Green Economy Journal Issue 60

The winds of CHANGE

Sodium-sulphur batteries (NAS® Batteries), produced by NGK Insulators Ltd., and distributed by BASF, with almost 5 GWh of installed capacity worldwide, is the perfect choice for large-capacity stationary energy storage.

A key characteristic of NAS® Batteries is the long discharge duration (+6 hours), which makes the technology ideal for daily cycling to convert intermittent power from renewable energy into stable on-demand electricity.

NAS® Battery is a containerised solution, with a design life of 7.300 equivalent cycles or 20 years, backed with an operations and maintenance contract, factory warranties, and performance guarantees.

Superior safety, function and performance are made possible by decades of data monitoring from multiple operational installations across the world. NAS® Battery track record is unmatched by any other manufacturer.

Provide for your energy needs from renewable energy coupled with a NAS® Battery.

Contact us right away for a complimentary pre-feasibility modelling exercise to find out how a NAS® Battery solution can address your energy challenges!

Battery energy storage powered by renewable energy is the future, and it is feasible in South Africa right now!

To access the full report in our Thought [ECO]nomy report boxes: Click on the READ REPORT wording or image in the box and you will gain access to the original report. Turn to the page numbers (example below) for key takeouts of the report.

Dear Reader,

Despite taking up their commitment to help customers, the banks are actually making financing solar PV installations more difficult for customers and EPCs. How so?

1. Miss-matching payment terms

EPCs on commercial and industrial projects are fortunate to earn a 15% margin, and the bulk of their costs are capital in nature. As such, typical industry payment terms are 50% deposit, 30% on delivery of equipment to site, 15% on completion and 5% on handover. Some banks want to pay 40% deposit, 40% once under construction (whatever that means) and 20% final payment. Under these terms, EPCs will have to co-fund the project.

2. Linking final tranche payments to Eskom “approval” on SSEG “applications”

But that’s reasonable, right? Wrong!

Eskom can take years to approve SSEG applications, and the amount withheld of 20% to the contractor typically exceeds their margin in the project. The practice in the industry is to file the SSEG and then switch it on with no export of power to the grid. This is the customer’s decision and should not affect payment to the EPC. By getting involved and being pedantic about such matters the banks are being obstructive, not constructive.

But are these systems illegal and therefore uninsurable?

Not in my opinion. But this should be clarified and is something the industry and the banks should get to the bottom of. The law, as I understand it, is that it is a requirement that Eskom and the municipalities “register” SSEGs, but in typical fashion this registration process has been turned into an “application for approval” process. This is an administrative over-reach in my view and the industry should challenge it in the courts.

The fact remains, despite all the verbiage, that implementing for-own-use energy projects in South Africa is like boxing Mike Tyson with one hand tied behind your back.

Complaint ends here. For now.

Regards,

Publisher

EDITOR’S NOTE

The South African wind sector is following a natural evolution, indicating the same trajectory as its global market counterparts, with a shift from resourcerich areas to regions attractive for their ideal transmission connections. This is further underpinned by a downward pricing curve for the cost of energy, more powerful and bigger turbine generators as well as increased market competitiveness. Don’t miss our interview with SAWEA CEO on page 6.

In the US, the rise of the tractor between 1910 and 1960 replaced an estimated 24-million draught animals. Now, more than a century after the tractor first gained traction, automation and digitisation threaten to put many agricultural workers out to pasture. Commercial agriculture in SA remains labour-intensive and would employ more people were it not for the technological trends already in play, but these have boosted production, profits and food security (page 14).

Professor Fabio Fava says that more than half of all oxygen is produced by the hydrosphere (oceans, seas and inland waters). We obtain much of what we need for our sustenance from the hydrosphere, starting with food. Therefore, an overall vision of taking care of the land must also include the blue economy (page 18).

The power sector is on the verge of an existential transformation as it works to achieve an inclusive energy transition. However, it must do so while resuscitating ageing infrastructure, battling more frequent weather events and defending against security threats (both cyber and physical). Externally, critical materials and skilled workers are in short supply, and their costs are rising. Internally, utilities’ traditionally rigid processes run counter to the agility they will need to build a resilient and reliable grid while being nimble enough to withstand supply chain shocks cost-effectively (page 22).

There is a long road ahead, but the winds of change are blowing! Enjoy!

Alexis Knipe Editor

EDITOR: Alexis Knipe alexis@greeneconomy.media

CO-PUBLISHERS: Gordon Brown gordon@greeneconomy.media

Alexis Knipe alexis@greeneconomy.media

Danielle Solomons danielle@greeneconomy.media

LAYOUT AND DESIGN: CDC Design

OFFICE ADMINISTRATOR: Melanie Taylor

WEB, DIGITAL AND SOCIAL MEDIA: Steven Mokopane

SALES: Gerard Jeffcote

Glenda Kulp

Mark Geyer

Michali Evlambiou

Nadia Maritz

Tanya Duthie

Vania Reyneke

PRINTERS: FA Print

GENERAL ENQUIRIES: info@greeneconomy.media

ADVERTISING ENQUIRIES: alexis@greeneconomy.media

REG NUMBER: 2005/003854/07

VAT NUMBER: 4750243448

PUBLICATION DATE: October 2023

www.greeneconomy.media

TECH INTELLIGENCE IN ONSHORE WIND SECTOR

With years of operation in the Asia markets and currently ranked among the top 10 global wind turbine suppliers, SANY Renewable Energy (SANY RE) remains resolute in offering top-tier wind power solutions to the African market.

SANY RE who makes its debut Windaba appearance this year, recently unveiled the latest 919 wind turbine platform. The 919 platform adopts a more integrated design with shared structural components such as hub, main shaft and front bedplate. Blades, gearboxes and electrical systems are designed as modular systems to cover 8.5MW to 11MW products with rotor diameters ranging from 214m to 230m through different combinations, significantly enhancing the reliability of R&D.

Looking ahead, SANY RE will remain focused on its technological vision to develop industry-leading wind turbines with stronger intelligent capabilities and providing cost-effective wind energy solutions to lower the costs of wind farms.

BELIEVE IN BETTER

WWF South Africa is proud to announce its latest Believe in Better campaign, an inspiring call to action designed to ignite hope for a brighter, more sustainable future in our cherished nation. As South Africa approaches the 2024 elections, this campaign serves as a powerful reminder of our shared national vision – to heal the wounds of the past and pave the way for a brighter, more promising future for our country.

WWF South Africa wishes to inspire its compatriots to be heartened by its stories of success and embrace hope rather than despair. It wants everyone to Believe in Better, three words that serve as a balm against the constant barrage of negativity we face from all directions and an uplifting reminder of the value of believing in something good.

At the heart of WWF’s mission lies the protection of our invaluable natural heritage and the ambition to build a future in which we all live in harmony with nature. The multimedia campaign, #BelieveInBetter, not only celebrates some of WWF’s major conservation milestones but also illustrates the positive leaps that are possible when people from different walks of life come together.

Restoring Springs, Reviving Communities

WWF’s partnerships have yielded a wide range of accomplishments to safeguard the natural systems vital for clean drinking water, food production, fisheries, and ecosystem health. Despite challenges such as a growing population, ageing infrastructure, and increasing industrial demands that threaten our ecosystems, WWF tirelessly works to protect our land, wildlife and vital water sources.

One noteworthy initiative is the focus on natural springs in the Drakensberg areas of the Eastern Cape and KwaZulu-Natal, where communities struggle to access clean water due to inadequate municipal infrastructure and the impact of invasive alien trees. By bringing together a range of donors and working with communities and partners, WWF has helped secure 44 natural springs in the

grasslands of the Eastern Cape and has expanded this work to the Enkangala Drakensberg Water Source Area.

On the wildlife front, WWF’s Black Rhino Range Expansion Project is celebrating its 20th anniversary this year, having worked tirelessly over the last two decades to grow the populations of this critically endangered species in partnership with landowners and communities. WWF’s Land and Biodiversity programme has also added extensively to the country’s network of national parks and other protected areas.

Dr Morné du Plessis, CEO of WWF South Africa, comments: “Environmentalists are, by their very nature, agents of hope. In our work, we have plenty of evidence that hope, supported by action, is far more powerful than the strangely seductive slide into despair. Just as we need to remember how far we’ve come as a society; we need reminding of just how exceptional South Africa’s natural and social endowments are. We need to keep faith in each other and appreciate that together we can transform our vision of a more sustainable future into a reality.”

LOCALISATION IS LEKKER

By Mamiki Matlawa, ACTOM

SA has been involved in the green economy space since 2011 when the government introduced the REIPPPP. Thus, local organisations have a wealth of experience in manufacturing the balance of plant for renewable energy products, including in the areas of EPC, financing, operation and maintenance.

These homegrown skills could be harnessed to overcome our lag in the space and be exported to the rest of the continent. However, to successfully develop SA’s domestic manufacturing capabilities and reduce dependence on foreign suppliers, a comprehensive approach is vital for companies providing end-to-end services.

Key to this are mechanisms such as the African Continental Free Trade Agreement (AfCFTA), which aims to achieve the free movement of physical goods throughout the African Union. Recently, the five member states of the Southern African Customs Union (SACU) ratified the AfCFTA agreement. SACU has also submitted its joint offer of tariff concessions, which is currently being verified by AfCFTA.

The AfCFTA agreement is expected to open trade opportunities between African manufacturers, increasing regional demand for

SAPVIA ANNOUNCES PARTNERSHIP

equipment and services and driving access to new markets. This will enable African manufacturers to develop economies of scale, which will position them to effectively compete with foreign companies in the renewables space.

According to Trade and Industrial Policy Strategies senior economist, Gaylor Montmasson-Clair, SA has imported R35-billion worth of solar panels since 2010. Montmasson-Clair says that SA has imported R12-billion worth of solar panels so far in 2023 –equivalent to 2 200MW of generation capacity. It is estimated that South African households and businesses have installed 4 400MW of rooftop solar to date.

The scope for African manufacturers in the green economy is vast, but the continent needs to expand the supply chain in this space by effectively harnessing initiatives such as the AfCFTA agreement to build economies of scale. It is only through the localisation of the renewable energy industry that local manufacturers can hope to compete with large-scale and wellestablished foreign suppliers.

As SA’s solar industry gains unprecedented momentum, concerns over the quality of solar PV installations have also become more common. Addressing this pressing issue head-on, SAPVIA is redoubling its efforts to instil public confidence.

SAPVIA has recently announced its strategic partnership with Bravo Scan, an Approved Inspection Authority (AIA) endorsed by the Department of Employment and Labour, thereby reinforcing its commitment to quality assurance and compliance monitoring in the bourgeoning solar PV installation sector.

The Association’s PV Green Card Programme stands as an industry hallmark for quality assurance, states Dr Rethabile Melamu, CEO of SAPVIA. “The SA public has come to trust our PVGC-accredited members for solar PV installations that adhere to the highest quality standards.

“Collaborating closely with our new quality assurance partner, Bravo Scan, we aim to further intensify the objectivity and rigour with which we oversee the activities of our certified PV Green Card installation companies,” Melamu says.

She explains that Bravo Scan will be integral to skills development within the PV Green Card ecosystem and will also assist with inspections of installations.

“This will allow us to further improve quality and compliance, making sure that we’re making the most of our abundant solar energy resources at every installation site. Bravo Scan’s endorsement by both the Department of Labour and SANAS gives an additional layer of credibility and authority to the PV Green Card,” Dr Melamu adds. This partnership also aspires to enlighten end-users about their responsibilities in selecting credible solar power installation companies.

NEW CLOUD CARBON CALCULATOR

IBM has launched a new tool to help enterprises track GHG emissions across cloud services and advance their sustainability performance throughout their hybrid, multicloud journeys. The IBM Cloud Carbon Calculator – an AI-informed dashboard – can help clients access emissions data across a variety of IBM Cloud workloads such as AI, high-performance computing and financial services.

Based on technology from IBM Research and through a collaboration with Intel, the tool uses machine learning and advanced algorithms to help organisations uncover emissions hot spots in their IT workload and provides them with the insights to inform their emissions mitigation strategy.

Dr Rethabile Melamu, CEO of SAPVIA.

WINDS

The of FORTUNE FORTUNE

The South African Wind Energy Association’s focus is to enable a thriving commercial wind power industry in South Africa that is recognised as a major contributor to social, environmental and economic security. Green Economy Journal speaks to the Association’s CEO, Niveshen Govender.

Please talk to us about SAWEA’s position regarding the interim grid allocation rules and the development thereof.

We have supported the development of the interim grid capacity allocation (IGCAR) rules as an effective mechanism for integrating additional renewable energy to address the ongoing energy crisis. While the industry found some challenges within the first iteration, we’ve worked well with Eskom to resolve those matters to ensure that the rules are conducive to industry requirements.

We applaud Eskom for their efforts, continuously striving for equitability and transparency in the allocation of the limited available grid capacity in a structured and coordinated approach, as well as allowing us to engage them on our concerns and making the necessary adjustments. This will no doubt enable the country to better realise a balanced and reliable energy mix. As reported, concessions to the IGCAR include:

• Applicants no longer need to have a water-use licence, but must be able to show that they have already applied for it.

• They also no longer need permission from the Civil Aviation Authority. Proof of an application for this is enough.

• An option on the lease or purchase of land for the generation facility will do, instead of a concluded lease or purchase contract and permission from the Minister of Agriculture, Forestry and Fisheries for its subdivision.

• One year’s data on the wind conditions on the premises is enough and for solar farms satellite data will be accepted.

• If there are more projects ready for construction than can be connected to the network, priority will be given to those who applied first.

