25 Degrees in Africa - JNL 3'09

4

SAICA takes the lead with Green

10

Zambia

14 16

Gautrain and BRT Freeway improvement project

12 Cover stories

18 Vision 2050 24 Countdown to Copenhagen 26 Climate treaty vision 28 GM sugarcane 32 The Jatropha debate 34

Fuel loss prevention programme

38 40

Solar farms in Africa EE funding for N2 Gateway

42

Have the G8 countries failed?

44

First floating nuclear plant

51

46 Power company offers solutions 48 Energy saving messages 50 Re-energising energy businesses 54 SANEA awards 62 63

DRC CDM project CDM 101: Carbon trading

65

Simplifying energy project approvals

66

Energy events

8 22

No 3 2009 25 o in Africa

25º in Africa: Africa’s Independent Energy Publication covers the whole gamut of energy sources, production needs, environmental impacts and the current issues surrounding them.

25º in Africa’s mission is to disseminate information on any and all energy-related issues, with an emphasis on developments in Africa and the impact on the environment.

The focus of the publication is on energy generation, but it carries related information to provide a broad, unbiased and independent view of all the pertinent issues.

Copyright: The copyright for all content of this publication is strictly reserved. No part of this may be copied in part or fully without the express written permission of the editor.

Disclaimer: Views expressed in this publication are not necessarily those of the publisher, the editorial team or its agents. Although the utmost care is taken to ensure accuracy of the published content, the publisher, editor and journalists cannot be held liable for inaccurate information contributed, supplied or published.

Contributions: The editor welcomes contributions and encourages items of interest to our readers in the energy sector. All advertisements and editorials are placed solely at the discretion of the editor and subject to prior approval. 25º in Africa reserves the right to edit, withhold or alter any editorial material to complement the style of the publication.

Subscriptions: 25º in Africa is currently published quarterly as a print publication. 25º in Africa is also available as a web download. For subscription information, please contact the editor or editor’s assistant (contact details supplied above).

Publisher: Media in Africa (Pty) Ltd www.mediainafrica.co.za • www.25degrees.co.za International Contact Information: Tel +27 12 347 7530 • Fax +27 12 347 7523 E-mail: marlene@25degrees.co.za Postal Address: PO Box 25260, Monument Park, 0105 Republic of South Africa Physical Address: First Floor, Unit G, Castle Walk Corporate Park Cnr Nossob & Swakop Streets, Erasmuskloof Ext. 3, Pretoria, Republic of South Africa The 25º In Africa team: Editor: Founder:

Marlene van Rooyen: +27 83 327 3746 E-mail: marlene@25degrees.co.za Schalk Burger (1943 – 2006)

Sales Consultant:

Andre de Wit: Tel +27 84 513 2580 E-mail: andredw@25degrees.co.za

Journalist:

Jody Boshoff: Tel +27 83 275 2526 E-mail: jody@25degrees.co.za Zuerita van Deventer: Tel +27 12 347 7530 E-mail: zuerita@25degrees.co.za Lourens van Rensburg E-mail: lourens@25degrees.co.za

Editor’s Assistant: Industry Consultant: Imbewu Sustainability Legal Specialists: Publishing Manager: Financial Manager: Design and Layout: Accountant: Proofreader: Reproduction & Printing:

Andrew Gilder: climate change and CDM legal specialist Liezel van der Merwe Fanie Venter MIA Graphic Studio - Adrie le Roux Sietske Rossouw E-mail: sietske@mediainafrica.co.za Angus Reid Business Print Centre

CCS: a viable option?

Ed Miliband, the UK Secretary of State for Energy and the Environment, recently had a whistle stop tour through Gauteng. He has tremendously strong views around tackling climate change and it was refreshing to see him discuss these issues so openly. Miliband reiterated that certain areas need immediate attention and pronounced CCS as a serious and viable option for climate change adaptation. In this issue we feature the largest CCS programme in the world currently in operation in Australia. Read more on page 19.

Developing countries and climate change Developing countries’ contribution to climate change: why do we think business as usual is an option at all?

Although the developed world must take responsibility for their historic contribution to climate change, developing countries can’t have a business as usual approach to economic growth. Herein lies the paradox: ¾ of the world’s future emissions will lie with emerging economies.

It is obvious: developing countries will require finance to develop these projects, but who will foot the bill? Where will the finances come from and, most importantly, are we capacitated to deliver the necessary strategies and implement the plans needed to facilitate the funding? Miliband made it very clear that financial assistance and donor funding must be presented in a governance regime, not a pledge based system, but that recipient countries would be required to submit a low-carbon development plan when applying for subvention.

To my mind, this is a very responsible plan and one that will place responsibility in the recipients’ hands. I anxiously await further commentary around this issue.

In the previous issue, we promised to report back on an interview with the newly appointed Ministers. Her busyness is encouraging, and we haven’t yet been able to secure a slot with her. We will bring you the interview as soon as it has been conducted.

In the meantime, why not send us your commentary on the issues at hand.

enervations

SAICA takes the lead with

Green

Embracing sustainability to ensure profitability The South African Institute of Chartered Accountants (SAICA) has taken a significant step in positioning itself as a promoter of sustainable business and sustainability reporting in South Africa through the launch of Green, a book on why corporate leaders need to embrace sustainability to ensure profitability.

Speaking on behalf of Matsobane Matlwa, SAICA’s Executive President, Tim Odell, Chairman of the SAICA UK Members Association, emphasised the growing importance of sustainability reporting to South African companies. “The global financial crisis has highlighted the significance of companies taking economic, social and environmental responsibility for their business activities and relaying this information to their stakeholders at a higher level than they have previously. Moreover, understanding and implementing sustainability business practices and reporting increasingly, provides compliant companies with a distinct edge in the marketplace.”

At the launch of Green, the JSE’s Head of Investor Relations, Michelle Joubert, spoke on the importance of sustainable business practices in promoting long term profitability of companies and enhancing business’ ability to contribute to the building of a sound economy. “When the JSE started assessing the sustainability practises of JSE-listed businesses in 2004, our research indicated that many listed companies were aware of issues of transformation and sustainability but didn’t know how to apply these,” she said. “We conceived of the Socially Responsible Investment

Graeme Terry at the launch of SAICA’s new book which encourages sustainability: Green.

2 5 o i n A f ri c a No 3 2009

Index as a way to both assess enterprises and to give them a tool to measure their sustainability practices.”

Written and compiled by Graham Terry, Head of the Office of the Executive President at SAICA, Green highlights some of the challenges and opportunities surrounding the topic and outlines the principal global initiatives and reporting standards and guidelines.

A further objective of Green, as well as other sustainability initiatives being conducted by SAICA such as sustainability reporting training courses certified by the Global Reporting Initiative (GRI), is to demonstrate the Institute’s strong commitment to sustainable development and to help mobilise its members to support global and local initiatives that promote sustainability. “The Board of SAICA firmly believes that sustainability issues are major threats to the future of civilisation as we know it. We believe that SAICA can play a major role to raise the level of awareness in the business community about these issues,” stated Terry.

Some South African companies are already addressing the sustainability of their business operations and activities, and are issuing reports on their progress. The dual-listed, Top 40 companies have taken the lead in South Africa through their knowledge of sustainability trends evolving in North America and Europe, and also by the companies who, by dint of their operations, have a significant impact on their environment. Yet, “There is a clear and wide gap between these companies and the majority of South African companies that have not yet begun implementing, or reporting on, measures to ensure sustainable business practices,” believes Terry. Such companies, according to Terry, particularly those in the mining, engineering and manufacturing sectors, which rely heavily on the use of natural resources and have not explored alternative sustainable processes, will soon find that by not adopting a sustainable approach to their operations they will be jeopardising their own sustainability in the long term as both global and local pressures for sustainability mount.

“Ultimately the path to sustainability has been a road less travelled by the majority of companies in South Africa. The launch of Green and SAICA’s other sustainability initiatives aim to guide and facilitate the direction of South African businesses towards a successful outcome in this field. It is up to business in South Africa to recognise the urgency in choosing a sustainable future, not just for their benefit, but for all of us,” Terry concludes.

For further information, visit www.saica.co.za.

enervations

Water cooling enables supercomputer to

The Swiss Federal Institute of Technology Zurich (ETH) and IBM have announced plans to build a first-of-a-kind water-cooled supercomputer that will directly repurpose excess heat for the university buildings.

heat buildings Making computing systems and data centres energy-efficient is an extremely challenging undertaking. Up to 50% percent of an average air-cooled data centre’s carbon footprint is not caused by computing, but by powering the necessary cooling systems to keep the processors from overheating – a situation that is far from optimal when one considers energy efficiency from an holistic perspective.

