Rukwa coal power project

London Stock Exchange-listed Edenville Energy plc announced on 25 June that a memorandum of understanding (MoU) signed with China’s Sinohydro Corporation for the Rukwa coal power project has been extended. The agreement is now valid until 25 December 2019. It had been due to expire next month.

Rukwa is an integrated coal-to-power project based at the 170m tonne Rukwa coal deposit near Sumbawanga in the west of Tanzania. Commercial coal production began at the site early in 2018 with coal sold to Kenya based commodity trader Riftcot Ltd.

The MoU was first signed in January 2017 which made Edenville responsible for the coal mine and fuel supply and Sinohydro responsible for completing an updated feasibility study. A feasibility study has already been completed for a 120MW plant but Sinohydro is expected to focus on an expanded 300MW option going forwards. Edenville said that work is well advanced on an environmental and social impact assessment.

Sinohydro is expected to help secure Chinese financing for the project.

The World Bank Group (WBG) on 18 June approved $465m for the 620km Tanzanian portion of the Zambia-Tanzania-Kenya (ZTK) interconnector. The project involves construction of a high voltage line connecting Sumbawanga to Tunduma, including a substation at Sumbawanga, which is close to the project and likely to be where power from the plant will be evacuated. Edenville said that the announcement would allow the project to be developed in line with the transmission line.

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