Name of the Project
Rukwa coal-to-power project (RCPP).

Location
Tanzania.

Client
Edenville Energy.

Project Description
A feasibility study completed on the project has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant.

The project hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on imported coal into Tanzania.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s RCPP.

The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.

It has resulted in a 14% increase in the project’s pretax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
A host of proposals from various engineering, procurement and construction (EPC) companies has enabled Edenville Energy to carefully review options for the most financially viable route to build a power plant at its Rukwa coal-to-power project.

Several technical and financial proposals for the construction of a 120 MW to 135 MW power plant have been received from several EPC groups, including an option for lower-cost, near-term construction.

“While the company's Rukwa coal resource could support a larger power plant, it is currently envisaged that a plant in this range will be the best option to establish power generation in the shortest possible timescale,” Edenville CEO Rufus Short has said.

Many of the proposals are based on standard well-tested, off-the-shelf technology, with some drawing on previous contracts of similar-sized plants.

Edenville has refrained from tying itself to a particular group to “draw on the knowledge and experience of different groups” before it finalises the most appropriate deal.

In addition, with the significant differences in EPC costs between the various proposals, Edenville has identified considerable cost savings, which could potentially be applied to the power plant’s construction and operation. Options for plant acquisition could also result in a material reduction of overall project costs.

Edenville has noted that contributions have been received from Runh Power, with which it had a collaboration agreement throughout 2016, as well as an undisclosed major international EPC group already active in East Africa.

The unnamed group has also completed a comprehensive independent financial review as part of its project proposal, supporting previous estimates and demonstrating a robust project.

Edenville also continues to explore financing options and pursue opportunities for early small-scale mining in 2017, with discussions under way with several potential offtake buyers of Rukwa coal.

The project also recently underwent an extensive review by the Tanzanian authorities.

“We are awaiting further directives from senior government representatives on how they wish to proceed with the power development,” Rufus has commented.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.