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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 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
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
Source: Eskom, Team Medupi
▪ 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%
Source: Eskom; Team Medupi
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
Source: Eskom, Team Medupi
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
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
21
We are now well into construction phase and are
focusing on mechanical installation
Source: Eskom; Team Medupi
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
Source: Eskom; Team Medupi
MAY 2012
23
There is significant progress compared to one
year ago today (2 of 2)
One year ago… …today
Source: Eskom; Team Medupi
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
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
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…