What are some of the industry’s challenges when it comes to increasing localisation?

Some of the key challenges include policy uncertainty, consistency of procurement and local skills required for manufacturing capabilities. Collectively, these are key drivers of investment into localisation in the renewable energy sector. And, through the South African Renewable Energy Masterplan (SAREM), we believe

Niveshen Govender, CEO of SAWEA.

An industrialised agenda in South Africa’s wind energy sector can bring numerous benefits.

that government is on the right path to create an attractive investment destination by working with industry to realise possibilities within local manufacturing.

As is widely known, our Association together with sector stakeholders strongly advocate for the industrialisation of the renewable energy sector to extrapolate the enormous potential across the value chain, thereby unlocking both the economic power of the renewable energy industry and delivering broader benefits to the people of this country.

Transformation goes hand-in-hand with the industrialisation of the wind power sector. And market certainty is the most important aspect of building a local manufacturing industry.

The country’s power sector procurement model started evolving over a decade ago, with major policy shifts. This has accelerated over the last two years, with the lifting of the cap on the new generation capacity requirement for a generation licence and government’s continued commitment to rolling procurement. This is in line with the global uptake of renewable energy to increase energy security and achieve climate goals.

Transformation goes hand-in-hand with the industrialisation of the wind power sector.

South Africa’s energy roadmap, IRP2019, requires 3 600 wind turbines, underpinning the industrialisation plan and demonstrating a noteworthy opportunity for local employment and GDP contribution through annual production across the value chain. By maximising the use of the current industrial capacity to supply materials and components into the sector’s demand areas, additional investments in capacity and capability will be stimulated.

SAWEA supports the various government stakeholders, labour, civil society, researchers, industry contributors and various advisory groups, which are currently drafting the SAREM that addresses exactly how we can industrialise the renewable energy value chain in our electricity sector to enable inclusive participation in the energy transition, serving the needs of society and contributing to economic revival.

The draft SAREM – which is expected to be finalised in the next two months by the Department of Trade, Industry and Competition is a result of a rigorous process, including input from SAWEA’s Manufacturing and Local Content Working Group. Stakeholders have been invited to review and provide comments on the draft masterplan document.

This framework aligns with SAWEA’s advocacy for sector industrialisation, through increased local manufacturing. As such, the Association reviews this framework’s key pillars as effective interventions to create a better environment for local manufacturing, which will no doubt result in increased employment opportunities,

investment, social inclusion and acceleration of our industry’s participation in a global wind supply chain.

It is designed to stimulate the industrial and inclusive development of renewable energy and battery storage value chains and contribute to the broader development needs of the country.

Along with setting clear local content targets for future private and public procurement, the SAREM’s focus on driving industrial development outlines existing public sector programmes and policy support with localisation objectives.

Despite initial localisation targets reflected in the 2022 draft, the most recent draft includes revisions to exclude specific targets, which is to be obtained through an inclusive negotiation process, between the social partners.

How will an industrialisation agenda benefit the wind sector?

An industrialised agenda in South Africa’s wind energy sector can bring numerous benefits. We believe that an industrialisation agenda, which is rooted in robust local manufacturing capabilities, will allow the wind power sector to deliver the necessary new generation power needed for the country to thrive. By establishing localised value chains and capitalising on economies of scale, cost reductions can be achieved. This will ultimately result in decreased dependence on global economies and mitigate potential impacts stemming from uncertain political climates on local production.

To this end, the SAREM will provide a clear framework, necessary for both local and global investors, seeking an investment destination to manufacture renewable and new-generation technology components, as part of the global supply chain.

Furthermore, local manufacturing has the potential to create increased employment opportunities, investment, social inclusion and acceleration of our industry’s participation in a global wind supply chain.

These positive outcomes contribute to sustainable development and enhance the country’s energy security.

Government’s public procurement vehicle, REIPPPP, is expected to continue to provide a stable and consistent pipeline with foreseeable and predictable timelines between procurement rounds remains necessary to attract significant investments in order to rebuild the manufacturing sector and create a local market based on its competitiveness and value-add.

CAREER BIOGRAPHY

2022 to present: Chief Executive Officer | SAWEA

2019-2021: Chief Operating Officer | South African Photovoltaic Industry Association (SAPVIA)

2016-2019: Programme manager | SAPVIA

2015-2016: Project manager | Department of Energy

2012-2015: Specialist: green economy | The Innovation Hub

SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN | Draft version for review

7 July 2023 | Department of Mineral Resources and Energy | Department of Science and Innovation | Department of Trade, Industry and Competition | [July 2023]

An industrial and inclusive development plan for the renewable energy and storage value chains by 2030. The South African Renewable Energy Masterplan (SAREM) articulates a vision, objectives and an action plan for South Africa to tap into current opportunities.

It aims to leverage the rising demand for renewable energy and storage technologies with a focus on solar energy, wind energy, lithium-ion battery and vanadium-based battery technologies to unlock the industrial and inclusive development of associated value chains in the country. This initial technological focus is aligned with global and domestic demand dynamics as well as South Africa’s supply-side capabilities. In time, other technologies (such as offshore wind or rechargeable alkaline batteries) will receive increased focus, as they mature and industrial capabilities are developed. The Masterplan builds on the Draft SAREM document released in March 2022.

Visit www.greeneconomy.media to download the full report in the digital version of Green Economy Journal Issue 60.

DEMAND GROWS WIND grabs more provinces as

BY NORDEX ENERGY SOUTH AFRICA

The natural evolution is further underpinned by a downward pricing curve for the cost of energy, more powerful and bigger turbine generators as well as increased market competitiveness.

In South Africa, this geographic shift outside of the Cape provinces is driven by the region’s constrained grid capacity, clearly demonstrated by the government’s last procurement round, REIPPPP’s Bid Window 6, which failed to secure a single wind project.

However, areas such as the Mpumalanga province have available grid capacity and with more coal generation facilities reaching the end of their lifetime resulting in their decommissioning, additional grid capacity in this thermal-power region will open.

The market intelligence clearly indicates that by 2027 new wind power generation projects will become concentrated in grid-rich areas, with KwaZulu-Natal and Mpumalanga emerging as important wind jurisdictions, within the next five years. The South African Renewable Energy Grid Survey, released in June 2023, shows stable and constant growth in wind projects being developed in these new zones, which is vital for the industry – especially if the country is to be successful in its plan to industrialise the renewable energy sector.

“Original equipment manufacturers (OEMs) such as ourselves, as well as both local and global investors, prefer a consistent pipeline of projects for long-term investment decision-making. While we are able to meet the technology needs of lower wind-resourced areas, it is challenging to operate within a market that isn’t reinforced by clear supportive policy and consistent closure of projects without delays,” says Compton Saunders, managing director of Nordex Energy South Africa.

In preparation to meet market needs, Nordex Energy South Africa introduced technology offering an increase in unitary power, which means improved cost of energy, as well as a reduction in land usage and visual impact.

In addition to more powerful generating platforms, taller towers are necessary to capture better wind conditions at higher altitudes, in areas such as Mpumalanga. To date, most wind turbine towers in South Africa have been 80 to 120 metres tall, but as we shift into new regions, this will need to increase.

Looking at the global market, OEMs such as Nordex are working on projects with hybrid towers of 168m hub height with this technology available to the local South African market. There are also various tower technologies between 120m to 200m that are either available or under development.

These 168m hybrid towers that could be offered in this market comprise around 100m concrete sections that would be locally manufactured, and the balance of (68m) steel sections that can be manufactured locally or imported.

“Our industry is going to require large volumes of wind turbine components in a relatively short space of time and the potential overlapping construction programmes could result in greater

logistical considerations. The majority of the components will arrive on a vessel before being offloaded and then stored close to the port before road transportation to the final installation destination commences. We already know that the availability of land in ports or close to ports could be a challenge and that the ability to handle large volumes through single entry and exit gates will be hindered by congestion,” says Saunders.

He continues, “Another consideration is that the longer blade lengths that we’ll need to bring into the country require specialised trailer sets, which will need to be sourced abroad and will then require licensing locally. And, with the uncertainty and continuous delays in our country’s renewables market, the timing of investment decisions is very tricky.”

South Africa can also begin to see the pairing of wind and solar power plants, meaning that a single transmission connection point may be used to provide Eskom with the increased uptake of power at a particular point.

It has been proven in global energy markets that the co-location of wind, solar PV and energy storage technologies offers more stable, predictable and dispatchable power output, and the option of shared grid connections makes sense in the efforts to optimise the current grid infrastructure.

“Hybridisation of facilities brings extra value in terms of grid utilisation. It is especially remarkable when the generation of both wind and solar PV technologies are complementary, and the combined curve matches the power demand. Our global counterparts have experience for us to draw on, and we will do so in new South African regions if this brings value to our customers,” Saunders concludes.

Case studies in the country show that the generation peak hours of wind facilities are early in the morning and late evening time, which combined with the generation curve of solar facilities, bring an overall curve matching quite well with the demand.

The South African wind sector is following a natural evolution, demonstrating the same trajectory and adjustments as its global market counterparts, with a shift from resource-rich areas to regions attractive for their ideal transmission connections.

Members of the Nordex Energy South Africa Services team on top of one of the wind turbines at Dorper Wind Farm in Molteno, Eastern Cape.

WINDS OF CHANGE

Empowering South Africa’s renewable energy workforce

South Africa’s wind energy sector has rapidly expanded, cementing its place on the global renewable energy stage. However, this growth has unveiled a significant challenge: a widening skills gap within the industry.

Energy and Water Sector Education and Training Authority (EWSETA) and the South African Wind Energy Association (SAWEA) have collaborated to explore how addressing the operational skills and qualification gap will advance wind energy in South Africa and contribute to the nation’s climate goals.

The skills gap challenge

The surge in wind energy projects across South Africa has created an increased demand for skilled professionals. This demand encompasses a wide array of expertise, ranging from engineers and technicians to project developers and environmental specialists. Unfortunately, there are insufficient skills to meet the demand in the South African context. Currently, the actual challenge is that there are not enough skilled and experienced workforce.

Several factors contribute to this skills gap, including the historical focus on coal in the energy sector, insufficient wind energy qualifications and skills development providers as well as a shortage of experienced professionals in the field. These factors have led to a shortage of skilled workers capable of supporting the growth of renewable energy in South Africa.

Opportunities abound

Despite the challenges posed by the skills gap, it presents a unique opportunity for South Africa to cultivate a workforce capable of driving the wind energy sector forward. Initiatives aimed at closing this gap have the potential to offer substantial benefits to the nation’s economy and its transition to a sustainable energy future.

A promising avenue to address this challenge is the collaboration between EWSETA and SAWEA. EWSETA, which is responsible for skills development in the energy and water sectors, has partnered with SAWEA to create tailored training programs and apprenticeships designed to meet the specific needs of the wind energy industry. These programs encompass a wide range of skills, spanning installation and maintenance to project development and management.

Empowering women and youth

South Africa must empower women and youth by actively involving them in the wind energy sector. Encouraging their participation addresses gender and youth unemployment disparities and fosters diversity and innovation within the industry.

SAWEA and EWSETA have already taken significant steps in this direction by launching the Renewable Energy Management Advancement Programme aimed at advancing women to middle –senior management positions in the sector through Wits Business School. The intervention seeks to transform the sector and address gender disparity. In addition, the partnership in the Wind Industry Internship Programme which is currently in its second year provides work experience to young graduates who are interested in pursuing careers in wind energy. This initiative was successful through the participation of the employers who have opened their workplaces to enable this mentorship initiative. These initiatives provide access to education and hands-on experience, paving the way for a more inclusive and dynamic workforce.

To advance wind energy in South Africa, it is imperative to invest in training and development programmes that produce highly skilled operational technicians and engineers.

Companies operating in the wind energy sector must play a pivotal role by actively promoting diversity and inclusion, dismantling barriers and fostering a welcoming environment for all.

“A collaborative approach is essential, bringing together government, industry and training providers to establish effective training capacity for renewable energy. Traditional market-driven strategies may not be suitable for this context. It’s also crucial to construct pathways for training and employment that cater to a diverse labour force, including marginalised groups outside the workforce. Furthermore, a holistic perspective should be adopted, treating renewable energy as part of an interconnected workforce “ecosystem” that enables seamless transitions between renewable energy and adjacent sectors like resources, infrastructure and manufacturing, says Khetsiwe Mtiyane, EWSETA’s Energy Specialist.

Value-chain skills gap: advancing wind energy

While the skills gap mentioned earlier relates to the development and construction phases of wind energy projects, addressing the operational skills gap is equally crucial. Skilled workers are needed to ensure the efficient and reliable operation of wind farms.

Operational skills encompass areas such as maintenance, troubleshooting and performance optimisation. Without a well-trained operational workforce, wind farms can suffer from downtime, reduced efficiency and increased operational costs.

To advance wind energy in South Africa, it is imperative to invest in training and development programmes that produce highly skilled

operational technicians and engineers. These professionals play a pivotal role in maximising the energy output of wind farms and ensuring their long-term sustainability.

As South Africa’s wind energy sector continues to expand, the skills gap poses a multifaceted challenge that must be addressed strategically. Collaboration between EWSETA and SAWEA is a promising step in the right direction. By developing tailored training programmes and apprenticeships, the nation can equip its workforce with the skills needed to support the growth of renewable energy.