Repurposing excess heat A recent article by Scientific Computing claims that in an effort to achieve energy-aware computing, the Swiss Federal Institute of Technology Zurich (ETH) and IBM have announced plans to build a first-of-a-kind water-cooled supercomputer that will directly repurpose excess heat for the university buildings. The system, dubbed Aquasar, will decrease the carbon footprint of the system by up to 85%, and is estimated to save up to 30 tons of CO2 per year, compared to a similar system using today’s cooling technologies.(1) “Energy is arguably the number one challenge humanity will be facing in the 21st century. We cannot afford anymore to design computer systems based on the criterion of computational speed and performance alone,” explains Dr. Poulikakos of ETH Zurich, lead Investigator of this interdisciplinary project and Head of the Laboratory of Thermodynamics in Emerging Technologies. He adds, “The new target must be high performance and low net power consumption supercomputers and data centres. This means liquid cooling.”

Aquasar With an innovative water-cooling system and direct heat re-use, Aquasar is planned to start operation in 2010. The system is based on long-term joint-research collaboration of ETH and IBM scientists in the field of chiplevel water cooling, as well as on a concept for “water-cooled data centres with direct energy re-use” as advanced by scientists at IBM’s Zurich Lab. Water, as a coolant, has the ability to capture heat roughly 4 000 times more efficiently than air and its heat-transporting properties are also far superior.

Aquasar’s secret lies in the new approach to chip-level water cooling, which will utilise a “fine network of capillaries” to bring the water dangerously close to the processors. Waste heat will then be channelled throughout the heating system at the Swiss Federal Institute of Technology, providing students and dorm rooms with recycled warmth.

“Heat is a valuable commodity that we rely on and pay dearly for in our everyday lives. If we capture and transport the waste heat from the active components in a computer system as efficiently as possible, we can re-use it as a resource, thus saving energy and lowering carbon emissions. This project is a significant step towards energy-aware, emission-free computing and data centres,” explained Dr. Bruno Michel, Manager Advanced Thermal Packaging at IBM’s Zurich Research Laboratory.

For further information, visit www.scientificcomputing.com and www. engadget.com to which full acknowledgement and thanks are given.

By making use of a physical carbon offset that fulfils criteria set forth in the Kyoto Protocol. The estimate of 30 tons of CO2 is based on the assumptions of average yearly operation of the system and the energy for heating the buildings being produced by fossil fuels.

(1)

Liquid-mercury-free,

energy-saving lamps

MEGAMAN has employed Amalgam in the manufacture of a full series of energy-saving lamps, making all of its products free of liquid mercury.

By adopting this liquid-mercury-free policy, MEGAMAN has minimised the environmental impact of its products at different stages of the product lifecycle, protecting not only the workers during production and transportation, but also the end-users upon usage and disposal.

Technological advancements have enabled modern compact fluorescent lamps to deliver excellent illumination performance using Amalgam with minimal mercury levels (less than 2 mg). This is far less mercury than in other items in the house, e.g. batteries (5-25 mg), thermometers (500 mg), etc.

What is Amalgam?

Amalgam is an alloy of mercury combined with other metals. It remains in a stable solid form at room temperature. A safe alternative to liquid mercury, it negates liquid mercury vapour being released until it reaches around 100°C under atmospheric pressure.

2 5 o i n A f ri c a No 3 2009

Benefits of MEGAMAN Energy-Saving Lamps: • MEGAMAN Energy-Saving Lamps on average contain less than 2 mg of mercury, far below the 5 mg limit set by the EU environmental regulation.

• The mercury in Amalgam can be recycled and reused.

Is Amalgam more Eco-friendly?

At room temperature, the mercury inside the Amalgam is concealed inside the metal alloy and won’t escape even if the lamp breaks. Amalgam does not pose a health hazard to people, or pollute the environment. Moreover, it does not lead to land and water contamination even if the lamps are not properly recycled.

For further information, visit www.megaman.cc.

ener vations

the way of future consumption monitoring Energy prices are continually rising, capacity restrictions are becoming critical and power frequency response and measuring services are becoming problematic. For electricity supply utilities, this calls for improved efficiency in all areas.

With the experience and strength of the NYS Group behind them, Green Technologies has been able to launch itself into a market place in need of efficient, ground-breaking technological solutions in the area of energy efficiency. Having gained experience through its various group companies, including Worldtel (Pty) Ltd and Emerald Green Power (Pty) Ltd, Green Technologies aim to improve their customers’ performance through commercially proven technical solutions.

Power Consumption Manager Power Consumption Manager is capable of managing power conservation incentives through the monitoring of consumption usage. Its benefits include: • It analyses, monitors and models power consumption • It can produce a daily/weekly/monthly measurement of the amount of power saved, allowing for forward planning.

Electric/ Power Network Analyser The Electric/Power Network Analyser models an organisation’s power consumption and is able to inform users of electricity consumption at any given point in time.

Programmable Logic Controller This system is capable of communicating to the Control Centre via the Internet. Remote connectivity is achieved through various communication platforms, amongst which BPL (Broadband over Power line) network, an innovative technology for South Africa.

Automatic Meter Reading System This is a complete two-way data communication system for automatic meter reading (AMR) using low-voltage power line grid as the medium, known as PLC (power line communication) technology.

For a wide range of improved efficiency in all areas, contact Green Technologies today.

Green Technologies Tel: +27 11 726 8092 Fax: +27 11 726 7736 E-mail: shalin.govender@nys.co.za Website: www.gtech.co.za

Improved efficiencies in all areas Green Technologies introduces ground breaking technological solutions in the area of energy efficiency.

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Report your carbon emissions.

ELECTRIC/ POWER NETWORK ANALYZER Inform users of electricity consumption at any given point in time

PROGRAMMABLE LOGIC CONTROLLER Remote control of device via internet connection.

Logic controller tracks real time consumption and models consumption patterns. The device can then detect unwanted consumption and either switch off the device or send a warning alarm.

AUTOMATIC METER READING SYSTEM Smart meters with 2 way communication.

Automatic billing, with remote cut-off feature. Switch between prepaid and credit metering. Supports T.O.U and M.R.T's.

Uses powerline communications to transmit data, so no RF signal intereference experienced, and easy to retrofit as no new wiring required.

For considerable savings and control over all areas of efficiency, contact Green Technologies:

Tel: +27 11 726 8092 Fax: +27 11 726 7736 Email: info@gtech.co.za o in Africa www.gtech.co.za No 3 2009 25

enervations

Tech transfer:

2 landmark reports The fight against climate change will not be won unless a “revolution” in the use of existing low-carbon technology and numerous new inventions take hold, states the Global Climate Network (GCN) in its latest report.

Entitled ‘Breaking through on technology’, the report was released to coincide with the Group of Eight (G8) summit, and seeks to analyse how to overcome the barriers to the development and wide deployment of lowcarbon technology.

‘Breaking the Climate Deadlock’ is an international climate change initiative by former UK Prime Minister Tony Blair and The Climate Group.

Its objective is to help build high-level political and business support in key countries for an ambitious post-2012 climate change agreement. Their latest report, also focused on tech transfer, is entitled ‘Technology for a Low-Carbon Future’, and comes just months before a predicted new global climate agreement in Copenhagen later this year.

‘Breaking through on technology’ This report highlights the importance of technology, and states that finance goes hand in hand with technology development and transfer, especially since most low-carbon technologies require high up-front investment and could be more costly to deploy than carbon-intensive alternatives. Its key findings include: 1. The importance of technology The emphasis in the technology debate should be placed not only on mitigating and adapting to climate change but also on sustainable human development and, in particular, on poverty alleviation. Low-carbon technology should therefore be celebrated as a means by which countries can address human needs and reduce poverty, develop new economic opportunities and markets and create good-quality jobs.

2. Finance goes hand in hand with technology development and transfer Participants in the study from both developed and developing countries

2 5 o i n A f ri c a No 3 2009

identified lack of access to finance, both private and public, as a barrier to technology development and deployment. Most low-carbon technologies require high up-front investment and may be more costly to deploy than carbon-intensive alternatives. Therefore, while the focus on finance in the negotiations has been on either establishing carbon markets or on new funding mechanisms, other, often government led, financing initiatives may be necessary. Although in the longer term the private sector will be the major source of low-carbon finance, government money is needed early on to make new technologies cheaper and less risky.

