| Thu 24 Jan 2008, 10:50 | | IPS - IPSA Group Plc - Signs Memorandum of co-operation with government of |
|
IPS
IPSA
IPS - IPSA Group Plc - Signs Memorandum of co-operation with government of
South Africa for public-private partnership role at Coega
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration number 5496202)
AIM Share Code: IPSA ISIN: GB00B0CJ3F01
JSE Share Code: IPS ISIN: GB00B0CJ3F01
(`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 Central
Energy Fund (Pty) Ltd ("CEF"), the wholly owned subsidiary of the Government of
South Africa for a key role as private sector power plant developer to the
integrated energy project being developed at the Coega Industrial Development
Zone ("IDZ") outside Port Elizabeth.
Under the role envisaged for IPSA, the Company plans to install its 521 MW of
Fiat Avio 501 D gas turbines (which are in the process of being upgraded from D
technology to DU (F Class) technology) in support of the integrated liquid fuel
and liquefied natural gas ("LNG") importation project being developed under the
auspices of the CEF. This will be one of the first examples of a public-private
partnership in South Africa for an integrated LNG to electricity project.
CEF acts as the holding company for PetroSA, the state-owned oil company, and
iGas, the state-owned gas company.
The MOC envisages IPSA proceeding with its proposed 1,600 MW Coega Fast Track
Combined Cycle Gas Turbine Project (the "Coega Project") in close collaboration
with PetroSA and iGas so as to achieve rapid installation of new privately
financed power generation capacity in tandem with the Government of South
Africa`s plans for Coega to be at the heart of a new energy centre providing
liquid fuels and LNG to the industrial tenants of the IDZ.
Also under the MOC, a joint working group is to be established, including
PetroSA and iGas and the Department of Minerals and Energy ("DME"), to co-
ordinate the different parts of what will be a substantial energy development,
linking fuel importation with power generation and energy distribution.
IPSA and CEF have also agreed to explore further power project expansion in
South Africa as part of the DME`s policy of encouraging private investment in
independent power generation.
The MOC envisages that, following the installation of the first 521 MW in open
cycle at Coega, IPSA plans to procure a further four gas turbines of similar
technology and capacity at a later stage to operate in open cycle pending the
switch to combined cycle upon commissioning of the Coega LNG re-gasification
terminal after 2010. A combined cycle plant uses the waste heat from its gas
turbines to produce extra electricity with very low carbon dioxide emissions.
The Coega combined cycle plant will be the most environmentally friendly large
scale power plant in South Africa and will be eligible for certified emissions
reduction carbon credits under the United Nations Framework Agreement on Climate
Change established by the Kyoto Protocol.
Speaking today, Peter Earl, Chief Executive Officer of IPSA, said. "We are
pleased to have taken these first steps towards making Coega South Africa`s
first integrated LNG to power project. This is an important diversification
away from the dependence on the country`s northern coal reserves. We intend to
produce electricity locally in Port Elizabeth to permit the development of the
strategic metals processing businesses at Coega which will add considerable
value to the raw materials currently being exported from South Africa in their
basic state."
He added. "We are honoured to be working with CEF and with its gas and liquid
fuels subsidiaries to provide the power needed for the smelters and processing
plant now being developed at Coega. We aim to install our turbines as fast as
possible 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 of
power plants in southern Africa. It is also the owner operator of South
Africa`s first gas-fired independent power plant at Newcastle, KwaZulu, Natal.
For further information contact:
Peter Earl, CEO, IPSA Group PLC 020 7793 5600
Liz 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)
24 January 2008
Sponsor
Standard Bank
Aim nominated advisor
Noble & Company Limited
Date: 24/01/2008 10:50:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
