Medupi Power Station: Update to The Media. 8 June 2012

Transcription

1 Medupi Power Station: Update to The Media 8 June 2012

2 Contents Medupi is an important project for improving South Africa s infrastructure Medupi has provided significant socioeconomic benefits Construction is well underway, with first unit producing first power end 2013 What is a pressure test 2

3 Medupi will increase SA s installed base load by ~12% once it is fully operational Lephalale Is a coal-fired power plant in Lephalale, comprising of 6 units for a total installed capacity of 4 800MW Has a supercritical design that operates with greater efficiency than previous generation boilers - a first for South Africa Will be the biggest dry-cooled power station in the world, reducing the need for water consumption Employs boiler and turbine contracts that are the largest contracts in Eskom s 86-year history 3

4 Medupi was designed as a new generation plant to address new challenges facing South Africa Medupi s concept needed Medupi is very different from past Eskom plants, such as Matimba to address a number of challenges Key Medupi Matimba South Africa required a significant power capacity increase quickly Water was a scarce resource Emphasis on reducing adverse environmental impact of coal plants First business case late 2005 differences Installed cap. MW Steam temp. Degrees C Steam press. mpa ACC 1 size Thousand m 2 Environment friendly tech. FGD 2 4,764 3, No FGD 1 Air Cooled Condensors 2 Flue Gas Desulphurisation 4

5 Contents Medupi is an important project for improving South Africa s infrastructure Medupi has provided significant socio economic benefits Construction is well underway, with first unit producing first power end 2013 What is a pressure test 5

6 Medupi is making an important contribution to the nation and the region Infrastructure Regional development Local skills development Jobs Local content Infrastructure development Lephalale GDP growth exponential Rapid growth in SA s skills pool direct jobs indirect jobs R32.7 billion in South African sourcing Source: Eskom, Team Medupi 6

7 We are procuring locally 64% of the value went to the local economy MAY 2012 Locally sourced value 1 Percent Total value = ~R51 billion 64% 36 Non-local (R18.1 billion) All local spend has BEE/BWO/SME compliance Local (R32.7 billion) 7

8 Medupi brings infrastructure to the region Sewage system Roads Power grid Water R 31 million expansion of Paarl sewage plant capacity from 4 to 10ML Assistance with the maintenance of the sewer treatment works settling ponds at Nelsons Kop Expansion of Modimolle-Vaalwater road Repairs on numerous other local roads Kuipersbult road upgrade Together with Lephalale municipality, significant expansion of the local electricity capacity, including R20 million via Eskom s provision of two 10MVA transformers to the town Construction of DWAF pipeline to bring additional water resources to the area Lephalale Development Forum (LDF): LDF is a public-private partnership tasked with prioritising and driving the delivery of an integrated Lephalale Development Programme Eskom is a key member and supplied free professional services to the LDF The LDF also includes the town s other major business partners, such as Sasol and Exxaro Source: Eskom, Team Medupi 8

9 Labour is another key stakeholder that we have to manage successfully There are 16,935 workers at Medupi May 31, 2012 Medupi offers a structured plan to develop the capabilities of the regional workforce Non South African Rest of South Africa 45 Rest of Limpopo Over 95% of workers are South African Lephalale and Waterberg Over of Medupi s employees are employed for the first time Medupi s workers are governed by South Africa s longest running PLA There are 7 different unions at site, all of which ratified the PLA All wage levels at Medupi are determined by national agreements Workers have an opportunity to develop skills during their time at Medupi After Medupi, the now experienced workers are placed with other construction projects 9

10 We are investing in Medupi workers by helping them develop sustainable, transferrable skills We are actively encouraging our contractors to invest and procure in Lephalale Joint Ventures with local Black suppliers B-BBEE compliance as a minimum requirement ASGISA and sub-contracting mechanisms Advertising our tenders in local media Employment of locals as one of the conditions of tender Supplier forums to share information and create networks Significant progress has been achieved in skill development Hitachi and Siemens have invested in local training colleges MRP opened a training center in Lephalale Hitachi opened a small business hub in Lephalale Eskom has establishment a contractor academy and incubator program Development Foundation set up to assist local black suppliers Medupi itself builds skills through direct employment and training of workers on the Medupi project Source: Eskom; Team Medupi 10

