Colenso power project: Almost R10 billion investment to create thousands of jobs in KZN
A multibillion-rand energy project that is underway in Colenso, in northern KwaZulu-Natal is expected to create thousands of jobs in the town as well as in Estcourt and Ladysmith.
The Colenso Power Project is valued at close to R10 billion and has been in the planning phases for some time, undergoing various legal compliance processes. The KZN Department of Economic Development, Tourism and Environmental Affairs (Edtea) stated that this project is critical in ensuring that the province’s economy is not concentrated in major cities.
Edtea said the Colenso Power Project, while privately funded, is a catalytic investment supported by the Department through packaging and facilitation. Valued at R9.78 billion, it features a hybrid base-load power facility utilising clean fuels, hydrogen, and battery storage, marking a national-scale anchor for the uThukela District.
Documents related to the project indicate that it will significantly increase employment opportunities for local communities. It is anticipated to generate 10,000 jobs for the Alfred Duma Local Municipality and the Inkosi Langalibalele Local Municipality, with 15% of these jobs allocated to the Colenso community.
In addition to creating employment opportunities, it will bring in experienced and well-known foreign contractors, investors, and project management teams that will collaborate closely with local communities.
Debbie James, the CEO of Colenso Power, detailed the implementation plan for the project.
“Colenso Power is developing a large-scale Clean Fuels and Chemicals plant along with a Hybrid Solar PV and Hydrogen Gas Turbine.”
The Clean Fuels and Chemicals plant will produce 700 tons of hydrogen, 1,000 tons of ammonia, and 5,000 tons of fertiliser per day.
“Our goal is to establish South Africa’s first ‘Absolute Zero’ Clean Fuels, Chemicals, and power plant.”
She explained that Phase 1 involves the construction of four 375 MW Solar PV plants, four 75 MW Hydrogen Electrolyser plants, and the 600 MW Hydrogen Gas Turbine Combined Cycle power plant over three years. Phase 2 will see the construction of the Clean Fuels and Chemicals plant in parallel to Phase 1 over five years.
James noted that the types of work available will include in the fields of civil construction, mechanical construction, heavy industrial construction, and electrical infrastructure construction, catering to unskilled (construction services, security, manual labour, etc.), semi-skilled (trained assembly and installation), and skilled labour (engineering, artisanal, supply chain/logistics, project management, accounting, and administration).
“Full notice to proceed is planned for Q3 2025,” she said, adding that the award of contracts for some work is expected next month.
The mayor of Inkosi Langalibalele Municipality, Mduduzi Myeza, stated that the project would be critical in uplifting the local community.
“We will soon be meeting with the people leading the project to get specifics on how it is unfolding, but what we can say is that this will uplift the community. The area close to where the project is being carried out is a deeply rural community with limited opportunities, so this project will have a significant impact.”
MEC for Economic Development, Musa Zondi, emphasised the project’s importance in reviving small towns.
“If you consider all the other small towns in the province, they have been struggling since the decline of the coal industry. This project presents an opportunity to create jobs and revitalise those small towns,” he said.
Mafika Mndebele, chairperson of the Edtea committee in the KZN Legislature, said the project was a bold and catalytic intervention which could revitalise the economic fortunes of small towns like Colenso.
“The committee views this project not merely as an energy-generation initiative, but as a strategic lever for inclusive economic transformation in the uThukela District. Given the region’s history of industrial decline and rising unemployment, a project of this magnitude offers renewed hope for job creation, local infrastructure development, and enterprise stimulation—particularly in construction, transport, and support services.”
“Furthermore, the committee is encouraged by the project’s alignment with South Africa’s Just Energy Transition goals, incorporating clean fuel technologies, hydrogen energy, and battery storage.
If implemented responsibly, with strong community engagement and regulatory compliance, the Colenso Energy Project could serve as a model for how energy investments can drive regional development while advancing our commitments to environmental sustainability and energy security,” he concluded.