medupi power station: update to the media · 2013. 8. 22. · 3 medupi will increase sa’s...

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

3

Medupi will increase SA’s installed base load by

~12% once it is fully operational

▪ 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

Lephalale

4

Medupi was designed as a new generation plant to

address new challenges facing South Africa

• 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

Medupi is very different from past Eskom plants, such as Matimba Medupi’s concept needed

to address a number of

challenges Medupi Matimba Key

differences

Installed cap.

MW

Steam temp.

Degrees C

Steam press.

mpa

Environment

friendly tech. FGD2 No FGD

4,764 3,990

560 540

16 24

ACC1 size

Thousand

m2 35.6

72.3

1 Air Cooled Condensors 2Flue Gas Desulphurisation

5

Contents



Medupi has provided significant socio economic

benefits




6

Medupi is making an important contribution

to the nation and the region

Source: Eskom, Team Medupi

Infrastructure

Infrastructure

development

Jobs

16 707 direct jobs

20 000 indirect jobs

Local content

R32.7 billion in South

African sourcing

Regional development

Lephalale GDP growth exponential

Local skills development

Rapid growth in SA’s skills pool

7

We are procuring locally – 64% of the value

went to the local economy

Locally sourced value1

Percent

36

Non-local

(R18.1 billion)

64%

Local

(R32.7 billion)

All local spend has

BEE/BWO/SME compliance

Total value = ~R51 billion

MAY 2012

8

Medupi brings infrastructure to the region


▪ Expansion of Modimolle-Vaalwater

road

▪ Repairs on numerous other local roads

▪ Kuipersbult road upgrade

Roads

▪ 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

Sewage

system

▪ Construction of DWAF pipeline to bring

additional water resources to the area Water

▪ 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

Power grid

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

9

There are 16,935 workers at Medupi

May 31, 2012

Labour is another key stakeholder that we

have to manage successfully

Lephalale and

Waterberg

Non South

African

Rest of Limpopo

45 Rest of

South Africa

Over 95% of

workers are

South African

Medupi offers a structured plan to develop

the capabilities of the regional workforce

• Over 4 000 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

10 Source: Eskom; Team Medupi

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

Significant progress has been

achieved in skill development

▪ 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

▪ 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

11

The Medupi Legacy Program is creating lasting

benefits in the community

Source: Eskom; Team Medupi

▪ 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

Flora - Baobab translocation

Cultural Heritage – Grave relocation

Tombstone unveiled, grave

successfully relocated

Fauna – snakes and game

Removing the game from site to Zwartwater Farm.

A professional snake catcher is used to catch and relocate snakes from site.

15

Medupi brings education and investment to the

region

Education

▪ 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

Health

▪ 4 cabins donated

to be used for

dispensing ARV’s

▪ Free on-site HIV

testing for the

entire community

Housing

▪ Medupi-related

housing

investments

totaling R2 billion

▪ 1850 houses

either bought or

built through

Eskom

▪ Significant

expansion in local

hotel and

hospitality industry

Medupi Legacy

program

▪ 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%


16

Medupi established Central Information Office

Type of information/ service

Project

information

▪ Construction updates

▪ Responses to general

queries (regularly)

▪ Facilitate local labour

recruitment

▪ Community meetings,

notice boards, popular

public platforms, and bulk

SMS facility, etc.

▪ Database for essential

contacts

Method

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

Item

17

Six Medupi Central Information Offices (MCIO) provide

information to suppliers, media, and the public

& V

& V & V

& V

& V

& V

& V

& V

& V

& V

& V

& V

L e p h a l a l e M o g a l a k w e n a

M o d i m o l l e

M o o k g o p o n g B e l a - B e l a

T h a b a z i m b i

L e p h a l a l e

V a a l w a t e r

T h a b a z i m b i M o d i m o l l e

B e l a - B e l a

M o o k g o p o n g

M o k o p a n e

Medupi Project

Shongoane

Thabo Mbeki

area

Seleka

Lephalale

Abbotspoort

Marapong


18

Medupi and its contractors have invested

significantly in the local municipality

Map of Lephalale with visuals of where Eskom has contributed

Highlighted Eskom investments in Lephalale

Donations of cabins,

medical equipment,

office furniture,

nurses’

accommodation to

local clinics

Provision of two

10MVA

transformers to

expand town

electricity capacity

Eskom has built

995 houses and

purchased 321

Construction of a

new sewage

plant

New MRP

training centre

Significant local spend

• Some R 815 million in local

to site procurement

contracts

• Local housing investment

of R2.3 billion

Hitachi Small

Business Hub

Medupi

information centre

Provision of

mobile

classrooms and

teachers for local

schools

Some of Medupi’s social successes

19

20

Contents




benefits




21

We are now well into construction phase and are

focusing on mechanical installation


Phases of Medupi

construction

Site preparation

July 2008

Earthworks

October 2009

Mechanical

erection

May 2012

MAY 2012

22

There is significant progress compared to one

year ago today (1 of 2)

One year ago… …today


MAY 2012

23

There is significant progress compared to one

year ago today (2 of 2)

One year ago… …today


MAY 2012

24

Medupi is set for power on the first unit in end 2013

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2018

Construction

activities started First power Dec 2013

First power last unit

May 2017

Execution partner

• Coal supply

• Boiler

• Turbine

• Enabling Civils

• Main Civils

• Generator transformers

Medupi Power Station Select, recently completed milestones

Source: Eskom Group Capital; team Medupi

Medupi construction timeline

• 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

25 Source: Eskom; Team Medupi

Transportation

Health services Ablution facilities

Potable water Food

Dining halls Accommodation Safety measures

▪ 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,

including HIV

screening

▪ Easily accessible

facilities are made

available close to the

work face

▪ A safety culture

exists which ensures

that that everybody

gets to work safely

and leaves work

safely

▪ Accommodation is

provided for at the

various contractors

villages in close

proximity to the

project

▪ In addition to food,

dining halls are

provided in which the

workers can eat in

comfort

As part of the construction, we are providing the

workers with a full range of essential services

26

Contents




benefits




Boiler at a glance…….Overview

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 200 000 hours

Expected life of the plant is 50 years

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 670 Km

• Total coal consumption per boiler

@ 104 kg/s at MCR 374 tons/hour

• Six (6) units all running concurrently at

MCR would consume 54,000 tons of coal per day

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 45 000 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

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)

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…

medupi power station: update to the media · 2013. 8. 22. · 3 medupi will increase sa’s...

Documents