Recor to appoint advisors for USD 50m WTE project in Tshwane by March

Date: Jan 2016

Recor, a South African waste-to-energy company, intends to appoint financial and technical advisors for a project in the City of Tshwane that could cost up to USD 50m said Managing Director Gideon Potgieter.

The City of Tshwane in Gauteng Province awarded Recor the tender to convert landfill gas at up to 10 landfill sites into compressed natural gas (CNG).

It will seek to appoint advisors by March following which it will conduct further feasibility work, said the MD.

The Industrial Development Corporation (IDC) said it may be willing to fund 60% to 70% of the project through debt, said Potgieter, and now Recor is looking for equity partners to provide the remaining 30% to 40%.

The WTE company is targeting an Internal Rate of Return (IRR) of over 25% and welcomes approaches from equity investors, said Potgieter.

Subject to the results of the feasibility work, Recor plans to develop USD 5m CNG plants at each of the 10 landfill sites in Tshwane, Potgieter explained. Each plant will take around six months to complete, he said. The first CNG plant could become operational sometime in 2018.

It is envisioned that each CNG plant will process about 1,000 cubic meters (m3) of landfill gas per hour to produce about 500-700m3 of CNG per hour, said Potgieter.

Recor hopes to wrap up an off-take agreement for the CNG produced in the coming months, he added.

The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.