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Thabametsi coal power plant South Africa
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On record

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Created on: 2017-09-12 14:52:52
Last update: 2020-11-27 13:55:43

Contact:

Nicole Loser, Attorney at Centre for Environmental Rights, South Africa


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(Johannesburg, SA) Protest against the planned Thabametsi coal power project, a joint venture of Marubeni and KEPCO. Photo: James Oatway for Centre of Environmental Rights
Sector Coal Electric Power Generation
Location
Status
Planning
Cancelled
Agreement
Construction
Operation
Closure
Decommission
This project has been identified as an Equator Project

About Thabametsi coal power plant

The Thabametsi project is a planned 630MW coal-fired power plant near Lephalale in South Africa's Limpopo province. The project is being developed by the Thabametsi Power Company, a special purpose vehicle owned by Marubeni and South Korean energy utlility KEPCO. The coal for the Thabametsi Power Plant will be supplied by the South African mining company Exxaro Resources' Thabametsi mine in the same location.

The plant poses severe risks to local communities' water security and will be one of the most emissions-intensive coal-fired power stations in the world. The plant is expected to be operational in 2021 and is planned to cost USD 2 billion.

Latest developments

Consortium pulls plug on South Africa's Thabametsi coal plant

2020-11-27 00:00:00

Marubeni to pull out of Thabametsi coal power plant

2020-11-11 00:00:00

What must happen

The devastating local and global environmental impact of coal-fired power plants has been well established. The Paris Climate Agreement goals require a managed decline of fossil fuel production, and the construction of new coal fired power plants is not compatible with this. Banks should avoid any involvement in this dodgy deal as part of a move to stop financing new coal-fired power plant developments anywhere in the world.

Impacts

Social and human rights impacts

Coal-fired power stations are water-intensive, a major concern in water-scarce South Africa. The plant’s climate change impact assessment shows that water availability and deteriorating water quality in the already water-stressed Lephalale area pose a high risk to the power station’s operation over its intended 30 year lifespan, especially because planned industrial expansion in the area will make water increasingly scarce (Mining Review). The assessment mentioned no means of ensuring that the water availability risks to the power station are avoided. Health impacts of the plant are also likely to be substantial.

A March 2017 report on the health impacts of coal-fired power plants in South Africa concluded that these impacts include early deaths, chronic bronchitis, hospital admissions for respiratory and cardiovascular disease and a variety of minor conditions leading to restrictions on daily activity, including lost productivity.

In addition, as Earthlife Africa commented on the project’s Climate Change Impact Assessment, the social cost of Thabametsi’s greenhouse gas emissions have not been calculated or properly taken into consideration.

Environmental and climate impacts

Thabametsi is expected to be responsible for the emission of 9.9 million tons of CO2 equivalent each year, for a period of 30 years, the Climate Change Impact Assessment revealed. This will make Thabametsi one of the most greenhouse gas emission intensive coal power plants in the world (according to Mining Review Africa). Energy-related carbon dioxide (CO2) emissions are the majority of global greenhouse gas (GHG) emissions, which are responsible for having major adverse impacts on climate change. The assessment failed to address several other issues, as Earthlife Africa has stated in their comments of July 2017. For instance it did not take into account the external costs of the project's GHG emissions (climate change impacts on human health, water availability) and the impact it will have on local communities. It failed to propose any measures to adequately mitigate the plant’s emissions.

The December 2014 Threat Assessment on air quality by the Department of Environmental Affairs stipulated that, “the greatest potential threat to air quality exists in the Waterberg District Municipality through the planned expansion of energy - based projects and coal mining in the district. The planned development poses a threat to human and environmental health in the region and it poses challenges for air quality management in the region."

Governance

Applicable norms and standards

Equator Principles

Other applicable regulations

Development Bank of South Africa Environmental Appraisal Framework.

Timeline

Consortium pulls plug on South Africa's Thabametsi coal plant

2020-11-27 00:00:00

A multinational consortium that was building one of South Africa's first privately-owned coal-fired power plants at Thabametsi has asked to withdraw from the project, the energy ministry said on Tuesday (Market Screener).

