Against the backdrop of a crippling 2.5 gigawatt power deficit that is costing Zimbabwe more than 6% of its annual GDP, independent energy company Invictus Energy is pressing ahead with a modular gas-to-power pilot project that could deliver near-term electricity to industrial users — and eventually scale into a regional energy play.
The pilot, a 12 MW facility with expansion potential to 50 MW, is being developed at the Eureka Gold Mine in partnership with Dallaglio Investments and Himoinsa Southern Africa. Located approximately 50 kilometres from the company’s Mukuyu-1 gas discovery, it represents the first phase of a two-stage commercialisation strategy targeting a Final Investment Decision for the broader Cabora Bassa project in 2026 or 2027. Feasibility studies indicate gas pricing above US$10 per gigajoule, which Invictus says makes the project commercially attractive as a proof-of-concept for domestic gas monetisation.
Zimbabwe’s power crisis has been driven by declining output at the ageing Hwange Coal Power Station and drought-induced shortfalls at the Kariba Dam, leaving industry — including the mining sector — exposed to chronic supply disruptions and escalating energy costs. The mining sector alone lost US$500 million in potential revenue in 2024, while fuel prices have risen 40% since January amid global supply pressures. The Eureka pilot is designed to offer industrial players a reliable, cost-effective hedge against both grid failure and fuel price volatility.
If successful, the pilot could anchor a much broader expansion. Invictus has signed a 1,000 MW supply agreement with Mbuyu Energy, targeting major industrial offtakers including Dinson Iron and Steel Company, Zimplats, Anglo American, First Quantum Minerals, Barrick Gold, and Glencore. The company is also planning additional exploration activities, including the Musuma-1 drilling campaign scheduled for the second half of 2026 and a Mukuyu-3 appraisal, to grow its gas resource base and secure new offtakers. Routes to regional markets include the ROMPCO pipeline connecting Mozambique and South Africa, the Southern African Power Pool via existing interconnections, and rail links to Johannesburg. The broader Southern African Power Pool is facing an electricity deficit exceeding 10,000 MW, giving Zimbabwe a potential opening as a regional gas supplier if the Eureka pilot delivers on its promise.
Source: Prospect Intelligence