Green Economy Journal Issue 45 by GreenEconomyMedia

journal

ISSUE 45 | 2021

Economy G

PLASTIC POLLUTION: Not just another drop in the ocean BATTERY BUSINESS: Enabling the low-carbon transition ENERGY EVOLUTION: Gas is rising to power DEVELOPMENT GOALS: Statement of the nation SUSTAINABLE SUBSIDIES: Oxymoron or imperative for Africa

COLLECTORS DESERVE A ROUND OF APPLAUSE. It’s no secret that PET plastic beverage bottles are very useful in our modern society. And in South Africa, we owe thanks to informal collectors who spend hours reclaiming them from our streets. As our last line of defense, collectors pave the way for these used bottles to be made into polyester ﬁbre, pallets for the fruit export market and back into bottles yet again. This all takes place once collectors sell their bottles on to mechanical recyclers. Together, they eliminate the chance that discarded bottles harm the environment, create gainful employment for many individuals involved in collection and processing, and contribute positively to our country’s GDP.

18 BILLION

Recycling PET plastic beverage bottles ensures that a circular economy is established where their value can continue indefinitely.

65 900

PET plastic beverage bottles collected for recycling

R7.8 BILLION

income opportunities created** ** 2019 speciﬁcally

2005731_FP_E

injected into South Africa’s economy to date

Economy ISSUE 45 | 2021

journal

NEWS & SNIPPETS

STORAGE A energy’s storage S opportunity by Bushveld Minerals

SPECIAL REPORT

PLASTICS: Facts and futures 2020 An overview of South Africa’s global and regional initiatives to combat plastic pollution

WATER Veolia Southern Africa: a showcase of success in water stewardship and ecological transformation

INVESTMENT The $50 Trillion Question that has answers for the earth’s economy and environment

ontent

ENVIRONMENT SRK Consulting advise on energy assessment public participation processes during the pandemic

STORAGE The battery industry is at the forefront of sustainable development

TRANSPORT Gautrain Management Agency's sustainable mobiliy programme linked to the Sustainable Development Goals

TRANSPORT Analysis of leading trends in the electric vehicle sector

TRANSPORT Ford Motor’s integrated renewable energy strategy

44 ENERGY

CONSTRUCTION The Swartland Group looks back on its 70th year with a vision for future expansion

MINING Mining remains a vital part of a low-carbon future

FINANCE The Schroders Institutional Investor Study 2020

Gas is on the rise to power in South Africa’s energy mix

WASTE Averda’s new liquid waste blending platform in Gauteng

ENERGY The South African wind industry is primed to help our nation get back on its feet

36 3

PUBLISHER’S NOTE By 1 March, we hope to learn of the outcome of RMIPPPP bid process, and as I sit here that is next week. Who will win, though? Will the mega gas projects of DNG and Karpowership take up the entire allocation of 2 000 MW and leave the hybrid projects high and dry, or will a plethora of smaller gas-hybrids and storage-hybrids be awarded? Well, all I can say at this juncture is that the rumour mill has be churning non-stop since the bids were submitted, with a flare-up in speculation triggered by last week’s submission of clarification questions, with some claiming knowledge from inside sources and others with detailed market analysis, plotting and predicting their prospects in minute detail. Soon all will be revealed, but not all will be happy. There has been widespread speculation as to how strict the evaluation process will be. In relation to some, pundits have been saying one bidder or another is a shoo-in to win for “political” reasons, and that evaluators would be pressured from higher powers to overlook the compliance shortcomings of certain bidders. In other speculation, it is believed (hoped) that certain technical qualification requirements relating to past experience at scale, would be relaxed due to the lack of such experience across the entire industry, and that to follow the letter of these requirements would exclude too many bidders. The detailed and comprehensive nature of the clarification questions issued by the IPP Office however tell a different story. One in which the stipulated legal, environmental, and technical qualification requirements will indeed be applied across the board, and that consequently there will be a somewhat abbreviated list of bidders from which the winners will be chosen. This raises another interesting question – one of price. What if the remaining compliant bidders’ tariffs are deemed to not be good value? Could the IPP Office pull the plug on the whole RMIPPPP, or will we see part of the allocation being awarded, and others being invited to submit Best and Final Offers? Unlikely, but... I cannot wait to find out!

Gordon Brown, Publisher

Economy G

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EDITOR’S NOTE What are the true costs of plastic? What is the cost a life? Our ocean? Does the cost justify the value that this multifaceted material provides us across industries and applications? Are we able to function in a world without plastic? The answer is probably no, and the WWF South Africa Plastics: Facts and Futures report investigates how South Africa can move beyond the mere management of the pollution towards a circular plastic economy. Read an excerpt from the report (page 10), which provides an overview of the global and regional initiatives that South Africa has undertaken to combat plastic pollution in its terrestrial and marine environment. And so, the green revolution begins. The ever decreasing price point of battery technologies, central to the deployment of electric vehicles and renewable energy generation, has achieved a feasibility. Battery storage will be key to a net-zero economy (page 33). The underlying message of President Ramaphosa’s 2021 State of the Nation Address is that innovation and investment are fundamental to South African development. He believes that the sustainability of our economic growth also depends on the development of the entire sub-continent. Yet, Africa is not attracting the investment needed to help the world meet the Sustainable Development Goals by 2030, research shows. Turn to page 22 to find out where the world’s largest asset managers are investing their combined USD50 trillion in assets. Actually. Turn to every page in this issue of the Journal to find a wealth of green economy wisdom.

Alexis Knipe, Editor

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. The Publisher does not endorse any claims made in the publication by or on behalf of any organisations or products. Please address any concerns in this regard to the Publisher.

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NEWS & SNIPPETS

STATE OF THE NATION ADDRESS 2021

RAMAPHOSA RESPONDS: DEBATE ON SONA

Extracts from the speech made by President Cyril Ramaphosa in response to issues raised at the debate. These extracts relate to the green economy. AGRICULTURE. The investment we are making in agriculture and agro-processing will enable us to fully realise the potential of this great renewable resource. But to be successful, we need to align agricultural development with an effective and accelerated land redistribution programme. MINING. We have extensive reserves of some of the world’s most valuable minerals and extensive mining expertise. Mining was one of the sectors of our economy that recovered significantly following the easing of domestic and global lockdown restrictions. We are working with the industry to promote renewed investment through a conducive policy and regulatory framework. This includes efforts to reduce current timeframes for mining, prospecting, water and environmental licences. To encourage the expansion of the industry, the Department of Mineral Resources and Energy has drafted an exploration programme implementation plan. TOURISM. We are mindful that for our international tourism arrival numbers to reach preCovid levels, the vaccine rollout and adoption of bio-security standards remains critical. The e-visa regime remains one of the key enablers for tourism recovery. Domestic tourism remains the pillar of the recovery of the sector and we are encouraged by collaborative efforts by all stakeholders to grow this market in an effort to save business and jobs. Tourism has been a resilient sector over decades and even during the pandemic. With the work that we are doing now, we are confident that the sector with revive and grow again. ENERGY. Among our most valuable natural resources as we build a new economy are also the most plentiful – the sun and the wind. That is why our Integrated Resource Plan 2019 envisages a substantial increase in the contribution that renewable energy

makes to our country’s energy supply. It is why Eskom is expanding and strengthening the transmission grid to facilitate the connection of renewable energy, and by participating itself in the building of renewable energy generation capacity. Apart from reducing the country’s carbon emissions and ensuring substantial water savings, our renewable energy programme presents great opportunities to boost local manufacturing and job creation. HYDROGEN AND FUEL. For more than a decade, the government has been working with various partners, including the private sector and academia, to develop hydrogen fuel cell and lithium battery storage technologies. This work serves two important developmental objectives – it offers the possibility of a new, renewable source of energy; while establishing new uses and new markets for the platinum group metals that are abundant in our country. Hydrogen and fuel cell technologies, which use platinum, offer an alternative source of clean electricity, while hydrogen allows for energy to be stored and delivered in a usable form. Through its Hydrogen South Africa Strategy, government and its partners have successfully deployed hydrogen fuel cells to provide electricity in schools and to field hospitals established as part of the country’s Covid-19 response. Now, after a decade of investment, we are ready to move from research and development to manufacturing and commercialisation. We are establishing a Platinum Valley as an industrial cluster bringing various hydrogen applications in the country together to form an integrated hydrogen ecosystem. This initiative will identify concrete project opportunities for kick-starting hydrogen cell manufacturing in promising hubs.

It will facilitate the commercialisation of home-grown intellectual property. It presents an opportunity to build a local skills base and lead the country into a new era of energy generation and demand for its platinum group metals. Through this initiative, South African skills, technology and expertise is being used to extract greater economic value – in the form of new jobs, industrial development and cleaner energy – from a mineral that the country has in substantial quantities. We will develop measures that should be taken to ensure that innovators are supported in local innovation and research. The raising of the licensing threshold for embedded generation, the opening of further bid windows for renewable energy, the reinstatement of the water quality monitoring system, the commencement of digital migration and the process towards the allocation of spectrum are all concrete demonstrations of progress. ECONOMIC GROWTH. Another of our natural endowments is our location and our geography. We are exploiting this through our special economic zones, using them to strengthen our industrialisation drive and bring development to local areas. The Coega SEZ now has a mature portfolio with one large anchor investor and the Tshwane Auto SEZ has a major company driving the localisation of components in the area. Using learnings from our own Coega SEZ, the Coega Development Corporation is providing advisory services to governments and the private sector in the development of SEZs across the African continent. The sustainability of our economic growth and development depends to a great extent on the development of the entire southern African region. This is gaining increasing importance – and is presenting greater opportunities – now that the African Continental Free Trade Area is in operation.