Marubeni to pull out of Thabametsi coal power plant

2020-11-11 00:00:00

Japanese resources company Marubeni Corp 8002.T will pull out of the Thabametsi South African coal plant project following the withdrawal of some South African investors this week. Marubeni's exit from the 630 megawatt (MW) Thabametsi coal-based power plant project also follows the withdrawal of South Korea's state-run Korea Electric Power Corp (KEPCO) last month.

Nedbank, FirstRand and Standard Bank withdraw finance for Thabametsi coal power plant

2019-02-03 00:00:00

Three of the South African commercial banks, Nedbank, Standard Bank and FirstRand, which had been considering financing for Thabametsi have announced that they are withdrawing from the project. See the January 2019 press coverage confirming the withdrawals by Nedbank and Standard Bank here, and by FirstRand here.

Financiers

The Thabametsi project requires USD 2 billion of finance (partly funded by project finance) and is based on a 75:25 debt-equity ratio.

Three South African commercial banks, Nedbank, Standard Bank and FirstRand, which had been considering financing for Thabametsi have announced that they are withdrawing from the project. See the January 2019 press coverage confirming these withdrawals by Nedbank and Standard Bank, and by FirstRand.

Related companies

In November 2020, the companies listed below have withdrawn from this project. 

Doosan Group South Korea

Construction

Korea Electric Power Corporation (KEPCO) South Korea show profile

Coal Mining | Nuclear Electric Power Generation | Coal Electric Power Generation
24.5% shareholder of Thabametsi Power Company

Marubeni Japan show profile

Coal Electric Power Generation | Mining | Pulp, Paper and Paperboard Mills
24.5% shareholder of Thabametsi Power Company

Domestic companies hold at least 51% of the equity in Thabametsi included the Public Investment Corporation and various black economic-empowerment firms (source miningweekly.com).

News

| |
Type:
Year:
blog
external news
our news

FirstRand joins exodus of banks funding new coal-fired power plants

2019-02-03 | Daily Maverick
blog
external news
our news

Nedbank withdraws funding for new coal IPPs

2019-01-29 | EE Publishers
blog
external news
our news

Nedbank is moving on coal power, but two plants are stuck on its radar

The South African bank is the first from the Global South to move out of new coal plants, but is still backing Thabametsi and Khanyisa
2018-04-10 | Robyn Hugo - Centre for Environmental Rights, Yann Louvel – BankTrack
blog
external news
our news

Battle against the climate-destroying coal IPPs escalates

2018-04-03 | Centre for Environmental Rights
blog
external news
our news

Fake green hues in big banks’ environment-friendly boasts

2018-03-22 | BusinessDay
blog
external news
our news

South Africa’s #CoalCapture – Not the way forward in a ‘new dawn’

2018-03-15 | Daily Maverick
blog
external news
our news

Thabametsi coal plant given go ahead despite staggering climate impacts

2018-02-06 | Centre for Environmental Rights
blog
external news
our news

South Africa to introduce climate change legislation

2017-10-11 | Energyworld
blog
external news
our news

SA banks slated for dirty energy investments

2017-09-15 | Fin24
blog
external news
our news

Thabametsi could be world’s worst polluter

2017-08-03 | IT-Online
blog
external news
our news

Thabametsi climate impact assessment reveals staggering greenhouse gas emissions

2017-08-03 | Mining Review Africa
blog
external news
our news

SA Banks Facilitating Climate Change By Funding Thabametsi Project – CER

2017-06-29 | Political Analysis South Africa
blog
external news
our news

Why are SA’s banks facilitating climate change?

2017-06-12 | Centre for Environmental Rights
blog
external news
our news

Court pours water on coal-fired power station plan

2017-03-13 | BusinessLIVE
blog
external news
our news

Earthlife Africa wins SA’s first climate change court case

2017-03-08 | IOL News
blog
external news
our news

Thabametsi Court Hearing – Newsflash & MR

2017-03-06 | Earthlife Africa
blog
external news
our news

Thabametsi coal-fired power station threatens local communities’ water security, and poses significant climate change risk

2017-02-28 | Earthlife Africa
blog
external news
our news

Why are SA's big four banks financing a new coal power plant that risks becoming a stranded asset?