11 The Medupi Legacy Program is creating lasting benefits in the community Budget spend will benefit community in multiple ways ~50% of budget is being spent in the rural villages and Traditional Authority Areas; remainder being spent in urban areas ~100% will benefit Historically Disadvantaged Communities ~90% will be spent on infrastructure related to Health and Education ~50% will benefit youth (i.e., age 35 and below) All of these initiatives are carried out using Eskom s Procurement Policy and in accordance to PFMA Sustainability Source: Eskom; Team Medupi 11

12 Flora - Baobab translocation

13 Cultural Heritage Grave relocation Tombstone unveiled, grave successfully relocated

14 Fauna snakes and game A professional snake catcher is used to catch and relocate snakes from site. Removing the game from site to Zwartwater Farm.

15 Medupi brings education and investment to the region Education Health Housing Medupi Legacy program 3 new pre-schools constructed Renovations to a number of schools completed R3 million Alstom investment for 1500 learners in 10 schools Bursaries and scholarships set up for local students 4 cabins donated to be used for dispensing ARV s Free on-site HIV testing for the entire community Medupi-related housing investments totaling R2 billion 1850 houses either bought or built through Eskom Significant expansion in local hotel and hospitality industry Entire Corporate Social Investment budget benefits historically disadvantaged communities 90% of budget focused on health and education infrastructure 50% of budget spent in rural villages and Traditional Authority Areas Medupi will increase Lephalale s GDP by 95% Source: Eskom; Team Medupi 15

16 Medupi established Central Information Office Item Project information Type of information/ service Construction updates Responses to general queries (regularly) Facilitate local labour recruitment Method Community meetings, notice boards, popular public platforms, and bulk SMS facility, etc. Database for essential contacts Procurement information Information on existing and future subcontracting opportunities in the project Open Days on Mondays Supplier registration (regularly) Supplier development and support Self-help portals installed at the centre 16

17 Six Medupi Central Information Offices (MCIO) provide information to suppliers, media, and the public Seleka Marapong Lephalale Thabo Mbeki area V & L e p h a l a l e V & L e p h a l a l e M o g a l a k w e n a Abbotspoort V & Medupi Project T h a b a z i m b i V & T h a b a z i m b i V & B e l a - B e l a M o d i m o l l e V a a l w a t e r V & B e l a - B e l a M o d i m o l l e V & M o k o p a n e V & V & M o o k g o p o n g M o o k g o p o n g V & V & V & Shongoane Source: Eskom, Team Medupi 17

18 Medupi and its contractors have invested significantly in the local municipality Highlighted Eskom investments in Lephalale Map of Lephalale Donations with visuals of cabins, of where Eskom has contributed Provision of two 10MVA transformers to expand town electricity capacity medical equipment, office furniture, nurses accommodation to local clinics Construction of a new sewage plant Hitachi Small Business Hub Medupi information centre Provision of mobile classrooms and teachers for local schools Eskom has built 995 houses and purchased 321 New MRP training centre Significant local spend Some R 815 million in local to site procurement contracts Local housing investment of R2.3 billion 18

19 Some of Medupi s social successes 19

20 Contents Medupi is an important project for improving South Africa s infrastructure Medupi has provided significant socioeconomic benefits Construction is well underway, with first unit producing first power end 2013 What is a pressure test 20

21 We are now well into construction phase and are focusing on mechanical installation MAY 2012 Phases of Medupi construction Site preparation July 2008 Earthworks October 2009 Mechanical erection May 2012 Source: Eskom; Team Medupi 21

22 There is significant progress compared to one year ago today (1 of 2) One year ago today MAY 2012 Source: Eskom; Team Medupi 22

23 There is significant progress compared to one year ago today (2 of 2) One year ago today MAY 2012 Source: Eskom; Team Medupi 23

