Otjikoto biomass power imminent

Set to produce 40MW from encroacher bush wood chips
According to senior engineer Kudumo Siremo, the Otjikoto biomass power project will bring between N$200 million and N$245 million into circulation.
STAFF REPORTER
  • 4 Months Ago - 2024-04-23 00:00:00
NamPower is committed to realising its 40 megawatt (MW) twin-turbine biomass electricity generation project just 12 kilometres north-west of Tsumeb. According to the power utility's senior engineer for systems planning Kudumo Siremo, evaluation and decision-making for the project has been completed, with a stand-still period planned until the contractor is officially appointed. That was in March.
Envisioned to be able to produce 40MW of electricity from encroacher bush wood chips, the plant will be fuelled from within a 100-kilometre radius, where such invasive vegetation is prevalent. Some 3.1 million hectares of bush is estimated to be available. Only 12.8% of the harvesting area will be used to meet the fuel requirement of between 180 000 and 245 000 tonnes per year, according to NamPower.
Already the engineering, procurement and construction specifications have been finalised, while the supply notes of selection have also been issued.
NamPower has secured loan funding of up to €100 million from the French Development Agency (AFD), as well as a €25 million grant from its German counterpart. Funding from Mitigation Action Fund (MAF) will amount to about N$2.5 billion, while government has committed N$400 million support capital.
According to Siremo, the Otjikoto biomass power project will bring between N$200 million and N$245 million into circulation in the Oshikoto Region's economy. He expects the project will raise a minimum of N$20 million in corporate income taxes for the government annually. The 300 direct employment opportunities during construction, and the resulting 62 permanent jobs once completed, are set to generate some N$10 million in pay-as-you-earn income to government every year.
Diesel usage should translate into N$5 million annual contribution to the national energy fund. Net present value benefits at a micro level can be expected to deliver N$5 billion extra to the economy, while it would boost the macro economy by up to N$16 billion, the engineer said.