/ 14 November 2007

Eskom to build power station in Limpopo

Hitachi and Alstom have been awarded the R20-billion boiler and the R13-billion turbine contracts respectively for Eskom’s Medupi power station at Lephalale in the Limpopo Province, Eskom said on Tuesday.

”Medupi will be the biggest dry-cooled power station in the world,” said Brian Dames, managing director of Eskom’s Enterprises Division.

”The supercritical design, a first for Eskom, with its higher efficiency, will result in better utilisation of both water and coal resources and improved environmental performance.”

The first unit is scheduled for completion in late 2011 or early in 2012 and the entire station is scheduled to be completed by 2015.

Dames said the signing of these two contracts marked a significant milestone in its capacity expansion programme.

”We are proud that South African suppliers will benefit and develop their skills base from the execution of these contracts. Congratulations to Hitachi and Alstom for their successful bids.”

Klaus-Dieter Rennert, chief operating officer of Hitachi Power Europe, said at the commemorative signing ceremony: ”We are very pleased to have been awarded the Medupi contract, which by international standards is a substantial order. It confirms Hitachi Powers position as a leading supplier of high quality, efficient and reliable supercritical boiler technology.

”To support Eskom in the challenges, which it is facing, we have committed to substantial investment in developing local engineering, manufacturing and artisan skills capacities. This will be our contribution to the overall sustained success of Eskom capacity expansion programme.”

The boiler and turbine contracts combined are the largest that Eskom has ever signed in its 84-year history.

”Based on the Medupi contract, Eskom is currently in negotiations with Alstom and Hitachi for turbines and boilers for its next coal-fired power station as part of its fleet strategy,” Dames said. – Sapa