3. Domestic low-carbon policies are woefully inadequate While no government is building from scratch, in all eight countries the absence of a long-term low-carbon policy framework or coherent set of policies appears to be a major impediment to the development and deployment of low-carbon technology. Interviewees in all countries were in favour of government intervention to address technology barriers and most felt that domestic low-carbon strategy with strong political support, often lacking in some quarters, was essential. Consequently, more keenly focused government policies are desperately needed, including regulating on carbon standards and providing clear, targeted incentives and tax breaks.

4. Knowledge and capacity are as important as equipment Technology transfer is not wholly or perhaps even mostly about the movement or licensing of equipment from jurisdiction to jurisdiction (although clearly some early climate and political victories might emerge from ensuring this happens). It also concerns the development of skills and know-how in order to use equipment and to innovate in the future. In developing countries in particular, interviewees identified a lack of skills and know-how to deploy low-carbon technology.

5. Intellectual property rights need careful attention In some cases stronger observance and enforcement of IP rights might encourage technology developers to roll out new technology in more jurisdictions more quickly. In others, the costs of licensing (as distinct

ener vations from wholesale purchase of IP by governments) could be another focus of financial support by developed country governments, a de facto subsidy to developers of low-carbon technology.

The report also makes a number of recommendations, which include: putting technology at the heart of climate negotiations; creating focused incentives for technology deployment; linking technology and finance in international talks; developing national low-carbon technology strategies; giving an urgent boost to research and development initiatives; piloting joint innovation for future technologies; rewarding technology risk-takers with string intellectual property; and developing new technology collaboratively. ‘Technology for a low-carbon future’ Launched in Japan in March 2008, this project builds on Blair’s international climate change leadership while in office. The Climate Group, through its core network of members and partners, facilitates research and engagement with key global stakeholders in industry, academia and government. A respected group of international climate change experts provide technical, policy and scientific advice to the project.

The main report findings include: • Major emission reductions are achievable by 2020 if we focus action on certain key solutions now; • Fully 70% of the reductions needed by 2020 can be achieved by invest- ing in energy efficiency – lighting, vehicles, buildings and motors – and reducing deforestation, the costs of which are manageable and generate positive returns; • Just seven known policies that are already being successfully imple mented in different parts of the world can deliver these reductions: they just need scaling up; • We need to invest now in the development of those future technologies

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•

that will take time to mature, in particular carbon capture and storage (CCS), large-scale solar and new-generation nuclear, along with public infrastructure such as smart grids; International cooperation spurred by an ambitious agreement in Copen- hagen can rapidly bring costs down and accelerate scale-up of both current and future technologies.

Tony Blair was recorded as saying: “This report shows how major reductions even by 2020 are achievable if we focus action on certain key technologies, deploy policies that have been proven to work, and invest now for the development of those future technologies that will take time to mature.� He concluded that the challenge of combating climate change remains formidable; but it is do-able.

Success at the climate summit in Copenhagen in December depends on reaching consensus on several divisive issues – one of these being technology. “Low-carbon innovations were said to have the potential to improve lives as well as cut greenhouse gas emissions, but this will be squandered unless governments step up and lead,� said GCN. They conclude, “We can set the world on a new path to a low-carbon future; the Major Economies Forum is able to put in place a framework for a successful global accord in Copenhagen in December.�

The full ‘Breaking through on technology’ report is available at ww.globalclimatenetwork.info.

Also see www.theclimategroup.org and www.polity.org.za, to which full acknowledgement and thanks are given.

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c o u n t r y p ro f i l e : Z a m b i a

Country profile: The territory of Northern Rhodesia was administered by the British South Africa Company from 1891 until it was subsequently taken over by the UK in 1923. During the 1920s and 1930s, advances in mining spurred development and immigration. The country’s name was changed to Zambia upon independence in 1964. In the 1980s and 1990s, declining copper prices and a prolonged drought damaged the economy. Elections in 1991 brought an end to one-party rule, but the subsequent vote in 1996 saw the blatant harassment of opposition parties. The election in 2001 was marked by administrative problems and saw three parties filing a legal petition challenging the election of ruling party candidate Levy Mwanawasa. The new president launched an anticorruption investigation in 2002 to probe high-level corruption during the previous administration.

In 2006-2007, this task force successfully prosecuted four cases, including a landmark civil case in the UK in which former President Chiluba and numerous others were found liable for US$41-million (ZAR319,8-million).

Mwanawasa was re-elected in 2006 in an election that was deemed free and fair. Upon his abrupt death in August 2008, he was succeeded by his Vice-president Rupiah Banda, who subsequently won a special presidential election in October 2008.

Location: Southern Africa, east of Angola Climate: tropical; modified by altitude; rainy season (October to April) Terrain: mostly high plateau with some hills and mountains Elevation extremes: • lowest point: Zambezi river 329 m • highest point: unnamed location in Mafinga Hills 2 301 m Natural resources: copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydropower Land use: • arable land: 6,99% • permanent crops: 0,04% • other: 92,97% (2005) Natural hazards: periodic drought; tropical storms (November to April)

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2 5 o i n A f ri c a No 3 2009

Current environmental issues: air pollution and resulting acid rain in the mineral extraction and refining region; chemical runoff into watersheds; poaching seriously threatens rhinoceros, elephant, antelope and large cat populations; deforestation; soil erosion; desertification; lack of adequate water treatment presents human health risks.

General economic overview: Zambia's economy has experienced strong growth in recent years, with real GDP growth in 2005-08 of about 6% per year. Privatisation of government-owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry, and greatly

countr y profile: Zambia

Zambia’s business rating

rises through the ranks

GDP (purchasing power parity): $17,39-billion (ZAR135,64-billion) (2008 est.)

GDP (official exchange rate): $15,23-billion (ZAR118,79-billion) (2008 est.)

GDP – real growth rate: 5,8% (2008 est.)

GDP – per capita (PPP): $1 500 (ZAR11 700) (2008 est.)

GDP – composition by sector: • agriculture: 16,7% • industry: 26% • services: 57,3% (2008 est.)

Labour force: 5 093-million (2008 est.)

Population below poverty line: 86% (1993) Agriculture products: corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides.

Industrial production growth rate: 7% (2008 est.)

Electricity production: 9 289-billion kWh (2006 est.)

Electricity consumption: 8 625-billion kWh (2006 est.)

Electricity exports: 255-million kWh (2006) Electricity imports: 68-million kWh (2007 est.)

Oil production: 150 bbl/day (2007 est.)

Current account balance: $-478 million (-ZAR3728,4 million) (2008 est.)

Exports: $5 632-billion f.o.b. (ZAR43 930-billion f.o.b) (2008 est.)

Export commodities: copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cotton Export partners: Switzerland 41,8%, South Africa 12%, Thailand 5,9%, Democratic Republic of the Congo 5,3%, Egypt 5%, Saudi Arabia 4,7%, China 4,1% (2007) Imports: $4 423 billion f.o.b. (ZAR34 450-billion f.o.b.) (2008 est.)

Imports partners: South Africa 47,4%, UAE 6,3%, China 6%, India 4,1%, UK 4% (2007) Debt external: $2 913-billion (ZAR22 721-billion) (31 December 2008 est.)

International disputes: In 2004, Zimbabwe dropped objections to plans between Botswana and Zambia to build a bridge over the Zambezi River, thereby de facto recognising a short, but not clearly delimited, Botswana-Zambia boundary in the river. 42 250 Congolese refugees in Zambia were offered voluntary repatriation in November 2006, most of whom are expected to return in the next two years. Angolan refugees too have been repatriating, but 26 450 still remain with 90 000 others from other neighboring states in 2006.

Information courtesy of www.cia.gov, to which full acknowledgement and thanks are given.

www.pbase.com

improved the chances for copper mining to return to profitability and spur economic growth. Copper output has increased steadily since 2004 due to higher copper prices, as well as foreign investment. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately US$6-billion (ZAR48,8-billion) in debt relief.

Zambia experienced a bumper harvest in 2007, which helped to boost GDP and agricultural exports and contain inflation. Although poverty continues to be a significant problem in Zambia, its economy has strengthened, featuring single-digit inflation, a relatively stable currency, decreasing interest rates, and increasing levels of trade. The decline in world commodity prices and demand is predicted to damage GDP growth in 2009, and elections and campaign promises are likely to weaken Zambia's improved fiscal stance.

