6th June 2012
AGGREKO IN GROUND-BREAKING PROJECT TO SUPPLY 107 MW OF POWER TO SOUTH AFRICA AND MOZAMBIQUE
Aggreko, along with its joint-venture partner Shanduka Group, has signed a Power Purchase Agreement (PPA) with Eskom, the South African power utility, and agreed PPA terms with Electricidade de Moçambique (EDM), the Mozambique power utility, to provide a 107 MW power plant that will supply baseload and peak power to both companies. Both PPAs are subject to the parties fulfilling a number of conditions precedent before becoming effective.
The power plant will be situated on the Mozambique / South African border at Ressano Garcia, 90 kilometres north-west of Maputo. It will be powered by natural gas from the Temane gas fields in Mozambique and its output will be injected into the national grid of Mozambique on site at Ressano Garcia. The output of the plant will be split between the two companies, with EDM utilising 15 MW and Eskom 92 MW.
This is thought to be the first project by a private company to supply power cross-border to two utilities in Southern Africa, and underlines the potential benefits that can accrue to countries sharing resources. Both countries will get much needed additional power, and the project also underlines the importance of Mozambique as an energy hub for the entire Southern African region.
It is planned that the plant will start operations early in the third quarter of 2012, and supply power until July 2014. Aggreko is responsible for building gas interconnections, a major substation and 1.5 kilometres of 275 kV transmission line working alongside the Matola Gas Company SA and Gigawatt Mozambique SA. The total value of the project is likely to be in the region of $250 million over two years, including fuel costs.
Rupert Soames, Chief Executive of Aggreko said, "This is a very important project for Aggreko, and for Southern Africa, as it underlines the benefits of countries working together for the common good. We hope it will be a pathfinder for other countries seeking to make the most of their resources to optimise the supply of power across the region."
"The partnership with Aggreko creates an opportunity for Shanduka to contribute to the Southern Africa Power Pool. This unique project will contribute to the provision of a reliable power supply and support South Africa in meeting its energy needs" said Phuti Mahanyele, CEO, Shanduka Group.
Speaking for EDM, CEO, Augusto Sousa Fernando added, "EDM, in its role as the national power utility and system operator in Mozambique, welcomes the Aggreko interim power plant in Ressano Garcia at Maputo Province and will provide the support required to make it a reality and to ensure that the energy to be generated by the project contributes to the construction of our future in Mozambique and supports the socio-economic development in the SADC region as well".
Hilary Joffe, Eskom spokesperson said, "We are very supportive of this innovative cross-border project, and we look forward to the Ressano Garcia Plant coming on line early in the third quarter."
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Aggreko plc is the world leader in the supply of temporary power and temperature control solutions. Aggreko employs over 4,500 people operating from 165 locations. In 2011 we served customers in about 100 countries, and had revenues of approximately GBP 1.4bn (USD 2.2bn or Euros 1.6bn). Aggreko plc is listed on the London Stock Exchange (AGK.L), is a member of the FTSE-100 index, and is headquartered in Scotland. For more information, please visit the company website at www.aggreko.com
Aggreko provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time. Examples would be the supply of power to an industrial site which needs to service its permanent power supply, supplying a whole city in times of power shortage, or providing a major sporting event with power and cooling systems. We serve our customers either through our 165 service centres, which we call the Local business, or globally through our International Power Projects business.
In the Local business, which accounts for about half of our revenues, we hire our equipment to customers, who then operate it for themselves, although we retain responsibility for servicing and maintaining it. In the International Power Projects business, which also accounts for about half of our revenues, we operate as a power producer. We install and operate power plants and we charge our customers both for providing the generating capacity, and for the electricity we produce. We design and manufacture equipment specifically for these requirements in our factory in Dumbarton, Scotland.
Recent customers include the 2008 Beijing Olympic Games , the Vancouver 2010 Olympic Winter Games and the power utilities in over 50 countries including the UK, France, Angola, Kenya, Indonesia, Bangladesh, Venezuela, Chile, Brazil and the USA.
In 2011 we fulfilled almost 43,000 customers' assignments and when researched, 69% of them gave us a recommendation of 9 or 10 out of 10.
For more information, please visit our local website at: www.aggreko.com
Rupert Soames / Angus Cockburn
Tel: 0141 225 5900
Neil Bennett / Tom Eckersley
Tel: 020 7379 5151