DIALOGUE FROM DEBATE 2021 Ntombifuthi Ntuli, CEO, SAWEA In addition to driving energy security, by opening two new windows, this year the President has reminded us that we cannot lose sight of the threat that climate change poses to our environmental health, socioeconomic development and economic growth. Nivesh Govender, COO, SAPVIA We would welcome clear timelines and dates from the Minister, announcement of preferred bidders for the emergency energy programme, the announcement of BW5, and the easing of distributed generation regulations. Increased deployment of distributed generation will release the pressure on Eskom’s already constrained supply and provide the much-needed additional capacity to the grid. Nardos Bekele-Thomas, resident coordinator, United Nation in SA We are encouraged by the establishment of the Presidential Coordinating Commission on Climate Change and we look forward to future engagements with the United Nations as part of our collective efforts to combat this threat. Source: Engineering News

NEWS & SNIPPETS

RISING UNEMPLOYMENT: TOUGH TASK AHEAD FOR GOVERNMENT The quarterly labour force survey data released by Statistics South Africa (StatsSA) today reflects the challenge faced by government in dealing with inequality and poverty as the impact of Covid-19 deepens across the major economic sectors, the Steel and Engineering Industries Federation of Southern African (SEIFSA) has announced. According to StatsSA, unemployment rate rose to 32.5% in the fourth quarter of 2020, from 30.8% in the previous period. This is the highest jobless rate since quarterly data became available in 2008, amid the ongoing lockdown aimed at fighting the spread of the pandemic, which has contributed to the depressed economic environment. The labour force participation rate was also higher in the fourth quarter of 2020 when compared to the third quarter of 2020 because of these movements, thus increasing by 2.4 percentage points to 56.6% as reported. “Job creation should be a consolidated effort by both government and the private sector. The repeated trends of jobs being lost in key demand-driving sectors of the Metals and Engineering (M&E) sector, such as construction, is worrying as it demonstrates lack of business activity. For unemployment levels to fall, investment driven economic recovery is key,” said SEIFSA chief economist Chifipa Mhango. Mhango is hopeful that government’s

economic revival plan, which plans to increase infrastructure spending to unlock R1-trillion in private investment over the next four years, while also directing R1-billion towards job creation, will be positive for the M&E sector. He cautioned that its sustainability remains a concern as it will weigh on fiscal accounts and Treasury’s consolidation efforts. Mhango also said he expected the economy to rebound in 2021, as economic activity gradually recovers amid lockdown easing. He noted the importance of the M&E sector as a contributor to the economy: “The contribution of the sector to overall employment remains key for the economy. However, persistent challenges faced by business in the sector, such as high electricity costs as well as disruption in its supply, rising logistics costs and imports, are likely to weigh negatively on the industry, thus affecting job creation in the overall manufacturing sector,” he said. “Job creation relies on the economic growth of the country. We, therefore, wait to hear what government plans in [the 2021] budget speech. We expect a national budget package that will provide a stimulus in the form of infrastructure spending, incentives for manufacturing industries both small and large, and a budget that focuses on addressing the challenges of local industries’ lack of competitiveness,” Mhango concluded.

UNITED WE STAND

Bokamoso Solar, situated near Leeudoringstad, has demonstrated its support of raising awareness of gender-based violence, in the community of Kanana. The solar project recently allocated funding towards a campaign that was hosted by the Kanana Helping Hands Centre, to draw attention and educate community members around the plight of women and children abuse. “This campaign is important because it teaches the community about genderbased violence and that people need to be aware of their fellow community member’s predicament and suffering from abuse, with the hope to increase reporting. This campaign was part of the government’s gender-based violence activism campaign,” explained Keneilwe Sylvia Tlhapi, deputy chairperson of Helping Hands. During its 20-year operations the project will benefit communities in a 50km radius of Bokamoso Solar, through various economic development programmes.

SAPVIA CALLS FOR URGENT POLICY AND REGULATED ACTION SAPVIA welcomes comments made by Eskom CEO Andre de Ruyter recently in support of an increased distributed generation license exemption cap. Distributed generation can add capacity to the grid, reduce load-shedding, and create jobs but there must be policy and regulatory action. “SAPVIA has long been engaged in advocating for the systematic easing of licensing thresholds, to unlock the significant opportunity held by distributed generation. We therefore welcome the support of the stateowned utility for lifting licensing thresholds from 1 MW to 50 MW to accelerate distributed generation by large customers,” says SAPVIA COO Nivesh Govender. “As a key sector player, Eskom’s support in this effort should encourage more haste in regulatory changes from the Department of Mineral Resources and Energy (DMRE) and National Energy Regulator of South Africa (NERSA).” The benefits of a specific allocation within the Integrated Resource Plan (IRP) and lifting

of licensing thresholds are now common knowledge and as a key government partner in the energy space, SAPVIA remains committed to engaging and collaborating with both DMRE and NERSA to develop the required changes, he adds. “Increased deployment of embedded generation capacity will release the pressure on Eskom’s already constrained supply. Simply put, distributed generation provides, rapid, clean, additional capacity to the grid.” Everyone agrees with the need for increased

capacity as our economy is hamstrung by the ongoing blight of load-shedding, says Govender. “But distributed generation will also create jobs, spur localisation and industrialisation, which will be vital in driving our economic recovery. It is clear from Mr De Ruyter’s comments that Eskom have realised that they must look for alternative solutions to combat the ongoing energy crises and we are hopeful that this will be followed up with the necessary legislation changes to make this a reality.”

STORAGE

South Africa’s energy

STORAGE OPPORTUNITY It has become urgent for South Africa to unlock the potential of sectors that can enable new industries. To meaningfully participate in the post Covid-19 economic recovery efforts that all economies are focusing on, a ripe opportunity lies in accelerating investment in the energy storage value chain.

lectricity’s share of how the world consumes energy has doubled from 10% to 20% between 1980 and today and is set to grow to 45% by 2050. A large share of this growing electricity demand will be met by renewable energy sources. This growing energy storage market presents a unique opportunity for Bushveld Energy, a subsidiary of Bushveld Minerals. Bushveld Energy is a leading energy storage solutions provider and is focused on developing and promoting the role of vanadium in the growing global energy storage market through application in vanadium redox flow batteries (VRFBs). From a vanadium point of view, South Africa hosts three of the four primary vanadium processing facilities in the world, of which Bushveld Minerals owns two. The country is blessed with many other of the world’s largest and highest-grade resources which are set to play a critical role in the value chain of the global battery industry, including platinum group metals, nickel, manganese, copper and cobalt. All these metals have a demand profile that is anchored in a decades-old, if not century old applications in the steel industry, and more exciting are now in use in newer applications in electronics and batteries. Simply put the potential for battery metals, such as vanadium, lies in their ability to solve seemingly simple challenges for global economies, such as ensuring that electricity is made available sustainably and on demand, whether generated by coal, solar or wind. To be clear, the opportunity is distinct from the past. Where historically

the industry in South Africa has been content with mining and shipping ore to other markets for processing, it is time to develop vertically integrated opportunities that maximise South Africa’s share of the value chain. It is big enough to require a master plan. What is more? South Africa already has a lot of the metallurgical infrastructure that can be leveraged to create or expand the downstream capabilities required. Not only infrastructure, but also metallurgical expertise and Research and Development platforms that to date have been underutilised. This will ensure that significantly more investment is put towards building and revitalisation of processing infrastructure and metallurgical expertise, and thus grow local mining and processing capacity to meet the increase in demand for these metals. To achieve this reality, all stakeholders; whether funders, private business, government or research institutions must take responsibility for their role in ensuring that certain key actions are prioritised as the implementation of South Africa’s economic recovery plan takes center stage. South Africa must focus on its ability to turn the mineral wealth in the soil into a fully charged and sustainable new mining industries, such as the energy storage sector. So far South Africa’s forward-thinking Integrated Resource Plan (IRP) and Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) which details the country’s plans to create one of the largest energy storage markets in the world is a good example of what the government is already doing to ensure that opportunities in the energy value chain are maximised.

Here is why the energy storage market is exciting: • Electrification of almost everything is driving up electricity’s share of how the world consumes energy and driving up the demand for electricity • The energy transition towards cleaner electricity sources has begun across many countries in the world • There is a disruption of the traditional utility model for electricity provision, characterised by growing distributed generation solutions and financial pressures on utilities combining to bring private sector participation at a scale not seen before

THE VERTICALLY INTEGRATED PRIMARY VANADIUM PRODUCER

Bushveld Minerals’ vision is to grow into a significant, low cost and vertically integrated company comprising of primary vanadium production, electrolyte manufacturing, development and deployment of Vanadium Redox Flow Batteries in the energy markets. Our value proposition includes: •

Compelling commodity market anchored to steel with burgeoning demand from energy storage market

•

Largest primary vanadium resource base of ~550Mt with a grade 1.58-2.02% V₂O₅ in magnetite

•

We currently own 2 of the 4 operating primary vanadium production processing facilities, with capacity to scale up significantly

•

Bushveld Minerals offers a diversfied product offering for the steel, chemical industry and energy storage market

•

Bushveld Minerals vertical integration strategy into energy storage provides a natural hedge to vanadium price volatility as well as a diversified revenue stream

5 Harries Road, Illovo Edge Office Park 2nd Floor, Johannesburg, Gauteng 2196 | info@bushveldminerals.com | www.bushveldminerals.com @BushveldMin_Ltd

Bushveld Minerals

SPECIAL REPORT

PLASTIC:

PAST AND PRESENT SOUTH AFRICA’S GLOBAL AND REGIONAL INITIATIVES TO SOLVE PLASTIC POLLUTION

Plastic is a complex material that provides value across several industries, yet its strength and durability have resulted in widespread persistence in the environment, threatening human health and the health of our marine, terrestrial and freshwater ecosystems. These negative externalities, once quantified, reveal the true costs of plastic. An excerpt from the 2020 WWF® South Africa report

PLASTICS: FACTS AND FUTURES

Moving beyond pollution management towards a circular plastic economy in South Africa

ince 1972, South Africa has ratified several international treaties, forged partnerships and subscribed to legal frameworks to combat plastic pollution in its terrestrial and marine environment. This is giving South Africa a firm footing to voice its concerns in global forums, on the one hand, and gaining access to the latest environmental considerations to combat plastic pollution, on the other. Various initiatives and platforms exist, and this list is not exhaustive.

2019

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, which South Africa is party to, at its 14th Conference of the Parties, adopted a decision to incorporate certain categories of plastic under its scope. This includes giving parties

SPECIAL REPORT the right to prohibit the import of plastic at end of life as well as requiring parties to obtain prior written informed consent for the export of plastic of this nature. To be traded, waste plastic must be clean and consist of single or clearly defined plastic polymer types that can be recycled. Mixed bales of rubbish are not acceptable. This decision obtained great media coverage and was a statement from the 187 countries to address the plastic pollution problem. Since then, the world has seen developing countries, specifically the Philippines and Indonesia, sending back shipments of plastic scrap and waste to countries of origin, including the USA, the UK and Australia. South Africa became a signatory in May 1994. The Basel amendments will take effect from 1 January 2021.

2017

The G20 Action Plan on Marine Litter was agreed upon by the G20 countries (akin to the G7 Action Plan of 2015). The action plan includes a commitment to “take action to prevent and reduce marine litter of all kinds, including from single-use plastics and micro-plastics”. South Africa is one of the G20 countries.

2015

The 2030 Agenda for Sustainable Development was adopted by all UN member states. A blueprint for achieving this agenda took the form of the 17 Sustainable Development Goals (SDGs). The SDGs that specifically relate to combating plastic pollution are: • SDG 6: Clean water and sanitation • SDG 8: Decent work and economic growth • SDG 9: Industry, innovation and infrastructure • SDG 11: Sustainable cities and communities • SDG12: Responsible consumption and production • SDG 13: Climate action • SDG 14: Life below water • SDG 15: Life on land • SDG 17: Partnerships for the goals

2014

Several UN Environment Assembly (UNEA) resolutions have been made on marine litter and microplastics from the first UNEA meeting in 2014. These resolutions called for strengthening the UN Environment

TOWARDS A NEW GLOBAL LEGALLY BINDING AGREEMENT ON PLASTIC POLLUTION The African Ministerial Conference on the Environment (AMCEN) held in Durban in November 2019, saw 54 member states endorse a declaration calling for global action on plastic pollution. Among the options to be further explored was a suggestion for a new global agreement to combat plastic pollution. African governments have now joined the Caribbean Community (CARICOM), the Association of Southeast Asian Nations (ASEAN), the Pacific Island Countries and the Nordic states in their call for strong global action on plastic pollution.