Caleb Fundanga stated that the results of the foreign private investment and investor perception survey are intended to assist Zambia’s government to effectively monitor private capital flows and design policies that will attract more investment into the Zambian economy.

According to the Zambia Development Agency’s newsletter, ‘ZDA Spotlight June 2009’, Zambia has been ranked 3rd in the Common Market for Eastern and Southern Africa (COMESA) out of 18 countries surveyed, 5th in the SADC region and 7th out of 46 Sub-Saharan countries, showing that the country’s ‘Doing Business Ranking’ has improved markedly.

This is according to the Bank of Zambia, Central Statistical Office and Zambia Development Agency Phase II Private Capital Flows and Investor Perceptions (PCF-IP) Report, dubbed Zambia’s Doing Business Ranking, which was launched on 4 June 2009 for Zambia.

This same survey also indicated that foreign private capital flows to Zambia in 2007 rose to US$1 932,8-million (ZAR15 075,8-million) from the US$176,3-million (ZAR1 375,14-million) recorded in 2001. The 2007 inflows were largely in the form of foreign direct investment, borrowing from nonaffiliates (loans and trade credits) and portfolio investment.

In addition, the survey also showed that the major factors that determined investors’ initial decision to invest in Zambia included, among others, the environment and natural resources endowment factors, which ranked highest, followed by the domestic political scenario.

Speaking at the launch of the survey at Southern Sun Hotel, Bank of Zambia Governor Caleb Fundanga stated that history had taught Zambia that high volatility in private capital flows, if not properly monitored and managed, could induce financial and macroeconomic instability in the domestic economy. “Evidence from South and East Asia indicates that capital flows engendered a financial crisis in that region in 1997 and 1998,” commented Fundanga, adding, “In light of this evidence, the results of the foreign private investment and investor perception survey are intended to assist government to effectively monitor private capital flows and design policies that will attract more investment into the Zambian economy.”

When it came to political and governance factors, the survey findings showed that the domestic political scenario had a positive effect on investors’ decisions, while corruption and bureaucracy impacted them negatively. In terms of infrastructure and services, most enterprises indicated that both the cost and supply of electricity had a negative effect on their investments The information contained in this article was supplied by the publication ‘ZDA Spotlight June 2009’, to which full acknowledgement and thanks are given.

No 3 2009 25 o in Africa

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c o u n t r y p ro f i l e : Z a m b i a

RE: changing the lives of

Zambian communities According to an article by Rodgers Muyangwa, which was recently published on the Zambia Energy Regulation Board’s website, increased access to electricity is one of the objectives of the government of Zambia in terms of the electricity sector. This goal has led to the establishment of Energy Service Companies (ESCOs) in Eastern Province, with the support of the Swedish International Development Agency (SIDA).

Recently, all 3 of these companies, situated in Nyimba, Chipata and Lundazi, i.e. Nesco, CHESCO and Lesco, were supplied with between 100 and 150 50-watt solar panels on a pilot basis in order to determine the general socio-economic benefits that the local communities accrue in the wake of this type of project.

How does the project work?

entrepreneurs in the community have been able to grow their businesses due to longer trading hours. The traders also pointed out that the use of solar systems had significantly reduced the risk of fires which were a common accident in places that still used other fuel forms such as kerosene and candles.

School authorities reported that they have recorded increased pass rates as they were now able to adequately prepare lessons and pupils have longer evening study times varying from 2 to 4 hours. Other advantages were that solar was a cleaner and more stable source of lighting that has added beauty to schools and teachers’ houses.

Customers that have benefited from the services of energy companies include schools, clinics, small entrepreneurs, farmers and individual households.

What were some of the challenges experienced?

Both the companies and customers complained about the performance of the batteries which they reported to have a short life span of a maximum of three years. They also complained about the limited scope of uses for the solar power.

In conclusion

How have local communities benefited?

The solar system project in Eastern Province has proved to be a popular service that can generally be said to have opened doors of opportunity for the local people. Although the monthly charges are said to be high for very basic services, the majority of people visited indicated that they would rather continue struggling to pay for the service than have the service terminated.

It was also reported by the ESCOs that the numbers of potential customers on the waiting lists were roughly 400 in Chipata and 300 in Lundazi, proving that there is a huge demand for access to basic, everyday power.

Besides being able to listen to the radio or watch TV, other immediate benefits from the use of solar systems include that the small business

For further information, visit www.erb.org.zm to which full acknowledgement and thanks are given.

Although these solar systems are still owned by Government through the Department of Energy, the ESCOs operate them through the provision of a service, with customers paying a monthly fee for their use of the solar systems. These particular solar systems are able to light four bulbs and power either a black and white TV or radio.

Jatropha as

biodiesel in Zambia

The Zambia Development Agency (ZDA) and MAN Ferrostaal AG of Germany have signed an integrated biofuel industry Memorandum of Understanding (MoU) aimed at establishing Jatropha Curcas as a feedstock in Zambia.

The MoU was signed in June this year by ZDA Director-General Andrew Chipwende and MAN Ferrostaal Representatives. The planned integrated biodiesel industry will comprise a biodiesel refinery, oilseed crushing plants and Jatropha Curcas plantations. The MoU will facilitate the securing of finance, as well as Jatropha seed feedstock for the biodiesel refinery and the acquiring of 150 000 hectares of land for the project by the two parties.

Roughly 120 000 hectares of this land will be used for the plantation and construction of the crushing plants and biodiesel refinery, with MAN

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2 5 o i n A f ri c a No 3 2009

Ferrostaal acting as the general contractor for the building of the project.

ZDA will ensure that all necessary permits, approvals and documents are issued on time to permit the accelerated implementation of the project.

This MoU comes in response to ZDA’s strategic position of facilitating growth and investment in the country.

The information contained in this article was supplied by the publication ‘ZDA Spotlight June 2009’, to which full acknowledgement and thanks are given.

countr y profile: Zambia

No 3 2009 25 o in Africa

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t ra n s p o r t

Gautrain and BRT:

changing SA’s transport landscape

www.goutrain.co.za

Gautrain

Sound bytes

Gautrain is an 80-kilometre rapid transit railway system under construction in Gauteng Province. The railway will link Johannesburg, Pretoria and OR Tambo International Airport and is hoped to relieve the traffic congestion in the Johannesburg – Pretoria traffic corridor (N1), as well as offer commuters a viable alternative to road transport.

•

•

•

To carry 50,000 people per hour per direction, you need:

A 175m wide road used only by cars

A 35m wide road used only by buses

At a glance

A 9m wide railway track bed for rail In terms of CO2 emissions (grams per passenger kilometre), air travel weighs in at 175, passenger cars at 125 (1,7 persons/car) and railway at an unbelievable 65.

Timeline of construction

Start of construction 28 Sep 2006

Construction of OR Tambo International - Sandton 45 months Operating Commencement Construction of the whole system (including Sandton - Johannesburg - Hatfield sections) 54 months

Whole system in full operation Operating Phase 15.5 years

14

Transport is the heartbeat of our country’s economic and social develop- ment. In this regard, our province continues to experience successes in the implementation of the turnkey Gautrain Rapid Rail Link Project, a GPG initiative whose strategic objective is to significantly change the face of public transport, as well as the economic and the spatial content of our province. (Media Statement by Gauteng MEC for Public Transport, Roads and Works Ignatius Jacobs on the key commitments and priorities for 2008) The Department of Economic Development shares the Premier’s optimism that a better Gauteng is in the making and that we are on track towards successfully completing our mandate and laying a strong foun- dation for the realisation of our vision to contribute to the national effort to halve poverty and unemployment by 2014. (Issued by the Gauteng Department of Economic Development 19 February 2008) There were many Doubting Thomases and we always had to tread very carefully, engage every stakeholder, satisfy the most onerous legal requirements and, above all, we had to keep it all clean. We have achieved all that. (Speech by Gauteng Premier Mbhazima Shilowa at the commissioning of the Gautrain Tunnel Boring Machine)

2 5 o i n A f ri c a No 3 2009

• • • • •

Maximum speed: 160km/h 24 state-of-the-art trains (Bombardier’s Electrostar) Different couches for commuters and air passengers Frequency: every 10-30 minutes Min operating hours: 05:30-20:30

Will the train be ready in time for 2010?

