Benefits and Opportunities for an 600 MW UCG IGCC project

Local domestic coal is free from international currency fluctuations and commodity pricing!

  • UCG, as opposed to other gas technologies, won’t be reliant on Mozambique pipeline or LNG imports, and is not sensitive to USD exchange rates since domestic, coal is utilized with a ZAR based price escalated at CPI.
  • New local high value jobs created in the drilling, gas processing and gas turbine  maintenance industries
  • UCG can promote the establishment of an entirely new industry boosting the SA economy.

A 600MW project can be brought into commercial operation quickly, as the company already owns the land and coal.  Furthermore, the company already has an Environmental Approved power project that can supply 50 MW to the Grid within 24 months of financial closure.

  • UCG uses 90% less water than conventional coal based mining technologies and will promote national water security. Furthermore, the dry cooling of IGCC use much less water per kW or about 10% of the water of a conventional PF coal power station.
  • The Theunissen projects will be located in an economically depressed area of South Africa and provide much needed injection of capital and jobs.

South Africa is a developing country with an economy dominated by coal as a domestic baseload solution. We have no other viable short to medium term alternative for coal.  UCG is the only clean and efficient technology that will allow SA to continue its economic prosperity by utilizing its own abundant domestic resources in an environmentally sound and efficient way.

The project will support the Mining Charter’s implementation of community upliftment, with a Social and Labour Plan (SLP) and skills development through Local Economic Development (LED) initiatives.  The implementation of the first 50 MW by 2019 and IGCC of up to 2 000 MW by 2025 could have at its peak about 1,773 directly employed personnel during construction of the IGCC facility.  The project will also create 257 permanent jobs in the Lejweleputswa District Municipality.  The UCG Program will utilize the services of potentially hundreds of local service providers including the following:

  1. emergency services (Ambulance and Firefighting)
  2. clinics
  3. catering and food facilities
  4. accommodation
  5. transport including taxis
  6. fuel supply
  7. water supply agreements
  8. engineering and maintenance support