https://www.miningweekly.com

R242m Namakwa Sands cogen plant delivers results

R242m Namakwa Sands cogen plant delivers results

Photo by Bloomberg

16th October 2014

By: Kim Cloete

Creamer Media Correspondent

  

Font size: - +

The Tronox-owned Namakwa Sands smelter took a big leap by investing R242-million in a cogeneration (cogen) plant, but it has exceeded the company’s expectations in terms of energy cost savings.

The 13.6 MW plant on South Africa’s West Coast uses waste gas that was previously flared into the atmosphere, to produce electricity.

“There was quite a lot of skepticism when we embarked on this project. But it has worked. You breathe a sigh of relief when you put R250-million on the line – and it works,” Tronox Namakwa Sands senior electrical engineer Peter Haley told a South African National Energy Association meeting in Cape Town this week. 

Haley pointed out that Namakwa Sands was on track to achieve its target of 70 GWh/y of exported energy, the equivalent yearly energy consumption of a small town or about 6 000 households.

Namakwa Sands’ operations have saved 10.3% in energy costs across all sites.

“The operational team on site interface with the smelter production team and it’s been very successful,” noted Haley, adding that a team of 14 people, who work in shifts around the clock, was set up to operate the cogen plant.

The cogen idea was sparked by diversified miner Exxaro in 2007. Board approval for the construction of the project was granted in 2011, while the ownership and operation was handed over to Tronox Limited, in which Exxaro has a 44.4% equity interest, following a broader deal between Exxaro and Tronox. The plant has been operational since February.

Design capacity is 1.7 MW per Jenbacher gas engine, with four units having been installed in each of the two engine rooms. Typically, the engines have a 60 000 hour operating life.

Haley explained that the cogen plant could only operate when both furnaces were running and generating consistent-quality gas.

Electricity was not exported to the Eskom grid and all energy was consumed internally.

Namakwa Sands, which is spread over 300 km along the West Coast, produces 10% of the world’s zircon, 5% of global pig iron and 8% of the world’s titanium dioxide. 

Haley said the cogen project was motivated by the need to boost energy efficiency in the interest of a low carbon future and in becoming more environment-friendly.
He added that rapidly increasing electricity tariffs a few years ago had also contributed to the move to cogeneration.

But while Namakwa Sands had been successful in saving energy costs, it had been far from a money-spinner.

Haley pointed out that the value of carbon credits had plummeted, while the weak rand, and Eskom pricing, which was less aggressive than it was four to five years ago, had changed expectations.

The company had reworked its initial calculations, from a 17% to a 5% return on investment.

The cogeneration project was also dealt a blow last month when one of the eight engines failed while running at full power, causing major damage to the cylinders. The engine was removed and returned to GE Jenbach to rebuild. It was expected to arrive back on site in December.

Despite the hurdles, Haley believed the Namakwa Sands cogeneration project has been a great success.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.106 0.143s - 88pq - 2rq
Subscribe Now