It is essential for the efficient and reliable operation of wind farms, which contributes to South Africa’s climate goals and the long-term success of its wind energy sector. By seizing the opportunities presented by these skills gaps, the nation can unlock its wind energy potential and contribute to a sustainable and prosperous future. The rewards for achieving these goals extend far beyond emissions reduction, encompassing economic growth, energy security and a cleaner, more sustainable future.

in FOOD CRISIS AFRICA

Global fertiliser suppliers have made incredibly high profits in 2022/23 on the back of price spikes attributed to the Russia-Ukraine war. The profits of the world’s top nine producers trebled in 2022 from two years previously. The margins and impacts have been even greater on fertiliser supplies to African farmers.

BY SIMON ROBERTS AND NTOMBIFUTHI TSHABALALA*

Moreover, the super-high profit margins are being sustained in 2023 in many African countries even while international prices have come down (see figure 1). The harvest season has recently come to an end in most countries in southern Africa with farmer margins and production being squeezed by high input costs.

The wide gaps between fertiliser prices in the region and international fertiliser prices point to major issues within the supply chain with excess margins of some 30% to 80% being earned on sales to many African countries.

South Africa has the benefit of robust competition enforcement meaning prices in this country have come down. This only serves to highlight the disadvantages being faced by farmers in other countries such as Malawi and Zambia.

High fertiliser prices undermine production, contribute to high food prices and exacerbate food insecurity.

Our work on fertiliser and agri-food markets in the African Market Observatory points to major problems with how international and regional markets work, including the market power of large international suppliers. High prices for fertiliser inputs are squeezing African farmers who are cutting back on fertiliser use meaning low yields and supply, and high food prices.

International action is therefore urgently required on fertiliser prices to improve food security in Africa.

Figure 1. [Next page] The graph on the opposite page shows urea prices in East and Southern Africa. World price is from the World Bank; South African price is inland, from Grain SA. East Africa is the average of Kenya, Rwanda, Tanzania and Uganda. Prices are given before any government subsidies. Source: Compiled from different sources by the African Market Observatory.

IMPACT ON IMPORT AND INPUT

African countries are dependent on imported fertiliser and usage is relatively low. For example, Kenya and Zambia use around 70kg/ha, compared with 365kg/ha in Brazil.

There’s evidence that high input costs are squeezing farmer margins and production. High costs and low application are a factor in maize yields in Zambia being less than half of those in South Africa and a third of Argentina (according to the FAO).

In 2022, Kenya imported almost 30% less fertiliser and production fell. Maize output in 2022/23 was 18% lower than the average for the previous five years, with yields and area planted both being lower, compounding the effect of poor rains. This has meant a substantial deficit relative to local demand and very high prices.

Continued high fertiliser prices will constrain production, even while there is a great need to expand agriculture output to meet regional demand.

For example, Zambia has abundant arable land and water for agriculture to increase production. Of the country’s 42-million hectares of arable land, only 15% (or around 6-million) is under cultivation, including for pasture, with only 1.5-million of this cultivated for crop production. Zambia has around 40% of the water resources available for agriculture in the entire SADC region.

If farmers earned better returns with cheaper input costs then production could be a multiple of the current levels.

Approximately 73-million people in the East and Southern Africa region are experiencing acute food insecurity. People in low- and middle-income countries bear the harshest burden – both in terms of the importance of small-holder farmers and in the vulnerability of low-income urban households to high food prices.

Most countries on the continent rely on food imports. Countries such as Kenya which have been affected by drought are struggling to source imports which has worsened food security in the country.

This has been exacerbated by export restrictions on maize imposed by Zambia and Tanzania, which have suppressed prices to farmers in those countries, even while input costs, notably fertiliser, have increased.

UNEVEN PLAYING FIELD

International fertiliser prices more than doubled in two months –from September to November 2021. The peak continued into early 2022, reaching an average price of US$915/t for the benchmark urea fertiliser between March and April 2022. This compares with around US$226 in the previous five years. This was driven by the world’s largest fertiliser companies taking advantage of the rise in the price of natural gas, an important input for nitrogen-based fertiliser, as well as supply disruptions associated with the Russia-Ukraine war. The fertiliser companies exploited the shocks and raised prices by more than the increase in costs.

By March 2023, the international price of urea had fallen back to close to $300/t. With additional costs to import to coastal countries which should be no more than $150/t and to inland regions no more than $250/t including a trader margin, South Africa’s inland prices now reflect fair prices but in other African countries super profits are continuing.

WHAT NEEDS TO BE DONE

To ease the adverse impacts of high fertiliser prices, governments in the region have tried to implement fertiliser subsidy programmes. For example, prices in Tanzania with the government subsidy have been reduced from around $1100/t to US$600-700/t.

But the subsidies have huge costs for governments which many African countries have not been able to incur, while the programmes have generally not been working well. In Malawi, for example, a large portion of the Affordable Inputs Programme (AIP) targeted beneficiaries did not receive fertiliser under the 2022/2023 programme.

International action is therefore urgently required on fertiliser prices to improve food security in Africa. First, competition authorities in Africa should investigate signs of anti-competitive conduct. Second, investments are required in logistics, storage and advice on optimal usage. Third, a fertiliser market observatory as the EU is currently setting up would provide ongoing data about fertiliser markets, factors affecting them, and exchange experiences and good practices for optimal usage.

*Simon Roberts is professor of economics and lead researcher, and Ntombifuthi Tshabalala is economist at Centre for Competition, Regulation and Economic Development, University of Johannesburg.

South Africa has the benefit of robust competition enforcement.

Most countries on the continent rely on food imports.

Automation and are for PRECISION FARMING CRUCIAL CRUCIAL FOOD SECURITY

In the US, the rise of the tractor between 1910 and 1960 replaced an estimated 24-million draught animals, according to the UN’s Food and Agriculture Organization. Now, more than a century after the tractor first gained traction, automation and digitisation threaten to put many agricultural workers out to pasture.

BY ED STODDARD

Aaron Smith, a professor of agricultural economics at the University of California, phrases it this way: “The relevant question is not whether we will have mass unemployment, but what will happen to the specific workers who are replaced. Can they retrain and find new jobs? And what of their communities?” His focus is on the US, where commercial farmers are having a tough time filling vacancies.

“Most people don’t like doing agricultural labour. It’s hard work and often bad for your health. For this reason, and due to increasing employment opportunities elsewhere in the economy, fewer workers are available for farmers to hire. They are choosing jobs in other sectors,” Smith writes, citing a 2020 survey that found 45% of California farmers had problems finding enough employees.

The US unemployment rate surged that year to – wait for it – over 8% because of the economic disruptions triggered by the Covid-19 pandemic. It now stands at a 50-year low of 3.4%, so one imagines that California farmers are finding field hands are even more scarce. But the need for such hands is increasingly being reduced and some of the technology behind this trend is being developed in California.

Guss, which stands for Global Unmanned Spraying System, looks like something out of a sci-fi movie. Shaped like a horizontal cylinder on four wheels, as the name suggests it is an autonomous system for herbicide and other kinds of crop spraying. Guss is also the name of the privately-held company behind the system. Its application is for vineyards, macadamia nuts, citrus and stone fruit such as peaches.

“It has GPS but we have quite a few other sensors because GPS becomes pretty degraded among large trees such as pecans. Anywhere you have a canopy of leaves that block the GPS signal from the satellites,” says Guss chief technology officer Chase Schapansky, who is the brains behind the system.

Aside from being unmanned, which eliminates the need for a driver, Guss sprays in a targeted or precise manner, which eliminates wastage. It is among the latest tools in the precision farming revolution which uses GPS and other technologies to precisely apply inputs to boost yields and productivity while cutting costs.

“Herbicide Guss is built with cutting-edge technology to detect, target and spot spray weeds, reducing chemical usage and drift for increased safety for the operator, environment and food produced,” the company says on its website.

“Guss allows ag businesses to reskill workers – training them to use sophisticated technology that will open up future opportunities and positioning them for success in the economy of tomorrow.”

Meet Guss

This technological furrow is only going to get ploughed further and jobs will get mulched up in the process.

South Africa’s unemployment rate is almost 33%, and more than 42% under the expanded definition which includes discouraged jobseekers, according to the latest Quarterly Labour Force Survey. The survey also found that South Africa’s agricultural sector employed 888 000 people. And unlike in the US, South Africa’s mostly lowskilled and poorly educated farmworkers will be hard-pressed to find jobs in other sectors.

Commercial agriculture in South Africa remains labour-intensive. Simultaneously, it is highly capital-intensive and hi-tech. It would employ more people were it not for the technological trends already in play, but these have boosted production, profits and food security.

South Africa is currently reaping its third-highest maize harvest on record, which is testimony to technology and the rains of La Niña that have now ended. If it were not for this abundant harvest, food inflation would be running at an even faster pace than the 14-year high of 14% it reached in March.

THOUGHT [ECO]NOMY

Jobs will be mulched up

This technological furrow is only going to get ploughed further and jobs will get mulched up in the process. But the alternative would be falling behind the rest of the world, rendering an agricultural sector that accounts for about 11% of South Africa’s exports. And with the rand on the ropes, South Africa needs all the forex it can get its hands on.

There are many legitimate concerns and criticisms regarding big agriculture, ranging from environmental impacts to wealth concentration to price manipulation by traders in sometimes opaque supply chains.

Technology is also raising the threshold for entry into the commercial farming space, blocking the path for aspirant emerging farmers who lack the capital and know-how to enter this fast-changing field. But precision farming can also mitigate ecological consequences by growing more on less land and with fewer inputs used with increased efficiency. There are various initiatives in play to adapt such technologies for smaller-scale farmers. The costs of new technologies tend to fall as they ripen in the market.

At the end of the day, you don’t want to be stuck with a horse when your neighbour has a tractor.

THE FUTURE OF THE WESTERN CAPE AGRICULTURAL SECTOR IN THE CONTEXT OF THE FOURTH INDUSTRIAL REVOLUTION | The Western Cape Department of Agriculture | University of Stellenbosch Business School | [2018]

Despite significant growth in food production over the past half-century, one of the most critical challenges facing society today is how to feed an expected population of some nine billion by the middle of the 21st century. It is estimated that 70% to 100% more food needs to be produced to meet the growing demand for food without significant price hikes. This must happen within the context of climate change and take into account concerns over energy security and regional dietary changes.

With the dramatic advancements in technology, a tipping point is fast approaching for the dawn of a new era in agriculture. In agriculture, information and communication technologies (ICTs) have grown significantly in recent times in both scale and scope. The use of the Internet of Things, cloud computing, enhanced analytics, precision agriculture in convergence with other advancements such as AI, robotic technologies, and “big data” analysis have revolutionised agriculture.

Today, the use of digital technologies – including smartphones, tablets, infield sensors, drones and satellites – are widespread in agriculture, providing a range of farming solutions such as remote measurement of soil conditions, better water management and livestock and crop monitoring.

Enhanced analytics, affordable devices and innovative applications are further contributing to the digitalisation of farming.

Visit www.greeneconomy.media to download the full report in the digital version of Green Economy Journal Issue 60

Drivers and megatrends set to disrupt farming

The path ahead: shaping the future of farming

Change management to support 4IR possibilities

CONNECTING the

BLUE

TO THE EARTH

Look at a “Spilhaus projection” map and it might be easier to understand their central role in life on the planet that we call Earth, even though 70% of its surface is covered by water. The map drawn by the South African oceanographer in 1942, puts Antarctica at the centre so that the “seven seas”, enclosed by the coastline of the continents, are instantly seen as one huge blue mass.

The year 2023 could be remembered as the year when we really started to take care of the oceans thanks to the agreement reached on 4 March at the United Nations to create marine protected areas in the high seas, in other words, in international waters 200 miles from the coast. Ecomondo , the Italian Exhibition Group event due to open its 26th edition in Rimini from 7th to 10th November, sees more and more blue in the green economy.

Professor Fabio Fava, some time ago you asked us to look at the ground in order to reduce CO 2 in the atmosphere. Restoring biodiversity and terrestrial agro-forestry ecosystems means reducing the effects of climate-changing gas pollution. This year, the main themes at Ecomondo suggest adding a great deal of water to this recipe.

More than half of all oxygen is produced by the hydrosphere, or rather, all the oceans, seas and inland waters put together. There are other numbers that we need to take into consideration. This large blue portion of our planet contains 80% of the biodiversity we are aware of today, even though we only know about 230 000 species of marine life. That’s about 11%, according to an estimate by the World Register of Marine Species. The hydrosphere traps 25% of carbon dioxide emissions. Not only that, by dissipation, it reduces 90% of the heat we produce with our activities on land.

We obtain much of what we need for our sustenance from the hydrosphere, starting with food. Therefore, an overall vision of taking care of the land must also include the blue economy.

The hydrosphere produces food of prime nutritional value, contains critical rare materials such as copper, manganese and cobalt, and energy sources like gas and hydrocarbons as well as renewables. Merchant and passenger ships cross the seas. The Mediterranean alone has 450 ports/terminals, hosting 30% of global maritime transport and half of the European fishing fleet.

Then there is tourism: 150-million people arrive on the Mediterranean coasts during the summer, also attracted by the 400 UNESCO sites and 265 protected areas in the macro-region. In Europe, all this that we call the blue economy is worth 650-billion euros in annual turnover and 4.5-million jobs. In Italy: 50-billion euros in annual turnover and 900 000 jobs. So, it certainly is an issue that needs our close attention.

Let’s extend the idea of looking down at the ground and integrate

More than half of the oxygen we breathe comes from the oceans. It is time to take care of marine biodiversity, we have the means. Green Economy Journal speaks to Professor Fabio Fava, president of Ecomondo’s Scientific Technical Committee.

Professor Fabio Fava, President of Ecomondo’s Scientific Technical Committee.

More than half of all oxygen is produced by the hydrosphere, or rather, all the oceans, seas and inland waters put together.

attention to the hydrosphere, its economy and regenerative potential with activities on land. Ecomondo 2023 will connect the blue to the earth.

