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The U.S. Trade and Development Agency has awarded a grant to the GreenCape Sector Development Agency for a feasibility study to assess the market demand, socio-economic impacts, and key risks of a proposed integrated liquefied natural gas (LNG) importation and gas-to-power project in the Western Cape. The study will also provide a preferred model for the importation of LNG for gas-to-power electricity generation capacity, as well as for industrial, transportation, commercial, and domestic uses.

GreenCape is a not-for-profit company in South Africa established by the Western Cape Government's Department of Economic Development and Tourism (DEDAT). It’s mandate is to develop the green economy by identifying market opportunities in the energy sector, the waste sector, as well as the flow of resources in the regional economy. GreenCape will competitively select a U.S. firm to complete the study.

US awards grant for LNG import study“Natural gas has a critical complementary role to renewable energy for power generation in a lowest cost, low carbon, energy future for South Africa. GreenCape is grateful to USTDA for their support in exploring and unlocking these opportunities,” says Mike Mulcahy, CEO of GreenCape.

This announcement comes shortly after Renergen, an integrated alternative and renewable energy business that invests in early stage energy projects, announced a positive record of decision granted to Tetra4’s Environmental Impact Assessment (EIA). The company plans to commence construction of natural gas liquefiers in early 2018, with production of LNG commencing in early 2019.

Renergen not only has the first onshore petroleum production right in the country, but the only one with an environmental authorisation to commence full-scale production. The company is in advanced discussions with several local large fleet operators as Tetra4 is now capable of creating a nationwide filling network.

“The trials on two European brand trucks, running on dual fuel, have shown significant savings in both overall fuel consumption as well as cost per kilometre metrics. We are excited about the progress made on all fronts. This will realise value far sooner than previously anticipated and once the plant is in full production, we should be able to explore and develop further opportunities at Tetra4,” says Stefano Marani, CEO of Renergen.

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