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 Rukwa coalfields comprise the Mkomolo, Namwele and Muze deposits.

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 has extended the validity of its memorandum of understanding (MoU) with hydropower engineering company Sinohydro Corporation of China regarding the Rukwa coal project to December 2019.

Sinohydro is the Chinese engineering, procurement and construction contractor working alongside Edenville to advance the Rukwa coal-to-power project.

The MoU has been extended for a further 18 months to allow for tasks to be completed on the technical and financial aspects of project development and construction.

With greater clarity now being provided on the Tanzanian government’s plans for power development in western Tanzania, Edenville and Sinohydro can focus on optimising the project parameters in expectation of the construction of the Sumbawanga to Tunduma section of the Zambia–Tanzania–Kenya (ZTK) power transmission line and associated infrastructure.

While a feasibility study on a 120 MW power plant has been conducted, the potential for a significantly larger plant of up to 300 MW is being considered, and much of Sinohydro's work will be focused on this option.

Edenville expects the workload for both parties to increase significantly over the coming months as the options for power development are progressed, following the recent announcement regarding the World Bank approving funding for the ZTK grid infrastructure.

In parallel, work is well advanced on baseline environmental studies to progress to a completed environmental- and social-impact assessment. 

This, along with the knowledge obtained from opening the company's Rukwa coal deposit, will be used by Sinohydro engineers to advance the design and planning for the power plant.

Although no assurances can be given at this stage that the MoU will lead to a successful outcome for Edenville, it believes that the extension of the MoU is a positive development.

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.