How?

Let’s start from the end. Information without engagement is not enough. Institutions, as well as research and innovation representatives – I am mainly thinking of the European ones – must inform citizens about environmental risks, about the reasons for setting highly ambitious goals in terms of environmental protection and regeneration, and about future innovation. But then the time must come for involvement and participation in activating policy development and innovation.

Especially among the younger generations. We have a strong European presence at Ecomondo, which should also be seen as a window of opportunity for companies that want to play an increasingly important role in the circular economy and, in this case, in the blue and green circular economy.

Speaking of engagement, how does a European project tie in with efforts to protect biodiversity?

Take the EUSAIR project, for example, which made a stop in Rimini on 7 July. This macro-regional initiative covers the Adriatic and Ionian seas with nine countries involved, including Serbia, which has no coastline. We sometimes think of EU activities as vertical, but in initiatives like EUSAIR or WestMed, it is the horizontal sharing of best practices among local administrations that really makes the difference. Moreover, we should bear in mind that these projects move geographical areas that often involve non-EU countries. I mentioned Serbia, but I am also thinking of Albania and Bosnia Herzegovina.

We need uniformity in practices and therefore in choices, and to go deep into the territories, to co-design actions. I believe that this common language creates engagement. When we see the results of projects started years ago and understand that sharing is the best way to go green. Then, of course, these visions, best practices and their results need to be divulged. Ecomondo is certainly an extraordinary communication platform for achieving this aim. en.ecomondo.com

When we see the results of projects started years ago and understand that sharing is the best way to go green.

Information without engagement is not enough.

Your Path to Purpose: Choosing a Sustainability Career to Reshape South Africa’s Future

Choosing a career in sustainability is not merely a job; it’s a commitment to addressing social issues, fostering equitable growth, and securing a sustainable future. When individuals choose to embark on sustainability careers in South Africa, they embark on a transformative journey, wherein their actions become part of a global movement with a singular purpose: preserving and safeguarding our precious planet for present and future generations.

Sustainability is an urgent and global imperative, touching every facet of South African society, from businesses to government agencies and nonprofits. Beyond addressing local concerns, it is a worldwide priority with far-reaching benefits. Opting for sustainability careers in South Africa is to be part of a global movement committed to preserving our planet.

Ten Key Reasons Why Sustainability Professionals Are Vital:

• Meeting Stakeholder Expectations: Investors, customers, and regulators now demand transparency and a firm commitment to sustainability. Sustainability practitioners align companies with these expectations and effectively communicate sustainability efforts.

• Mitigating Risks: Sustainability experts identify and mitigate environmental, social, and governance (ESG) risks, safeguarding a company’s reputation and ensuring long-term resilience.

• Cost Savings: Sustainability professionals identify cost-saving opportunities through energy efficiency, waste reduction, and sustainable supply chain management, enhancing a company’s sustainability profile.

• Navigating Regulations: Sustainability regulations are constantly evolving and complex. Businesses need experts who can navigate this landscape and ensure compliance.

• Driving Innovation and Competitive Edge: Sustainability practitioners drive innovation through sustainable product development, eco-friendly processes, and green market opportunities, giving companies a competitive edge.

• Attracting and Retaining Talent: Modern workers value sustainability, and businesses committed to it are more appealing to potential employees. Sustainability professionals help companies become employers of choice.

• Meeting Market Demand: Consumer preferences favor sustainable products and services. Hiring sustainability practitioners helps businesses meet these demands and access the growing market for eco-conscious products.

• Future-Proofing: Companies recognise the need to adapt to a changing world, including environmental challenges. Sustainability practitioners help businesses future-proof their operations and supply chains.

• Enhancing Investor Relations: Sustainable companies often attract socially responsible investors. Sustainability professionals assist in creating reports and strategies appealing to these investors, potentially increasing access to capital.

• Ethical and Moral Commitment: For many businesses, sustainability reflects a moral and ethical obligation. Hiring sustainability practitioners demonstrates a commitment to making a positive impact on the environment and society

The Historical Development of Sustainability Challenges in South Africa:

In the aftermath of South Africa’s transition to democracy in 1994, the nation embarked on a transformative journey marked by significant progress in addressing social inequalities and improving access to education, healthcare, and basic amenities for its citizens. However, these positive changes also revealed vulnerabilities within the country’s natural environment, posing substantial sustainability challenges. South Africa’s abundant natural resources, unparalleled biodiversity, vast solar energy potential, and stunning landscapes coexisted with a range of pressing sustainability issues.

These challenges include:

• Rapid Urban Expansion: The burgeoning urban areas, driven by population growth, strain resources and spawn informal settlements, exacerbating the housing crisis. Government-led urban development projects aim to create sustainable cities, but achieving equilibrium between development, environmental preservation, and resource equity remains intricate.

• Wealth Disparity: Widening income inequality influences environmental matters. Affluent segments access cleaner energy and better living conditions, while marginalised communities grapple with disproportionate pollution and limited adaptation resources.

• Biodiversity Decline: Biodiversity loss persists due to habitat destruction, poaching, and invasive species. Ongoing conservation efforts seek to balance economic growth with biodiversity preservation.

• Water Pollution: Water pollution, largely stemming from industrial and agricultural activities, poses a substantial threat. Despite government initiatives to enhance water quality, enforcing regulations remains a challenge.

• Inefficient Land Use: Inefficient land use practices, particularly in agriculture, impede land productivity and sustainability.

• Air Quality Deterioration: Declining air quality, notably in urban centers, raises health concerns. Stricter emissions standards and cleaner energy are being promoted, albeit with gradual progress.

In light of these severe challenges facing South Africa’s future, the significance of choosing a career dedicated to sustainability cannot be overstated. Addressing these sustainability challenges hinges on the implementation of policies, regulations, and the expertise and oversight of professionals. Striking a harmonious balance between economic development and environmental preservation is crucial for South Africa’s future and the global ecosystem. Sustainability professionals play pivotal roles in advancing sustainable development and safeguarding the environment, ultimately contributing to South Africa’s well-being and future prosperity.

Such careers not only offer individuals an opportunity for personal and professional growth but also empower them to actively participate in addressing South Africa’s pressing environmental and societal issues. By opting for a sustainability career, individuals become catalysts for positive change, contributing their expertise and passion to create a more sustainable and equitable future. Their collective efforts, alongside government initiatives and global collaboration, will be instrumental in ensuring that South Africa and the world move towards a future that is not only prosperous but also environmentally and socially responsible.

Becoming a Certified Sustainability Practitioner!

The AA1000 Online Training consists of just three modules, each designed to empower you with the knowledge and skills needed to advance sustainability initiatives. This is an exclusive and comprehensive e-learning program offered by DQS Academy, one of the few accredited training bodies in the world with the capacity to provide AA1000 Online Training.

Module A - Building the Foundation

Module A serves as the essential introduction to the AA1000 Online Training program. This module focuses on the AA1000AP (2018) and AA1000SES (2015) standards, which are fundamental to the practice of sustainability assurance.

Learning Outcomes:

• Gain a deep understanding of the AA1000 standards, which are globally recognised in the sustainability field.

• Explore the principles of accountability and stakeholder engagement, which form the core of sustainability practices.

Module B - Becoming a Sustainability Practitioner

This module is known as the Sustainability Practitioner Certificate, and focuses on the application and reporting of each AccountAbility Principle. Completing this course, in conjunction with Module A, earns participants the title of Sustainability Practitioner.

Learning Outcomes:

• Develop practical skills in applying sustainability principles to real-world scenarios.

• Learn how to assess, report on, and enhance sustainability performance within organisations.

• Gain insights into sustainability best practices and how they can drive positive change.

Module C - The ACSAP Certification

This module is designed to equip you with the hands-on expertise needed to make a tangible impact on sustainability practices and is the practitioner-level training in sustainability assurance. This module focuses on foundational sustainability assurance knowledge using the AA1000AS v3 standard.

Learning Outcomes:

• Deepen your understanding of sustainability assurance practices and principles.

• Gain expertise in assessing and reporting on sustainability performance in a comprehensive and credible manner.

• Learn how to provide valuable insights and recommendations to organisations seeking to improve their sustainability practices.

Upon successful completion of this program, you will achieve the Associate Certified Sustainability Assurance Practitioner (ACSAP) qualification. This achievement represents a substantial milestone on your path toward acquiring more advanced certifications, including the prestigious Practicing Certified Sustainability Assurance Practitioner (PCSAP) and the esteemed Lead CSAP Practitioner (LCSAP) qualifications. These higher-level certifications open doors to rewarding career opportunities and leadership roles in the field of sustainability, equipping you to make a meaningful impact on organisations, communities, and the environment in South Africa, and abroad.

Supply chain resilience can

PROPEL THE POWER SECTOR POWER SECTOR PROPEL THE

through the energy transition – and please investors in the process

The power sector is on the verge of an existential transformation as it works to achieve a comprehensive energy transition. But it must do so while resuscitating ageing infrastructure, battling more severe and more frequent weather events, and defending against security threats (both cyber and physical).

BY KEARNEY CONSULTING*

Huge barriers could thwart progress if left unaddressed. Externally, critical materials and skilled workers are in short supply, and their costs are rising. Internally, utilities’ traditionally rigid processes run counter to the agility they will need to build a resilient and reliable grid while being nimble enough to withstand supply chain shocks cost-effectively.

Power companies that stick to the status quo won’t survive easily. The successful ones will fundamentally shift how their supply chain and procurement functions work to reserve more money to spend on transformation goals. Sourcing strategy will supersede pricing tactics. Targeted savings will replace rigid budgets. And both leadership and procurement will adopt what will seem like radical new sourcing and supplier options, even though, yes, we realise they have stringent technical qualifications.

In short, to meet the expectations of investors, society and customers, power utilities will reimagine capital efficiency and make their supply chains truly resilient, reliable and agile. Several outside forces have led us to this point.

What pressures utility supply chains now

Various factors make it difficult for utilities’ supply chains to operate efficiently and at full value. First, there’s the material shortage. A scarcity of crucial items, such as electric steel, electronic components and cable are disrupting supply. Utilities have acutely felt the

persistent lack of transformers, many of which are manufactured overseas. Delivery times stretch to a year-plus and could be even longer if geopolitical tensions rise.

Suppliers recognise the gap between demand and their supply of transformers, but even if they can increase production or bring it onshore, new facilities take time to build. Many shortages show no sign of letting up, with manufacturers struggling to fill orders during emergencies or cancelling them altogether (see figure 1).

Figure 1. Worringly, shortages of critical equipment and materials do not show signs of abatement.

Lead times: transformers

Lead times: electric cables

Increased demand has prices rising, too. Where a transformer’s price sat unchanged through 2020, it has risen 134% since then (see figure 2).

Ageing infrastructure is another factor, as historical underinvestment in maintenance and modernisation catches up with current needs. Weak cables run short distances and transformers currently in place are, on average, five to 15 years older than their intended lifespan.

And there are the ESG pressures that impact utilities. The growing demand for EVs and an interconnected grid to charge them means utilities will need even more infrastructure, including transformers, whose production capacity lags projected growth of the EV market (at a compound annual growth rate of 25%). ESG issues keep arising in the minds of the public and governments as well, with increasingly frequent natural disasters, from wildfires to heat waves straining the power system.

These factors might have meant utilities could raise their rates to cover escalating costs to build the required infrastructure. But large rate increases during the past three years, ranging from 8% to 11% or more across residential, commercial and industrial customers don’t leave much room to gain revenue in this way now. 1

THE RISKS OF TRADITION

A recent Kearney survey revealed that just 27% of utilities have standard processes to identify and prioritise risks consistently across capital projects. 2

When another natural disaster hits or an extensive replacement or upgrade project is urgently needed, does the utility have enough detailed insight into its supply and demand to prioritise projects? Can it shift quickly from one project to another as circumstances change? And during this process, does it know the impact on operations and earnings from spending rands in one place versus another, spending rands in the wrong place or not at all?

We see utilities’ related risks falling into three categories: Demand planning. Without a clear understanding of supply and demand across a utility’s business areas, it is challenging to manage increasing or varied lead times for supply materials and equipment. Longer term, more precise demand planning can help determine time horizons. There’s also the shift to consider from reactionary to precautionary planning that takes a longer-term view beyond solely the next rate case. Supplier reliability. An optimal and reliable selection of suppliers can help overcome shortages and ensure a resilient supply chain. The transformer production process, for example, is highly dependent on raw materials, including copper, electric steel and aluminium. Even as commodity prices fluctuate, having suppliers that can lock in timely acquisition is crucial. Still, the current environment indicates that equipment availability and resource scarcity are significant challenges, and utilities have not yet fully fleshed out the solutions. Agile governance. With a complete picture of the supply and demand fields, a utility can shift from one area to another, anticipating required lead times. For instance, if there is a major delay in transformer replacement, an agile utility has enough data and resources to be able to shift investments to another upgrade project.

Longer forecast periods (beyond the next rate increase) help utilities and their suppliers plan more effectively. The bottom line here is that utilities now require supply chains that are responsive, reliable and agile.

THINK IN TERMS OF REINVENTION

We believe supply will become even more challenging. The supplier base has shrunk, and the suppliers that remain are in the driver’s seat, able to pick and choose which utility they will prioritise. Without intervening in some way, utilities will simply not be able to secure enough supplies, such as transformers, for years to come.

1 US Energy Information Administration and Kearney analysis

2 Kearney ExCap III survey of utility companies

The bottom line here is that utilities now require supply chains that are responsive, reliable and agile.

