Sappi announces preferred bidder of the Ngodwana Energy Biomass in South Africa

Sappi has announced that the 25 MW Ngodwana Energy project has been chosen as a preferred bidder in the South Africa’s 4th window Renewable Independent Power Producers Procurement Programme (REIPPPP).

The 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 (formally Waterval Boven) and Mbombela (formerly Nelspruit).

In addition to Sappi Southern Africa and its project partners Fusion Energy and KC Africa, the Ngodwana Energy Employees Trust and an Ngodwana Energy Community Trust will each hold a 5% stake in the project.

ELB Engineering Services has been warded the energy procurement construction (EPC) contract to supply the power plant for this project.

Sappi Southern Africa CEO Alex Thiel stated:

“Sappi is pleased to be able to contribute to the increased availability of renewable energy in South Africa. Sappi will continue to focus on extracting maximum value from the renewable and sustainable wood fibre that we grow. This project builds on our earlier R3 billion investment at Ngodwana Mill and further strengthens our presence in Mpumalanga province.”

KC Africa’s President, Ki Kyeong Kim’s commented:

“This successful bid for Ngodwana Energy is a big achievement and a giant step for KC Africa and for our parent company, KC Green Holdings in South Korea. It is an honour to be able to jointly cooperate and develop with Sappi and Fusion on such an important project and to be able to contribute to the building of sustainable renewable energy in South Africa. It is a mark of our belief and confidence in the project, in all the parties involved and especially in the country and government.”

“We wish to show Africa what Korean industry can contribute to this great Continent and together with JSC’s Creative Power Division (listed on the KOSDAQ under ‘JSC’, Issue Code: A080220) collaborating with KC Cottrell on the technology side, this project will further enhance confidence.”

Only a small number of biomass projects are currently operating within the South African renewable energy market.