Mabesekwa Export Independent Power Plant
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Mabesekwa Export Independent Power Plant is a shelved power station in Francistown, North East, Central, Botswana. It is also known as Mabesekwa Coal Independent Power Project, MEIPP, MCIPP.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Mabesekwa Export Independent Power Plant | Francistown, North East, Central, Botswana | -21.173611, 27.5125 (approximate) |
The map below shows the approximate location of the power station.
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology |
|---|---|---|---|---|
| Phase I Unit 1 | shelved | coal: unknown | 150 | unknown |
| Phase I Unit 2 | shelved | coal: unknown | 150 | unknown |
| Phase II Unit 3 | shelved | coal: unknown | 150 | unknown |
| Phase II Unit 4 | shelved | coal: unknown | 150 | unknown |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Phase I Unit 1 | Shumba Energy Ltd; Mulilo Group Pty Ltd | Mulilo Group Pty Ltd; Shumba Energy Ltd |
| Phase I Unit 2 | Shumba Energy Ltd; Mulilo Group Pty Ltd | Mulilo Group Pty Ltd; Shumba Energy Ltd |
| Phase II Unit 3 | Shumba Energy Ltd; Mulilo Group Pty Ltd | Mulilo Group Pty Ltd; Shumba Energy Ltd |
| Phase II Unit 4 | Shumba Energy Ltd; Mulilo Group Pty Ltd | Mulilo Group Pty Ltd; Shumba Energy Ltd |
Project-level coal details
- Coal source(s): Mabesekwa coal field
Background
Mabesekwa Export/Coal Independent Power Project (MEIPP or MCIPP) - KP2
In March 2015, Botswana's Shumba Coal partnered with a South African firm, Mulilo Group, for the joint development of the 300 MW Mabesekwa Export Independent Power Plant (MEIPP). The MEIPP included coal mining at Mabesekwa coal field, located some 60km south-west of the town of Francistown and 40km west of Tonota /Shasheis. About 40 MW would go to power mining activities, and the rest for export to South Africa.[1]
Shumba said it planned to apply for South Africa's next round of independent power producer (IPP) programme, and to look for a strategic partner for mine development at the Mabesekwa coal field site.[2] The project was also shortlisted in the Government of Botswana Greenfield Coal Baseload IPP Programme, which was expected to be a parallel bid submission. The plant would be two or four generating units, each with an output of 150 MW gross with a maximum capacity of 600 MW gross total depending on grid integration and evacuation constraints, according to Shumba.[3]
In July 2016, Shumba Energy said it had obtained the "environmental thumbs up for its coal mine and associated 600 MW mine-mouth power station independent power project (IPP) at Mabesekwa."[4] In October 2016, South Africa's Department of Energy announced that the successful bidders for the 1st coal-based IPP Programme were the Thabametsi power station and the Khanyisa power station.[5]
In July 2017, Shumba Energy said it planned to begin mining of the Mabesekwa coal field in 2018, with development of the initial 2 x 150 MW coal plant (phase I) to follow.[6]
In February 2018, Kibo Mining and Tanzania’s state-owned utility company TANESCO signed a memorandum of understanding (MoU) on a PPA for the plant.[7]
As of March 2019, the project was seeking financing. The mining license was outstanding for the Mabesekwa coal mine.[8]
A corporate presentation from Q4 2020 noted that the final project capacity would be dependent on grid integration and evacuation constraints. A 40km water pipeline would be constructed from Shashe Dam to provide raw water for process and sanitary use, and back-up water provided would come from well fields. The project would either involve Pulverized Fuel Fired Boiler or Circulating Fluidised Bed Boiler. The units appeared to be waiting for a Definite Agreement to conclude, the business plan to advance, feasibility studies to commence, and mining rights to be issued before they could move to an advanced project development phase.[9]
In March 2022, Kibo reported staying involved with the development of this project, despite their pivot-to-renewables strategy that is described below.[10] The Environmental and Social Impact Assessment and mine feasibility study of the associated mine were complete, but a mining license was still in the application process as of May 2022.[11] Though this project was considered to be in the pre-permitting stage, it was still reportedly going to be commissioned at 300 MW sometime in 2023.[12]
In June 2022, Shumba Energy included the project in their Quarterly Market Update. It was alongside a 300 MW coal-to-liquid (CTL) plant also to be located in central Botswana.[13] The project was also mentioned in the Botswana Guardian in July 2022, though it had not progressed to a development stage.[14]
Shumba Energy mentioned the independent power plant in their Quarterly Market Updates from December 2022, March 2023, and September 2023,[15][16][17] but there had not appeared to be significant developments since their June 2022 (Q2) report.[13] The December 2022 report also included the CTL plant and stated that project partners had confirmed their interest, and Shumba Energy had reengaged with funders.[15]
As of early December 2023, there had been no apparent updates on the coal plant and the project appeared to be shelved.