Figure 2. Lead times only paint part of the picture. We also see equipment prices trending up significantly. 1 Similar overall trend for electric wires and cable costs (in other words, steady and sharp increase in prices that have remained elevated) since 2021.

economic data; Kearney analysis

Manufacturers are trying to fill the void by expanding onshore capacity and developing more advanced equipment, but new facilities and innovations take time.

Suppliers have told us, in fact, that utilities will need to work with them more closely than ever to expand production. But how to do this? Suppliers will have to continue raising prices to cover the expense of additional manufacturing lines, which means the rands utilities have won’t go as far. If some utilities don’t meet the higher prices or other terms that suppliers can set, then they won’t get contracts, whereas more cooperative utilities will.

Utilities, then, are in a new and unaccustomed position of having to rethink supplier relationships: from tactical buys to strategic partnerships. Either find ways to invest in suppliers to ensure future needs or roll the dice and hope that supplies will be there when you need them.

A dependable supply chain, in other words, will be about trade-offs. It will be flexible while maintaining an optimal balance between cost and performance. Where it has focused on cost to preserve capital,

it will now depend as much on drivers, including time-to-market, ESG impact and service levels. It will mitigate risks by adjusting for them, quantifying financial impacts and changing course as priorities shift (see figure 3).

This dynamic of trade-off and exchange – where utilities will have to understand demand in operations, match it with supply, and go to external sources – effectively calls for a procurement and supply chain clearinghouse.

The clearinghouse approach brings structure to unknowns. Utilities progress from reactive event management to business continuity planning, where they gain a much clearer understanding of weak links in the supply chain. Redundancies are implemented to manage gaps and responses to unexpected events are planned.

Once those steps are taken, a utility can prepare its supply chain for the future using forward-looking models to forecast potential events, prioritise risk and likelihood with sensing systems, and use manual intervention and decision-making for recovery when adverse events occur.

CONTROL TO MITIGATE CHALLENGES

The constant reevaluation of a clearinghouse structure offers distinct advantages by allowing a utility to see what it needs and spends at a granular level.

Determine demand. The utility determines demand by honing its planning capabilities – turning what it needs to do into units of labour and materials. This leads to decisions on accomplishing tasks internally or externally and what the product platforms will be (the groups of products, such as transformers, and their classes based on solution). It also helps determine which platforms will be interchangeable for use at one plant or facility or another. The operational footprint becomes clear.

Evaluate supply and logistics. On the supply side, there will be regular evaluation of supplier landscape, logistics and the external workforce. The utility will have a clear view into and control over the inbound transportation of supplies and rapid, accurate distribution of them into the field through its own or a dedicated, contracted fleet.

A dependable supply chain, in other words, will be about trade-offs.

Kearney analysis

Supply chain is about trade-offs – delivering resillience while maintaining an optimal balance between cost and performance

Figure 3. Leading utilities require supply chains that are reliable, nimble and agile.

Maximise capital. The third aspect is financial: how a utility will get the most value for the rands it has to spend. From rands tied up in inventory of raw materials and finished goods to capital in reserve, the utility will be able to quickly assess financials for urgent, ongoing and investment projects.

KEY TO THE ENERGY TRANSITION

A utility’s geographic footprint is one final major element that impacts resilience. How diverse and available suppliers are to the utility’s operations is key because it affects how quickly it can activate alternate routes and locations of focus if something goes awry. If plan A fails, it’s ready for plan B or C.

Specifically, finding alternatives to reliance on single-sourced suppliers is what’s pressing (see figure 4). By pre-qualifying alternate suppliers, a utility can significantly reduce risk and ensure consistent, cost-effective product flows across the supply chain. The more suppliers and less variation in products, the lower the supply risk. As the number of suppliers dwindles and the number of product stock-keeping units grows or becomes exclusive due to patents or status as an OEM, the supply risk grows exponentially. These

suppliers require a different level of engagement that elevates them to strategic partners to utilities.

Pre-qualify where potential future alternatives exist. Dual or multi-source where there are viable options and fewer suppliers, and potentially vertically integrate or co-invest in those that are of the highest value or pose the greatest dependency. Taking the time to identify and approve alternates will pay dividends in the long term.

First-mover utilities will proactively identify their supply risks and develop cooperative relationships with suppliers to lock them in. When a utility commits to a supplier – especially one that produces some of the most essential equipment, such as transformers – that supplier has the confidence to invest in new technology or put in another production line. By moving beyond an attachment to slow-moving inventory and committing to a certain volume over a longer period, a utility can guarantee supply more cost-effectively. Reclaiming and reigniting supplier relationships is new to the power sector. However, this approach, along with the dynamic trade-offs afforded by a clearinghouse-style supply chain, can limit economic risk and bring utilities the freedom to grow and transition to a new era.

*Authors: Andre Begosso, Rajeev Prabhakar; partners. Natasha Villacorta, James Guba; principals. The authors would like to thank Kish Khemani for his valuable contributions to this paper.

A utility’s geographic footprint is one final major element that impacts resilience.

Article courtesy of Kearney Consulting

Figure 4. Diversification of single-source suppliers, by pre-qualifying and dual-sourcing, can also help mitigate the risk from geographic concentration. Kearney analysis

Invest in Industrial Efficiency

• Long term sustainability through resource savings

• Economic growth

• Environmental compliance

• Contributes to social development

Services include:

Green skills development

Industry and sector knowledge sharing

Company technical support

Funded by the dtic, hosted by the CSIR

ECO-INNOVATION

for textile companies

BY LESEGO HLALETHWA, NCPC-SA

To strengthen the South African textile sector, promote circularity, sustainability and enhance competitiveness, the United Nations Environment Programme (UNEP), the National Cleaner Production Centre South Africa (NCPC-SA) and the Centre for African Resource Efficiency and Sustainability (CARES) have collaborated on the implementation of a three-year project funded by the European Union – the Innovative Business Practices and Economic Models in the Textile Value Chain or InTex.

In July 2023, the InTex Project implementing partners, the NCPC-SA and CARES, hosted roadshows across two provinces to facilitate a dialogue between the project steering committee including the Department of Science and Innovation, Department of Forestry, Fisheries and Environment, provincial and local government as well as government stakeholders and participating small and medium enterprises (SMEs). The roadshows resulted in numerous resolutions based on the challenges shared by SMEs. While the list is not exhaustive, the SMEs raised the following:

• A need for third-party verification systems or a form of certification to verify the implementation of processes in sustainable innovation.

• Municipalities’ availability to offer support to the textile and clothing industry as well as access to a contact person to provide such support.

• Solutions to dispose of synthetic fibre waste in an environmentally friendly manner.

• A need to address prevalent job losses in the sector due to factors such as the energy crisis and natural disasters.

• Prioritising skills development for the sector.

• Prioritising access to finance for circular economy and other green projects, as well as incentives for their implementation.

In the resolutions, access to funding proved the most eminent. The NCPC-SA and CARES have already started to roll out interventions to address this. They recently co-hosted a green finance workshop. The NCPC-SA manager for strategy and innovation, Lee-Hendor Ruiters, says: “Having previously organised green finance workshops for various industries, we recognised the need to tailor our approach to cater specifically to the textile sector.”

The green finance workshop was presented by financiers from renowned commercial banks, development institutions and the Department of Trade, Industry and Competition. The primary objective was to unpack the various finance mechanisms that support the implementation of green projects and explain the different government incentives available to support the sector.

“One of the things that makes the green finance workshops a success is that they offer valuable insights and solutions to overcome the financing challenges that hinder the textile sector’s progress towards a green economy. Furthermore, the inclusion of a presenter from the Global Reporting Initiative enhanced the workshop by helping companies to better understand their contribution to a sustainable global economy and facilitating the reporting of their environmental impact,” Ruiters adds.

Through this intervention, the duo (NCPC-SA and CARES) hopes to help SMEs accelerate their access to finance journeys while strengthening participation in eco-innovation. Eco-innovation can help companies access new and expanding markets, increase productivity, attract new investment, increase profitability and stay ahead of regulations and standards.

To unlock similar opportunities for your business, contact the NCPC-SA at ncpc@csir.co.za or visit www.ncpc.co.za to learn more about free business interventions.

The textile industry is a significant global commodity that generates job opportunities and contributes to the economy. However, its low reuse and recycling rates raise concerns about resource waste and carbon emissions.

Eco-innovation can help companies access new and expanding markets.

Lee-Hendor Ruiters, Innovation and Strategy Manager, NCPC-SA.

ROAD to

The SUSTAINABILITY

BY TRIVENI TURBINES

The thermal treatment of waste is an environmentally acceptable alternative method, also known as incineration with energy recovery. The Refuse Derived Fuel (RDF) production involves separating, sorting, drying and compressing the combustible portion of the waste, resulting in a product which can be used as a feedstock for thermal processes.

The case study outlines the capabilities and the solution offered by Triveni Turbines to customers through a waste-heat-recoverybased power generation system to help boost the bottom line and promote sustainable manufacturing.

CASE STUDY 1

Waste-heat-recovery-based power plant installed in Poland

Zarmen Group is a prominent manufacturer of blast furnaces and industrial-heating coke. The company specialises in crafting a variety of forged products using hydraulic presses. These products are designed to meet the requirements of both the European and American markets and encompass products such as bars, forged rings, discs, metallurgical rolls, flanged shafts and other customshaped forgings.

Challenges. The fluctuating steel production levels and capacities mandate the need for designing and operating steam turbines with a power range of 3MW to 30MW. This variability arises from a range of load demands and the availability of steam supply. Furthermore, adherence to European standards and the Polish grid code is imperative to meet the required specifications.

Solution. Triveni Turbines has successfully engineered an extraction condensing steam turbine along with a control system. The alternator and electrical systems were specifically tailored to suit the conditions of the Polish grid. The implementation of SIL-rated PLC and SCADA systems, including redundancy measures, was utilised to ensure safe operations and to meet the demands for steam. Consequently, the customer can now operate within a range of power outputs, from lower levels to full load, with ease.

Advantages of combined heat and power plant or cogeneration

In a traditional power plant setup, fossil fuels are combusted within a boiler to create high-pressure steam, which is subsequently employed to propel a turbine that, in turn, drives an alternator to produce electricity. In contrast, within a combined heat and power (CHP) or cogeneration plant, biofuels are incinerated in a boiler to generate low-pressure steam through an extraction turbine, primarily for heating applications. This approach results in the simultaneous production of CHP. The cost of power generated using this method is approximately 14% to 15% lower compared to the cost of power produced by independent power plants, where the customer benefits from generating solely electrical power.

The case study outlines the capabilities and the solution offered by Triveni Turbines to customers through a biomass-based power generation system to help boost the bottom line and promote sustainable manufacturing.

With over five decades of experience in the industrial steam turbine sector, Triveni Turbines has recognised the imperative for technology that can reduce carbon emissions in manufacturing facilities and has played a pivotal role in assisting clients in generating power on their own.

Driven by a 30MW extraction condensing steam turbine with an inlet steam parameter of 65 bar and 490°C.

BIOENERGY SOLUTIONS

The bio-power sector processes numerous potential feedstock into various forms, including solid fuels like biomass or wood pellets, sugarcane residues and palm oil residues, as well as liquid biofuels such as ethanol and gaseous fuels like biogas and landfill gas. These are utilised for generating electricity, providing heat and serving as transportation fuels. Residues derived from the sugar industry, in the form of biomass, are effectively utilised as a sustainable fuel source for power generation. Similarly, the pulp and paper industry places continuous emphasis on enhancing energy efficiency. This goal is achieved by increasingly employing biomass-based fuels, such as wood waste, for power generation as well as by optimising steam usage. The push to harness locally available agricultural and forest residues has enabled power generation near the point of consumption, thus facilitating the establishment of biomass-based power generation facilities.

CASE STUDY 2

Biomass-based power plant in Turkey Challenge. Fluctuations in the accessibility of biomass fuel including forest and paddy waste as well as canola, sunflower and sweet corn stalks can disrupt daily operations. These variations in fuel supply can impact the boiler’s load, subsequently affecting the operation of the steam turbine.

Solution. The turbine’s internal components, including the rotor and blades, as well as the turbine controls, have been specifically engineered for optimal efficiency and reduced maintenance when operating at lower loads. Despite the challenging circumstances of the pandemic, the steam turbine generator (STG) was delivered within a remarkable seven-month timeframe, and its assembly and commissioning were successfully completed within 35 days. Benefits. The customer is now able to run the power plant in varied fuel conditions by overloading the STG set wherever possible.

To complement the above Triveni’s refurbishment arm, Triveni REFURB provides an after-market solution for the complete range of rotating equipment across the globe. From steam turbines and compressors to the gas turbine range, we have adapted ourselves to ensure that customers find a one-stop solution.

With rising costs, operating turbines efficiently is a necessity for cost-saving and creating a positive carbon footprint. With age, the turbine becomes inefficient and increases the cost of producing power. Our team works with the customer to understand the current needs and redesign the existing turbine across all brands to meet the new parameters.

Our efficient improvement programme is aimed at existing turbines across all brands by retaining the existing housing and civil works. The internals such as the rotor, stator, bearings, etc are replaced with our highly effective design and upgraded steam flow path offering

customers the following benefits:

• Up to 15% improvement in efficiency

• Re-use existing turbine housing and auxiliaries

• No modification on civil foundation and structures

• Life extension to over 100 000 hours

• ROI in under two years resulting in increased profitability of operations

Our track record includes projects that are successfully commissioned by assisting the customer through lower OPEX costs.

