Mmamabula Energy Project

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Mmamabula Energy Project is a power station in Mmaphashalala, Central, Botswana with multiple units of varying statuses, none of which are currently operating. It is also known as JMEP I.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Mmamabula Energy Project	Mmaphashalala, Central, Botswana	-23.62, 26.71 (approximate)

The map below shows the approximate location of the power station.

Loading map...

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Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year
Stage I Unit 1	Pre-permit	coal: unknown	150	subcritical	2026 (planned)
Stage I Unit 2	Pre-permit	coal: unknown	150	subcritical	2027 (planned)
Stage I Unit 3	Pre-permit	coal: unknown	150	unknown	2027 (planned)
Stage I Unit 4	Pre-permit	coal: unknown	150	unknown	2027 (planned)
Stage II Unit 1	Cancelled	coal: unknown	300	unknown	–
Stage II Unit 2	Cancelled	coal: unknown	300	unknown	–
Stage III Unit 1	Cancelled	coal: unknown	800	unknown	–
Stage III Unit 2	Cancelled	coal: unknown	800	unknown	–
Stage III Unit 3	Cancelled	coal: unknown	800	unknown	–

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Stage I Unit 1	Jindal Energy (Botswana) Pty Ltd [100%]	Jindal Steel & Power Ltd [97.4%]; other [2.6%]
Stage I Unit 2	Jindal Energy (Botswana) Pty Ltd [100%]	Jindal Steel & Power Ltd [97.4%]; other [2.6%]
Stage I Unit 3	Jindal Energy (Botswana) Pty Ltd [100%]	Jindal Steel & Power Ltd [97.4%]; other [2.6%]
Stage I Unit 4	Jindal Energy (Botswana) Pty Ltd [100%]	Jindal Steel & Power Ltd [97.4%]; other [2.6%]
Stage II Unit 1	Mmamabula Power Plant Development Pty Ltd [100%]	Glendal Trading Pty Ltd
Stage II Unit 2	Mmamabula Power Plant Development Pty Ltd [100%]	Glendal Trading Pty Ltd
Stage III Unit 1	Mmamabula Power Plant Development Pty Ltd [100%]	Glendal Trading Pty Ltd
Stage III Unit 2	Mmamabula Power Plant Development Pty Ltd [100%]	Glendal Trading Pty Ltd
Stage III Unit 3	Mmamabula Power Plant Development Pty Ltd [100%]	Glendal Trading Pty Ltd

Project-level coal details

• Coal source(s): Mmamabula coalfield, Mmamabula coal mine or related coalfield

Background

The project is also referred to as JMEP I (the Jindal Mmamabula Energy Project) and is proposed in the Mmamabula Coalfield's Western Block (PL11/2004).

Previous plans involved a 300 to 1,200+ MW coal-fired power station (Jindal's website referenced a JMEP I&II separately from JMEP I).

Project history

According to project sponsor Jindal Group, which took over CIC Energy in 2012, the Mmamabula Energy Project (MEP) was a proposed 1,200-megawatt (MW) coal-fired power station and integrated coal mine project in Botswana that was intended to provide power to South Africa.

South Africa had a target date to gazette their Integrated Resource Plan (IRP) by September 2010. The plan would lay out South Africa's strategy for meeting new energy needs from 2013 onward, and include new government-owned facilities and contracts with private suppliers such as CIC Energy. South Africa said they could not commit to any Power Purchasing Agreement (PPA) with CIC before the IRP was approved. The delay would affect Botswana, which needed a portion of the plant's output to meet projected demand. The IRP was eventually completed in May 2011. It did not include any window for purchase of power from Mmamabula before 2019, and then the amounts purchased would be less than 1,200 MW. CIC Energy was forced to put the project on hold after investing over C$100 million.

In April 2015, Jindal said it planned to offload 74 percent of the coal energy and mine project to South Africa’s Glendal Trading. Jindal would remain with a 26% shareholding and would also operate and manage the project. Glendal formed a South African registered company called Mmamabula Power Plant Development. Jindal, which was granted a mining licence in October 2014, planned to set up a 600 MW power plant at MEP with the off takers likely to be Eskom.

In April 2017, it was reported that Jindal had shelved initial plans to offload 74% of its company to South Africa’s Glendal Trading.

In March 2019, Jindal BVI, which owned Mmamabula Power Plant Development (Pty), was acquired by Maatla Energy, a wholly owned subsidiary of MRD Holdings Ltd, which in turn owned by LiAria Trust, GMCG Trust, Botshl Trust, and Sable Trust.