At the end of last month, it was still uncertain if the R25,4-billion Gautrain rapid rail project would be ready in time for tourists visiting SA shores for the 2010 FIFA World Cup. Gautrain Management Agency (GMA) CEO Jack van der Merwe has said the Bombela consortium, responsible for the project’s construction, has stated the train’s phase one (link between OR Tambo International Airport and Sandton) readiness is not a certainty. “By the middle of October, we will know whether we must pay extra to have the link completed. Then we will also have to decide whether it is worth the money and, if so, where we will find the money,” stated Van der Merwe, adding that GMA would not pay an “unreasonable amount” to the Bombela consortium to fast-track the project. “It was never said that this was a soccer project. This train has to run for another 100 years,” Sapa reported Van der Merwe as stating.

transpor t

Mapping Gautrain’s progress:

Hatfield Pretoria Station

Centurion

Midrand to Marlboro 74% complete

Midrand

Marlboro to Portal near completion half complete Portal to Sandton

48% complete

Marlboro Sandton Rosebank Johannesburg Park Station

Bus Rapid Transit (BRT)

Rhodesfield

Marlboro to Rhodesfield

OR Tambo International Airport

www.reavaya.org.za

The Rea Vaya BRT will provide a feeder system for the rapid transit railway system. Designed to provide a high-quality and affordable transport system, which is fast and safe, BRT comprises a middle lane for large, high-tech buses which will move comfortably and quickly around Johannesburg using specific designated routes, enclosed bus stations along the routes and a high-tech control centre. The system will also be introduced in the Cape Town, Tshwane and Nelson Mandela Metros.

Fraught with challenges Launched on Sunday 30 August in Johannesburg, the system came under severe pressure on its first day as commuters were left stranded by various taxis who were on a ‘go-slow’ bid. The BRT system is held in contempt by the minibus taxi industry, whose drivers claim it threatens their livelihood by ‘stealing’ their passengers. After a failed emergency court bid to stop the system, there has been confusion over whether the industry will go on strike or not, and also a violent attack on drivers and passengers using the system.

Phase 1A for implementation in September 2009 comprising 25,5 km and 20 stations.

Continued on page 16

No 3 2009 25 o in Africa

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t ra n s p o r t Continued from page 15

At a glance • •

•

• •

•

Buses run in exclusive, dedicated lanes in the centre of existing roads.

Smaller feeder buses bring people from the outer areas to the stations on the trunk routes.

Bus capacity: 75-112 capacity vehicles, depending on passenger volumes.

Approximately 150 stations, positioned half a kilometre apart.

They will run every three minutes in peak times and every 10 minutes in off-peak times Running times: from 5am to midnight.

Mapping BRT’s progress Rea Vaya will be implemented in phases, starting with Phase 1A which has already been launched. In Phase 1 of the system, buses will operate from Lenasia to Sunninghill; Alexandra to Regina Mundi in Soweto; Dobsonville to Troyeville; Nasrec to Ellis Park; Randburg to the CBD; and on an inner city circle route.

Construction has begun in many parts of the city and is intensifying as Phase 1A reaches completion. Construction is completed for most of Phase1A along routes in Soweto, the Inner City and the Ellis Park Precinct.

Construction is intensifying for Phase1B around the Braamfontein area, near the Wits and University of Johannesburg areas and around Nasrec.

Sound bytes •

The Bus Rapid Transit (BRT) system we are launching today is not just about public transport! The Bus Rapid Transit system is not just about buses! Indeed, the Bus Rapid Transit system is not merely about taxis or government! Ladies and Gentlemen, BRT is about the com- muter. From today, we will live the BRT’s driving philosophy, which is based on the dictum of the commuter being King and Queen. (Speech

by Minister of Transport, Sibusiso Ndebele, on the official launch of the BRT Rea Vaya system, at the Westgate Station, Johannesburg)

•

One of the challenges that arise in relation to the World Cup is transport.

The City of Johannesburg is required to and has a responsibility to ensure a safe, secure and affordable public transport system for residents and visitors to all the match venues. We will use the pressure that comes with the 2010 World Cup to build a world-class transport system for all. We need a public transport system that is fast, efficient, secure, affordable and environment-friendly. We need a world-class public transport system for a world-class African City! The BRT Rea Vaya is part of this overall effort. (Statement by the Executive Mayor of Johannesburg, Clr Amos Masondo, at the media briefing launch of Pha- se 1A of the Rea Vaya system BRT)

Multiple benefits Short term benefits: • • • •

•

Efficient, reliable and frequent services Affordable fares A safe and secure public transport system A decrease in road congestion, energy consumption and vehicle emissions Recapitalisation of the public transport fleet

Medium term benefits: • Containing urban sprawl and promoting densification • Promoting social inclusion instead of isolation • Job creation

Long term benefits: • • •

Economic development in and around the areas of operation Reductions in pollution A world class public transport system which South Africans can be proud of.

Sources: http://www.gautrain.co.za; http://www.reavaya.org.za/about-brt

Gauteng freeway improvement project

SSI’s Transport sector is a member of the Gauteng Freeway Joint Venture (JV). The latter were awarded contracts valued in the region of ZAR1,35billion for the design and supervision of upgrades to two sections of the major freeway around Johannesburg and its immediate suburbs. These include the section of the N1 14th Avenue to Buccleugh, the N3 from Buccleugh to Gilloolys, and a section of the N12 from Gilloolys to Griffith Road.

“The high traffic volumes on both sections of road have required a high level of design to provide capacity for the traffic. Options are being investigated to use state-of-the-art technology, including ultra-thin concrete, electronic vehicle monitoring and High Occupancy Vehicle (HOV) lanes. Noise levels will be monitored as part of the environmental impact assessments,” explains SSI’s Transport sector’s Group Manager, Duncan Mason.

These projects are elements of a comprehensive Gauteng Freeway Improvement Project, a massive ZAR13-billion undertaking that will see some 200 km of road around Tshwane, Johannesburg and Ekurhuleni being upgraded to reduce congestion and improve safety.

The upgrade is one most motorists have been acutely aware of because of its exasperating, yet thankfully temporary, impacts on traffic.

The is the biggest single undertaking of its kind over the last 20 years; the sections awarded to the Gauteng Freeway JV cover more than 40 km of freeway and include the assessment of and major improvement to interchanges.

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2 5 o i n A f ri c a No 3 2009

SSI Engineers & Environmental Consultants Tel: +27 11 798 6000 Fax: +27 11 798 6005 E-mail: corporate@ssi.co.za Website: www.ssi-dhv.com

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Major Benefits: • • • • •

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To make a considerable contribution to the reduction of GHG emissions, obtain your Wizleck Fuelstar solution TODAY! Wizleck Fuel Technologies CC Cell: 084 625 4613 • Office: 011 902 5993 • Fax: 011 902 4212 Web Address: www.wizleck.co.za • E-Mail: info@wizleck.co.za o No 3 2009 25

in Africa

17

climate change

Vision 2050 –

A South African perspective

The "Vision 2050" programme seeks to guide the business response to the challenges facing the planet over the next four decades.

As the world grapples with how to tackle the myriad of sustainability challenges facing business and society, the World Business Council for Sustainable Development (WBCSD), through 29 of its member companies, has initiated the "Vision 2050" programme which seeks to guide the business response to the challenges facing the planet over the next four decades, including significant population growth, heightened urbanisation, strain on resources and increased carbon emissions.

A pathway towards sustainability The National Business Initiative (NBI), Accenture and Eskom, supported by the WBCSD, recently held a "learning by sharing" dialogue for South African companies to explore global views on how to realise the critical pathway towards sustainability in 2050. This critical pathway refers to a scenario around changes that would occur over the next four decades, given the current economic, environmental and social challenges we face, and is informed by the interplay of four elements: people and values; governance; economy; and resources, energy and environment. The critical pathway suggests a greater convergence and consolidation of strategies at a global level, all geared towards finding common solutions and invoking shifts in behaviour and practices.

A strategic agenda For Peter Lacey, Head of Sustainability (Europe, Africa and Latin America) at Accenture, Vision 2050 must be seen as a strategic agenda that drives the way in which businesses respond to the increasing pressures of sustainability while also presenting opportunities for companies to manage risk, promote their brand and increase efficiency, as well as to enhance corporate competitiveness and identify new business opportunities.

This challenge was brought home by Mandy Rambharos, Climate Change and Sustainability Manager at Eskom, who outlined Eskom's emphasis on scenario planning and risk mitigation, particularly in terms of ensuring the long-term sustainability of energy supply and opportunities for market growth. This is an integrated company-wide strategy that guides its investment and trading strategy.

