AMEA Power Secures Key BESS Projects to Strengthen South Africa’s Grid

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AMEA Power Secures Key BESS Projects to Strengthen South Africa’s Grid
AMEA Power Secures Key BESS Projects to Strengthen South Africa’s Grid

AMEA Power is among the region’s fastest-growing renewable energy companies, having just recently emerged successful in two substantial Battery Energy Storage System (BESS) projects that came out from South Africa’s Department of Electricity and Energy-organized Bid Window 2 of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). Gainfar and Boitekong will be important projects for enhancing the stability of Eskom’s national power grid, which will be instrumental in removing the energy crisis the country faces.

Strategic Projects to Boost Grid Stability

With both located in the North West Province, two BESS projects boast an average capacity over 300 MWh. More and more advance solutions for such critical energy storages are, at present required in South African systems, amid struggling power deficits that have continued for years coupled with load shedding, blackouts. The Gainfar Project will connect to the Ngwedi substation, while the Boitekong Project will link up with the Marang substation.

The two projects will add a significant layer of backup power and energy storage as well as services to Eskom’s grid via 15-year PPAs, aligned with South Africa’s efforts toward becoming a more sustainable and resilient energy system.

Hussain Al Nowais, Chairman of AMEA Power, said, “This achievement marks a major milestone for AMEA Power, as we continue to expand our footprint in South Africa, a key market for us. These projects represent our first successful awards of BESS projects, through a competitive bidding process and underscore our commitment to providing sustainable, resilient and cost-effective energy solutions.”

Apart from the BESS projects, AMEA Power is expanding its renewable energy portfolio in South Africa. The company is advancing the 120MW Doornhoek Solar PV project awarded through Bid Window 6 of South Africa’s REIPPPP. The solar project is under construction following financial close in June 2024.

Also read: AMEA Power signs PPA and Implementation Agreement for 300 MW Wind Project in Ethiopia

Supporting South Africa’s Clean Energy Future

The Gainfar and Boitekong projects are key to AMEA Power’s growth in South Africa, where the company is gaining momentum. These projects will help South Africa transition to renewable energy while ensuring grid stability and a more reliable power supply.

Malaysia’s Carbon Capture Technologies to Attract Over $10 Billion in Investment by 2030

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Malaysia's Carbon Capture Technologies to Attract Over $10 Billion in Investment by 2030
Malaysia's Carbon Capture Technologies to Attract Over $10 Billion in Investment by 2030

According to a prediction by TA Securities, Malaysia’s carbon capture technologies will garner over $10 billion in capital expenditures by 2030. This aligns with the government’s National Energy Transition Roadmap (NETR). The NETR aims to capture 40-80 million tons of carbon dioxide annually.

The firm’s analysis highlights the economic potential of carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies in Malaysia.

Also read: Study Reveals Key Factors Driving Public Support for Carbon Capture and Storage

The Demand for Carbon Capture Technologies

Recently, TA Securities prepared a report on the growth prospects for carbon capture solutions in Malaysia. According to the firm, the long-term economy and ecology for well-maintained projects contribute highly in the long run, though initial financial returns will be low.

Greenhouse gas emissions will be reduced through  technologies such as CCS and CCUS. This will help Malaysia to reach the defined climate commitments.

Strategic Financing Models and Public-Private Partnerships

The development of CCTs in Malaysia will be driven by several factors. TA Securities noted that blended financing models and strategic public-private partnerships would be crucial for scaling these technologies.

The firm highlighted past projects, such as the Kasawari CCS project, which required an estimated investment of $1 billion. These models are expected to unlock the necessary capital for large-scale carbon capture initiatives in the future.

A Key Revenue Opportunity

Another important factor contributing to the success of CCTs is the development of a carbon trading market. TA Securities emphasized that monetizing captured carbon could create a significant revenue stream for Malaysia. This will enable Malaysia to position itself as a prominent player in the global carbon market.

Malaysia’s Geology Supports Carbon Capture Initiatives

Malaysia has favourable geological conditions which enables the capitalization of carbon capture technologies. The nation’s gas fields are well suited for CO2 storage as per research done by McKinsey and Company.

The fields in question have suitable structural integrity and offer opportunities to repurpose existing infrastructure. This makes these regions ideal for CCS and CCUS projects.

Policy Support for CCS and CCUS

The National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030 of the Malaysian government provide a robust policy framework for developing CCS and CCUS. All these measures call for the embodiment of carbon capture technologies into national decarbonization strategies. By creating a supportive environment, such plans will spur investment and innovation in the sector.

TA Securities’ report highlights the enormous potential of carbon capture technologies in Malaysia. With favorable geological conditions, strategic financing models, and strong government support, Malaysia is poised to become a regional leader in CCS and CCUS. These technologies will help the country meet its climate goals. It will also help in opening new economic opportunities in the global carbon market.