South African Environment, Forestries and Fisheries Minister, Barbara Creecy, holds the AMCEN presidency for 2020/21, which is an opportunity for South Africa to take the lead on several topics, including addressing the plastic pollution challenge.

SPECIAL REPORT

Programme’s (UNEP) role in acting on marine litter and microplastics in UNEA-1; establishing the Ad Hoc Open-Ended Expert Group on Marine Litter and Microplastics in UNEA-3; and addressing single-use plastics in UNEA-4. Resolutions also call for greater collaboration and coordination of efforts to address plastic pollution. South Africa is a member state participating in the UNEA talks.

2011

The Honolulu Strategy: Global Framework for Prevention and Management of Marine Debris is a voluntary approach to connect marine litter programmes and foster collaboration among them by sharing lessons learned and best practices. It is the recommended framework to be used for UNEP’s GPA (see 1995). South Africa is part of two Regional Seas Programme Conventions, namely the Abidjan and Nairobi conventions, which places in a unique position to coordinate initiatives through both platforms. The Abidjan Convention is currently undergoing a regional assessment on marine litter to inform a Regional Action Plan to address marine litter in member countries. The Nairobi Convention completed a marine litter assessment in 2008 and is currently implementing its Regional Action Plan.

1995

The Global Programme of Action for the Protection of the Marine Environment from Land-based Activities (GPA) was set up in 1995

and is hosted by UNEP. The Global Programme of Action aims to foster collaboration and coordination among states to prevent marine pollution from land-based sources and encourage action at the national, regional and international level. The programme operates primarily through the Regional Seas Programme.

1982

Part XII (Articles 192–237) of the 1982 UN Convention on the Law of the Seas (UNCLOS) aims to protect and preserve the marine environment from land- and sea-based sources of marine pollution. UNCLOS is a comprehensive convention that covers virtually all matters relating to the management and use of the ocean. S outh Africa ratified UNCLOS on 23 December 1997.

SPECIAL REPORT

1978

The International Convention for the Prevention of Pollution from Ships (MARPOL) aims to prevent marine pollution from operational or accidental causes by ships. South Africa accepted participation in MARPOL in February 1985.

1972

Convention on the Prevention of Marine Pollution by Dumping Wastes and Other Matter (the London Convention) and the 1996 Protocol to the London Convention (the London Protocol) aim to control pollution of the sea by dumping and to encourage regional agreements supplementary to the Convention. South Africa is a party to the London Convention.

AFRICAN PARTNERSHIPS

2020

President Cyril Ramaphosa is the chairperson of the African Union in 2020, presenting another opportunity for leadership in the case where the African Union has also called on African cities to commit to recycling at least 50% of the urban waste they generate by 2023 and to grow urban waste recycling industries.

2019

In 2019 the African First Ladies took the lead on the plastics front by hosting two high-level side events. The first was on Banning Plastics towards a Pollution-free Africa Campaign, which resulted in the Addis

Ababa Communique to advocate the banning of plastics. The second was on Plastic Pollution Solutions for Development in Africa to initiate the implementation of the Communique.

2016

The East African Legislative Assembly passed a Bill in 2016 to ban the manufacture, sale, import and use of certain plastic bags across its six member states, with a combined population of approximately 186-million people. A total of 127 countries have put into force some type of legislation to ban the use, manufacture, free distribution and import of plastic bags as at July 2018. African countries have been seen to be leaders in this regard, with 37 countries regulating plastic bags in some way.

Since 1972, South Africa has ratified several international treaties, forged partnerships and subscribed to legal frameworks to combat plastic pollution in its terrestrial and marine environment.

SPECIAL REPORT THE NEW PLASTICS ECONOMY The New Plastics Economy is an ambitious global initiative to build momentum towards a plastics system that works. It applies the principles of the circular economy and brings together key stakeholders to rethink and redesign the future of plastics, starting with packaging. The New Plastics Economy Global Commitment is a shared vision agreed upon by businesses, governments and organisations to address plastic pollution at source. It is led by The Ellen MacArthur Foundation together with UNEP to drive engagement with governments and other key players. The New Plastics Economy also hosts a global Plastics Pact Network, which is a platform for multiple national implementation initiatives. Each national initiative will be aligned with the common vision outlined in the Global Commitment but will set national targets and develop a roadmap to suit the local context. The South African Plastics Pact was launched by WWF South Africa in partnership with the South African Plastics Recycling Organisation (SAPRO) and the UK’s Water and Resources Action Programme (WRAP) in January 2020. It is the first national Plastics Pact in Africa and joins the global Plastics Pact Network.

A FIRST IN AFRICA The South African Plastics Pact was launched in January 2020 and joined The Ellen MacArthur Foundation’s Plastics Pact global network aligned with the New Plastics Economy vision. The first of its kind in Africa, the South African Plastics Pact joins France, the UK, the Netherlands, Chile, Australia and the Pacific and the European Union to exchange knowledge and collaborate to accelerate the transition to a circular economy for plastic. The South African Plastics Pact is managed and implemented by GreenCape, with the founding members committed to ambitious targets for 2025 to prevent plastics from becoming waste or pollution. The South African Plastics Pact members are Berry Astrapack, the Clicks Group, Clover, Coca-Cola Africa, Danone, Distell, HomeChoice, Myplas,

SPECIAL REPORT Pick n Pay, Polyoak, Palletplast, RCL Foods, SPAR, Spur Holdings, The Foschini Group, Tigerbrands, Tuffy, Unilever and Woolworths. Supporting member organisations include the African Circular Economy Network, African Reclaimers Organisation, the City of Cape Town, the Department of Environment, Forestry and Fisheries, Fruit South Africa, the Institute of Waste Management of Southern Africa, the Polyolefin Responsibility Organisation, the Polystyrene Association of South Africa, the PET Recycling Company, South African Bottled Water Association, SAPRO and the Southern African Vinyls Association.

By 2025, all members commit to: liminate problematic or unnecessary plastic packaging through E redesign, innovation or alternative (reuse) delivery models.

100% of plastic packaging to be reusable, recyclable or compostable*

70% of plastic packaging effectively recycled 30% post-consumer recycled content across all

plastic packaging *In the case of compostables, this is applicable only in closed-loop and controlled systems with sufficient infrastructure available or fit-forpurpose applications.

To achieve these 2025 targets for a circular economy for plastic in South Africa, various activities are required: • Some plastic items are problematic or unnecessary and need to be designed out. • Reuse models can reduce the need for single-use packaging, while at the same time holding the potential for significant user and business benefits. • All plastics need to be designed to be reusable, recyclable or compostable in practice and at scale, with a concerted effort on both the design and the after-use side. By delivering on these targets, the South African Plastics Pact will help to boost job creation in the South African plastic collection and recycling sector, and help to create new opportunities in product design and reuse business models.

ALLIANCE TO END PLASTIC WASTE Another global initiative is the Alliance to End Plastic Waste (AEPW), which was founded by various global petrochemical companies. The alliance aims to raise funds in order to invest in developing and scaling up solutions to manage plastic at end of life, through education, innovation, clean-ups and investment in infrastructure in Southeast Asia. The fundraising and investment target is $1.5 billion, to be provided by the member organisations over the next five years. Sasol is currently the only African-owned company which is a member of the Alliance.

SPECIAL REPORT

AFRICAN MARINE WASTE NETWORK The African Marine Waste Network is a project under the Sustainable Seas Trust. It aims to prevent marine litter at source by providing a platform for collaboration and knowledge sharing through its network of government bodies, industry and civil society. Its current projects include developing and testing marine litter monitoring guidelines in collaboration with UNEP, developing educational materials for schools, promoting enterprise development and providing research expertise in ghost gear and microplastics.

CLiP The Commonwealth Litter Programme (CLiP) aims to support four developing countries (the Solomon Islands, Vanuatu, South Africa and

Belize) in preventing plastic litter from entering the marine environment. CLiP is led by the UK through the Centre for Environment Fisheries and Aquaculture Science (Cefas) and is funded by the UK Department for Environment, Food and Rural Affairs (Defra).

THE AFRICAN CIRCULAR ECONOMY ALLIANCE The African Circular Economy Alliance is a project hosted under the Platform for Accelerating the Circular Economy by the World Resources Institute. It aims to share best practices, undertake collaborative projects and advocate for the circular economy between countries at a ministerial level. The alliance was founded by Rwanda, South Africa and Nigeria in 2016, and joined by Niger, Senegal, Malawi and the Democratic Republic of the Congo in 2018.

SPECIAL REPORT

The Power of Plastics Plastics make our modern lives easier, safer and healthier.

The power to heal Plastics make medical procedures safer and simpler by reducing infections and keeping patients and healthcare workers safe.

The power to grow Plastics have excellent heat retention properties, meaning that less heat is lost through polycarbonate material. This improved heat retention is key for the overall performance and effectiveness of a greenhouse.

The power to protect Plastics used in the front of vehicles are lightweight, but strong enough to absorb energy from an impact by creating a “crumple zone”, effectively acting as a cushion to protect the occupants inside the car.

Reuse and Recycle your Plastics.

www.plasticsinfo.co.za

SPECIAL REPORT

VIDEO | WHAT REALLY HAPPENS TO THE PLASTICS YOU THROW AWAY? ©Text 2020 WWF South Africa Published in 2020 by WWF – World Wide Fund for Nature (formerly World Wildlife Fund), Cape Town, South Africa.

