A ship to keep the power grid afloat, or a sinking idea? What you need to know about Karpowership

22 May 2023 - 13:30
By Kyle Zeeman
A LNG-burning Karpowership vessel.
Image: Karpowership A LNG-burning Karpowership vessel.

As South Africa battles rolling blackouts and a dark, cold winter ahead, Turkish Karpowerships continue to be floated by some as a solution to our electricity crisis.

Karpowership was selected in March last year as a preferred bidder to supply much-needed electricity to the country.

It faced significant backlash over the potential cost and environmental affect, but minister of transport Sindisiwe Chikunga earlier this year granted Karpowership access to three South African portsDurban, Ngqura and Saldanha — for 20 years.

The approval came with conditions, including it being “subject to all other government approvals such as environmental approvals from competent government departments and/or authorities”.

Minerals and energy minister Gwede Mantashe told the Business Times recently that the government is ready for a legal showdown with environmental groups who might try to block the move. He said the country had allowed environmental groups to hinder development for too long.

Here are five questions answered about the controversial ships that some believe could save us:

HOW DO THE SHIPS WORK?

They are floating power stations. They use gas as fuel to generate electricity, which is then fed into the grid. 

Under the deal, the Turkish company would deploy plants that produce electricity from ship-mounted generators and gas-fired plants.

They are berthed on the coast where there is an available substation for electrical connection and suitable marine conditions.

“Mooring will be followed by interconnection of powership to main grid. Finally fuel connection takes place, either from onshore facilities via pipeline or through bunkering,” the company explains.

It said power generation can take place shortly after it is hooked into the main grid.

“The powerships come complete with all spares and consumables, built-in workshop for required repairs, high-voltage substation (no new substation onshore is required), and a built-in fuel storage for the fuel to be converted into energy.”

HOW MUCH POWER WILL IT GENERATE?

SA is struggling to procure generating power and the Karpowership deal could see the country get about 1,220MW of emergency power.

HOW MUCH WILL IT COST?

At the time it was first reported, the contract was said to be worth an estimated R218bn over two decades. 

It will require floating storage and regasification units to be moored in the Richards Bay, Ngqura and Saldanha Bay ports and the construction of pipelines and terminal facilities to bring the gas ashore.

WHAT ABOUT THE ENVIRONMENT?

Environmental lobby groups have challenged the deal for more than a year, arguing in various courts about the huge damage they expect to be inflicted on the marine ecology and fishing.

In June last year, the department of forestry, fisheries & the environment said it had refused environmental approvals for three gas-to-power projects by Karpowership in SA.

The objections looked to have killed the project's hopes in SA but the year started with reports of fresh enquiries from government.

Two months later, reports surfaced claiming Eskom is considering buying electricity from a Karpowership plant offshore of Mozambique instead. The Maputo plant is expected to get environmental approval in June and start operating in October.

HOW LONG WOULD THE SHIP DOCK?

The contract would run for more than 20 years, meaning much permanent infrastructure would need to be in place, and any possible environmental affect would be long-lasting.

The Organisation for Undoing Tax Abuse (Outa) also questioned the length of the contract.

“It will take the ships at least a year to supply electricity to the SA grid — so the spin that this is something that can help us now is misleading,” the organisation argued.

“If the Karpowership contract goes ahead, the price of electricity will go even higher, having a huge affect on the pockets of electricity users and SA taxpayers.”

In January, Mantashe told an ANC Energy Dialogue gathering that cutting the proposed contract period to 10 years could help the government procure energy urgently.

“It’s ... a self-created crisis that will amount to national suicide if they go through with it,” scientist and strategic adviser Anthony Turton said in response to the proposal.

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