Q&A
Where does the NMPP project stand at this point in time?
In 2017 NamPower cancelled their RFP for an IPP 230-250MW Power Plant at Walvis Bay.
The Namibian Electricity Control Board (ECB) however renewed the IPP licence in May 2018, relaxing the original limitation of having NamPower as the exclusive Off-taker. All rights to this licence have subsequently been aquired by NMPP.
This means that NMPP can focus on alternative, credible off-taker(s) and move towards financial close, potentially as soon as the third quarter of 2021.
The cancellation of the RFP has also meant that the Plant is free of the design restrictions NamPower included in the RFP.
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Elements of the project have been re-designed to dramatically increase its efficiency, and will be running the plant as a combined-cycle unit, thereby potentially reducing the energy tariff.
Therefore, the project is still very much active and will continue.
Where does the NMPP project stand at this point in time?
In 2017 NamPower cancelled their RFP for an IPP 230-250MW Power Plant at Walvis Bay.
The Namibian Electricity Control Board (ECB) however renewed the IPP licence in May 2018, relaxing the original limitation of having NamPower as the exclusive Off-taker. All rights to this licence have subsequently been aquired by NMPP.
This means that NMPP can focus on alternative, credible off-taker(s) and move towards financial close, potentially as soon as the third quarter of 2021.
The cancellation of the RFP has also meant that the Plant is free of the design restrictions NamPower included in the RFP.
​
Elements of the project have been re-designed to dramatically increase its efficiency, and will be running the plant as a combined-cycle unit, thereby potentially reducing the energy tariff.
Therefore, the project is still very much active and will continue.
The Nathaniel Maxuilili Power Plant (NMPP) embarked on a journey to be the first power plant to be Hydrogen ready. The NMPP is built on a strong project base, with an excellent team behind it and a clear plan to provide electricity for export to South Africa and to Namibia, as well as the Southern African Development Community (SADC) region, with cheap, sustainable, environmentally-friendly power.
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The NMPP is an innovative project and it has been refined with elements redesigned to ensure we deliver value-for-money power.
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The Development of NMPP has a high maturity level with all environmental and marine studies completed and clearances achieved.
Why has natural gas been chosen as the fuel for the project?
Why has natural gas been chosen as the fuel for the project?
Natural gas is available, affordable, better for the environmental than other fuels, and safe!
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LNG import fuel can be sourced from a variety of suppliers, ensuring an optimised gas supply and pricing for the project.
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Natural gas has significantly better pricing dynamics than Brent Crude oil (from which heavy fuel oil is made) because the market is diverse and less centrally driven.
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Compared to coal and fuel oil, natural gas has a significantly lower emission footprint.
In addition, natural gas is safer. Escaped gas does not cause any soil or marine contamination.
How is the NMPP being financed?
How is the NMPP being financed?
The project will be funded by international debt and equity players, mostly from commercial banks and international equity providers. The NMPP project is a capital injection into the Namibian economy entirely funded through international funds.
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As is the case with any project this size, once operational the NMPP will have an induced economic effect through its revenue, wage bill and procurement of local goods.
How long does it take to deliver electricity and when will power from the plant become available?
How long does it take to deliver electricity and when will power from the plant become available?
Depending on the type of power station, it can take anything between 2.5 years and 6 years to develop a power station, no matter where in the world it is located.
The NMPP project has optimized this.
Taking into account environmental, design and regulatory requirements, no other power project will be faster to deploy in Namibia – with first power within 9 months of construction commencing and full operation within 12 to 15 months.
If all goes according to plan power will be delivered in 2023.
What price will the electricity be? How do we know this will be a good deal?
What price will the electricity be? How do we know this will be a good deal?
The tariff achieved depends on several factors including the off-takers’ requirements and the levels of electricity dispatched.
The NMPP design has been optimized; the plant will be run as a combined-cycle plant, which means it will be very efficient and allow for better use of the fuel (LNG) and a lower tariff.
The tariff will be lower than the available electricity imports, this gap will widen going forward too.
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The NMPP is a good deal, not only through the affordability of the power it will produce but because it increases fuel diversification, reduces the risk of single fuel source reliance and offers opportunities for industrial and domestic fuel switching.
What will happen when Natural Gas becomes available from the Namibian oil fields?
What will happen when Natural Gas becomes available from the Namibian oil fields?
The NMPP will continue to supply power to its off-takers. The design of the plant and its gas infrastructure is such that the natural gas from the Namibian oil fields can also be transported to the WGP LNG terminal in Walvis Bay if required, and be used to fuel the Power Plant.
How much electricity will the plant generate?
How much electricity will the plant generate?
The NMPP will deliver 586MW of power using highly-efficient gas turbines.
The NMPP will be ready to receive Hydrogen as a blended fuel whenever Hydrogen becomes available as a cost effective fuel type
When will construction of the power plant start?
When will construction of the power plant start?
Construction will commence after financial close and contract signing with the lenders/funders, which will be possible as soon as we finalise a PPA with our new off-taker/s.
What is the lifespan of the plant?
What is the lifespan of the plant?
The plant is designed for 25 years, but it can easily be extended to 50 years or beyond if properly maintained and refurbished.