FISHING LINE BIN PROJECT EXPANDS ITS FOOTPRINT

outh Africa’s success with preventing discarded fishing line from ending up in the oceans or on beaches by using fishing line bins made from off-cuts of PVC pipe, has resulted in more than 77 new bins being manufactured for installation at beaches around the country ahead of the National Water Week campaign for 2021. These fishing line bins stand 60 cm high and are erected at beaches around the country as repositories for used, discarded monofilament fishing line. Off-cuts of PVC pipe (donated by MacNeil Plastics) are used to create a uniquely shaped bin with a U-Bend end-piece that prevents the lines from being blown away. They are also resistant to the elements and corrosion and therefore ideal for long-term use on beaches. “Each year, the results of the International Coastal Clean-Up show that discarded fishing line is one of the major pollutants on our country’s beaches, causing injuries or death to seabirds, seals and sharks who get entangled in it,” explains John Kieser, sustainability manager of Plastics SA. The Fishing Line Recovery and Recycling Project was initiated by the Dyer Island Conservation Trust and officially first launched along the Gansbaai shoreline in 2010 with the first 20 bins placed in partnership with Overstrand Municipality. It was through the partnership with Plastics SA and the support of other conservation agencies such as CapeNature, SanParks, non-profits and concerned communities that the project has grown in leaps and bounds with 386 bins installed at various locations around the country. The goal is to eventually have 500 bins installed and to expand the project into Mozambique. “We have received the most amazing support from anglers, local communities and environmental groups who are all eager to see the removal of all plastic waste from the marine environment. Each area is responsible for the cleaning and maintenance of their own bins as anglers and beach walkers are encouraged to help to collect and dispose of the used fishing line in the bins. To date we have already removed more than 350 kg of discarded fishing line and in excess of 500 fishing hooks,” Kieser reports. Where possible, the collected fishing line is recycled into bush cutters line. The fishing line bins that need to be replaced are also not sent to landfill but donated to the African Snakebite Association for use by the snake catchers. Similar bins have also been created for the collection of

straws or earbuds and bottle tops – other major plastic pollutants on our country’s beaches. “It is encouraging to use this project as a vehicle to demonstrate the benefits of plastics and the valuable contribution it makes to our modern lives – provided that it is manufactured, used and discarded properly. This is truly a success story that would never have been possible without the support of the South African Plastic Pipe Manufacturers Association (SAPPMA) who encouraged their members to support the project and MacNeil Plastics who heeded this call two years ago call by donating all the pipes we needed for the project,” Kieser says. Brenda Walters of the Dyer Island Conservation Trust (DICT) confirms that the bins serve as an educational awareness tool for marine pollution and thanked the plastics industry for that it is making a tangible difference along the South African coastline. “We are raising public awareness about the negative impacts that fishing line debris has on marine life, water quality, and human welfare while at the same time seeing a reduction in the amount of fishing line entering the marine environment,” Walters concludes. For more information, visit: or

©Text 2020 WWF South Africa. Published in 2020 by WWF – World Wide Fund for Nature (formerly World Wildlife Fund), Cape Town, South Africa

WATER

Superior

water stewardship Through a highly skilled and committed workforce, Veolia’s operations in southern Africa have suffered no disruption to services and thankfully, no fatalities, despite uncertainty in operating environments due to the nationwide lockdown. BY VEOLIA SOUTHERN AFRICA

Durban Water Recycling Project.

n the Overstrand municipality, operations manager, Coenie Loubser, and his team have continued with business as normal to safeguard the continued supply of clean, potable water to over 90 000 permanent residents in the region. Veolia’s appointment to manage the day-to-day operations and maintenance of the water and wastewater treatment plants in this area for a period of 15 years remains the largest operations and maintenance contract of its kind in South Africa. “With one of the fastest growing populations in South Africa, the Overstrand Municipality required assistance with the upgrading and expansion of their water and wastewater systems. Together with the municipality, we’ve introduced newer technologies such as reverse osmosis, ultrafiltration and bioremediation, all aimed at optimum water and wastewater management. The Veolia Overstrand team’s in-depth knowledge of water stewardship has allowed us to satisfactorily deliver on contractual KPIs to the client and its community despite the Covid-19 challenges,” says Coenie Loubser. The Veolia designed, constructed and operated Durban Water Recycling (DWR) Project, recycles 47.5-million litres of municipal wastewater per day providing near-potable standard water for use by large industrial players. DWR also serves to protect and secure the City’s existing water resources, essential in a water-stressed province.

Veolia’s modular water treatment solutions, designed and assembled at our own Sebenza facility, are factory acceptance tested before on-site delivery to the client. These modular plants have proven to be extremely reliable, are flexible according to client requirements and can be delivered in a much shorter lead time. These projects align with Veolia’s core commitments including access to water and sanitation, a pledge toward sustainable cities and communities, responsible management of water resources and combating pollution. Furthermore, in the Overstrand community, Veolia has committed to employing approximately 30 locally skilled artisans and engineers with the aim of uplifting the NQF qualification of the existing operational teams. Our alignment to the sustainable development goals, with a direct influence on 13 of these, serves as a guiding light throughout our sustainable business journey. Our water and waste technologies not only serve to protect the environment but ensure reliable water supply to both industry and municipal communities, thus highlighting our continued sustainable efforts. “With the implementation of the initial lockdown regulations, an essential service registration was put into place and special crisismanagement protocols were implemented for all on-site services and teams. We have maintained stable business operations and offered key support to our clients in critical industries. I am proud to have led a management team fully focused on clear deliverables during this trying time. On the strength of digital transformation, Veolia has adapted to the constraints of the Covid-19 crisis with agility, demonstrating its ability – both on a human and technological level – to be a benchmark player in the ecological transformation,” concludes Stanley Steenkamp, CEO and managing director of Veolia Southern Africa.

Trickling filter technology (that forms a part of the sewerage treatment plant).

INVESTMENT

A SUSTAINABLE

SUBSIDIES

Increase investment in Africa or risk missing the UN’s SDGs deadline, new research finds.

frica is not getting the investment needed to help the world meet the United Nation’s Sustainable Development Goals (SDGs) by 2030, new research from Standard Chartered has revealed. The $50 Trillion Question investigates how some of the world’s largest asset managers – with a combined USD50 trillion in assets under management (AUM) – are investing at this critical time for the global economy and the environment.

Emerging markets: massive shortfall in investment The research shows that almost two thirds (64%) of the panel’s AUM is invested in the developed markets of Europe and North America, while just 3% is in Africa. Asia, which includes several developed markets, takes 22%, while just 2%, and 5% of the assets are invested in the Middle East and South America, respectively. The risk posed by emerging markets was flagged as a major barrier to investment. More than two-thirds of investors believe emerging markets are high-risk, compared to 42% who believe the same for developed markets. More than half of the panel (53%) believe returns from investment in Africa are low or extremely low, with almost three in five investors (59%) saying that they are deterred from investing because they lack in-house specialist teams. In contrast, those already investing in Africa are optimistic about the region, with 93% saying they are likely to increase investment in future. 54% of Africa investors said their investments had performed as well as – or better than – their developed market investments over the past three years. The figure for emerging markets overall was 88%. However, Covid-19 may have made it even harder for emerging markets to get the investment they need. Some 70% of investors believe the pandemic has widened the capital gap further. WHICH MARKETS ARE GETTING THE MOST INVESTMENT?

Below: United Nations Sustainable Development Goals

North America

26%

Europe

38%

Asia

22%

Middle East

Africa

South America

Australia/Oceania

United Nations

INVESTMENT Not enough investment is linked to the SDGs There is a growing focus on sustainability, with 81% of investment firms now taking a disciplined approach to environmental, social and governance investment. This is not translating into investment in the SDGs. Only 13% of the assets managed by respondents is directed towards SDG-linked investments. Some 55% claim the SDGs are not relevant to mainstream investment and 47% say investment in the SDGs is too difficult to measure. However, one fifth of investors admit that they were not aware of the SDGs. Respondents point to regulatory changes, favourable tax treatment, evidence of higher returns, better data for measuring impact, and increased demand from retail investors as the top five factors that might spur on more SDG investment.

The survey found that: • Only 3% of AUM is invested in Africa • Lack of investment in emerging markets puts the chances of meeting the 2030 SDG deadline at risk • Of those already investing in Africa, 93% say they will likely increase their investment in the future

TOOLS THAT ENCOURAGE SDG INVESTMENT Regulation that encourages SDG-linked products

74%

Favourable tax treatment of SDG-linked investments

63%

More evidence that investing in SDGs will not lead to underperformance

63%

Better data to measure the impact of SDG investments

53%

Retail investor demand for SDG-themed investments

53%

The research points to a growing focus on sustainability, with 81% of investment firms now taking a disciplined approach to environmental, social and governance investment.

Sunil Kaushal, Regional CEO, Africa and Middle East, Standard Chartered said there is still an investment gap in Africa to realise the SDGs and this creates an opportunity for us to make a difference where it matters the most. “A significant surge in private-sector investment – alongside public investment and commitments – will be required to bridge the gap and hit the SDG targets over the next ten years. Right now, Covid-19 has made the imperative to act even stronger in the region. There is no single answer to The $50 Trillion Question, however, it is evident that investors need to expand their focus beyond developed markets. Africa, and emerging markets generally, offers investors a unique opportunity: strong returns combined with the chance to have a significant, positive impact in the long term.” The Standard Chartered $50 Trillion Question study follows the publication of the SDG investment map, which first revealed the multi trillion-dollar opportunity for private-sector investors to help achieve the SDGs in emerging markets.

With combined assets under management (AUM) worth more than USD50 trillion (the equivalent to half of global GDP), how the asset managers in the survey choose to invest will have a huge impact on humanity’s ability to solve some of the world’s biggest problems. The below shows the panel broken down by AUM, role and location, all of which ensure it is representative of the global top 300 asset managers.

THE $50-TRILLION INVESTOR PANEL by AUM

by job role

by location

19% top 10 firms (> USD1 trillion) 46% top 11-50 Firms (USD1 trillion - USD350 billion) 23% top 51-150 firms (USD350 billion - USD90 billion) 12% top 151-300 firms (USD90 billion - USD20 billion)

42% fund managers 41% strategists 17% emerging market specialists

42% North America 42% Europe 8% Japan 3% China 5% are based elsewhere

54% of Africa investors said their investments had performed as well as – or better than – their developed market investments over the past three years.

FINANCE

RATIONAL RETURNS

in a complex world

Investors must remain focused on the long term and the investment benefits of sustainability, despite the short-term challenges caused by the pandemic and geopolitical uncertainty. This is despite many investors now acutely concerned about the investment impact of a global economic slowdown amid falling confidence levels, as evidenced by an .

he study found that most investors (91%) feared Covid-19 would cause a major global recession. Johanna Kyrklund, Schroders’ chief investment officer, commented: “Good investment is about cool-headed decision-making. The source of uncertainty will always be different but well-established investment processes are designed to cope with this. They enable active fund managers to step back and assess – and dispassionately search for opportunities regardless of the conditions. “Good investment also involves deciding on a long-term strategy and sticking with it. Despite the ever-evolving situations investors face, investors need to focus on calm and rational investment decision-making. The result of the US election was big news for the world, for the economy and markets. But as an investor I’ve always considered the pandemic of far greater consequence. Is this the start of a major rotation? Quite possibly. We may finally have found the catalyst to spark a move away from the ‘stay-at-home’ stocks that have benefited from lockdown, towards recovery stocks. “News of a vaccine makes it less likely that we will need fiscal stimulus to plug the demand gap associated with potential lockdowns. We are optimistic that the uncertainty that has plagued us through most of 2020 has dramatically declined. Suddenly there is cause for optimism for 2021.”