In Shumba's Quarterly Market Updates from December 2023 and March 2024, the company stated that the power station project is "under discussion of terms for acquisition and control by an investor group from India."[18][19] As of June 2024, Shumba was reportedly discussing acquisition of the Mabesekwa Independent Power Project with “two different groups.”[20]
Coal-to-Liquids (CTL) Project - KP1
In August 2019, Shumba Energy signed an agreement with two Chinese EPC companies Powerchina International Group and Wison Group for the development of a US$1 billion coal-to-liquids plant (CTL), initially known as the Tsosoloso power station. The CTL plant would use coal from Shumba's Mabesekwa prospect in Botswana.[21] As of 2019, Coal Petroleum Ltd (CoPet), a private Botswana company focused on the development of the commercial scale liquid fuels production facility, was working with Shumba on regulatory permitting and environmental impact assessment activities.[22]
A corporate presentation from Q4 2020 noted that the project would be 300 MW (2 x 150 MW), and would exclusively supply power to a Shumba petrochemical project. The units appear to be waiting for a Definite Agreement to conclude, the business plan to advance, feasibility studies to commence, and mining rights to be issued before they can move to an advanced project development phase.[9]
Financing
As of 2016, Mabeswekwa was planned to be 70% debt-financed, with the balance funded through equity, possibly through development agencies such as the South African government-owned Industrial Development Corporation and the Development Bank of Southern Africa.[23]
In Q3/2020 (March 2020), Shumba concluded a Consortium Agreement for the development of the CoPet CTL plant with Power China International Group Limited and WISON Engineering Limited. "Shumba obligations were limited under the agreement to providing local content for Civil Works and Local Services along with sourcing Botswana based equity investment and providing/negotiating the debt funding requirements for the project. While the Chinese partners are providing jointly the EPC ('Engineering, Procurement & Construction'), Operations and Maintenance, and External Equity Funding; the Shumba subsidiary CoPet will be the Consortium Leader, Developer and minor equity funder." CoPet was continuing to work on geotechnical, regulatory permitting, and environmental impact assessment activities.[24][25]
Ownership
In November 2017, Kibo Mining acquired an 85% interest in the Mabesekwa project from Shumba Energy. Shumba would retain a 15% interest in the Project (KP2).[26]
In December 2019, Kibo Energy PLC announced an update to its agreement with Shumba Energy Ltd that repositioned its interests in Botswana.[27] The binding Heads of Agreement saw Kibo assume a 35% interest in the total 761 Mt Mabesekwa Coal Resource while maintaining its 85% interests in the existing MCIPP project for the development of a 300 MW coal to power plant and participate as a 35%-40% partner with Shumba for the development of a second 300 MW power with electricity output directed solely to a petrochemical plant being developed by Shumba and other parties.[28][29]
Kibo Energy: Disposal plans
In Kibo Energy's "Half-Year Results to 30 June 2021," the Chairman's Statement described a pivot in strategy:[30]
- "Following a shift in international climate policies we recently announced a significant pivot in our strategy. We have decided to focus on the acquisition and development of a portfolio of sustainable, renewable energy assets and dispose of, or reposition, our fossil fuel utility projects. (...) It has become increasingly apparent that the development and funding of large-scale coal – fired utility projects such as our MCPP, Benga and Mabesekwa Projects, is becoming increasingly challenging and especially for small companies like Kibo. This does not change our view that our focus should remain on the development of sustainable energy opportunities. It is in this context that Kibo has decided to refocus on smaller scale renewable energy projects, initially in countries such as the UK and South Africa, where the market opportunities, government support and technical innovation are rapidly evolving."
- "(...) we have developed significant inherent value in our large-scale utility projects over the last few years supported by our ownership interests in two large coal deposits (MCPP and Mabesekwa). We are committed to structuring our disposal plans for these projects to ensure that our shareholders retain the benefit of any future upside potential from the development of these projects. Advisers have been engaged in order to retain maximum value in the projects for Kibo whilst making them attractive for acquisition, funding and construction by potential purchasers."
