BIG BEND: Ubombo Sugar Limited (USL) is investing almost E3 billion to generate at least 60 megawatts of electricity, 40 megawatts for the Eswatini Electricity Company (EEC). Project preparations to start construction in 8 months are complete, pending final approval of the Eswatini Environmental Authority.
The project that will create 600 construction jobs is scheduled to start in September, with a target to deliver electricity by 2028.
The proposed power generation project has negligible adverse ecological impacts and significant economic and social advantages, the Initial Environmental Evaluation (IEE) report submitted by the Nelspruit based South African company Core Environmental Services says. The company assessed the development and operation impacts of the project on air quality, noise, socio-economic and other hazards to the area gave the project an all clear signal.
Core managing director Anne-Mari Hitge said the report, completed in December 2024 is currently under stakeholder review until 31 January 2025, when it will be handed to the Eswatini Environmental Authority (EEA) for their approval in terms of the Environmental Management Act (2002).
The EEA outcome is anxiously awaited by USL who pioneered the supply of electricity as first and only private power producer (PPP) to supply the electricity to the Eswatini Electricity Company.
The EEA approval will be submitted to the national energy procurers, ESERA (Eswatini Energy Regulatory Authority) and the project’s financiers. “A positive environmental impact assessment report is a prerequisite for obtaining funding. In other words, the project cannot reach financial close without this positive report,” submitted USL Managing Director Muzi Siyaya.
Mr. Siyaya said the total power output from the new generation capacity will be 60 MW of which 40 MW will be made available to EEC. The other 20MW will be used for USL factory, estates and irrigation on farm use.
The 40 MW “is a substantial contribution towards the country’s total domestic demand which is currently 200 MW. USL’s power exports to the grid will therefore constitute circa 20% of total domestic demand,” he said.
Mr. Siyaya said USL has been awarded preferred bidder status, subject to certain commercial conditions being met by both USL and the government through ESERA. “Negotiations are ongoing, but in principle, the proposed commercial date of operations is scheduled for April 2027,” he said.
The generator will be fuelled by a new infusion of 400,000 tonnes of sugarcane from the LUSIP 2 project which is expected start arriving this year. USL provides farm extension support to new sugar farmers in the Lubulini area who started receiving irrigation water last year.
“The sugarcane from LUSIP 2 is being introduced in a phased manner. One thousand hectares are being planted each year until 2027. In a separate investment aimed at absorbing this new cane, USL is investing an additional E1.2 billion to increase factory capacity to process this cane,” Siyaya said.
Construction of the new electricity generator is expected to start in September and create about 600 jobs construction jobs. Siyaya said approximately E200 million is earmarked to be spent with local suppliers to stimulate the domestic construction industry.
Ubombo Sugar is one of Eswatini’s original national builders. The Ubombo sugar factory has been in operation since 1952. It operates for approximately 34 weeks per year. Steam produced by the mill boilers required for heating the sugarcane before it is crushed to release the sugar juice, is also used to generate thermal electricity.
Global warming and climate change concerns are driving a global trend to ban fossil fuel use such as coal fuelled electricity generators while promoting green economies based on renewable energy sources. The trend is to punish countries with threats of boycotting goods produced from fossil fuel energy.
While USL produces thermal electricity, it uses bagasse. Bagasse is the fibrous residue that remains after the sugar cane has been crushed. It is used as a fuel source for boilers. Since sugarcane is continuously grown, bagasse is renewable energy. USL thermal electricity is clean and adds to the national reputation for hydro electricity green energy.
The powerhouse already operates six boilers and 5 turbines that generate 35MW. USL is currently the biggest single power generator in the Kingdom (the Maguga hydro-electric power station on the Nkomazi River currently produces 20 MW and plans to increase to 35 MW by 2028). Under normal conditions, USL uses approximately 14,5MW of this electricity to operate the mill and its own agricultural use.
USL has a power purchase agreement enabling it to export up to 16MW to the national power grid.
The push for innovation is also driven by the need to modernize. Three of USL’s boilers were installed in 1965 and therefore not only old technology that requires a lot of maintenance, but now offend the Eswatini’s Air Pollution Control Regulations. These boilers are being replacement with a new 230t/h boiler that complies with domestic and international standards.
An important national benefit of increased domestic power generation is the reduction of more expensive electricity imports, largely from South Africa as well as from the regional power grid.
Jm/today/15.1.2025
