10MWe Bioenergy CHP, Weza, Eastern Cape, South Africa - Feasibility Study

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Innovate UK
Innovate UK
Innovate UK
Innovate UK
Innovate UK

£583,065

March 1, 2023

Feb. 29, 2024

This project, a collaboration between NewAfrica Bioenergy (NAB), NewAfrica Clean Energy (NACE), and Merensky Timber (Merensky), a part of Hans Merensky Group (HMG), will produce a bankable feasibility study for the Weza 10MWe CHP, producing electricity and steam for industrial and rural use and the Ugu District municipality. The project will produce energy for productive use and facilitate energy efficiency improvements in rural communities where economic activity is predominantly linked to agriculture and forestry. Moreover, the project will demonstrate the viability of a new business model to provide sustainable, low-cost bioenergy.

Based on the latest IEA report, biomass holds the potential to fulfil 57% of Africa's energy demand by 2035\. However, despite the enormous biomass energy potential, only 0.58% of power in Africa is generated using biomass. There is an absence of competent institutions with strong mandates and long-term oriented action plans. Institutes, agencies and stakeholders who work on the development of biomass energy show poor inter-institutional coordination. Progress in the production of biomass energy is limited by this lack of collaboration, coordination, and delays. Owing to weak coordination, the delay in implementing policies has limited investors' interest in investing in this field.

The successful implementation of this Project will catalyse NAB as Africa's leading bioenergy project developer and financier. This project will be a key step in NAB's effort to establish low-cost, medium-sized, and standardised projects with other agribusinesses across Africa. The combination of technical know-how and finance within the group will establish a new business model to promote renewable energy across the continent.

We will provide a bankable feasibility assessment for a 10MWe CHP bioenergy plant at Merensky's Weza sawmill and FSC-certified forests. 1/4th of the electricity will go to Merensky and 3/4th to Ugu district municipality and C&I off-takers, enhancing energy availability and affordability. The Project will fulfil the Energy Trilemma by employing renewable energy to enhance energy availability and affordability in Ugu.

The consortium will ensure at least 40% female representation in project implementation. NewAfrica Bioenergy is an integrated developer of bioenergy plants in Africa. Its partners founded Africa's largest forestry enterprise outside SA, built wood processing units, and raised $200m for investments in Africa. Our collaborator NACE is a SA developer and investment company. And HMG is the world's 2nd largest avocado grower and distributor, SA's largest sawmiller, and 4th-largest forest owner.