CASE STUDY 3

Improving the overall performance of a geothermal power plant

Our client, a prominent player in the geothermal energy industry, was using an American-made turbine. They faced ongoing issues related to erosion and corrosion, along with a considerable reduction in the lifespan of the rotor material. These challenges had a substantial negative impact on the performance of their 16MW turbine.

Challenges. The client encountered a trio of significant challenges, which included recurrent erosion in blade tenons, the formation of cavity in high-pressure gland areas and the need for improvements in rotor material.

Solution. Following a thorough assessment of possible solutions and partners to tackle these issues, our client strategically chose to collaborate with Triveni Turbines. This decision was influenced by Triveni Turbines’ significant proficiency in rotor remanufacturing and its position as an OEM.

Triveni REFURB initiated a cooperative effort with the client, conducting comprehensive analyses and providing the following innovative solutions that encompass the design of an integral shroud, enhancement of rotor material, application of coatings and precision-shot peening.

Benefits. The adoption of these advanced solutions resulted in a wide range of concrete advantages for our client, including extended turbine lifespan, increased reliability, improved plant efficiency and enhanced availability.

Triveni Turbines’ expertise in rotor reengineering combined with innovative design adjustments addressed the erosion, corrosion and material challenges encountered by the client. This collaborative effort not only prolonged the turbine’s operational lifespan but also considerably improved the overall efficiency and reliability of the geothermal power plant.

Over the years, the company has remained dedicated to delivering steam turbine solutions that are both economically feasible and environmentally sustainable across various manufacturing industries. It has played a pivotal role in helping carbon-intensive industries reduce their emissions. The lesson learnt by both Triveni Turbines and the wider manufacturing industries pertains to the significance of policies, technological advancements and investment aimed at mitigating greenhouse gas emissions.

Driven by a 16MW condensing steam turbine with an inlet steam parameter of 42 bar and 450°C with 0.1 bar exhaust.

Smart Manufacturing’s Great Convergence:

INDUSTRY 4.0

Most manufacturers’ concerns revolve around figuring out how to improve the supply of raw materials and meet demand while controlling both costs and quality. For many manufacturers, the solutions to these issues have emerged in the application of the technologies known collectively as Industry 4.0.

BY KEARNEY CONSULTING*

DEVELOPMENTS IN INDUSTRY 4.0

3D printing

3D printing (3DP) is getting faster and stock material prices are falling. Even though 3DP’s contribution to manufacturing is minuscule (about 0.1%) compared with traditional manufacturing methods, the growing number of applications and demand for custom manufacturing will continue to expand the market. One major driver of the increasing speeds for prototyping in a production environment is lasers, which enable faster sintering or bonding of the build.

The emergence of 5G-enhanced IoT applications is helping manufacturers realise their vision of Industry 4.0.

3D printers will continue to evolve, using artificial intelligence (AI) and machine learning (ML) to improve build rates and quality while continuing to push the break-even point with traditional processes. The focus will be on producing cost-effective metal powders to become even more cost-competitive.

Advanced robotics

The adoption of advanced robotics in manufacturing has steadily accelerated, with the pandemic’s unique challenges adding a catalyst for the transformation. The global average industrial robot density in manufacturing reached an all-time high of 126 robots per 10 000 employees in 2021, compared with 66 robots per 10 000 workers in 2015. Advancements in technology platforms such as the Industrial Internet of Things (IIoT) and connected systems are upgrading the functionality of robots and paving the way for collaborative robots (co-bots).

The costs associated with adopting robots continue to decline, making them more accessible even for small and medium-size businesses due to rising labour costs. The unit cost is expected to drop 50% to 60% by 2025. A decrease in material and technology costs, improvements in IIoT and cloud infrastructure, as well as the ease of connecting robots to existing systems all allow for easier and cheaper transitions for manufacturers.

The introduction of co-bots has made advanced robotics more accessible to enterprises of all sizes and significantly reduced the required upfront investment, making it the perfect choice for mass adoption in the manufacturing sector.

Advanced robots, especially for material handling, are undergoing a revolution along with advances in autonomous driving and battery life with automatic guided vehicles. This trend is coupled with pickand-place robots for simple operations on assembly lines.

new IIoT applications and services to improve quality and productivity.

According to Gartner, 50% of industrial enterprises will use IIoT platforms by 2025 to improve factory operations, up from 10% in 2020. The global IIoT market stood at $216.1-billion in 2020 and is expected to reach $1.1-trillion by 2028.

The emergence of 5G-enhanced IoT applications is helping manufacturers realise their vision of Industry 4.0 more than any other development.

Artificial intelligence

AI is still a nascent technology in manufacturing, but recent breakthroughs in ML techniques (deep learning) have sparked high expectations for future applications. Cognitive modes such as natural language processing, computer vision, pattern recognition and reasoning with ML techniques are widening the array of potential applications for manufacturers.

Wearables

Wide adoption of wearable technologies across industries has intensified competition and driven innovation and investments across the ecosystem. The global industrial wearables market is expected to reach $8.4-billion by 2027, up from $3.8-billion in 2019.

Cost-effective and more sophisticated AR/VR headsets from original equipment manufacturers such as Sony, Google, Microsoft, Apple, Facebook and HTC have emerged in both the consumer and industrial spaces. AR and VR software developers now implement ML and AI in apps for wearables, allowing systems to see and analyse anything in their fields of vision.

The Industrial Internet of Things

The IIoT uses connected assets to provide visibility and transparency in factory operations. A typical smart factory IIoT ecosystem includes sensors, connected devices, networking and connectivity solutions, edge and cloud infrastructures, IIoT platforms and gateways and analytics applications. This ecosystem is rapidly advancing and becoming more sophisticated, resulting in the rapid deployment of

This growth is being driven by the digitisation of data, rapid growth in IIoT data sources, hardware developments and the democratisation of AI and data, among others. Relative to other Industry 4.0 technologies, the hardware cost for AI is small, and most of the investment is spent on developing and rolling out the software solution. Consulting, maintenance and training services do incur additional costs.

Advanced analytics and ML create tremendous value in applications where yield and process waste is a big issue, especially in process industries where even a percentage point of improvement is in the millions. While the technology continues to advance, many firms struggle to extract the full value.

THREE CHALLENGES

The shortage economy

Many global manufacturers and distributors have been unable to achieve their desired outputs because of a shortage of raw materials or other components, a lack of resources to run their operations or limitations to internal capacity due to asset or space constraints.

These challenges must be addressed through better planning, installing more long-term capacity and improving the allocation of resources. However, when manufacturers look at what they can do immediately, they should seek to answer one key question: How do we make better use of the resources we do have? This requires enabling

asset uptimes, empowering operators to be more productive and reducing process waste. By design, I4.0 technologies tackle each of these issues.

3D printing

3DP uses less energy than conventional methods but requires more material input for an equivalent final product. However, when 3DP is achieved at scale, it creates less waste, and the final products contain less material and weight. In fact, according to a Michigan Technological University study, it takes 41% to 64% less energy to 3D print an item than to manufacture ship it, which results in using fewer materials and having a shorter lead time. Even though 3D printers use different, more expensive counterparts to raw aluminium rods or plastic pellets, such as photopolymers, polymer powders, filaments and metal powders, the cost of these materials has been coming down. The prices for 3DP materials are expected to continue to drop by about 6% until 2027, further lowering the costs of printing.

3DP expands a site’s capacity by reducing unplanned downtime thanks to the rapid production of maintenance parts. A maintenance team aims to hold many replacement parts on-site with the ability to make repairs rapidly, all at low inventory cost. By introducing 3DP to a maintenance team’s repair shop, technicians can create parts customised to their site’s machinery and complete work orders quickly to prevent a loss of production capacity. Nuclear plants and space/space exploration are two places where instant and on-site replacement parts are most critical and will help drive 3DP innovation.

Advanced robotics

Robotics has been a key lever for improving productivity in the manufacturing industry since its introduction by increasing the time available for production and reducing the cycle time of operations. According to a Vanson Bourne survey, 23% of unplanned downtime was caused by human errors. These errors can be avoided with the use of automated robots.

Robots and automation are now seen as ways to fill in for roles that are ergonomically challenging or pose a safety hazard for workers. For example, modern automatic guided vehicles move both large and small loads and reliably lift them up multiple levels, which requires more effort and time from humans. Manufacturers are adopting ever-more automated robotics solutions to cater to surging demands and mitigating labour shortages.

Wearables

Manufacturers have begun equipping operators with AR-VR-enabled wearable devices to facilitate remote assistance from experts and engineers and improve 3D visualisation of shop-floor processes.

The Internet of Things

Through IIoT, predictive maintenance is enhanced to reduce machine downtown and prevent accidents and other factory disruptions. This improves labour working conditions and assists leadership in tackling the changing requirements of employee needs.

Remote work is made possible by equipping tools and machines with IIoT sensors, which are connected to cloud platforms that remotely and in real-time report the condition, usage, pressure and temperature attributes of machines. Systems are built to proactively alert remote technicians if an event requires their attention.

Predictive maintenance

AI/ML-based analysis of the large amounts of data that sensors collect help identify potential issues with machines and recommend early maintenance to prevent failure and machine downtime significantly.

IIoT sensors automatically shut down machines, preventing potentially life-threatening safety incidents.

Precision manufacturing capability

With the growing complexity of processes such as moulding, machining and milling, data from the more complex micro-molded and machined components can be captured with the help of sensors. Controls help execute actions and ensure more streamlined repeatable processes. This establishes consistent output quality, decreases defects and reduces raw material consumption, increasing the yield.

A fully automated machine can communicate with servers in real-time, enabling operators to modify machine functioning to reduce waste. Through these gains in production, efficiencies and reduced scrap, the time to market for products can be significantly reduced.

Asset tracking

Asset tracking is one of the most exciting Industry 4.0 applications for manufacturers, allowing them to track not only their own machines and productivity but also their suppliers’ assets to foresee any supply challenges that might arise. With the IIoT, manufacturers know where and how their goods from suppliers are stored and when they can expect them. This is made possible by having sensors transmit the items’ locations, which GPS satellites pick up, giving manufacturers more visibility into their raw materials and enabling them to make their supply chain more resilient to disruptions.

Artificial intelligence

Many manufacturers face capacity shortages driven by factors such as demand changes, labour shortages, and supply chain constraints. Where demand increases are beyond capacity, structural changes to the manufacturing network are required with significant capex investments and long lead times or outsourcing to a third party. Many firms look for rapid solutions to address the immediate need, capturing immediate revenue, maintaining customer relationships and reducing costs. Delivering this kind of turnaround is among the key benefits of Industry 4.0.

The heart of any prescriptive maintenance solution is a highaccuracy and high-frequency assessment of asset health, allowing for the right balance and timing of interventions. These accurate assessments reduce preventive maintenance costs and downtime.

Mass customisation today is a competitive advantage in the manufacturing process.

23% of unplanned downtime was caused by human errors.

Data is at the core of these solutions, as it is vital to capture data to predict asset health and is necessary for understanding the business operations. To interpret this vast amount of data, often at high frequency with multiple sensors per asset, it is important to use ML, which detects outliers and their correlations to potential future failures.

A range of analytical solutions can improve cycle time, from more basic solutions such as data capture and visualisation solutions providing transparency on the production line to more sophisticated AI-driven solutions such as production process parameter optimisation. In the latter case, data and ML algorithms are used to map the relationship between production process inputs and outputs, such as cycle time.

An enhanced factory layout informed by AI improves productivity by 10% to 20%. Factories are often designed and then manufactured using a computer-simulated factory. In practice, factories evolve and some components do not operate as planned. A data-driven retrospective analysis of factory operations often reveals significant improvements with simple and cheap modifications.

The ESG imperative

ESG has emerged as a crucial focus area for companies around the world. As it pertains to manufacturing, the focus is on two elements:

environmental and social. The environmental task is not new. Manufacturers must find ways to reduce their emissions of harmful agents. The key is to use less and to waste less, while maintaining the same output.

The social task is one that some manufacturers have put on the backburner for far too long. I4.0 technologies empower companies to ensure operators can work in fair and safe conditions. They create opportunities to drive down labour costs without making harmful tradeoffs.

3D printing

3DP is far more productive since it fabricates the item layer by layer, resulting in considerably less scrap waste (about 70% to 90% ). Also, most of the scrap generated from additive manufacturing comes from failed prints.

Advanced robotics

Robots are now used in a variety of green initiatives in the manufacturing industry. Robotics has made many complex processes more economically viable thanks to its flexibility and 24/7 availability. In the automotive industry, the robots used in production account for 8% of total energy consumption throughout their lifecycle. Manufacturers’ focus on sustainability is driving the research into making robots more energy efficient. Technologies such as power-saving modes and energy monitoring are gaining prominence. Fundamental changes around movement, pivots and processes to reduce power consumption are being pursued for the robots of tomorrow.

Tastes great zero plastic waste

WHO WE ARE

We are an innovative green manufacturing company. Our goal and passion is to find sustainable solutions to help reduce single-use plastic waste globally by producing eco-friendly, wholesome, edible products that help users reduce their carbon footprint. Our products are vegan, chemical and GMO-free making them wholesome thus serving both the consumer and

We have three sizes in plain and sweet

• 300ml bowl able to hold any food even hot soup for three hours

• 150ml saucer for baking tarts or serving mini mezze platters

We are the best alternative to single-use plastic

We endeavour to add more edible products to our bowls

Using robots to avoid exposing people to toxic environments has been a practice for a while and with evolving technology the functionality of robots in such environments is expanding.

The evolution of co-bots is another key development in robotics that improves productivity, safety and ergonomics in the workplace. Co-bots alleviate the problem and improve the working conditions by taking on jobs that require repetitive movements.

