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IDC seeks eligible buyers for two biomass pellet manufacturing plants

Sappi Southern Africa was awarded a 25MW Ngodwana Energy Biomass Project in Mpumalanga in round 4 of REIPPPP

In South Africa, the Industrial Development Corporation (IDC) has issued an Expression of Interest (EOI) for the sale of its two Biomass Pellet manufacturing plants in Port Elizabeth and Sabie Mpumalanga respectively.

The two plants, which are located in COEGA are up for sale either to be purchased as a pair or individually.

Bidder requirements

Interested bidders, who would be subject to a confidentiality agreement, were invited to submit their offers for the IDC’s 100,000 t/y Coega-based biomass plant and the 80,000 t/y Zebra Pellets plant, in Sabie, Mpumalanga last week, Engineering news reported on Tuesday.

Potential buyers are required to have “adequate financial resources to fund the acquisition, as well as to fund any dismantling and removal costs of the equipment and rehabilitation of the sites (if the plant is to be moved)”, the IDC said in their EOI notice.

A confidentiality agreement will have to be signed to ensure that all privileged information is kept secure.

Submissions of EOIs and Requests for Information are to be submitted on or before 31 August 2015 at 12:00pm.

Biomass developments in S.Africa

In other news, pulp and paper solutions company Sappi Southern Africa announced in April that its 25MW Ngodwana Energy Biomass Project in Mpumalanga had won a power-purchase agreement in round four of the Renewable Energy Independent Power Producer Procurement programme.

Sappi said in a statement that the Ngodwana Energy project, which is situated on the Sappi Ngodwana Mill Site, will feed electricity into the national grid near its plant within Elands Valley, between Emgwenya (formally Waterval Boven) and Mbombela (formerly Nelspruit).

Sappi Southern Africa and its project partners South Africa energy firm Fusion Energy, KC Africa, the Ngodwana Energy Employees Trust and Ngodwana Energy Community Trust will each hold a 5% stake in the project.

Homepage pic credit: Spimpex

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.