Prieska Power Reserve

Renewable energy will power an ammonia plant.

The project, located within the industrial area of Prieska, was initiated by the Central Energy Corporation (CENEC) during 2018 and developed in partnership with Mahlako A Phahla Investments (Pty) Ltd and the Industrial Development Corporation.

The Prieska Power Reserve Project has been gazetted under Infrastructure South Africa as a Strategic Integrated Project (SIP).

Description of the project

The first phase of the project involves producing more than 77 000 tons of green ammonia per year, with a green hydrogen content of approximately 13 800 tons per year from 2026.

The project makes use of renewable energy sources, including 180MWp solar, fixed-tilt and single-axis tracking, 130MWp of wind and 110MWh of battery storage.

Construction of the ammonia-production facility will begin in 2023 and will include a 140MW electrolyser and 300mtpd Ammonia Synthesiser, which will be operational in 2026.

The project intends to incorporate next-generation technology that is more affordable and more efficient, hence unlocking additional economies of scale that will make the selling price competitive when compared to grey ammonia/hydrogen.

Targeted sectors

The project focuses on the following sectors: renewable energy; hydrogen fuel and ammonia fertiliser.

Investment value

Total value: R 10.7-billion

Job creation

Permanent employees: 300 post construction, supported by 25 young professionals and 75 artisans

Project financed by Equity partners and investors; BBBEE equity partners and investors.

Project status

The Prieska Power Reserve Project is a Strategic Integrated Project (SIP). The project is far advanced under Feasibility Study with the main focus areas being:

• Legal and spatial: land and environmental rights and permits

• Statutory: SPV, structure and governance

• Technical feasibility: detailed technical design and capital expenditure costing

• Bankable financial model and structuring and arranging of debt and equity funding

• Marketing: off-take agreements

Partnerships

Private developers and project owners: Central Energy Corporation and Mahlako A Phahla Investments (Pty) Ltd

Development finance institutions: IDC

Local government (land owner): Siyathemba Local Municipality

Main project contacts

Prieska Power Reserve, CENEC

Director: Cobus Vermeulen

Tel: 082 444 2219

Email: cobus@cenec.com