Sappi named as preferred bidder of Ngodwana Energy biomass project

Sappi Southern Africa CEO Alex Thiel has welcomed the announcement that Ngodwana Energy has been chosen as a preferred bidder in the Department of Energy's 4th window Renewable Independent Power Producers Procurement Programme (REIPPPP).

The Ngodwana Energy project is situated in the Mpumalanga Province on the Sappi Ngodwana Mill Site and will feed electricity into the national grid near its location within Elands Valley.

The project will contribute to the growth and development objectives of the National Government, Mpumalanga province, the communities and businesses in the vicinity as well as Eskom and the citizens of South Africa. The value added by Ngodwana Energy to the Mpumalanga region and National Government over the term of the PPA is higher than alternate renewable energy technologies due to the extent and impact of value creation.

'Sappi is pleased to be able to contribute to the increased availability of renewable energy in South Africa,' says Thiel. 'Sappi will continue to focus on extracting maximum value from the renewable and sustainable wood fibre that we grow. This project builds on our earlier investment at Ngodwana Mill and further strengthens our presence in Mpumalanga province.'

In addition to Sappi Southern Africa and its project partners Fusion Energy and KC Africa, an Ngodwana Energy Employees Trust and an Ngodwana Energy Community Trust will each hold a 5% stake in the project.

Only a small number of biomass projects are currently operating within the South African renewable energy market.



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