Sinopec and Donghua Engineering are competing for the $1.7 billion basic engineering design contract for South Africa’s Hiryo coal-to-fertilizer complex

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Sinopec and ECEC are competing for the design contract for the infrastructure of the $1.7 billion Hiryo coal-to-fertilizer complex in South Africa. According to foreign media reports, two top Chinese engineering companies – ECEC Corporation and Sinopec Ningbo Engineering Co., Ltd. – are bidding for the design work related to the infrastructure of SUISO’s Hiryo coal-to-fertilizer complex located in Mpumalanga Province, South Africa, with a contract value of $1.7 billion. The African Import-Export Bank (Afre*mbank), as the sole financier of the project, will announce the winner this month. Under the Final Investment Decision (FID), the bank will provide $1.2 billion in debt financing at a debt-equity ratio of 70/30. The project is scheduled to begin construction in 2026, with full commercial operation set for 2030. Fierce competition among industry leaders: Paul Erskine, founder of SUISO, described the rivalry between the two companies as \"close.\" The five companies that initially bid for the EPC contract have now been reduced to these two final contenders. ECEC is a Shenzhen Stock Exchange-listed subsidiary of China National Chemical Engineering Group. It boasts extensive experience, having completed over 2,200 projects in the fields of chemical engineering, power generation, and green energy. Sinopec, which ranks 6th on Fortune’s World 500 list, has achieved outstanding results in refining, petrochemical, and coal chemical projects. To drive South Africa’s energy transition, the Hiryo plant will produce 1.5 million tons of nitrogen-based fertilizers per year, thereby supporting the country’s shift toward sustainable industries while preserving employment opportunities in the Mpumalanga province, which relies on a coal-based economy. Erskine said, “South Africa is the seventh largest coal producer in the world, but the prospects for low-quality coal in Mpumalanga are bleak.” By ‘de-fossilizing’, coal can be reused for the production of sustainable fertilizers – we offer a transition plan for the region that does not abandon its workforce. " The project will provide employment opportunities for the 1,500 workers who will lose their jobs due to Eskom’s planned shutdown of the Kriel power plant in 2030. It will also create 4,000 construction jobs (40% of which will be filled by local hires) and 981 permanent operational positions once the plant becomes fully operational. Strengthening food security in Sub-Saharan Africa: When operating at full capacity, the Hiryo plant will produce 737,000 tons of blue ammonia, 837,000 tons of urea, 518,000 tons of ammonium nitrate fertilizer, and 234,000 tons of sulfur-free blue methanol per year. This production volume will replace 1.2 million tons of imported urea each year, reducing the region’s dependence on foreign fertilizer supplies and stabilizing farmers’ production costs. The plan is in line with the United Nations’ prediction that “global food production must increase by 60% over the next 25 years to meet the needs of a growing population.” Erskine said, "This project will make South Africa a global leader in the sustainable reuse of coal." We are not only protecting jobs but also shaping the blueprint for future development.