2016-12-07 | groundWork
blog
external news
our news

R40bn for new coal power projects

2016-10-11 | IOL Business Report
blog
external news
our news

Thabametsi and Khanyisa take first in SA coal baseload IPP

2016-10-11 | ESI Africa
blog
external news
our news

S. Africa Selects Bidders for $2.9 Billion Coal-Power Plants

2016-10-10 | Bloomberg
blog
external news
our news

Exxaro raises red flag on covenants, dividends

2015-06-25 | Miningmx
blog
external news
our news

Charbon : Engie abandonne un projet de centrale en Afrique du Sud

2015-06-04 | Mediapart
blog
external news
our news

Africa: Earthlife Africa March On the French Consulate to Demand an End to Coal

2015-05-14 | allAfrica

Documents

Type:
Year:
bank documents
2018-01-05 00:00:00

DBSA Environmental Appraisal Framework

2018-01-05 00:00:00 | Development Bank of South Africa
other documents
2014-12-31 00:00:00

Threat assessment on air quality of the Waterberg region

2014-12-31 00:00:00 | Department of Environmental Affairs
other documents
2014-05-31 00:00:00

Environmental Impact Assessment report IPP Thabametsi Power

2014-05-31 00:00:00 | Savannah Environmental
ngo documents
2015-02-25 00:00:00

Appeal against environmental authorisation, by Earthlife Africa

2015-02-25 00:00:00 | Earthlife Africa; CER
other documents
2017-03-31 00:00:00

Health impacts of coal fired power plants in South Africa

2017-03-31 00:00:00 | Dr. Mike Holland (EMRC)
ngo documents
2017-07-31 00:00:00

ELA comments on final EIA of Thabametsi coal-fired power plant

2017-07-31 00:00:00 | Earthlife Africa; Centre for Environmental Rights
other documents
2017-06-30 00:00:00

Thabametsi Power Station Limpopo Province Climate Change Study and Palaeontological Impact Assessment

2017-06-30 00:00:00 | Savannah Environmental
company documents
2016-10-25 00:00:00

Licence application form

2016-10-25 00:00:00 | Thabametsi Power Company
other documents
2016-12-14 00:00:00

IPP Waterberg (Thabametsi) report by Savannah Environmental

2016-12-14 00:00:00 | Savannah Environmental

Media

(Johannesburg, SA) Earthlife Africa protest against Thabametsi project

Protest against Thabametsi project 1 Protest against Thabametsi project 3 Protest against Thabametsi project 2



Links

Thabametsi power station profile on Sourcewatch

http://www.sourcewatch.org/index.php/Thabametsi_power_station

Earthlife Africa

http://earthlife.org.za/

Centre for Environmental Rights South Africa

https://cer.org.za/

Life after coal Impilo/Ngaphandle Kwamalahle - campaign website

https://lifeaftercoal.org.za/

Brief history

The original proposal was for a 600 to 1,200 MW coal plant, to be developed by Exxarro Resources and France's GDF Suez (now Engie) and supplied by Exxaro’s Thabametsi coal mine. Environmental approval for a 1,200 MW coal plant was granted in March 2015. The environmental appproval was appealed by Earthlife Africa. The approval was suspended until the appeal had been decided on.

On May 15, 2015, Earthlife Africa and supporters marched on the French consulate in Johannesburg urging the French government and the French company Engie to divest from coal, starting with Thabametsi. After a sustained public opposition campaign, the CEO of Engie announced on a June 3, 2015 that the company was withdrawing from the project. After Engie's withdrawal, Exxaro said it would press ahead with the coal plant with the Marubeni Corporation of Japan as lead developer. The authorisation issued to Thabametsi Power Project (in which Engie was a shareholder) was transferred to the Thabametsi Power Company (Pty) Ltd.

In March 2016 South Africa's minister of environmental affairs, Edna Molewa, called for a climate change impact assessment for the plant, in response to the 2015 appeal by Earthlife Africa. In August 2016 Earthlife Africa instituted South Africa's first climate change court case challenging the Minister's decision on the appeal in that the Minister should have set aside the authorisation before calling for the climate change impact assessment.

In March 2017 the North Gauteng High Court in Pretoria, South Africa, ruled in favour of Earthlife Africa, ordering that the minister of environmental affairs must reconsider the appeal after a comprehensive assessment of the plant's climate change impacts has been completed, including a public consultation.

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