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Alex Thiel, Sappi Southern Africa CEO

Sappi is pleased to announce that its Ngodwana Energy Biomass Project will play a significant role in South Africa’s renewable energy initiatives.

This follows the signing of the contract on 4 April 2018, that officially makes Ngodwana Energy a part of the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The Ngodwana project will contribute to the growth and development objectives of South Africa, the Mpumalanga province and the communities and businesses in the vicinity. Given the project’s extensive value chain, the value-add over the term of the Power Purchase Agreement is significant due its positive monetary, job creation and socio-economic impacts. 

“Sappi is proud to contribute to the increased availability of renewable energy in South Africa,” commented Alex Thiel, Sappi Southern Africa Chief Executive Officer.

“Sappi will continue to focus on extracting maximum value from the renewable and sustainable woodfibre that we grow. This project builds on our continued investments at Ngodwana Mill.”

This year, Sappi will be investing ZAR1.3-billion into Ngodwana Mill.

The Ngodwana Energy project is situated 50km west of Mbombela in the Mpumalanga Province on the Sappi Ngodwana Mill Site and will feed electricity into the national grid near its location within Elands Valley, between Emgwenya, formerly Waterval Boven and Mbombela, formerly Nelspruit.

Powering ahead

In addition to Sappi Southern Africa and its project partners AREP and KC Africa, Ngodwana Energy Employees Trust and Ngodwana Energy Community Trust will each hold a five percent stake in the project.

“This is a big achievement and a giant step for KC Africa and for our parent company, KC Cottrell in South Korea. It was an honour to be able to jointly co-operate and develop with Sappi and AREP on such an important project and to be able to contribute to the building of sustainable renewable energy in South Africa. It is a symbol of our belief and confidence in the project, in all the parties involved and especially in the country and government,” said Dong Young Seo, KC Africa President. 

“We wish to show Africa what the Korean industry can contribute to this great continent and together with KC Cottrell on the technology side, this project will further enhance confidence,” said. 

“ELB Engineering Services was honoured to have been awarded the EPC contract, to supply the power plant for this project, which we believe will become a reference biomass plant for Africa. With our international technology partners, we will supply a power plant aligned with the specific requirements of Ngodwana Energy for the South African environment,” said ELB CEO Dr Stephen Meijers.

“Fusion is incredibly proud to have led the project through development. It has been a pleasure to work with all the project partners and contractors,” said Wendy Green, Fusion Chief Executive Officer.  


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