Petroleum Africa
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Thursday, August 7, 2014
Linc Energy entered into a MoU with the National Development Corp. (NDC) and Olympic Exploration for the development of a new 400-MW underground coal gasification (UCG) to power operation in Tanzania. The project is aimed at providing much needed and timely delivery of power into the Tanzanian electricity grid to support the country’s growing demands.
The MoU specifies a program of coal exploration and power plant development, which, subject to project permitting and commercial term development, would see the commercialization of a 400-MW power plant in southwest Tanzania by late-2017.
Under the MoU, the NDC has agreed to work with Linc Energy and Olympic Exploration to obtain all necessary permits and approvals for the project, while also assisting with the securing of land access, utilities and the development of a long-term Power Purchase Agreement (PPA). Olympic Exploration has access to vast coal resources in Tanzania and will be working with Linc Energy on all of the necessary exploration, feasibility studies, finance raising, project engineering, delivery and operation on behalf of a future JV between the parties.
The details of the JV arrangement will be negotiated over the coming months in accordance with the project delivery timeline outlined in the MoU.
Peter Bond, CEO and MD of Linc Energy said, “This MoU reconfirms the potential for underground coal gasification to play an increasingly important role in the energy mix of southern Africa. We are delighted to be partnering with the Tanzanian Government and Olympic Exploration in this exciting project which not only acts as a further catalyst for the commercialisation of UCG in Africa, but also affords significant economic and regional benefits to the people of Tanzania, as well as again demonstrating that Linc Energy’s ‘G5’ UCG technology is the world’s best.”
Mlingi Elisha Mkucha, acting MD, NDC said, “The signing of this MOU with Linc Energy and Olympic Exploration presents an excellent opportunity for Tanzania to produce power from resources that would otherwise have not been tapped. Linc Energy’s technology will allow power production in the remotest areas of Tanzania, which currently have limited grid connectivity, and thus enhance economic activities in these areas and contribute significantly towards the reduction of household poverty.”
Peter Tsegas, MD of Olympic Exploration said, “Olympic Exploration is looking forward in working with Linc Energy and NDC to explore and develop new and alternative technology for power generation in Tanzania.”
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