplying it directly into Tanzania’s proposed new power grid.
The government of Tanzania recently indicated its commitment to begin construction of the country’s main power grid during 2014. Governmental organisations have indicated the construction of the ‘Western Power Line’ between Mbeya and Sumbawanga, forming part of the new grid system, will commence in 2014, and is expected to be completed during 2016.
Edenville’s Rukwa coal deposit is able to support the build of a 100 MW coal-fired power plant, thanks to its size, coal quality and location, and will be able to supply electricity to the Sumbawanga-Mbeya power line.
Larger power station
A scoping study completed in September indicated it was commercially attractive for the company to build a small power generation facility, which would operate independently of the main grid, and use only a small percentage of Edenville’s overall coal resource. However, the accelerated progress of the ‘Western Power Line’ gives Edenville the opportunity to develop a larger power station, using the company’s entire coal resource.
The company is currently in early stage discussions with potential Asian partners to develop the project. These potential partners are experienced in the feasibility, construction and funding of project of a similar scale to Rukwa, and using a similar quality of coal to that defined in Edenville’s deposit.
Discussions are also underway with qualified engineering and power consultants who will assist the development process. This will include technical work such as large-scale bulk sampling and metallurgical test work for wash plant and power plant design.
Edenville chairman, Sally Schofield, commented: “The accelerated progress of the Western Power Line is a tremendous advancement not only for Tanzania but also for Edenville. We have taken the decision to expand and accelerate our plans following the government’s confirmation of the timeframes for building the new grid infrastructure. With a 100 MW plus power plant we believe we will have a sustainable, long-term project that can contribute significantly to Tanzania’s future power requirements”.
Adapted from press release by Katie Woodward
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