With no developments since April 2015, the project appeared cancelled.

However, in 2021, Botswana was reportedly pushing ahead with developing its estimated 212 billion tonnes of coal resources. India’s Jindal Steel & Power (JSPL) was planning to commence construction on a coal mine in the south-eastern Mmamabula coalfields in Botswana in 2022. The mine was expected to help the firm in supplying a proposed coal power plant and the export market.

In April 2021, it had shortlisted Jindal, Minergy Ltd, African Energy Resources Ltd (likely Sese Integrated Power Project), and Maatla Resources in a tender to build a 300 MW coal-fired power plant. In November 2021, the bidding for the 300 MW power plant tender was down to three after Maatla Resources pulled out, citing challenges in accessing funding among other reasons.

According to Jindal Africa's website (December 2021), the power would be intended for sale to Botswana Power Corporation, Botswana’s national utility, as new baseload power generation. The cost of the capital equipment and infrastructure for JMEP I was estimated at approximately US$1 billion. The estimated construction time for the JMEP I was anticipated to be approximately 36 months from financial close. Jindal was also considering several alternatives for the development of the JMEP I.

The website made clear that Environmental Impact Assessment (“EIA”) studies that reflect a 1,200 megawatt (net) power station and certain related infrastructure, the transmission lines, and the transport corridor had been approved by the Government of Botswana. Environmental approvals for the EIA studies related to the mine had been submitted to the Government of Botswana and were pending. Environmental approvals were a prerequisite for the granting of a mining license, a power generation license, and surface rights at Mmamabula, as well as the acquisition of transmission line and other necessary servitudes in Botswana. Given these statements, the project was presumed to remain under pre-permit development, but it could have very well been permitted in most or all ways.

In fact, by the end of 2021, the single Mmamabula website page appeared to have been split into JMEP I (300 MW) and JMEP I&II (600 MW). It was unclear why the pages were divided in this way. The JMEP I&II page listed the following permitting details (December 2022):

• "[Environmental and Social Impact Assessment (ESIA)] for 4x171 MW (gross) Thermal Power Plant approved by [Department of Environmental Affairs (DEA)]."
• "ESIA is been done by DigbyWells South Africa."
• "[Bankable Feasibility Study (BFS)] is been completed by Mott McDonalds in 2017."
• "Water rights from Well fields received in range of 18.2 MCM."
• "ESIA for Wellfields approved by DEA."
• "Water Monitoring and Modelling completed by Well Field Consulting in 2017, revised and updated in 2021."

In March 2022, bidding remained competitive for the power plant. It was the only government-backed fossil fuel procurement in the 20-year Integrated Resource Plan prepared by the Ministry of Mineral Resources, Green Technology and Energy Security. Despite Botswana's plan to increase renewable energy's share of its electricity, all associated plans with the one 300 MW plant and coal mine appeared to be moving forward as planned.

In November 2022, Jindal was officially selected for the "design, finance, construction, ownership, operation, maintenance and decommissioning" of the project. Electricity generated at the plant would be sold to the Botswana Power Corporation (BPC).

In July 2023, Minerals and Energy minister Lefoko Moagi said: “We recently got approval from the cabinet to add another 300 MW to this greenfield project, taking it to 600 MW.” The plan was to finish the project by 2026 instead of the agreed 2028, although no time frames and costs were reportedly given for the additional 300 MW. A 30-year power purchase agreement was signed July 25, 2023. The revised procurement was part of several updates made to the Integrated Resource Plan (IRP) for electricity procurement between 2020 and 2040.

In October 2023, Botswana's president led a groundbreaking ceremony for the power station project.

As of March 2024, engineering works had reportedly begun and the expected completion date for Stage 1, Unit 1 was December 2026. According to an Expression of Interest (EOI) request by Jindal in March 2024, the project was expected to consist of four 150 MW units. The EOI listed the expected commercial operation dates (CODs) as follows:

• 1st Unit - by Dec’26
• 2nd Unit - 4 months after 1st Unit COD
• 3rd Unit - 4 months after 2nd Unit COD
• 4th Unit - 4 months after 3rd Unit COD

Financing

As of July 2023, Jindal Steel & Power was set to finance at least 300 MW from its balance sheet. It was later reported that the initial deal was extended to cover 600MW. Through the IPP, Jindal will carry the costs of building the power station, running and maintaining it, while selling power to Botswana Power Corporation under a Power Purchase Agreement (PPA). The power plant is estimated to cost PWP 13 billion (ca USD 980 million). There is no information on any debt financing, as of August 2024.

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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.