Co-bots can also benefit small- and medium-size enterprises since they occupy less space on the shop floor, are easily customizable and cost less than traditional industrial robots. The share of industrial co-bots has doubled in the past three years and continues to grow along with reducing prices.

Wearables

Wearable devices and AR create new ways of working by using digital displays to overlay information on physical objects, which makes training and working easier for new and inexperienced employees. The technology gives workers step-by-step instructions and guidance, which reduces the chances of mistakes, rework and waste during the manufacturing or assembly processes.

Industrial smart wearable devices along with connected worker solutions provide a viable option to identify, mitigate and control occupational hazards. Various devices provide capabilities to correct ergonomics while performing jobs, identify hazardous conditions, detect and manage operator fatigue and contact trace within a work site. Connected worker solutions act as a central hub to collect, store and analyse data from workplace wearables for better tracking of health, safety and environment conditions.

The Internet of Things

Repairs and fuel expenditures can be reduced by identifying and monitoring issues early and taking corrective action. With sensors, companies can monitor vehicle fuel consumption, conduct faulty parts diagnostics and monitor drivers.

Sensors collect huge amounts of data that can be continuously analysed, allowing manufacturers to predict the energy demands of an operating facility and optimise consumption. Large-scale machines, robots and HVAC systems can be monitored in real time to identify areas where energy is being overconsumed.

With increased data analysis with the help of AI/ML, systems reduce the amount of energy used by automatically triggering the controls on energy-consuming machines. Energy monitoring helps with predictive maintenance and identifying faulty machines.

Demand and consumption charges are the two cost drivers for industrial energy consumption. IoT monitors and reduces the load required by machines, which in turn reduces consumption costs.

IoT allows for real-time tracking using sensors so energy consumption can be enhanced through smart load-changing devices. These sensors provide real-time usage alerts and pattern insights that optimise consumption. With the right computing algorithms, practicable insights are gathered to reduce future consumption.

According to the World Economic Forum, IIoT, combined with other digital applications such as 5G and AI, could help cut global carbon emissions by 15%.

IIoT helps businesses reduce their energy and raw material consumption through monitoring and limiting waste with quick decision-making enabled by reduced human intervention. IIoT improves coordination in various manufacturing support functions. IIoT contributes to a more sustainable product life cycle, reducing waste, raw materials and energy consumption and contributing to freshwater conservation and circularity.

Artificial intelligence

A range of AI solutions can help deliver greener products and processes. For example, yields can be improved by 2% to 5% for production processes. Improving yield, and consequently reducing scrap, has obvious environmental benefits. This is often achieved

through a combination of sensors and ML algorithms that determine the optimal combination of inputs to maximise yield. The algorithms learn relationships between a range of controllable and noncontrollable parameters and the production process, allowing for a range of input settings to be tested and evaluated to determine an optimum configuration.

Energy consumption is one of the biggest negative externalities associated with many manufacturing processes. AI can reduce energy consumption and ensure that the energy consumed is sourced from the cheapest and most environmentally friendly places. For instance, many solutions enhance large-scale batteries to ensure that energy is exported from the grid at optimal times and that locally generated energy is used most efficiently.

Advanced robotics

Mass customisation today is a competitive advantage in the manufacturing process, but this shift in consumer behaviours will soon force it to become a necessity. Historically, it has been challenging to widely deploying robotics and automation in flexible manufacturing because of a lack of communication system infrastructure and expensive robotic technology to automate the end-to-end process.

Robotic cell manufacturing has emerged as a method to overcome the challenge of an assembly line’s mass production and to enable mass customisation. Modular robotic cells are the next generation of assembly lines.

Wearables

Wearable devices to keep the workforce safe saw tremendous growth last year, and what we will see moving forward is an augmentation of these devices. Manufacturers are under mounting pressure amid rising customer demands for highly customised products. Typically, this burden is placed on shop-floor operators, who often struggle to juggle multiple sets of work instructions or standard operating procedures for each new consumer request. AR-enabled devices are a viable alternative to paper-based work instructions while producing build-to-order parts, short production runs and mass-customised orders.

The Internet of Things

Through IIoT-enabled sensors, businesses improve their forecasting and demand planning initiatives to significantly cut lead times. Connected devices track information and customer needs from order placement to post-sale. This data helps manufacturers prepare for changing customer needs and the growing demand for customisation. IIoT devices improve production efficiencies and make factories smarter. This leads to improved productivity, quality, yield and reduced inventory and scrap. All these enhancements driven by IIoT enablement expedite service calls and repairs to reduce warranty costs for products post-sale. Predictive maintenance drives reduced production downtime, providing additional customisation capacity.

Artificial intelligence

With the growing presence of data and digital through a range of customer journeys, people expect more personalisation of products and services. While it is important to satisfy customer demand, many manufacturers have complex portfolios with many margin-negative products, and in these cases, AI rationalises the portfolio.

Conclusion

As manufacturers continue to find ways to meet demand and improve their overall cost structures, one area that is fundamentally changing is the attitude toward Industry 4.0 challenges. They have shifted their focus toward gaining market share or looking at missed opportunity costs. Smart manufacturing Industry 4.0 is poised to enable manufacturing firms to produce more economically at a faster pace and with better quality, safety and visibility across the supply chain.

*Authors: Azaz Faruki, Doug Mehl, Nick Anderson

THAT’S SUSTAINABILITY, FIRST.

As the first to introduce a CO2 rating system across all products, AfriSam became the first cement manufacturer to achieve a 33% reduction in CO2 emissions since 1990. It’s just one of the firsts we’re proud to have laid the foundations for since starting our sustainability journey over three decades ago. As the industry’s leaders in sustainability, putting sustainability first has been, and always will be, second nature to us.

The City-State/ Infrastructure Nexus

SINGAPORE, NEW ZEALAND AND TAIWAN AS CASE STUDIES

BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST

In the previous issue of this journal, I examined the relationship between Singapore as a City State and the condition of its infrastructure networks. Infrastructure networks is a useful way of conceptualising the system of infrastructure design and development. Infrastructure networks are systems that provide essential services for people.1 They include:

• Transport. Public transport, roads, railways, airports, ports, etc.

• Energy. Power generation, transmission, distribution, storage, etc.

• Water. Water supply, treatment, distribution, storage, etc.

• Waste. Waste collection, recycling, reuse, disposal, etc.

• Sanitation. Wastewater collection, treatment, reuse, recycling, disposal, etc.

These individual systems are co-dependent on other infrastructure systems, often with energy being the common denominator. Ultimately, an infrastructure network is a network of networks. These infrastructure networks can have significant impacts on the environment, the economy and the quality of life of communities.2

I have also previously alluded to the cause-and-effect debate around infrastructure investment and economic growth. In the past, research has attempted to estimate the productivity of infrastructure investments. Studies seeking to link aggregate infrastructure spending to GDP growth show very high returns in a time-series analysis. Other cross-national studies of infrastructure spend and economic growth also show that infrastructure variables are positively and significantly correlated with growth in developing countries. However, the World Bank notes that in both types of studies, “whether infrastructure investment causes growth or growth causes infrastructure investment is not fully established.”3

Llewellyn van Wyk.

That report noted that “there may be other factors driving the growth of both GDP and infrastructure that are not fully accounted for” and furthermore “neither the time-series nor the cross-sectional studies satisfactorily explain the mechanisms through which infrastructure may affect growth.” More critically from the perspective of this thinkpiece, the World Bank report notes that “there is a suggestion that infrastructure has a high potential payoff in terms of economic growth, yet they do not provide a basis for prescribing appropriate levels, or sectoral allocations, for infrastructure investment.” It further notes that “other evidence confirms that investment in infrastructure alone does not guarantee growth”.

It is also not clear whether these studies have factored in the longterm maintenance costs associated with the initial capital investment.

CASE STUDY

When discussing infrastructure networks, it is quite useful to compare Singapore to New Zealand and Taiwan. They are all island states with both Taiwan and Singapore being small countries, and they all have highly-developed economies.

Singapore

The land size of Singapore is 728.6 square kilometres with a population of 5.454-million resulting in a population density of 8.019.

The World Economic Forum’s Global Competitiveness Report 2019 ranked Singapore at 1 overall. Its infrastructure quality was also rated at 1 overall. Road connectivity was not ranked as data was not available for the report, but the quality of road infrastructure was rated at 1, railroad density at 1, efficiency of train services at 5, electricity access at 2, electricity supply quality at 2, exposure to unsafe drinking water at 25 and reliability of water supply at 7.

New Zealand

The land size of New Zealand is 268 021 square kilometres with a population in December 2022 of 5.15-million resulting in a population density of 19.21 per square kilometre. Of the roughly 5.1-million people, about 1.6-million live in Auckland, 381 500 in Christchurch and 212 700 in Wellington. This means that almost half of the total population resides in three major cities in the country, with the remainder of the population dispersed across South and North Island in small towns and villages all of which need to be serviced by both hard and soft infrastructure.

The World Economic Forum’s Global Competitiveness Report 2019 ranked New Zealand at 19th overall. It ranked New Zealand’s overall infrastructure at 46, road connectivity at 51, its quality of roads at 52, railroad density at 50, efficiency of train services at 42, quality of railroad infrastructure at 41, electricity supply quality at 40, exposure to unsafe drinking water at 29 and reliability of water supply at 36.

In recent years, New Zealand has invested around 4.5% of gross domestic product (GDP) in network infrastructure (electricity, telecommunications, transport and water) and social infrastructure

(education and health).4 However, New Zealand’s infrastructure hole has been estimated at $210-billion, requiring an annual spend of 10% of GDP for the next 30 years to build the new networks needed.5

There is a strong debate in Auckland about its future growth pattern – compact urban city versus urban sprawl. While the city’s Unitary Plan seemed to lean toward urban sprawl, the recent flooding, slope instability and infrastructure damage caused by the cyclonic activity which impacted on the country over the past two years has caused a rethink, with consideration now been given to areas previously earmarked for urban expansion reverting back to rural land zoning.6 As Louise Johnston, the Dairy Flat Representative on the Rodney District Board notes, “The cost of the infrastructure is one thing that cannot be debated. Greenfield development costs billions and developer contributions don’t come close to funding even the basic infrastructure (roading, waste and water). However, when urbanising greenfield areas on a large scale, we can’t just focus on the infrastructure within the development – the surrounding road networks and connections need to be upgraded to cope with the thousands of extra cars on the road. How this infrastructure is to be funded is an unanswered question. Council’s financial woes are well documented: the cash-strapped council doesn’t have the financial means to fund the operating costs of its current community facilities in the long term, let alone build new ones to make new urban areas liveable.”

Taiwan

The land area of Taiwan is 31 197 square kilometres with a population of 23.9-million giving a population density of 676 persons per square kilometre. In recent years, Taiwan has invested 5.6% of gross domestic product (GDP) on economic infrastructure. However, Taiwan has a high per capita GDP of USD32 811 in 2020, and a well-developed and efficient network infrastructure that sets the country apart from others.

The World Economic Forum’s Global Competitiveness Report 2019 ranked Taiwan at 12th overall. The overall quality of infrastructure was ranked at 16th. Road connectivity was ranked at 81, quality of road infrastructure at 12, railroad density at 22, efficiency of train services at 8, electricity access at 2, electricity supply quality at 8, exposure to unsafe drinking water at 38, and reliability of water supply at 45.

Compactness and strategic investment decision-making are key factors in Taiwan and Singapore’s success.

THOUGHT LEADERSHIP

KEY DATA

For purposes of this exercise, data were sought that would be correlated to compactness, using high population density as a proxy (population, land area, population density).

Economic data that could be correlated back to infrastructure is included using GDP per capita and infrastructure investment as a percentage of GDP. This should indicate whether economic growth is dependent on infrastructure spend.

Infrastructure data explores the relationship of scale: specifically, how population density correlates with the extent of the infrastructure network.

FINDINGS

A number of interesting deductions can be made from the above data.

Singapore’s success can be ascribed to two key factors: a very compact but efficient infrastructure network and a high GDP per capita. These two factors are mutually supportive: efficient and compact infrastructure networks are less complex ie a group or system of different things that

are linked in a close or complicated way and are therefore better able to support economic and social well-being while requiring less of the national fiscus to maintain it.

All three countries are spending roughly the same percentage of GDP on economic infrastructure. Strikingly, Taiwan, with a lower GDP per capita than New Zealand, ranks much higher than New Zealand in all the infrastructure-related indices.

There is a suggestion that infrastructure has a high potential payoff in terms of economic growth.

Both Singapore and Taiwan have a smaller water pipeline network, less roads, a smaller but fully electrified railway network and consequently a transport sector using less of the national energy demand than New Zealand. However, the number of private vehicles in Taiwan is surprising.

Singapore and Taiwan’s electric energy consumption per person is equally surprising and without having any explanation readily to hand, one could surmise that it is related to the dependency of air conditioning due to the tropical climate. New Zealand data suggests a problem with poor household energy efficiency due, in large part, to a history of poorly and/or uninsulated homes. Estimates for uninsulated or poorly insulated homes in New Zealand vary between 600 000 and 1.4-million.

The number of wastewater treatment plants in Thailand is noteworthy and may be correlated to industrial demand, especially for the semi-conductor industry. The low ranking of all three regarding unsafe drinking water is a big surprise and would suggest that providing safe drinking water is a challenge for all countries.

CONCLUSION

Scale would appear to be the big issue: this requires a compact infrastructure network coupled to strategic decision-making in terms of what level of infrastructure goes where.

