24th Jan 2008 08:50
IPSA Group PLC24 January 2008 24 January 2008 IPSA Group PLC ("IPSA" or the "Company") IPSA Signs Memorandum of Co-operation with Government of South Africa for Public-Private Partnership Role at Coega IPSA, the independent power plant developer with operations in southern Africa,is pleased to announce a memorandum of co-operation (the "MOC") with the CentralEnergy Fund (Pty) Ltd ("CEF"), the wholly owned subsidiary of the Government ofSouth Africa, for a key role as private sector power plant developer to theintegrated energy project being developed at the Coega Industrial DevelopmentZone ("IDZ") outside Port Elizabeth. Under the role envisaged for IPSA, the Company plans to install its 521 MW ofFiat Avio 501 D gas turbines (which are in the process of being upgraded from Dtechnology to DU (F Class) technology) in support of the integrated liquid fueland liquefied natural gas ("LNG") importation project being developed under theauspices of the CEF. This will be one of the first examples of a public-privatepartnership in South Africa for an integrated LNG to electricity project. CEF acts as the holding company for PetroSA, the state-owned oil company, andiGas, the state-owned gas company. The MOC envisages IPSA proceeding with its proposed 1,600 MW Coega Fast TrackCombined Cycle Gas Turbine Project (the "Coega Project") in close collaborationwith PetroSA and iGas so as to achieve rapid installation of new privatelyfinanced power generation capacity in tandem with the Government of SouthAfrica's plans for Coega to be at the heart of a new energy centre providingliquid fuels and LNG to the industrial tenants of the IDZ. Also under the MOC, a joint working group is to be established, includingPetroSA and iGas and the Department of Minerals and Energy ("DME"), toco-ordinate the different parts of what will be a substantial energydevelopment, linking fuel importation with power generation and energydistribution. IPSA and CEF have also agreed to explore further power project expansion inSouth Africa as part of the DME's policy of encouraging private investment inindependent power generation. The MOC envisages that, following the installation of the first 521 MW in opencycle at Coega, IPSA plans to procure a further four gas turbines of similartechnology and capacity at a later stage to operate in open cycle pending theswitch to combined cycle upon commissioning of the Coega LNG re-gasificationterminal after 2010. A combined cycle plant uses the waste heat from its gasturbines to produce extra electricity with very low carbon dioxide emissions. The Coega combined cycle plant will be the most environmentally friendly largescale power plant in South Africa and will be eligible for certified emissionsreduction carbon credits under the United Nations Framework Agreement on ClimateChange established by the Kyoto Protocol. Speaking today, Peter Earl, Chief Executive Officer of IPSA, said. "We arepleased to have taken these first steps towards making Coega South Africa'sfirst integrated LNG to power project. This is an important diversificationaway from the dependence on the country's northern coal reserves. We intend toproduce electricity locally in Port Elizabeth to permit the development of thestrategic metals processing businesses at Coega which will add considerablevalue to the raw materials currently being exported from South Africa in theirbasic state." He added. "We are honoured to be working with CEF and with its gas and liquidfuels subsidiaries to provide the power needed for the smelters and processingplant now being developed at Coega. We aim to install our turbines as fast aspossible to ensure uninterrupted supply of electricity in the Eastern Cape." IPSA is quoted on AIM and has a secondary listing on ALTx and is a developer ofpower plants in southern Africa. It is also the owner operator of SouthAfrica's first gas-fired independent power plant at Newcastle, KwaZulu, Natal. For further information contact: Peter Earl, CEO, IPSA Group PLC 020 7793 5600Liz Shaw, COO, IPSA Group PLC 020 7793 5600 John Llewellyn-Lloyd / Jamie Boyd, Noble & Company Limited 020 7763 2200(Nominated Adviser and Joint Broker) Sean Lunn, Hichens, Harrison (South Africa) Ltd +2721 950 2711(Joint Broker) Allan Piper, First City Financial 020 7242 2666(UK Public Relations Advisers) Jacques de Bie, College Hill (South Africa) +2711 447 3030(South African Public Relations Advisers) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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