The broad solution, according to Wayne Borchardt, Senior Executive Strategy Lead with Accenture in South Africa, is a focus on reducing the ecological footprint of the country while simultaneously improving human development. Both government and business have an important role to play in achieving this. The complementary interaction of human development and ecological footprint brings countries into a sustainable solution space from which the Vision 2050 objectives can be achieved.

All-important agreement The key challenge going forward is how to create the platforms for engagement between business and government in order to achieve greater alignment on the development goals of the country from a social, economic and ecological perspective. The Vision 2050 project provides a potential framework for this engagement and a mapping-out of tangible objectives and targets. Through this engagement, the respective roles of business and government can be more clearly understood and agreed upon.

Lacey concluded by emphasising that, in light of the current economic crisis, the positioning of winners and losers within the business community over the next decade will be noticeable. The winners will be those companies that embrace the challenges and opportunities associated with achieving a sustainable world, and make smart investments on the basis of this. This will require vision, leadership and a clear understanding of the risks and opportunities. Furthermore, South Africa, the workshop agreed, was an important ‘emerging market, developing country laboratory’ in which the challenges of sustainable development could be explored.

It was decided that the NBI has to consider how to take this important process forward.

For more information, contact Anthony Gewer at gewer.anthony@nbi.org.za.

Source: http://www.nbi.org.za/welcome.php?pg=2&pgm=M&id=11016

US and China sign MOU for

climate change cooperation

The US and China have signed a “U.S.-China Memorandum of Understanding (MOU) to Enhance Cooperation in Climate Change, Energy, and the Environment”. This agreement was signed during the first round of the U.S.-China Strategic and Economic Dialogue, convened in Washington from 27-28 July 2009.

The MOU states that the two countries “resolve to pursue areas of cooperation where joint expertise, resources, research capacity and combined market size can accelerate progress towards mutual goals”, including energy conservation and energy efficiency; renewable energy; cleaner uses of coal, and carbon capture and storage; sustainable transportation, including electric vehicles; modernisation of the electrical grid; joint research and development of clean energy technologies; clean air; clean water; natural resource conservation; and combating climate change and promoting low-carbon economic growth.

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2 5 o i n A f ri c a No 3 2009

Through the MOU, the US and China agreed to establish a “Climate Change Policy Dialogue and Cooperation” as a platform for the two countries to address global climate change and to identify and resolve areas of concern.

They also agreed that this platform will promote: discussion and exchange of views on domestic strategies and policies for addressing climate change; practical solutions for promoting the transition to low-carbon economies; successful international negotiations on climate change; joint research, development, deployment, and transfer, as mutually agreed, of climatefriendly technologies; cooperation on specific projects; adaptation to climate change; capacity building and the raising of public awareness; and pragmatic cooperation on climate change between cities, universities, provinces and states of the two countries.

For further information, or to download the full memorandum, visit http://www.iisd.ca/media/climate_atmosphere2009.htm, to which full acknowledgement and thanks are given.

CCS: The world’s largest geosequestration project to date

Australia relies heavily on fossil fuels for its energy supply, and is one of the world’s largest energy exporters. Consequently, international efforts to limit CO2 emissions worldwide will impact on the Australian economy, yet this country also has the potential to be a significant player in the emerging field of carbon capture and storage (CCS) – a technology that could potentially mitigate more than half of Australia’s carbon dioxide emissions from an approximately 80 per cent coal-fired electricity supply.

Australia, through the efforts of Australian industry and its Cooperative Research Centre programme, has been a pioneer in taking this technology forward since 1998 with Australian State and Federal governments placing CCS firmly on the agenda, introducing legislation to cover CO2 storage (Federal offshore and Victorian onshore storage bills) and establishing the Australian-based Global CCS Institute.

Capturing and storing carbon CCS involves removing CO2 from the waste gases of major stationary sources, such as power plants, oil and gas production facilities, petroleum refineries and cement plants, and then storing it rather than releasing it into the atmosphere. The CO2 is separated, captured and compressed before being transported via pipeline and injected as a supercritical liquid into suitable geological formations at least 800m below ground. At this depth, the subsurface pressure keeps the CO2 in its dense form.

climate change Australia’s vast potential Studies are underway to better characterise Australia’s carbon dioxide storage potential, but it is believed that Australian geology is capable of storing hundreds of years’ worth of CO2 emissions at current rates.

The world’s largest non-commercial geosequestration project One of the most comprehensive CCS research programs, including both capture and storage aspects, is being undertaken by the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC). CO2CRC is a joint venture linking participants from Australian and global industry, universities and other research bodies from Australia and New Zealand, as well as Australian Commonwealth, State and international government agencies. South African energy and chemicals company Sasol is also a participant.

Based in south-western Victoria, the CO2CRC Otway Project has been injecting CO2 at a depth of approximately two kilometres since April 2008.

As at July 2009, the project had stored over 53 000 tonnes of CO2 and is the world’s largest non-commercial geosequestration research and demonstration project.

Unique project features A major feature of the Otway Project is a comprehensive monitoring and verification programme which allows researchers from Australia, the United States, New Zealand and Canada to better understand and model the behaviour of the injected CO2.

In planning the Otway Project, detailed geological models were built for the storage location using regional data, depositional models and core data from well drilling. These models were then used as the basis for modelling the movement of the CO2 in order to predict how the injected plume will behave and guide the monitoring program. These models predicted that the CO2 ‘footprint’ would be stable over long periods of time. Added to this, data from deep subsurface monitoring in the storage zone is used to calibrate and test the project’s computer models.

The rocks required for injection must have adequate porosity in which carbon dioxide can be stored, as well as suitable permeability to allow the CO2 to be injected into the reservoir, and an impermeable cap rock seal above to ensure that the injected fluid stays in the target reservoir.

Significant outcomes

(Figure 1) There are a range of options available for storing CO2 for thousands if not millions of years.

(Figure 2) the CO2CRC Otway Project

A major outcome of the project is that the models will provide reliable tools for understanding CO2 storage that can, in turn, inform future large-scale storage projects in Australia and elsewhere.

Cooperative Research Centre for Greenhouse Gas Technologies

Continued on page 21

No 3 2009 25 o in Africa

19

climate change

UNFCCC: Milestones to Copenhagen

http://unfccc.int/files/press/application/pdf/unfccc_media_calendar-milestones.pdf

With 192 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near-universal membership and is the parent treaty of the 1997 Kyoto Protocol. The Kyoto Protocol has to date 185 Parties.

Under the Protocol, 37 States, consisting of highly industrialised countries and countries undergoing the process of transition to a market economy, have legally binding emission limitation and reduction commitments.

The ultimate objective of both treaties is to stabilise greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous

human interference with the climate system. This year’s United Nations Climate Change Conference will take place at the Bella Center in Copenhagen, Denmark, between 7 December and 18 December, 2009.

The conference includes the 15th Conference of the Parties (COP 15) to the United Nations Framework Convention on Climate Change and the 5th Meeting of the Parties (COP/MOP 5) to the Kyoto Protocol. According to the Bali roadmap, a framework for climate change mitigation beyond 2012 is to be agreed on there.

Date

Event

Objective

Monday, 10 August to Friday, 14 August, Bonn

Intersessional informal consultations (Bonn UN Climate Change Talks)

Objective: To Continue work on the negotiating text of the Copenhagen agreed outcome

Tuesday, 22 September , New York

Summit on Climate Change

Objective: To provide high-level (heads of state and government) political impetus to the negotiating process.

Thursday, 24 to Friday 25 September, Pittsburgh

G-20 Leaders Meeting

Expected result: Clarity with regard to financing international climate change cooperation in the context of Copenhagen.

Monday, 28 September to Friday, 9 October 2009, Bangkok

Ninth session of the AWG-KP and Seventh session of the AWG-LCA (Bangkok UN Climate Change Negotiations)

Objective: To make progress on the negotiating text of the Copenhagen agreed outcome

Thursday, 29 October to Friday, 30 October, Brussels

European Council

Expected outcome: Elaboration of the EU’s position with regard to financing international climate change cooperation in the context of Copenhagen,

Monday, 2 November to Friday, 6 November 2009, Barcelona

Resumed Ninth session of the AWG-KP and resumed Seventh session of the AWG-LCA (Barcelona UN Climate Change Negotiations)

Objective: To further finetune the negotiating text of the Copenhagen agreed outcome

Monday, 7 December to Friday, 18 December 2009

COP 15 and CMP 5, Copenhagen (UN Climate Change Conference)

Objective: To reach agreement on an ambitious and effective international climate change deal

For updates on meetings, please refer to http://unfccc.int, to which full acknowledgement and thanks are given.

