Power Generation

Overview – Power Generation in PNG

The power generation industry in PNG is characterised by a lack of access to electricity for the vast majority of the population, and the electricity that is available is not only expensive but also unreliable1. As a result of these factors, industries including mining and resources are often forced to assess and / or implement off grid power solutions.

In response to the above Mayur is pioneering the development of environmentally sustainable power generation via an “Enviro Energy Park” concept using a combination of fuel sources to address the following:

  • Assist PNG in achieving Government mandated target of 70% electrification by 2030 (currently around 13% of people in PNG have access to grid electricity)2 Provide multi-mode power generation from renewables and conventional high quality low ash domestic coal source (refer to Mayur’s domestic coal resources);
  • Provide affordable, reliable and environmentally sustainable power – to enable / unlock economic development in PNG;
  • Provide a mix of renewables and clean coal technology – designed to target a no net increase in ‘green house’ gas and improvement in ambient air quality vs current generation footprint (PNG is currently heavily reliant on burning expensive diesel and fuel oil to generate electricity).

Lae Power Project

The proposed location of Mayurs first EEP power project is Lae, the country’s industrial and manufacturing hub in Morobe Province. The current status is as follows:

  • DFS complete – 52.5MW (net) power facility at the Port of Lae (future scalability to 200MW);
  • Triplicated Fuel Source – secured;
  • Power Purchase Agreement (PPA) – submitted to PNG Power (currently under review);
  • Site selected – lease with PNG Ports at Lae Tidal Basin;
  • Environmental Approval – secured from the Conservation and Environmental Protection Authority (CEPA);
  • Sustainable Energy Research Institute (SERI) – JV executed with UNITECH;
  • International and Local EPC – construction bids received.
Location of coal fired power plants in Asia Pacific region
Aerial photo of Lae Port (Western Tidal Basin) owned and operated by PNG Ports

Other Power Project Opportunities

Mayur has plans for further similar power projects elsewhere in PNG to serve the forecast growth in energy demand from industry (including mining and resources projects) and domestic users. The most advanced of which is the development of a power plant for the Yandera project (as publicly announced by Era Resources, TSE-ERX) with a nameplate rating of about 200MW.

Madang -Lae Infrastructure
1 PNGs current electrification rate is circa 13% (one of the lowest in the world) and the PNG Government is targeting 70% electrification by 2030, this will also mean tripling PNG’s current installed electricity capacity to meet this target (Source: https://bluenotes.anz.com/posts/2015/08/how-png-can-power-into-the-asian-century)
2 PNG Medium Term Development Plan 2010-2030.