GE Energy, Sasol Enter Secunda Upgrade Agreement

GE Energy has signed a deal worth more than R500 million to upgrade petrochemical group Sasol’s old turbines at its synthetic fuels plant in Secunda, Mpumalanga following a 15-year service agreement signed in November. The improvement is set to take place over a 12-month period using steam path replacement technology which should increase Sasol’s power generation capacity.

Mark Digby, GE Energy regional executive, said under the agreement GE would provide the equipment and services to upgrade the turbines which have been in operation for nearly 30 years.

“The upgrade will effectively improve overall efficiency of their (Sasol’s) steam usage, thereby increasing its onsite power-generation capacity and reducing electricity demand on Eskom,” Digby said.

He said the company’s steam path replacement technology would reduce the probability of unplanned future outages and would also result in “significant” turbine life extension and reduce maintenance costs.

Digby said the combined value of both deals with Sasol totaled about R700 million.

In addition, GE Energy is also holding discussions with state-owned power utility Eskom as part of GE’s strategy to position itself in South Africa’s power-generation sector. “We are talking to Eskom about what technologies we can supply them with, such as smart grid and gas turbine technology,” Digby said. He added that coal gasification was also on the list along with an interest in assisting Eskom with its renewable energy strategy to “help them understand what technologies are available on the market.”

GE president and CEO for Middle East and Africa region, Nabil Habayeb, said the deal was also part of the US group’s strategy to tap into SA’s and Africa’s huge investments in energy and other infrastructure.

“Africa is one of the fastest-growing economic regions, driven by the large public and private investments in infrastructure including healthcare, water, energy and transport. SA and the region are particularly important to GE’s future growth," he said.