Andy Howard, Schroders’ global head of sustainable investments, noted: “The value of investments that we manage is being impacted by a wider range of challenges, on a bigger scale, and at a faster pace than we’ve seen before. Understanding which investments will be on the right or wrong side of those changes is becoming increasingly important to generating value and creating returns in a more complex world. “Sustainability isn’t a compliance exercise, it is fundamentally about trying to understand how the world is changing, the challenges it faces and ensuring that our investments are lined up to help tackle those issues.”

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Summit XPS insulation boards, cornices, trapdoors and our Knauf insulation range set a new standard in quality and affordability. A proud member of the Swartland family, all Summit products are made from high-quality materials to ensure you get long-lasting performance, peace of mind and value for money. For more information visit www.summitxps.co.za or call us on 0861 22 3444.

CONSTRUCTION

SWARTLAND:

Building Together for 70 Years The Swartland Group, one of the largest manufacturers of quality products in the building industry, turns 70 this year.

“W

e’re proud to be celebrating our 70th anniversary,” says Swartland CEO Hans Hanekom. “Seventy years is a significant milestone for any company, especially in tough economic times. With Covid-19 threatening the livelihoods of millions around the world, and with a global recession looming, we’re grateful to be able to envision future expansion into new regions and growth of new products by constantly diversifying our offering. During 2021 and coming years, we will further drive our message of ‘Building Together’ – a message that we plan to continue to spread, and which speaks to building relationships with our valued customers, suppliers and colleagues, as well as to helping rebuild South Africa physically with our range of products. “While 2021 is bound to be a difficult year, Swartland is committed to helping the construction industry overcome challenges by staying at the forefront of technology, design, production efficiency, and

ongoing research and development.” The Swartland range of products includes wood and aluminium windows and doors, PAR timber, skirtings, finishes, manufactured pine products, cornices, garage doors and garage door automation – and, most recently, XPS insulation board. With over 42 000m2 of warehouse space and a national distribution footprint that’s supported in nine major centres around South Africa, Swartland has a reputation for ensuring that its products are available, reliable and manufactured to the highest quality, with after-sales service to match. And quality doesn’t only apply to the Swartland’s products – it is infused into every facet of the business, from service to employees, and encapsulated by our customer promise: “Experience Quality”. Swartland encourages its people to see past their computers and production lines, and to know that they are part of a greater mission to deliver quality to the homes of millions of South Africans.

PROFILE

ENTRANCEWAY

ELEMENTS Garage doors are one of the most prominent features of a home. If you’re thinking of updating yours, read on – Swartland’s John Lamb provides an overview of the trends that will affect your choice.

“G

arage doors form a large portion of your home’s front elevation. As a result, their makeup and design have become increasingly important,” says John Lamb of leading garage door manufacturer Swartland. “Gone are the days when garage doors were a purely utilitarian element of entryways; today, they offer a host of other attributes, including design, durability, convenience, security and added insulation.” Swartland manufactures and supplies Hydro garage doors and Digi Automation, which are synonymous with reliability, security, attention to detail and superior finishes. Swartland’s Hydro is the only end-to-end garage-door manufacturer in South Africa with a national footprint, specialising in doors, automation and spares to suit. “This means Swartland can offer a full range of quality products, and through our SBS branches nationwide, we can support these sales with a comprehensive after-sales service and spares promise,” says Lamb. “Hydro garage doors and Digi Automation are used in applications from factories and fire stations to luxury homes and affordable housing.”

Modern materials

TOP TRENDS TODAY

The use of modern materials such as aluminium, fibreglass and vinyl has become more common. Hydro’s aluminium garage doors are lightweight, cost-effective, durable and easy to maintain.

A choice of colours Colour is an increasingly important aspect of home exteriors, and can be used to enhance a house’s aesthetic and make a statement. So it makes sense that the colour of your garage door complements the overall colour palette of your home. “In the past, metal garage doors have mainly been available in white,” says Lamb. “Now you can choose a colour that will add character and enhance curb appeal. Hydro’s sectional garage doors, for example, are available in rustic bark, snow white, chalk and charcoal – but they can also be finished in a customised colour of your choice.” In addition, Hydro’s powder-coated finish requires virtually no maintenance and is easy to clean, offering long-lasting and durable good looks.

Security and convenience Garage door automation is crucial in South Africa from both a security and convenience point of view. “The garage door remains the initial access point for a home; as such, it is an essential element in home security,” says Lamb. “This is why home automation is critical. At Swartland, we pride ourselves on our experience in garage door automation, with proven technology and long-term spares availability for our products assisted by our large distribution footprint.

For more information, visit

Digi-One, for example, has a powerful lifting capacity – it’s a reliable and affordable automation system ideal for all types of sectional garage doors. It comes standard with two Digi-E-key transmitters (with secure Keeloq® technology), as well as electronic obstacle sensing and optional battery backup, which allows for trouble-free operation during power failures.”

Energy efficiency and insulation With the high costs of electricity, it is essential to ensure your home is well insulated – and this includes insulation of garage doors. “Selecting a well-insulated garage door will help increase the energy efficiency of your home,” says Lamb. “Hydro’s sectional steel garage doors can be ordered with foam-filled backing, which dramatically improves their thermal efficiency to keep your garage warm in winter and cool in summer. The insulation has the added benefit of improving the door’s strength, and it helps to absorb vibrations, resulting in quieter operation.”

Durability and green cred In addition to good looks, a garage door should be packed with under-the-skin strength, safety and security features. “Consumers are increasingly focusing as much on a garage door’s exterior aesthetic as on the quality of the hardware and inner workings of the door,” says Lamb. “Hydro garage doors aren’t just visually pleasing and exceptionally secure – they also offer top-end inner workings, such as double-throw locks and long-life counterbalance springs for best-in-market quality and durability. The longevity of a garage door not only guarantees that you get more bang for your buck, but also lowers the overall carbon footprint of the product, making it better for the environment.”

Released by Swartland

MINING

Decarbonisation will need more,

BETTER MINING BY ANDREW VAN ZYL, SRK CONSULTING*

Mining remains a vital part of a low-carbon future, a fact that was confirmed by the topics prioritised at the recent Investing in African Mining Indaba’s virtual conference 28

MINING

Mining is part of the solution as the planet addresses climate change through a range of renewable technologies.

“T

he message was clear: mining is part of the solution as the planet addresses climate change through a range of renewable technologies,” said Andrew van Zyl, partner and principal consultant at SRK Consulting. The World Bank estimates, for instance, that production of minerals like graphite, lithium and cobalt could grow by 500% in the next three decades to meet demand for clean energy technologies. A single 3 MW wind turbine requires 4,1 tons of copper, while solar photovoltaic cells include glass, aluminium, silicon and even silver. The storage of this renewable energy in batteries is requiring increasing volumes of minerals like lithium, cobalt, nickel and manganese. Speakers at the Indaba had highlighted the mining sector’s readiness not only to deliver, but to continue reducing its environmental and climate change footprint, said Van Zyl. The sector is a significant energy consumer, accounting for about 11% of global energy use.

“As mines progress their environmental, social and governance (ESG) strategies, the industry needs to continue moving toward climate-smart mining to cut its carbon and material footprints,” he said. He noted that the frequent lack of access to reliable grid power for mining sites around Africa has led many companies to develop and apply innovative hybrid energy solutions that include renewable generation in place of traditional fossil-fuel generation. Current hybrid plants already operate at lower cost and with a substantially smaller carbon footprint in off-grid settings. An example is B2Gold’s Fekola gold mine in Mali, where there is a four-year payback and a reduction of 13-million litres per annum in fuel – cutting annual carbon emissions by 39 000 t. “These initiatives have allowed many mining companies to move their attention beyond Scope 1 greenhouse gas emissions – those that they emit directly from owned or controlled sources – to start addressing their Scope 2 emissions, which are indirectly emitted through the generation of purchased energy,” he said. There was significant scope for such progress in South Africa, the continent’s energy powerhouse, where mines continue to rely on coalfired power from the central utility. A number of large mining companies are preparing to implement renewable generation projects as soon as the necessary regulatory provisions are in place, said Van Zyl, and this is likely to considerably reduce their Scope 2 emissions. “The technological innovations which will help drive decarbonisation, however, also hold strategic risks for mining companies,” he said. “The pace of technology advancement in batteries, for example, is much faster than the general timeframe for developing new mines and production capacity.” Various technologies still jockey for dominance, and it is far from clear which commodities will be the winners in the commercialisation contest. It is even unlikely that any specific minerals will be in permanent high demand, as price spikes will quickly ignite searches for cheaper alternatives. “In this environment, mining companies will have to manage a volatile price landscape, which tends to complicate the process of costing a project’s viability and raising finance,” he said. “Good technical work in mine planning and implementation becomes more important than ever, as is securing your position on the right part of the cost curve.”

Various technologies still jockey for dominance, and it is far from clear which commodities will be the winners in the commercialisation contest.

*Andrew van Zyl, partner and principal consultant at SRK Consulting

ENVIRONMENT

Keeping the faith

EA public participation processes during Covid-19 As South Africa adapts to living with the risk of Covid-19 infections, an important recent step by government has been the publishing of directions on how public participation can safely be achieved during environmental authorisation processes. BY SRK CONSULTING

ccording to Selma Nel, principal scientist at SRK Consulting, it is vital that interested and affected parties are consulted and engaged with during environmental authorisation (EA) processes. Social distancing regulations under the national state of disaster, however, have placed restrictions on public gatherings – making it difficult to undertake certain activities of the legislated stakeholder engagement process. According to Selma Nel, principal scientist at SRK Consulting, it is vital that interested and affected parties are consulted and engaged with during environmental authorisation processes. Social distancing regulations under the national state of disaster, however, have placed restrictions on public gatherings – making it difficult to undertake certain activities of the legislated stakeholder engagement process. Valuable guidance from government in June last year has clarified what would now be considered as acceptable alternatives to conventional engagement methods. This was done through the publishing of the directions regarding measures to address, prevent and combat the spread of Covid-19 relating to National environmental permits and licences (Government Notice R650) by the Department of Environment, Forestry and Fisheries (DEFF). “It is crucial that all parties ensure that the stakeholder engagement process is undertaken in a fair and transparent manner as certain aspects of the lockdown regulations could possibly result in mistrust between stakeholders,” said Nel. “The directions are very useful in guiding not only the environmental assessment practitioners (EAPs) but all stakeholders including the competent authorities,” she said. “This has clarified how to manage an application – whether for environmental, waste, air quality or any other permits and licences.” Importantly, the directions are aligned with the regulations of the National Environmental Management Act (NEMA) – allowing for thorough public participation while curtailing the threat of spreading Covid-19 infections. The directions published during Level 3 of the lockdown coincided with a return to work by many EAPs and governmental departments; during the period of severely restricted economic activity under Levels 4 and 5, the DEFF had generally allowed extensions to licencing and permitting processes.” Franciska Lake, partner and principal environmental scientist, emphasised the importance of procedural certainty in the current uncertain times. “The process of stakeholder engagement can often be challenged if there is any doubt that the correct avenues have not been followed,” she said. “The directions give a level of assurance that everyone can agree on the minimum requirements in respect of stakeholder engagement; of course, this is just a minimum that is stipulated, so more can still be done by EAPs to further enhance the effectiveness of the process.” Nel notes that the main difficulties in applying conventional stakeholder

