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York Timbers has plans to set up an electrical biomass power plant in Mpumalanga, South Africa for US$106mn
The plant is expected to deliver 25MW of power and feed it to the national grid. The power would be generated from biomass waste that’s generated after processing timber. CEO Pieter van Zyl said, “We will be using a huge volume of biomass that would otherwise be useless. It’s a key game-changer for the company, as, in the past, we simply burned the biomass or left it to turn into compost.”
This project will strengthen York’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) generating capability, diversify earnings and extract increased value from available biomass in the group. Additionally, York Timbers is participating in the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in the expedited fourth bid window that would close on 11 November 2015.
Biomass projects in South Africa are gaining popularity. The Mkuze project, the country’s first biomass plant, is setting the benchmark for eco-friendly power plants in the region.