From the albeit limited evidence shown in the table, a correlation can be drawn between population density, GDP per capita and global infrastructure ranking. More research is required to make a definitive statement on this hypothesis. Compactness and strategic investment decision-making are key factors in Taiwan and Singapore’s success. This raises further issues that need to be investigated to the original proposition. One of these is the Compact City, and the other is the use of innovative engineering and integrated management approaches. The latter speaks to microgrids and distributed grids.

In the next issue these two factors will be further explored.

REFERENCES

Table 1: Key Infrastructure National Statistics Singapore, New Zealand and Taiwan.

World Bank 1994. “Infrastructure: achievements, challenges, and opportunities.” World Development Report 1994, p14.

3. Ibid.

4. NZIC, 2021. “Investment gap or efficiency gap? Benchmarking New Zealand’s investment in infrastructure.” New Zealand Infrastructure Commission, December 2021.

5. NZIC 2023. New Zealand Infrastructure Commission.

6. Johnston, L. 2023. “To grow, or not to grow.” Hibiscus Matters, August 7, 2023.

Whether infrastructure investment causes growth or growth causes infrastructure investment is not fully established.

BETTER MANAGING AIR QUALITY

“The monitoring, modelling and management of air quality has been integral for protecting human health from harmful air pollutants such as nitrogen dioxide, sulfur dioxide, volatile organic compounds (VOCs) and particulate matter,” explains Tularam. “It has also become important for companies to start applying modern techniques to quantify their carbon emissions as part of their climate change commitments.”

SA’s AIR POLLUTION

Some of South Africa’s cities and towns have poor air quality levels, according to IQAir’s 2022 World Air Quality report. The industrial hub of Gauteng recorded numerous periods, especially during winter when particulate matter (PM10 and PM2.5) concentrations were between three and seven times higher than World Health Organization (WHO) guidelines. The ranking placed South Africa as the 39th most polluted country out of the 116 nations measured.

Tularam, who is also the chairman of the National Association for Clean Air’s KwaZulu-Natal branch and on the national steering

committee, says that advanced technology has made it possible to monitor air quality more accurately and effectively, and in real-time.

FORECASTING AIR POLLUTION EVENTS

“Active real-time sampling has proven to be an efficient tool used in managing air quality, with data from air quality sensors continuously being transmitted to smart apps on our cellphones providing the latest air quality levels, as well as helpful context about how poor the air quality is in a certain region,” Tularam says. The solution usually starts with an ongoing robust air quality monitoring plan designed for clients to keep track of their ambient gaseous, dust and particulate matter emissions into the atmosphere.

By understanding the air pollution concentrations entering the atmosphere from a specific facility, factory or mine, an air quality management or mitigation plan can be developed and implemented. “This introduces practical measures to reduce emissions where necessary, and to remain compliant with national air quality regulations,” he explains. Strategies to reduce air pollution

impacts could include dust suppression techniques, gas abatement technologies (ie scrubbers or filters) and reducing traffic volumes.”

“Apart from these live systems providing us with real-time alerts of when air pollution levels exceed their specified health-based criteria, I think air quality forecasting techniques will play an everincreasing role in managing the impacts of air quality. This will allow key emitters to take proactive steps towards reducing their emissions during periods of unfavourable air pollution dispersion conditions and avert periods of poor air quality or at least try to. Real-time monitoring will confirm whether these interventions are working or not. After all, being forewarned is being forearmed,” he adds.

GAS FOR GOOD

Tularam points to one of the most potent greenhouse gases – methane – as a prime target in climate change strategies. Methane has an approximate global warming potential (GWP) of over 20 times that of carbon monoxide. On the plus side, it is also highly flammable and can be harnessed as an energy source.

“Methane is among the gases that we typically test for around landfill sites, along with carbon dioxide, ammonia, sulfur dioxide, nitrogen dioxide and VOCs,” he says. “We also monitor for hydrogen sulfide as a proxy for odour.”

He notes there is a growing interest in South Africa around bio-digestors producing biogas (containing methane) from waste for the purposes of generating energy. The biogas can either be bottled and supplied to customers or fed into the national energy grid. This diversion of waste streams from traditional methods of composting, landfilling and at times even burning, serves as a sustainable solution contributing towards baseload energy being produced in the country.

SRK is already involved in such a biogas project, which will generate energy and reduce greenhouse gas emissions as well as reduce the pressure on landfill sites while producing fertiliser as an organic by-product.

DATA DASHBOARDS

“Technology plays a role in helping us understand and respond to air quality data,” says Tularam. As monitoring becomes more digital and remote, larger volumes of useful representative data can be generated, transmitted and analysed – allowing for more efficient methods of interpreting and presenting data.

“To augment our specialist studies, SRK has used platforms like PowerBI to design air quality dashboards for clients,” Tularam says. “These dashboards provide quick insight into the data from their air quality monitoring equipment, highlighting trends and alerting them to any gaps in the data sets that need to be addressed.”

As climate change mitigation and adaptation continue to rank high as a corporate and government concern, he predicts that air

LOWER EMISSIONS: A COST IMPERATIVE

The enforcement of South Africa’s carbon tax is adding to the focus by mines and industry on greenhouse gas emissions, raising interest in the potential for converting methane into energy. According to Vis Reddy, chairman of SRK Consulting in South Africa, SRK’s established expertise in air quality management has broadened to integrate with its climate change focus.

“Traditionally, air quality management was part of environmental impact assessments – and this remains an important compliance aspect for our clients,” said Reddy. “The field of air quality and emissions today, however, links directly to climate change concerns and even energy security imperatives.”

He pointed to the example of methane emissions, a powerful greenhouse gas that has 21 times the global warming potential of carbon dioxide, in trapping heat within the earth’s atmosphere. As companies look to improve their sustainability ratings, many are considering generating energy from the methane they produce. This is now more easily achieved, as they can take advantage of South Africa’s recently relaxed private power generation regulations.

“Industry can now explore these options without needing to clear onerous regulatory hurdles that used to prevent private energy production,” he explained. “It is becoming an exciting opportunity for companies to reduce their carbon footprints. The case to be made is not only strategic but makes financial sense in terms of reducing carbon tax liability and addressing the rising cost of electricity – and unreliability – of the country’s grid energy.”

In the context of South Africa’s predominantly coal-fired power infrastructure, the environmental benefits of substituting grid power with gas-fired energy are enhanced. Companies making better use of their own methane emissions will also see their carbon footprint improve from drawing less from the national utility.

Among the industries where SRK is seeing more interest in these options are those dealing with biomass waste – which could be from animals or crops. There could also be potential in sewage treatment works, as sewage emits considerable quantities of methane. The waste management industry also has opportunities to capture methane emissions generated in bio-digestors and this can be used to generate electricity for in-house consumption or sale to other users connected to the grid – although there was little sign of movement in this sector.

Active real-time sampling in an efficient tool used in managing air quality.

quality monitoring and management will continue to be a growing focus. While there are plenty of challenges in achieving clean air, the good news is that there is an impetus to move towards cleaner renewable energy and to reduce or eliminate our reliance on fossil fuels, which remain one of, if not, the largest contributor to poor air quality.

Being forewarned is being forearmed.

Air in the country’s economic heartland, Gauteng, remains among the most polluted.

Creating a culture of RESPONSIBLE

CONSUMPTI N

Established in 1989, Interwaste prides itself on being one of the leading integrated waste management companies operating in Southern Africa. Green Economy Journal caught up with Kate Stubbs, marketing director at Interwaste.

Please tell us about Interwaste.

With over 30 years of experience, the foundation of the business was built on a strong desire to provide our clients with services and solutions that are compliant, customised to their specific needs, economically viable, socially conscious and which maximise value for our stakeholders, create sustainable employment and continually innovate and play a meaningful role in environmental stewardship. The Group provides a diversified range of waste management services to various market sectors throughout South Africa.

We employ over 1800 people, own more than 750 specialised wastehandling vehicles and equipment, service clients through a national footprint of operational centres and process waste through a variety of facilities including our own transfer stations, waste-to-energy, landfill, H:H solid and liquid treatment plants, recycling, safe destruction and materials recovery facilities.

In March 2019, Interwaste was acquired by the Séché Environnement Group, a leading international specialist in the treatment and recovery of hazardous and complex waste materials.

Please outline Interwaste’s offerings and services. Our services range from technical services such as waste classification through our accredited laboratories, alignment to regulatory compliance and developing solutions to assist clients in meeting their specific

We urgently need to change our mindset towards waste, and this requires a collective shift from every South African.

strategic and sustainability goals to waste treatment and recovery processes for a wide range of general and hazardous waste types through our facilities, effluent treatment plants, engineered landfills, dedicated services on a client’s site as well as licensed and professional waste logistics and handling expertise.

Interwaste has developed an integrated waste management model that is linked to the hierarchy that forms the cornerstone of its service offering. Please tell us more.

The aim of waste management is to protect the planet and its natural resources through the maximum extraction of the benefits from materials processed and then to manage waste in the best possible way so that the minimum amount of waste is produced.

All products and services have environmental impacts, from the extraction of raw materials for production to manufacturing, distribution, consumption and final disposal.

This is why an integrated approach to waste management is required to ensure the most resource-efficient and environmentally conscious decisions are made and that waste disposal is the last option for consideration as opposed to the standard linear model where waste is only considered at the end of the value chain and disposal thereof becomes the simplest solution.

The global hierarchy of waste management and circular economy approach are methodologies used to deliver sustainable benefits as the process not only considers and protects the environment but incorporates resource and energy consumption from the most preferred to least favourable actions. It prioritises waste-handling methodologies to keep materials in use for as long as possible and reduce waste volumes to landfill disposal.

What has made Interwaste a forerunner in the South African waste management sector?

Our Group philosophy is to assist clients to transition to a circular economy model and reduce their impact on the environment. We do this by continually investing in innovation, new technologies and developing solutions to convert waste into a secondary resource.

How does Interwaste drive innovation within the bounds of waste management compliance?

Through our approach to integrated waste management, we have not only built innovative solutions to tackle some of the industry’s largest waste challenges, but we contribute to changing the waste approach in the country as a result.

With changing legislation and an intrinsic need to preserve our environment, we have taken the lead in developing solutions that have longevity for today and the future’s, waste concerns and continually evaluate our sector to understand how we can diversify the waste management process to ensure we are leading the way and coming to the table with solutions that make sense for our clients, the environment and the communities that we serve.

We have also taken it upon ourselves to make sure that every operation within the organisation is not only compliant with local waste management legislation but that we are using best-in-class facilities to meet global standards and elevate the waste industry in South Africa.

What about our waste sector keeps you awake at night?

The South African waste sector has many challenges but therefore, there are also many opportunities to make a difference. We urgently need to change our mindset towards waste, and this requires a collective shift from every South African to becoming more responsible and accountable for the waste we generate in the country. We also need the education, awareness, systems and infrastructure to support this shift. This challenge can seem daunting at times and insurmountable but every bit counts.

A zero-waste future. Is it possible?

A zero-waste-to-landfill future is possible – this goal needs to be reached by 2030, looking at diverting 90% of waste from landfills using a “whole system” through recycling, reuse, recovery, beneficiation technologies, as well as value-adding opportunities which have the potential to create numerous environmental, social and economic opportunities for South Africa.

If a zero-waste sustainable country is to be realised, then “at the source waste” needs to be managed far more effectively to drive successful waste management, innovative solutions, a working recycling system and the creation of a culture of responsible consumption.

Companies need to look at their entire value chain to see how they can avoid creating waste and where waste is created, how it can be reduced, reused, recycled and repurposed. This is the start of the shift towards a circular economy.

When applied correctly, this approach can divert a large amount of our waste from landfill disposal, and potentially create numerous environmental and social opportunities for South Africans, as well as economic ones as well.

A circular economy is a model in which the consumption of resources and materials is circular rather than linear – meaning that we reuse these resources/materials (instead of merely throwing them away) and put them back into the economy and that waste is designed out of the system from the onset.

This, in turn, reduces the need to consume new materials. Typically, reusing or recycling is also less energy-intensive than manufacturing from scratch as there is a reduction in the impact and cost of using or extracting virgin materials. As a result, less fuel is used, and carbon emissions can be reduced at each stage of the supply chain. These factors combine to create an incentive to invest in long-term planning, maintenance, repairs, reuse, remanufacturing, refurbishing, recycling and upcycling to make our economy more sustainable.

And in South Africa?

Yes, this is possible for South Africa as well if we follow the abovementioned principle – but only time can tell whether we can meet the goal by 2030.

Kate Stubbs, Marketing Director at Interwaste.

The South African waste sector has many challenges but therefore, there are also many opportunities to make a difference.

Strive for Net Zero while saving money at the same time!

Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy available to the energy customer in South Africa.

Blue Sky Energy is an expert in the design, procurement and construction of such plants. Battery energy storage installations provide access to solar energy daily during peak hours when the sun is not shining and enable users to bridge their primary energy needs through grid interruptions. While the levelised cost of hybrid solar and battery storage installations is significantly greater than solar PV only, appropriately sized solutions can be commercially feasible. Would you like to know if your property or business can achieve energy security at the same cost or less than what you are paying currently?

Agrivoltaics and Solar Carports

Blue Sky Energy works with leading light steel frame construction suppliers to offer a range of innovative solutions such as agrivoltaics and solar carports.

Have you considered putting your spare space to work? Whether you have low-value land or large parking spaces, bring them to life through solar PV installations that create energy and highvalue spaces such as shade for parking or tunnels for agriculture.

Website: www.blue-sky.energy Email: enquiries@blue-sky.energy

Did you know that Section 12B of the Tax Act allows for the accelerated depreciation of your power generation capex, resulting in a 27.5% saving on your project installation?

CONTACT THE EXPERTS AT BLUE SKY ENERGY RIGHT NOW!