Kibo Energy's website (December 2021) said: "Kibo holds interests in three utility-scale clean coal assets/power projects. The Company intends to implement a disposal strategy for these assets that will realise value for shareholders as it believes that a larger entity would be better placed to take them to production." The projects included Benga power station (Kibo Energy) in Mozambique, Mbeya Coal to Power Project in Tanzania, and Mabesekwa Coal Independent Power Project in Botswana.[31]
In a corporate presentation from Q4 2022, Kibo Energy listed "MCIPP" under "Disposal of Fossil Fuel-based Projects".[32] An operational update from February 2023 also noted work to "[e]xit coal by a disposal process of its coal assets".[33]
In October 2023, Kibo Energy announced that they had reached an agreement with Shumba Energy to sell their remaining 35% stake in Kibo Energy Botswana, the subsidiary in which Kibo held the Mabesekwa Coal Independent Power Project.[34]
Shumba Energy: Investing in renewables
According to November 2021 reporting, Shumba Energy was investing in renewable energy even as the company was holding licenses for an estimated 4.6 billion tons of coal in eastern Botswana and seeking partners to help develop the resources.[35]
In a December 2020 report, Shumba Energy referenced the mining but not the power station.[36] This is also true of the February 2022 report.[37]
Articles and Resources
References
- ↑ "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed June 2015
- ↑ "Shumba Energy eyes electricity export deal with Eskom," Mining Mx, April 29, 2016
- ↑ "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed May 2016
- ↑ "Botswana gives enviro thumbs up for coal-to-power export IPP," Mining Weekly, July 7, 2016
- ↑ "Coal-based Independent Power Producer programme announcement," Department of Energy, October 10, 2016 (pdf)
- ↑ "Shumba plans to fast-track Mabesekwa into production," Crown, July 15, 2017
- ↑ "Kibo Mining repositions as an African energy company," Mining Review, April 24, 2018
- ↑ "Mozambique: Kibo provides update on four key projects," IEA Clean Center, March 28, 2019
- ↑ 9.0 9.1 "Multi-Asset International Energy Development Company Corporate Presentation," Q4 2020, Kibo Energy PLC
- ↑ "KBO - Kibo Energy Plc," African 'XChanges, March 18, 2022
- ↑ "Shumba Energy (Botswana) – Quarterly Market Update," African Financials, February 4, 2022
- ↑ "Mabesekwa Export Independent Power Plant, Botswana," Power Technology, December 3, 2021
- ↑ 13.0 13.1 "Quarterly Market Update - 30 June 2022," Shumba Energy, June 30, 2022
- ↑ "Shumba to establish IPP," The Botswana Guardian, July 29, 2022
- ↑ 15.0 15.1 "Quarterly Market Update – 31 December 2022," Shumba Energy, December 31, 2022
- ↑ "Quarterly Market Update - 31 March 2023," Shumba Energy, March 31, 2023
- ↑ "Quarterly Market Update - 30 September 2023," Shumba Energy, September 30, 2023
- ↑ "Quarterly Market Update – 31 December 2023," Shumba Energy, December 31, 2023
- ↑ "Quarterly Market Update – 31 March 2024," Shumba Energy, March 31, 2024
- ↑ “Quarterly Market Update – 30 June 2024,” Shumba Energy, June 30, 2024
- ↑ "Kibo and Shumba reorganize strategy for MCIPP," Mining Review, September 25, 2019
- ↑ "Shumba Energy spends USD 233,416 on projects and asset development in FY2019P," African Financials, December 4, 2019
- ↑ "The Mabesekwa Export IPP Project (the “Project”)," Shumba Coal, accessed May 2016
- ↑ "Annual Report," Shumba Energy, 2019
- ↑ "Annual Report," Shumba Energy, 2020
- ↑ "Evolving Strategy to Re-Position as an Energy Company With Acquisition of Strategic Botswana Power Project," Kibo Mining, November 30, 2017
- ↑ "Kibo Energy to reorganise Botswana interests," World Coal, December 9, 2019
- ↑ "Annual Report," Kibo Energy PLC, 2020
- ↑ "Multi-Asset International Energy Development Company Corporate Presentation," Q4 2020, Kibo Energy PLC
- ↑ "Unaudited Interim results for the six months ended 30 June 2021," Kibo Energy PLC, September 24, 2021
- ↑ "Other Investments," Kibo Energy PLC, accessed December 2021
- ↑ "Corporate Presentation, Quarter 4 2022," Kibo Energy PLC, November 23, 2022
- ↑ "Operational Update: 2023," Kibo Energy PLC, February 1, 2023
- ↑ "Kibo Energy Enters into Agreement for Sale of its Coal Interest in Botswana Coal-Based Power Project ("the Project")," Kibo Energy PLC, October 4, 2023
- ↑ "Coal Company Sees First Equity for Renewables Shift in Botswana," Bloomberg, November 10, 2021
- ↑ "Quarterly Market Update," Shumba Energy, December 31, 2020
- ↑ "Shumba Energy (Botswana) – Quarterly Market Update," Shumba Energy, February 4, 2022
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
