Tongaat Hulett Investing in Cogeneration in South Africa

In South Africa, sugar producer Tongaat Hulett plans to bid on an 80 MW power station following a December 2012 government mandate for 800 MW of cogenerated electricity. The company is currently conducting environmental impact assessments and contracting for plant construction. Tongaat Hulett currently produces 52 MW of power at its four South African mills. With considerable investment, it estimates output can be increased to between 320 MW and 360 MW. The cost of converting one sugar mill is estimated at $304.2 million.