24 Medupi is set for power on the first unit in end 2013 Medupi construction timeline Construction activities started First power Dec 2013 First power last unit May Medupi Power Station Execution partner Coal supply Boiler Turbine Enabling Civils Main Civils Generator transformers Select, recently completed milestones Unit 6 Boiler Pressure Test in progress Unit 5 Civil Works started under ACC Coal and Ash Team getting ready to take first coal on 15 June Unit 3 Boiler foundations handed over for Hitachi to erect first steel Unit 3 first part of Turbine foundations handed over Unit 6 Auxiliary Cooling System mechanically complete Board energizing in progress Source: Eskom Group Capital; team Medupi 24

25 As part of the construction, we are providing the workers with a full range of essential services Food Transportation Potable water Onsite meals provided by the largest feeding contract in South Africa All workers are transported by bus to site to promote a culture of safely to work and safely home Potable water is made available at easily accessible sites all around the project work face Health services Ablution facilities Health services, including HIV screening Easily accessible facilities are made available close to the work face Safety measures Dining halls Accommodation A safety culture exists which ensures that that everybody gets to work safely and leaves work safely In addition to food, dining halls are provided in which the workers can eat in comfort Accommodation is provided for at the various contractors villages in close proximity to the project Source: Eskom; Team Medupi 25

26 Contents Medupi is an important project for improving South Africa s infrastructure Medupi has provided significant socioeconomic benefits Construction is well underway, with first unit producing first power end 2013 What is a pressure test 26

27 Boiler at a glance.overview

28 Basic Boiler Design Interesting facts about the boiler Medupi is the First Once-through,Tower type, Super Critical Boiler in the Eskom fleet Basically it operates above the critical pressure (22Mpa) and at increased steam temperatures ( > 560 C) Pressure part design according to DIN EN12952 High Pressure Piping is design to DIN EN13480 Design life of pressure parts is hours Expected life of the plant is 50 years

29 Boiler work in perspective Height of the Boiler Roof: 116,309 m Structural steel weight: 20,436 tons Total weight including structural steel, equipment and pressure parts is approximately 40,000 tons per Boiler Total number of site welds 59,000 and shop welds an additional 40,000 Total linear Km of tube and pipe per boiler is approximately Total coal consumption per 104 kg/s at MCR Six (6) units all running concurrently at MCR would consume 670 Km 374 tons/hour 54,000 tons of coal per day

30 What have we done so far?.to get to PT Getting to pressure test Well, we completed the first phase civil foundation work, access to Hitachi We then started erecting the main frame of the boiler and primary and secondary structural steel There are approximately primary & secondary members, that equates to about 270,000 pieces of steel In parallel we had to install all ducting and main boiler components such as the bunkers, burners, air heaters etc. Then started the pressure part work, first water walls, then tube bundles, spiral walls, header to interconnecting tubing, hopper all integral piping between headers and all other pressure part components such as valves Once the construction / pressure part envelope was completed and all relevant documentation has been signed off can the pressure test process starts

31 What does a pressure test mean. When does it take place? The test is conducted after pressure parts are assembled, but before the refractory and casing are installed What is the pressure applied? A hydrostatic pressure test at (1,43 x temperature factor) times the boiler design pressure is applied to the pressure envelope What are we looking for? To determine the integrity of both the material and the welds How does this happen? Simply, the pressure envelope is a closed circuit that is filled with water and then by means of a pressure pump under controlled conditions pressurised to the required pressure (determined by the relevant code)

32 Understanding pressure tests Key terms There are both statutory and non statutory pressure tests that may be conducted such as Air leak test (non statutory) Design Pressure test (non statutory) Hydrostatic Pressure test (statutory test) At Medupi two systems will separately be tested, i.e. two statutory pressure tests will be required per boiler. These are Reheater system (low pressure) was successfully completed Economiser, Evaporator & Superheater system (high pressure) completed Air leak test and design pressure test today In practice there are differences between in service and new build pressure tests

33 As these are all managed successfully, we get 33