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. There is the possibility that the power plant could be scaled up to 300 MW.

The project hosts 173-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

Output has been estimated at 10 000 t/m.

Potential Job Creation
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
Edenville Energy is reviewing options to further optimise the efficiency and throughput of its wash plant at the recently commissioned Rukwa coal project on expectations of greater demand beyond its planned output of 10 000 t/m.

The company started producing washed coal for sale in October, delivering on commercial terms to several customers in Tanzania and neighbouring countries following the completion of the commissioning and testing of the wash plant, which started in late September.

“These initial test shipments, currently totalling over 1 000 t, are to parties that have expressed interest in placing long-term coal orders with the company, subject to finalising pricing and quality, that, in total, could exceed the initial planned output of 10 000 t/m, which is targeted to be achieved by the end of January 2018,” Edenville has said in an update to shareholders.

Edenville is considering an option to install a purpose-built prescreening mechanism to reduce the level of fine material that enters the plant, providing more capacity for the washing of sized coal.

Meanwhile, Edenville and its partner, Chinese State-owned hydropower engineering and construction company Sinohydro Corporation, have been meeting with Tanzania State-owned Electricity Company Tanesco about the way forward for the development of the planned mine mouth power plant at the Rukwa coal project site, in the Sumbawanga region.

“Several areas were covered, including the size of the project, the proposed structure of a power purchase agreement, tariff levels and connectivity to the planned transmission line that will pass through the Sumbawanga region,” Edenville has noted.

Further discussions and clarification between the parties could lead to a structured agreement between the parties to move the project forward, in line with the planned construction by Tanesco of the transmission line and substation infrastructure at Sumbawanga
 
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.