An inspirational

call to action

Below is an excerpt from the intro which explains both the title and the author’s motivation to write the book: “In the Chinese Year of the Fire Dog (February 2006–2007), I opened my heart a little to the Earth. I was struck by the heavy realization that life on this planet was in danger – as a result of human actions. The Fire Dogs of Climate Change is a result of my process of facing up to the environmental crisis – climate change in particular.

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2 5 o i n A f ri c a No 3 2009

to inspire your heart, mind and hands to take action

www.box.net

The Fire Dogs of Climate Change – An inspirational call to action is a climate action book that contains stories, fact sheets and examples of political action, sustainable living and technology from around the world to inspire your heart, mind and hands to take action – adults and youth alike.

The stories in this book capture my emotional journey during this Fire Dog year: a journey in which I travelled through despair and powerlessness, and found places where I could be and act with strength and joy, in support of the Earth.”

For further information, visit: http://sallyandrew.findhornpress.com.

climate change

Continued from page: 19

The CO2 source for the project is the Buttress well two kilometres from the injection well, which produces 80% CO2 and 20% methane. The methane is not separated but is reinjected. In addition to the Buttress well, the Otway Project has two wells 300 metres apart. The first is the CRC-1 well, where CO2 is injected at a rate of about 4,500 tonnes per month into a depleted gas reservoir at a depth of 2200 metres. The second is the Naylor-1 well, originally a production well for the natural gas that existed in the gas reservoir, but now used as an observation well. Naylor-1 is equipped with downhole sampling instruments that monitor fluid and gas from the reservoir rock deep underground. The Naylor-1 well is the main method for observing the CO2 plume.

Interim results While no escape of CO2 is expected, atmospheric CO2 is continuously monitored to detect low levels of ‘seepage’ from the reservoir. In addition, soil gas levels are monitored seasonally, as is the chemistry of local deep and shallow water bores.

To enable researchers to distinguish between injected and naturally occurring CO2 underground in the reservoir, the injected CO2 has been uniquely marked with small amounts of chemically benign tracer compounds that allow researchers to track the movement of the injected plume and understand its behaviour.

Results from the monitoring program so far have found that the rate and direction of CO2 migration has fitted within the range of predictions from

pre-injection numerical modelling, giving researchers confidence that the models are robust and can reasonably predict how the CO2 will behave.

The project’s main technical achievement to date has been to demonstrate a carbon storage project from end to end, starting with site selection, geological and reservoir modelling, and moving on to the current phase of monitoring and verification. Site closure will follow in due course, with a programme of continued low-level monitoring that will be agreed with regulators.

The Otway Project has also tested the existing Australian legislation regarding CCS, identifying conflicts and overlaps between the relevant jurisdictions and helping to shape both the Victorian Greenhouse Gas and Geological Sequestration Act 2008, which provides a regulatory framework for onshore geological CO2 storage, and the Australian Government’s Environmental Guidelines for Carbon Dioxide Capture and Geological Storage.

The Otway Project demonstrates to the community, both locally and internationally, that carbon dioxide storage is both safe and secure. This is a key issue if CCS is to be an effective element in the suite of tools needed to lessen the impact of climate change.

Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) E-mail: info@co2crc.com.au Website: www.co2crc.com.au

IPCC helps prepare for short-term climate extremes

The Intergovernmental Panel on Climate Change (IPCC), an international body of climate change experts, is set to produce a "how to" manual for policy-makers and disaster officials on managing the risks of extreme weather events and bolstering resilience in order to promote adaptation to global warming by 2011. "Years of lobbying the IPCC have finally paid off," said an ecstatic Maarten van Aalst, leading climate specialist at the Climate Centre of the International Federation of the Red Cross and Red Crescent Societies (IFRC).

the relevance of disaster risk reduction to advance adaptation. The IPCC special report has been hailed as a response to their calls for "enhanced action on risk management and risk reduction strategies, including risk transfer mechanisms such as insurance ... to lessen the impact of disasters on developing countries", said a scoping paper on the forthcoming report

by IPCC officials.

The IPCC has assessed the long-term impact of climate change, and has acknowledged that measures and policies identified as adaptation in their previous reports had not taken into account the full range of activities that need to be undertaken to reduce the risks of extreme events and disasters.

The report, ‘Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation’, will provide methods and tools to manage climate risks, in addition to 25 case studies to show how extreme events and vulnerability interact to result in disasters, with lessons learnt from vulnerable countries such as Bangladesh in Southeast Asia, and others in Southern Africa.

"There is significant overlap between DRR and climate change adaptation.

However, these agendas have evolved independently until now," wrote Van Aalst in a paper he co-authored with Tom Mitchell, a researcher at the Climate Change and Development Centre of the UK-based Institute of Development Studies. DRR deals with the short-term changes in climate variables, such as temperature, but "can be the first-line defense against climate change" and become an essential part of adaptation, which tends to focus on long-term impacts, Van Aalst and Mitchell argue in their paper.

Besides integrating adaptation and disaster risk reduction (DRR), which both "aim to reduce the impacts of shocks by anticipating risks and addressing vulnerabilities", Van Aalst believes the special report will help agencies like IFRC, which are trying to draw up plans to help communities prepare for extreme weather events, especially in areas where climate change forecasts are uncertain.

Countries attending the 2007 United Nations Framework Convention on Climate Change (UNFCCC) conference in Bali, Indonesia, recognised

Vital integration

The point often made by the DRR community, as well as some of the world's least developed countries and small island states, is that a distinction between adaptation and DRR is "problematic, given their experience of the increased magnitude and frequency of disasters impacting their countries".

In the IPCC scoping paper, the Panel's officials acknowledged that reducing vulnerability to climatic variables could improve resilience to the increased hazards associated with climate change.

For further information, visit http://allafrica.com to which full acknowledgement and thanks are given.

No 25oo in in Africa Africa No 3 3 2009 2009 25

21

climate change

Could

trees

provide a climate and food-secure future?

The World Agroforestry Centre (ICRAF) and the United Nations Environment Programme (UNEP) have called for the widespread uptake of 'green' agricultural practices which will deliver multiple benefits to the world's rapidly growing populations: from combating climate change and eradicating poverty to boosting food production and providing sustainable sources of timber.

The call was made at the launch of the 2nd World Congress of Agroforestry, which was held in Nairobi at the end of August.

Definitions of agroforestry: •

•

22

The intentional growing of trees on the same site as agricultural crops and/or livestock in order to increase the total yield of products, generate short-term income, and improve environmental benefits (for example, erosion control).

Land-use systems that combine agriculture and forestry practices to create a more holistic, integrated, profitable and sustainable system of food and fibre production.

2 5 o i n A f ri c a No 3 2009

Agriculture, deforestation and other forms of land use account for nearly one-third of global greenhouse gas emissions, and with just a few months to go until the crucial UN Climate Change Conference in Copenhagen, agricultural and environmental experts agree that all forms of land use should be included in a post-Kyoto climate regime.

A carbon-neutral agricultural sector According to a recent UNEP report, the agricultural sector could be largely carbon-neutral by 2030 and produce enough food for a population estimated to grow to nine billion by 2050, if proven methods aimed at reducing emissions from agriculture are widely adopted immediately. Key among these methods are agroforestry, reduced cultivation of the soil, and the use of natural nutrients such as fertiliser trees.

A possible shining example UN Under-Secretary-General and UNEP Executive Director Achim Steiner says, "Addressing the range of current and future challenges - from the food, fuel and economic crises to the climate change and natural resource

climate change Fertilizer trees What are fertiliser trees?

Don’t m

According to a study by World Agroforestry Centre scientists, fertilizer trees capture nitrogen from the air and transfer it to the soil, which indicates that their use can reduce the need for commercial nitrogen fertilizers by up to 75%, while simultaneously doubling or tripling crop yields.

iss out!

Don’t mis s our report ba ck on this conferen ce in Journal 4 2009

How will they benefit Africa?

The Carbon Benefits Project, launched in May 2009, is developing a standard and reliable method for accurately measuring, monitoring, reporting, and projecting how much carbon each kind of land use is storing.

This global project makes use of the latest remote sensing technology and analysis, soil carbon modelling, ground-based measurements, and statistical analysis. If nations agree to a scheme for REDD in Copenhagen, the work of the Carbon Benefits Project will provide a more credible basis for smallholders to receive payments for conserving forests, practising conservation agriculture and increasing tree cover on their farms that sequesters carbon.

