Energy

The transaction will give TotalEnergies an interest in hydropower projects in Uganda, Rwanda and Malawi. (Image source: Adobe Stock)

TotalEnergies, a global integrated energy company, is set to expand its hydropower portfolio through a strategic acquisition in Africa

The company has signed an agreement with Scatec to acquire its subsidiary SN Power, which holds interests in hydropower projects through a joint venture with Norfund and British International Investment.

“We are pleased to announce today’s transaction, as we believe TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa,” commented Terje Pilskog, CEO of Scatec. “We would like to thank the entire hydropower team for their hard work and dedication over the years, you have made a significant impact. In addition, our gratitude goes to our joint venture partners, host governments, and lenders for the support since 2020.”

The new agreement will further develop TotalEnergies hydropower portfolio (it holds interests in a number of projects across the globe with a gross capacity of 3.7GW worldwide), and complement its existing one in Africa where it already has 1.5GW under development in Mozambique (the Mphanda Nkuwa project).

As a result of the new transaction with Scatec, TotalEnergies will acquire a 28.3% stake in the Bujagali hydropower plant currently in operation in Uganda. With a capacity of 250MW, it covers more than 25% of the country's peak electricity demand. TotalEnergies will also acquire minority stakes in two projects under development in Rwanda (260MW) and Malawi (360MW).

“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries,” remarked Patrick Pouyanné, chairman and CEO of TotalEnergies. “In particular, we are delighted to be able to become a player in hydro power in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.”

Hydropower has traditionally formed the backbone of energy systems across the continent but is this beginning to change? Access the latest issue of African Review find out more.

There is growing potential for stream turbines to contribute towards a more sustainable energy future for South African industry. (WEG Africa)

WEG Africa is adding to the energy generating capacity at a Sappi Saiccor mill through the supply of a backpressure steam turbine as interest for the technology grows

Steam turbines provide a valuable opportunity for many industries to self-generate more of their own power requirements – and often from alternative fuels produced as a by-product of their processes. This technology offers benefits including energy cost reductions, more stable supply of power and a lower carbon footprint.

A leading South African firm taking advantage of these opportunities is Sappi Saiccor. Its mill at Umkomaas in KwaZulu-Natal is one of the world’s largest producers of dissolving pulp for viscose staple fibre – used mainly in the production of textiles but also in other household, industrial and pharmaceutical applications. Gas produced from this process represents a fuel source which generates steam for electricity production.

Versatile power supply

A 45 MW extraction backpressure steam turbine from WEG will be adding to Sappi Saiccor’s energy generating capacity at its MgO3 plant. The power generated will be used for internal consumption.

Steam turbine technology is also becoming increasingly versatile to accommodate the specific requirements of the facilities they serve. At the Sappi Saiccor mill, for instance, there is the need to have 15 different load points served by the turbine – where in the past it was usual to have just two or three load points.

It is now possible to provide many more load points – each one with its own inlet steam flow conditions. The steam turbine design can cater for a steam flow range that varies considerably. For the new unit at Sappi Saiccor, this range will be from 75 t/h to 300 t/h.

As the leading manufacturer of steam turbines in Brazil, WEG has supplied a number of units of this turbine model to customers in the market there. The company’s factory in Brazil will design and manufacture the new unit bound for South Africa, and WEG will conduct the installation, commissioning and ongoing maintenance next year. The Sappi Saiccor mill will also use a 50 MVA, 11 kV WEG alternator, which will be coupled to the steam turbine.

Providing the perfect solution

WEG receives regular enquiries from companies who operate boilers for their operations, looking for opportunities to reduce their operating costs while raising their production levels through a more reliable supply of electricity. The company can conduct an assessment of steam flows and pressures, to advise on the most suitable turbine size and the amount of energy they could generate internally.

WEG also has a depth of local expertise and supporting infrastructure to service steam turbines of various makes, and can provide maintenance contracts to give customers peace of mind. In addition to this, WEG offers its customers access to a complete set of spare parts, all of which promote high equipment availability levels.

This article is authored by WEG Africa. Click here to learn more on the company's website.