Social distancing regulations have placed restrictions on public gatherings, making processes like EIAs challenging. engagement methods under Covid-19 conditions arise when environmental impact assessment (EIA) reports need to be reviewed by interested parties. Usually, these reports were made available at public places for at least 30 days, during which time public stakeholder meetings would also be held face to face. “Large projects involve hundreds of stakeholders, and Covid-19 has made it challenging for people to review documents in traditional ways, or for big gatherings to be held,” she said. “The directions allow documents to be made accessible through a variety of methods, such as traditional authorities and digitally on the EAP’s web platform – where zero-data portals are now likely to prove very useful.” Nel said that, in terms of public meetings for EA purposes under the current Covid regulations, gatherings are limited to 50 persons or less for indoor venues and 100 persons or less for outdoor venues. Therefore, public meetings should be carefully planned and managed ensure that all stakeholders feel that the engagement process is fair and transparent. “The concern with dividing a large community into smaller meetings is a possible perception that the same messages are not being conveyed to everyone,” she said. “A useful strategy to mitigate this perception is to make available – on a website, for instance – the comments and response report containing all comments raised during each meeting, which can be viewed by any stakeholders. This helps to assure participants that the process is consistent, fair and transparent.” “The project applicant can facilitate digital and/or smaller group engagements between stakeholders, the EAP and the project team, by providing a venue, applying the necessary social distancing controls and sanitisation protocols, and where needed integrate digital platforms as part of the engagement methods,” Lake said. This will imply that additional engagement sessions may need to be planned for to ensure all stakeholders are provided with an opportunity to engage on a proposed project. Nel added that some of the aspects provided through the GN650 directions can be considered and adopted in future stakeholder planning and processes beyond Covid-19 restrictions.

ENVIRONMENT

SOLVED

ENVIRONMENT MINING | WATER INFRASTRUCTURE | ENERGY

www.srk.co.za

STORAGE

BATTERY INDUSTRY AT FOREFRONT OF A

SUSTAINABLE ECONOMY

2020 brought the world more than its fair share of seismic changes. Everything from healthcare to the way we work, and even greet each other has been deeply impacted by the pandemic. One could be forgiven for missing another major development, less obvious but with profound positive impacts for the coming decades: the green revolution is now fully underway.

ast year marked the first-time value creation and capital invested in clean transportation and energy reached US$1 trillion, with over half that amount tied to electric mobility. The shift from fossil fuels is further reflected in the global oil and gas industry’s devaluation of over US$700 billion in the last year – an impact on the scale of other great technological transitions such as the rise of the internet economy or the mobile application wave. It didn’t start in 2020: the building blocks of the transition to a net-zero economy were laid over a decade ago by talented entrepreneurial teams, backed by venture capital, and supported by government-sponsored innovation. Without this collaboration the incredible green leap of the past year would have been nearly impossible.

Reducing carbon emissions Battery technology is key to reducing the bulk of the world’s greenhouse gas (GHG) emissions. It is central to both the automotive and energy sectors’ transition to zero emissions. Batteries power electric vehicles, which are projected to be the only type of car for sale within a decade in a growing number of countries. Transportation alone accounts for 24%

Figure 1: Volume-weighted average pack and cell price split real 2020 $/kWh 668 592 Pack

The next great challenge for batteries is manufacturing.

210 190 384

127

Cell

295 80

458

65 257

2014

2015

157 47

215 155

2013

181

2016

2017

137 35

130

110

102

2018

2019

2020

Source: BloombergNEF

403

221

STORAGE of global GHG emissions, so transitioning to an electrified automotive powertrain is a critical component of any emissions reduction solution. Batteries allow us to access clean power when the sun isn’t shining or the wind isn’t blowing, ushering in the potential for a transportation sector that’s 100% electric and a more resilient grid that’s fully powered by renewable energy. That alone would address two-thirds of global GHG emissions, putting us well on track to meet the Paris Agreement’s goal of a fully decarbonised world economy by 2050. With air pollution contributing to the deaths of 7-million people annually, the impact of battery innovation on human health and social equity are significant. Indeed, in the US, a strong body of evidence indicates that minority communities are disproportionately affected by air pollution. In a landmark ruling, a British court recognised air pollution as the cause of death for a child who lived alongside a busy ring road. In addition to known climate impacts, the transition to electric vehicles represents a social justice and health imperative.

Battery technology is key to reducing the bulk of the world’s greenhouse gas (GHG) emissions. Batteries have improved rapidly over the past decade, increasing the sales of current generation electric vehicles around the world. Battery costs have fallen nearly 90% since 2010, at the same time performance and reliability have increased. However, even more powerful and robust battery technology is needed to enable the transition away from internal combustion engines in vehicles and gas peaker plants on the power grid.

Investing in technology

Images show storage projects in Varel, Lower Saxony, Germany using NaS (sodium-suphur) batteries. For more information on NaS batteries in South Africa, please email Lloyd Macfarlane, Altum Energy lloyd@altum.energy

From a venture capital perspective, future battery developments are probably one of the most exciting areas of investment. We have an opportunity to help meet the goals of the Paris Agreement, create the next wave of industrial jobs, and earn a share in a fast-growing new industry. The next great challenge for batteries is manufacturing. The scale of the investment needed – hundreds of billions of dollars in new giga- and terafactories – will require the participation of global capital markets. Hundreds of thousands of jobs will be created in this decade alone, but where is still an open question. Governments have an important role to play in the scaling-up of this new industry by facilitating new manufacturing sites, training the workforce, and establishing clear regulation and standards. There is still much work ahead to manufacture the batteries we need to power our cars, buses, trucks, and eventually airplanes. The stationary applications of batteries for renewable energy storage are just in their infancy. But we are convinced that as the battery industry of the 21st Century matures over the coming months and years; it will play an outsized role in reducing GHG emissions globally and bring us one step closer to a sustainable and equitable world economy.

Article courtesy: World Economic Forum Creative Commons License

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TRANSPORT

GAUTRAIN: a sustainable and safe mode of travel The Gautrain Management Agency has embarked on a sustainable mobility programme that is linked to the Sustainable Development Goals. This is to ensure that the Gautrain continues to unlock the socio-economic development benefits and is not only investing in environmentally friendly activities but also provides an efficient and accessible public transport service.

ransport is known to be the largest contributor for greenhouse emissions and the Gautrain has contributed to proving and influencing travel choices for the people of Gauteng resulting in a reduction of carbon emission. Shifting from using a car to the Gautrain is environmentally friendly and contributes to the reduction of carbon footprint. Carbon emissions from Gautrain are considerably lower per passenger – commuters opting to travel by Gautrain reduce their carbon footprint by 52% per trip. Compared to road transport, rail provides lower carbon transport solutions to promote a greener environment. The Department of Transport’s Green Transport Strategy builds on the Department of Environmental Affairs’ 2014 Mitigation Report that provides estimates of the potential carbon dioxide (CO2) emissions reductions that can be achieved through modal shifts in the transport sector, and the estimated costs of achieving these reductions per ton of avoided CO2 emissions. While the initial capital costs are high (approximately R3 000 per ton of carbon dioxide saved), by 2050 these investments will provide a return of over R1 000 per ton of CO2 saved, with up to over 9 000 kilo-tonnes of CO2 that can be saved through the shift from private vehicles to passenger rail. The environmental benefits also translate into health benefits relating to respiratory diseases and road accidents that are significantly higher for road transport when compared to rail transport as the safer mode. At the Gautrain Management Agency (GMA), investigations are currently underway into using hydrogen to power Gautrain buses – a far cleaner fuel option than diesel. Passengers may soon be able to charge their electric or hybrid car at Gautrain stations, which will be retrofitted with solar panels

to offset their power requirements. This green mobility plan will also help commuters to offset their carbon footprint. In South Africa, the environmental legal system is stringent on development with the aim of not only preserving natural resources but also to account for social justice and integrated social ecosystems, and in no uncertain terms, the voice of the environment lies with its people. The GMA has aligned its sustainability programme with the 17 Sustainable Development Goals that call for action on the pressurised planet. Given the challenges of poverty and inequality, the goals are set to drive economic growth, build sustainable cities and communities. This is what the Gautrain represents. As a public transport mode, Gautrain has presented Gauteng with an opportunity to empower its citizens and to expand the economic activity of the Province. It has made direct and indirect economic contribution to township economies through the provision of employment and stimulation of new commercial developments around its stations. It has also successfully translated economic growth into the creation of new job opportunities that has facilitated skills transfer and created employment. The Gautrain has strengthened existing development nodes in Gauteng by promoting and restructuring urban areas and revitalising the Johannesburg, Tshwane and Ekurhuleni central business districts. In the findings of the Hatch impact study, the Gautrain has continued to: • deliver jobs and positively impact social investment • influence transport choices • reinforce development nodes • integrate Gauteng and its communities • change perceptions and attract investment.

TRANSPORT

Gautrain supports transit-orientated development by encouraging the growth of transport modes that serve as enablers of economic acidity in emerging hubs of Gauteng. Urban space is a limited resource impacting quality of life for all those living and working in a city. Efficient land use, to which public transport such as Gautrain contributes, produces results far beyond the immediate benefit of increased use of public transport. The Gautrain service has increased connectivity which has led to residential, business and industrial densification, thereby integrating the metropolis. It has the potential to significantly change the way we live and travel, reducing our individual carbon footprints while preserving and enhancing our mobility. It further encourages people to have a more active healthy lifestyle, particularly if they are walking or cycling to their stations. Benefits of a rail such as Gautrain in a populated city region Gauteng, improves mobility and accessibility. The future of transport would ideally be emission-free, renewablebased, resource-friendly and most importantly efficient and available thus investing in technology that allows to see the future. The GMA is currently sourcing ways to change the entire Gautrain operation to meet the needs of the future. Although initially built to rely on coal-fired power, over the next few year the face of Gautrain’s stations and future stations is set to change. Investigations are currently underway for renewable energy, recycle station water new station and line with the ability to be completely off the grid. The Gauteng Province contributes to the green transport movement by promoting the push to public transport usage through transport infrastructure projects, such as the Gautrain. As a sustainable transport system, Gautrain continues to increase mobility in the Province and supports transit-orientated development by encouraging the growth of transport modes.

Given the challenges of poverty and inequality, the goals are set to drive economic growth, build sustainable cities and communities. This is what the Gautrain represents.

