New cogeneration plant for Zimbabwe

NewZim Steel, a joint venture between Zimbabwe and Mumbai-based Essar Africa Holdings Limited, is to invest in a greenfield 50 MW multi-fuel cogeneration power plant in Redcliff, Zimbabwe.

The move comes after Essar Steel signed a deal earlier this month that will see the Indian group spend up to US$4 billion on a steel plant, iron ore mines, power plants and other infrastructure in Zimbabwe.

The CHP project is part of a $115 million effort to refurbish the Redcliff steel plant to an initial capacity of 0.5 million tonnes a year, and then a further $275 million within three years to restore it to a full capacity of 1.2 million tonnes.

Essar Steel has made previous forays into cogeneration at its steel plants, and in 2009 opened a $135 million 70 MW cogeneration facility at a steel plant in Sault St-Marie, Canada, in order to cut its reliance on the provincial power grid by 50%.

For more Cogeneration/CHP news click here.

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