Follow Gautrain on: Call Centre – 0800 42887246 SMS alert line for service disruptions – 32693

TRANSPORT

FUTURE ENERGY FOR

MOBILITY

Analysis of key trends related to the impact of electrification on the automotive industry

Electric vehicles will reduce fleet emissions. Although to date they represent only a small percent of overall vehicle sales, automakers have made significant progress in addressing key pain points for consumers in the market for a battery electric vehicle. BY LUX RESEARCH AUTOMATIVE BATTERY TRACKER*

TRANSPORT

he automotive industry is under pressure to reduce emissions. Whether from governments that are placing limits on the amount of emissions from vehicles or consumers who are more conscious of the environmental impacts of their choices, automakers cannot ignore the push to reduce emissions. In response to this challenge, electrified powertrains are a promising avenue to reducing or eliminating emissions from vehicles. Electrified powertrains make up a range of options, including lower-cost hybrid vehicles (HEVs) that use a battery to harness energy normally lost during braking, battery electric vehicles (BEVs) that are solely powered by electricity, and plug-in hybrids (PHEVs), which can be used in both ways.

Among these powertrains, BEVs are seeing the most significant growth. BEVs have been proven not only to be technically feasible but with the reduction in battery costs, also significantly more affordable. Whereas the decade started with only a few automakers offering an electric vehicle model, today nearly all automakers have invested in the design and manufacture of electric vehicles. A crucial part of these investments is in platforms – the combination of components that underpin many vehicles – thereby reducing costs with more optimised designs and an increase in the volume of parts. Automakers now face a crucial hurdle: not only to produce BEVs but to produce BEVs that are profitable, which is not an easy feat at present.

TRANSPORT

The Lux investigation into strategies used by automakers to develop electric vehicles, highlighted the following themes: Electrify high-priced brands first. Although Volkswagen and General Motors have seen modest success with their early VW e-Golf and Chevy Bolt hatchbacks, they have reserved their most aggressive electrification plans for higher-priced brands. Luxury brands like Mercedes and BMW have significantly more aggressive plans than those in lower-price segments, such as Toyota or Ford. This is partly due to a need to offset emissions from internal combustion engines that are typically higher for luxury brands with larger, more powerful vehicles. Balance platform flexibility against commitment. Larger original equipment makers (OEMs) can afford to develop dedicated BEV platforms

that achieve the highest cost-savings. Small OEMs need to remain flexible. Peugeot Société Anonyme (PSA) and BMW are developing platforms that underpin gasoline, diesel, hybrid, and battery electric vehicles. Although cost savings are lower, the increased flexibility means they may avoid a significant financial hit if BEV sales become sluggish. More automakers should focus on their battery supply chain. Some automakers have reduced BEV production plans due to battery shortages. This is a problem likely to be exacerbated in the next few years, as automakers release more vehicles. Volkswagen, BMW and Tesla are working directly to secure raw materials (e.g., cobalt and lithium) for their vehicles in the future – a move other manufacturers would do well to emulate.

TRANSPORT Studies suggest that a lot of consumers are open to considering a plug-in vehicle as their next purchase, yet these vehicles remain less than 5% of overall current sales. Those hesitant often cite apprehensions over limited range, slow charging, and/or the higher price tag. Early BEVs were predominantly small, efficient vehicles designed to maximise the range from small and expensive battery packs. As costs decrease and because BEVs are no longer a niche market, many manufacturers have placed focus on releasing SUVs and other large vehicles that are more popular with consumers. SUVs remain the prevalent vehicle segment in China and North America, and most companies are focusing future model plans to expand in that area. Lux anticipates that SUVs – ranging from smaller cross-over SUVs to full-size SUVs – will be the most popular segment within the next few years. In North America, expect trucks to emerge as a popular segment

from 2022 and beyond as both Ford and GM release electric versions of popular pickup trucks – including one of the world’s best-selling models, the F-150. Besides high costs, many consumers cite concern over range and charging infrastructure as the main reasons to not consider electric vehicles. Apprehension usually falls into one of two categories: Range anxiety. The fear that an electric vehicle will not have enough range to complete all or most trips consumers need their vehicles to make. Charge time trauma. The worry that a vehicle will take too long to charge, potentially stranding EV users on the road for extended periods of time. Over the next decade, the luxury and premium mass markets will see the largest adoption of EVs, as this segment is tolerant of the higher costs. Competition in the lower-priced mass market is expected in the mid-2020s, when EVs are more competitive with internal combustion engine counterparts.

Tesla’s combination of long-range and fast-charging speeds means their models are the fastest in long-distance driving. The average BEV takes 22% longer on long-distance trips, while the Tesla Model 3 is the best of all, with only a 9% increase The biggest impact on long-range travel is in available range. The ten fastest vehicles have a WLTP-equivalent range of more than 300km. Chinese-specific vehicles also perform well here, although it should be noted that many make questionable claims on charging speed and, don’t charge as quickly as claimed. The WLTP (Worldwide Harmonised Light Vehicle Test Procedure) is a global standard for determining the levels of pollutants, CO2 emissions and fuel consumption of traditional and hybrid cars, as well as the range of fully electric cars. The rollout of 350kW charging infrastructure, along with compatible vehicles, will drastically reduce these times. Given that most infrastructure available today, outside of Tesla’s supercharger network, has a 50 kW capacity per charging point, it remains a barrier. The

unearths valuable information about battery trends, key OEMs, and their suppliers.

*Report courtesy of Lux Research. Senior Analyst Christopher Robinson. Analyst Chloe Holzinger

TRANSPORT

Ford assembly plant aims to be

100% GREEN BY 2024

Ford Motor Company has an ambitious renewable energy programme for its Silverton Assembly Plant in Pretoria: to be entirely green and energy self-sufficient by 2024, using an integrated renewable energy solution comprising solar, biomass, biogas, biosyngas, 100 percent water recycling and zero waste to landfill. BY CHRIS WHYTE, AFRICAN CIRCULAR ECONOMY NETWORK*

ord launched the vision of what they call Project Blue Oval with a 13.5 MW solar installation, valued at R135-million. This installation comprises over 31 000 solar panels covering 4 200 parking bays, claiming bragging rights as one of the largest solar carports in the world. Ford’s aim to develop a fully integrated renewable and alternative energy solution by 2024 is visionary, and the Silverton Plant will be one of the very first Ford plants in the world to achieve this status. Project Blue Oval has been kickstarted through a partnership with SolarAfrica to deliver approximately 30% of the Silverton Plant’s annual power requirements. This involves installing specially developed and, more importantly, locally manufactured solar photovoltaic (PV) carports throughout the facility. Director of operations for Ford International Markets Group, Andrea Cavallaro states, “Ford Motor Company has launched clear objectives to address climate change, which compel us to change our behaviour in profound and lasting ways. As stated in our 2020 Sustainability Report, Ford is the only full-line automaker in the US committed to doing its part to reduce CO2 emissions in line with the Paris Climate Agreement, and we are working towards stronger vehicle greenhouse standards to reduce our impact on the environment. With our Creating Tomorrow Together transformation plan, we are accelerating our efforts to be a leader in mobility, and making progress toward our vision of clean, safe, affordable and accessible transportation for all”.

“An integral part of building high-quality vehicles in an environmentally and socially responsible way is reducing the impact of our operations and supply chains through world-class facilities, innovative manufacturing processes and the most sustainable materials,” Cavallaro explains. “Renewable energy is at the centre of this focused plan to reduce and ultimately eliminate our reliance on fossil fuels, while lowering and offsetting the production of CO2 emissions.” Ford is also addressing the dependence on precious water resources, particularly in water-scarce countries such as South Africa, as well as reducing and eventually completely phasing out its contribution of waste to landfill. “I am proud to announce that Project Blue Oval in South Africa sets a benchmark for Ford Motor Company’s objective to use 100% locally sourced renewable energy for all our manufacturing plants globally by 2035,” he adds. “It also takes us one step closer to achieving carbon neutrality globally by 2050 – both for our facilities around the world, and within our supply base.”

Aiming for Island Mode in 2024 According to Ockert Berry, VP operations at Ford Motor Company of Southern Africa (FMCSA), the solar project is the first step towards achieving “Island Mode” within the next four years, at which point the Silverton Assembly Plant – which produces the Ford Ranger, Ranger

TRANSPORT

We are accelerating our efforts to be a leader in mobility, and making progress toward our vision of clean, safe, affordable and accessible transportation for all.

Raptor and Everest for domestic sales and over 100 global export markets – will no longer rely on the national power grid or any municipal services. “Our goal by 2024 is to have the Silverton plant completely energy selfsufficient and 100% carbon neutral, using an energy mix comprising solar PV, biomass, biogas and biosyngas for all our electricity, gas and heating requirements,” he says. “We will also be introducing 100% water recycling, and all non-fermentable waste will be repurposed through a pyrolysis system to produce syngas.” Aside from the environmental and cost benefits, Project Blue Oval will also bring to life Ford’s vision of job creation, starting with the domestic manufacturing of the solar carports by SolarAfrica. The planned introduction of biomass as a source of renewable energy, and the outsourced farming of fermentable biomass plants in rural areas that would support this project, will be instrumental in driving this vision forward.

Dealing with difficulties David Sonnenberg, chief technical officer of SolarAfrica and Project Blue Oval, says that the solar project is the first step towards addressing South Africa’s energy and environmental challenges. “As we are all too well aware, South Africa is currently faced with a crippling energy crisis, coupled with the ongoing threat of load shedding, ever-increasing electricity tariffs, municipal shortage of capacity, demand charges on power, and the erratic quality of this power delivery with regard to spikes and dips,” Sonnenberg says. “For a global manufacturing operation such as Ford’s Silverton Assembly Plant, these challenges make running a facility of this scale efficiently exceptionally difficult – both in terms of the availability of reliable energy, and escalating costs. “An added challenge is that most of South Africa’s electricity is generated through fossil fuels, and specifically from coal-fired power stations. The high level of greenhouse gases generated exacerbates the

environmental damage and resulting climate change,” he adds. “Water is also a very precious and scarce resource in South Africa. It is too valuable to be used once only, so we have to fundamentally change the way we use and consume water, particularly for the manufacturing sector. “Along with Ford, we share the vision of a zero-emission future, and we welcome Ford’s enthusiasm and passion in launching the solar energy project and working towards the broader green initiatives in the future.”

Groundbreaking solar solution SolarAfrica, which is South Africa’s leading power purchase agreement provider, has developed a bespoke cantilever solar carport for this vast project. “We are delighted and proud to have been selected as the solar provider for this pioneering project and developing what will be one of the largest solar carports in the world,” says David McDonald, MD of SolarAfrica. “It has been a pleasure working with such a progressive team, and Ford’s commitment to reducing its carbon footprint and willingness to adopt change has been refreshing.” The solar PV carport is locally sourced and has been specifically designed to offer hail protection for the finished goods vehicle inventory whilst producing cheaper, cleaner energy for Ford’s Silverton Assembly Plant. “The solar project is an important step towards achieving Ford’s broader green energy objectives and will be an enabler to all other phases of this project given the commercial viability, speed of deployment and simplicity of solar as a service,” McDonald explains. “Our turnkey solution will provide Ford with the peace of mind that the system is installed, maintained, monitored, insured and performing at its optimum, thereby enabling the highest energy savings for Ford’s local manufacturing operations.” *Chris Whyte is a waste materials recovery industry development specialist, and a sustainability and circular economy strategist.

ENERGY

GAS-TO-POWER OPTIONS emerge on energy scene As South Africa races against the clock to fill an electricity supply gap of some 2 000 MW between 2019 and 2022, gas-to-power projects will play a significant role. Currently, gas-to-power projects tend to be close to ports to facilitate the supply chain from sea-borne liquefied natural gas. BY SRK CONSULTING

overnment’s risk mitigation independent power producer procurement programme (RMIPPPP) has stirred the interest of a number of private players in the gas-to-power sector, according to Nicola Rump, principal environmental scientist at SRK Consulting. “While the longer-established renewable energy independent power producer procurement programme (REIPPPP) is delivering considerable results in solar and wind energy generation, we are now seeing an exciting start in exploring the potential of gas in South Africa’s energy mix,” said Rump. She noted that the field of gas-fired generation in the country had previously seen little activity from private developers. This was now

changing fast, as the Department of Mineral Resources and Energy began evaluating RMIPPPP project bids at the end of 2020. With South Africa’s power system being so constrained, government is wanting these projects to start feeding the national grid by mid-2022. SRK is currently conducting a number of environmental impact assessments (EIAs) for gas-to-power projects in the Eastern Cape and KwaZulu-Natal. Key aspects of the planning process for these projects, she said, included EIAs and related licencing requirements. Within the tight timeframes envisaged, these need to be carefully managed to avoid becoming stumbling blocks. “The introduction of strict timelines for the EIA process in recent years mean that while EIAs are generally completed in less time

Photo by CHUTTERSNAP on Unsplash

ENERGY

than before, the process leaves very little time for accommodating any changes to the project design,” she said. It also requires that a significant amount of work must be completed before the application is actually lodged with the regulator. “Gas-topower projects need to submit a final scoping study to the Department of Environment, Forestry and Fisheries (DEFF), and this must be approved before the EIA phase can begin,” she said. “Once the final environmental impact report (EIR) has been submitted, DEFF would decide on the conditions applying to the authorisation.” While an important attraction of gas is its lower carbon footprint than coal, South Africa’s dominant fuel source for energy, it is not without its environmental impacts. These include carbon emissions, for which projects would require an air emission licence before proceeding. “Climate change impacts are also becoming an increasingly important consideration in these assessments,” said Rump, “especially in the light of South Africa’s commitments to global climate change and greenhouse gas emission agreements – and its emission reduction targets.” Other impacts include noise and traffic, as well as effects on marine ecology of those projects requiring marine infrastructure. Currently, gasto-power projects tend to be close to ports to facilitate the supply chain from sea-borne liquified natural gas (LNG). She noted that current projects will have to overcome South Africa’s lack of gas pipeline infrastructure, basing their viability on LNG sources being shipped in. Among the advantages of developing a fledgling gasto-power sector through the RMIPPPP is that this would contribute to the growth of local gas markets – helping pave the way for the installation of costly gas infrastructure. This is turn would hopefully reduce the cost of gas as a fuel and spur the uptake of this cleaner fuel in South Africa’s energy landscape.

WASTE

NEW LIQUID WASTE BLENDING PLATFORM

Averda’s Vlakfontein landfill, Gauteng As of August 2019, local legislation came into place banning all liquid waste from landfill. This represents a significant move by legislators to improve the disposal of waste to landfill and encourage the waste industry to seek alternative and sustainable solutions to problematic waste fractions. BY CHRIS WHYTE, AFRICAN CIRCULAR ECONOMY NETWORK*

Averda’s Vlakfontein landfill, Gauteng.

t is not just the waste industry that needs to take heed of these new laws as industry and waste producers are all bound by the same legislation and need to understand that their compliance is a legal requirement. The Department of Environment, Forestry and Fisheries (DEFF) is responsible for this legislative control and effected this ban in August 2019 on all forms of liquid waste, as well as hazardous waste with a calorific value (CV) over 20MK/kg. Ultimately, this much-needed legislation has been implemented to reduce the threat of toxins seeping into the natural environment. Industry was pre-warned that these changes were going to take effect to ensure

that both producers and the waste services sector could adjust their practices and invest into infrastructure and systems to allow them to remain compliant after the law came into effect. In August 2017 already, industries were informed of the pending changes with previous regulations stating that hazardous liquid wastes with high CV (such as refinery waste, chemical processed paint waste, contaminated hydrocarbons, sludges and chemical solvents) were to have been progressively banned from landfills leading up to the 2019 ban. Now all liquid wastes are banned from landfill, as well as reactive wastes, recyclable waste oils, fluorescent lamps, lead acid batteries (and small lead,

WASTE

The site has the capacity for six cells that will offer 6.5-million cubic meters of landfill capacity and now also home to its high-tech blending facility to allow them to process their clients waste responsibly and to the high standards set in the new regulations.

lithium and other batteries used in the home), whole tyres and other waste with a CV of greater than 20MJ/kg. The reality is that high-CV liquid wastes should never have been categorised as a waste anyway, as these have value in the alternative energy market. Blending platforms are not by any means new and local companies like InterWaste and GeoCycle have been operating for years to take advantage of the value of these waste streams. The issue has been to ensure that demand matched the potential supply, and this is not as simple as just changing one fuel type with another. One of the biggest markets for these blended fuel platform waste streams is the cement industry and they have taken several years to adapt systems and processes to accommodate this new fuel. The cement industry itself has also globally taken on an approach to become more sustainable and lower its energy costs while offsetting conventional fossil fuels for their heating requirements. Liquid wastes offer one such alternative, but this also comes at great costs in system redesign, emission control and compliance. Averda opened their liquids blending platform in March 2020 at their Vlakfontein high-hazardous-class landfill in the Vaal Triangle with all the design and engineering to meet the standards set in the regulations. Reg Gerber, national landfill manager for Averda South Africa, mentions “this landfill was built at a cost of R250 million. The site has the capacity for six

cells that will offer 6.5-million cubic meters of landfill capacity and now also home to its high-tech blending facility to allow them to process their clients waste responsibly and to the high standards set in the new regulations”. Managing high-tech blending facilities like this to produce quality alternative fuels from waste is no small feat and requires considerable investment to ensure both compliance with the new Waste Classification and Management Regulations. According to Gerber, this is precisely what Averda has done to ensure that selected hazardous waste facilities are able to receive, store and blend hazardous waste sludge (liquids and solids) to produce fuel by-products with the new blending facility. Speaking to Lorenzo Leray, the technical manager for the blending platform at Averda, the blending platform sited at the existing hazardous landfill makes perfect sense as this already acts as a catchment for different waste streams and avoids any additional logistical costs and risks. The blending platform has a storage capacity of 200 tons with 150 tons in constant blending to ensure continuous homogeneity of the blend. The system is designed more for liquids than viscous materials. However, the unit is modular and can be adapted in the future to grow with the demands of both the feedstock and the client’s needs. Future plans could accommodate more viscous materials as well as dewatering and evaporation modules to handle a wider range of sludges and wastes with a higher water content. The facility has a capacity currently to handle 10 000 tons per annum based on a single shift and excluding weekends. As supply and demand change, they can use the available shifts and days to extend the capacity of the facility significantly before additional modules might be required. Averda’s aim with this platform is to ensure high standards and stable specifications required by their client’s fuel feed needs. Leray acknowledges there are other platforms, but states this facility is geared to their clients needs and those of the organisation, while offering the Unique Selling Points of having both a remarkably high homogenising capacity and the ability to store and process liquids with a low flash point. It makes sense that we support initiatives that make use of waste materials rather than going to landfill, and Averda is filling a much-needed niche in this market.

*Chris Whyte is a waste materials recovery industry development specialist, and a sustainability and circular economy strategist.

ENERGY

WIND INDUSTRY POISED FOR

BACK-TO-BACK BIDS The announcement by President Ramaphosa in his 2021 SONA that our country will see back-to-back bid windows, prioritises the government’s renewable energy power procurement programme (REI4P) and the key role that our sector can play in helping to get South Africa back on its feet. BY NTOMBIFUTHI NTULI, CEO, SAWEA*

n fact, President Ramaphosa’s promise of Bid Window 5 (BW5) and BW6 during 2021, which will collectively procure 2 600 MW this year, alludes to the heady days when the REI4P kicked off, 10 years ago. So, it is a poignant reminder to us that the ambitions and hopes for a robust wind power sector in South Africa, which plays a key role in power transitioning, is still alive. The REI4P got underway with the BW1 and BW2, both being announced on 3 August 2011, simultaneously, despite closing November 2012 and May 2013 respectively. This back-to-back procurement, set the stage for a wind power sector in South Africa to attract billions of rands in investment, drive local employment and inject substantial development funding into rural communities, mostly in education and health. Ultimately, the response to this continuous procurement was substantial new wind power generation into the national grid, which is exactly what we need now. The national President has, once again, actively prioritised the role of increasing new power generation through wind and other renewable energy technologies. He has set a five year time frame, in which we, as a country, can see the current capacity gap closed. The urgency of this should not be underestimated, considering that this gap is crippling the country and hampering sustainable economic activity in the form of rolling blackouts. This is of course a situation made worse

by the economic fallout of the current health pandemic, and is likely to continue for the foreseeable future. It is really reassuring that our President reinterred the importance of regaining investor confidence and has set a firm target to fix the energy availability factor. The plan is to close the 5 GW capacity gap that will be created by the decommissioning of old power stations over the next five years. Such strong support from the President for a second year running, is critical, if we are to attract investment, both domestic and foreign, to our sector. Wind power developers have time and again confirmed that they are ready to deliver on new projects that will increase the supply of clean power, at the switch of a button. This readiness and ability has been tested and proven over the last decade, with a 98% delivery average, a phenomenal achievement, by world standards. In closing, let me formally thank the President for following through with all the commitments he made in the 2020 SONA. Policy certainty and transparent decision-making cannot be overstated as the value of the leadership will drive the return of investor confidence, both foreign and domestic at a time that the country desperately needs to accelerate its economic recovery. *Ntombifuthi Ntuli, CEO, South African Wind Energy Association

Wind power developers have time and again confirmed that they are ready to deliver on new projects that will increase the supply of clean power, at the switch of a button.

BioTherm Energy’s Excelsior Wind Energy Facility near Swellendam in the Western Cape.

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