Saving carbon is usally not a priority for smallholder farmers but, supporting them to expand their agroforestry systems provides income generation and service benefits to farmers that also have the co-benefit of sequestering carbon. By using fertilizer trees and other conservation agriculture techniques, some farmers have managed to increase their maize yields from an average of 1 tonne per hectare to 3 or even 4 tonnes per hectare while greatly improving exhausted soils.

A current agroforestry project underway in Malawi, where smallholder farmers are being supported with knowledge about how to plant trees for fertilizer, fruit and fuelwood benefits, has seen the addition of fuelwood and fruit trees on these farms release women from having to take timber from the forest. Added to this, their children are receiving more vitamins and minerals in their diet. Food security is enhanced while farmers' production systems become better adapted to climate change.

scarcity ones - requires an accelerated transition to a low-carbon, resourceefficient Green Economy for the 21st century. Farming will be either part of the problem or a big part of the solution. The choice is straightforward: continuing to mine and degrade productive land and the planet's multitrillion-dollar ecosystems, or widely adopting creative and climate-friendly management systems of which agroforestry is fast emerging as a key shining example."

Key integration Researchers suggest that integrating agroforestry in farming systems on a massive scale would create a vital carbon bank. The Intergovernmental Panel on Climate Change (IPCC) estimates no less than a billion hectares of developing country farmland is suitable for conversion to carbon agroforestry projects.

"Nations must seal the deal on a comprehensive and scientifically credible new climate agreement in Copenhagen. One key step will be for nations to agree to a scheme for Reduced Emissions from Deforestation and forest Degradation (REDD) which will pave the way for preserving forests

and other key ecosystems, as well as closing the gap in global demand for sustainable timber by shifting production from forest to farm," believes Steiner.

Readily achievable gains According to another UNEP report released in June, the farm sector has the largest readily achievable gains in carbon storage, if best management practices were widely adopted. Up to 6 gigatonnes (Gt) of CO2 equivalent, or up to 2 Gt of carbon, could be sequestered each year by 2030, which is comparable to the current emissions from agriculture. Many of the agricultural practices that store more carbon can be implemented at little or no cost. The majority of this potential – 70% – can be realised in developing countries.

For further information, visit www.unep.org to which full acknowledgement and thanks are given.

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Countdown to Copenhagen Andrew Gilder, IMBEWU Sustainability Legal Specialists (Pty) Ltd. A clock counting down the seconds to the commencement of the 15th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP15), scheduled for early December 2009, is quietly going about its business on the banner of the UNFCCC website (http://unfccc.int/2860.php). The clock is an ominous reminder of the deadline to which the world has committed itself to (at least) agree on framework architecture for the future of the international climate change regime, which is currently delimited by the UNFCCC, the Kyoto Protocol and their related rules.

On the date of writing of this article there remains 88 calendar days to the beginning of COP15, an increasingly few number of hours, minutes and seconds, and only three weeks of formal negotiations before the final stretch to be undertaken in Copenhagen, Denmark. To put these timeframes into perspective: the last round of meetings (informal gatherings which ended in Bonn, Germany, in mid-August) failed to prune into manageable form a draft negotiating text of nearly 200 pages, while the progress of the negotiations during the course of 2009, outlined below, does not inspire confidence in country Parties’ ability to reach the necessary consensus.

The first UNFCCC meeting for 2009 was held in Bonn from 29 March to 8 April. This meeting, which sought to continue the limited progress made at COP14 (Poznan, Poland, December 2008, gave itself over to devising a draft text for negotiation in light of the (then) imminent COP15. The draft text, which appeared ahead of June’s second round of meetings (also in Bonn), revealed some unsurprising points of disagreement, particularly relating to the required levels of financing for meeting the climate change challenge, and the thorny issue of national commitments to greenhouse gas emissions reductions.

number of developed countries have taken on obligations to reduce their greenhouse gas emissions by an average of 5,2% below 1990 levels, in the period between the beginning of 2008 and the end of 2012.

The Obama administration, while leading his country back into the climate change fold after the period of perceived obstructionism under George Bush, has announced a limited pledge to cut the United States’ emissions by 17% from 2005 levels, and of a mere return to 1990 levels by 2020. By contrast, the European Union has made a more ambitious offer to increase its current goal of 20% below 1990 levels by 2020, to 30% below in the event that other developed countries, particularly the United States, take on comparable targets. On 7 September 2009, Japan’s Prime MinisterElect, Yukio Hatoyama, announced his favouring a 25% cut below 1990 levels in Japan’s emissions, by 2020. Again, this ambition relies on other industrialised nations committing to similarly deep reductions. The scale of divergence in opinions on this issue is revealed when one considers that developing countries have called for the developed countries to commit to at least 40% emissions reductions from 1990 levels, in the mid-term.

By the end of the March meeting (dubbed Bonn II), the draft text had swollen to the abovementioned unwieldy proportions and included a dizzying array of variations on key negotiation themes. While Bonn III (the August round) was intended to cut a swathe through the draft text, it failed to do so. Notwithstanding this track-record, Yvo de Boer, UNFCCC General Secretary, is still quietly optimistic that COP15 will produce the required agreement (http://www.reuters.com/article/latestCrisis/idUSL8323945).

This optimism will be tested as the world begins to tune-out for the endof-year holidays, and it is to be hoped that the start of 2010 will reveal a renovated regime that sets the direction for dealing with the phenomenon of climate change into the future.

Developing nations require the developed world to commit itself to steep reductions in its greenhouse gas emissions, as advised by the Intergovernmental Panel on Climate Change (IPCC), and to provide significant finance to assist developing nations in their efforts to combat the impacts of climate change on their environments and economies. To get a sense of the scale of this latter issue, it is interesting to note a recent African Union proposal which calls for levels of developed countries’ climate change funding to Africa to reach an annual amount of US$67 to 200-billion (not million), by 2020, over-and-above existing flows of overseas development assistance to the continent.

The schedule of formal UNFCCC meetings for the remainder of 2009 is as follows: • 21 to 25 September: Climate Summit in New York at the United Nations General Assembly.

• 28 September to 9 October: A further set of UNFCCC negotiations in Bangkok, Thailand.

• 2 to 6 November: A further set of UNFCCC negotiations in Barcelona, Spain.

• 7 to 18 December: United Nations Climate Change Conference in Copenhagen (COP15).

Developed countries, on the other hand, are hedging making firm commitments with regard to funding, and have provided only tentative indications of their aspirations towards reducing their greenhouse gas emissions. Figures released by the UNFCCC on 11 August 2009 show that the emission reduction pledges tabled by developed countries, as at that date, would result in a 15-21% cut from 1990 levels – short of the 25-40% that the IPCC says is necessary to limit global warming below the scientifically critical 2°C threshold. These statistics exclude the United States, which has not ratified the Kyoto Protocol and still seems unlikely to do so. Kyoto is the international legal instrument in terms of which a

IMBEWU Sustainability Legal Specialists (Pty) Ltd (www.imbewu.co.za) is a specialist sustainability legal consultancy providing professional legal consultancy services in the area of environmental, health & safety and climate change law. IMBEWU runs a Climate Change and CDM Specialist Consultancy Unit with the greatest depth of expertise and experience in the South African carbon market. IMBEWU collaborates with Warburton Attorneys (www.warburtons.co.za) in providing CDM project development and contract advice to clients. This article should not be regarded a comprehensive discussion of the topics addressed, and should not be taken as legal advice or relied upon. Contact: andrew@imbewu.co.za.

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climate change

No 3 2009 25 o in Africa

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climate change

A Copenhagen climate treaty vision for an adequate and fair global climate deal “The year 2009 will be remembered as the year of the financial crisis, right?

Wrong, we hope. 2009 needs to be remembered as the year the world found an answer to climate change, the year it found the political will to meet the challenge and found hope and opportunity in doing so. For out of crisis comes opportunity. And out of the twin perils of financial and climatic crises comes the opportunity to bring the global economy back in line with global ecology; to put the future development of the world economy – for ALL its citizens – on a sustainable foundation. That is the challenge and opportunity of 2009.” – WWF’s ‘The New Climate Deal, a pocket guide’

The Copenhagen Climate Treaty, which must be adopted by all Parties, marries the need for ambitious and urgent action on adaptation and emissions reductions – driven by science and equity – with the transformation of technology, the preservation of forests and the acceleration of sustainable development.

In the critical run-up to Copenhagen, the WWF has released two landmark documents that envisage an ideal “Copenhagen climate treaty vision for an adequate and fair global climate deal”. Entitled “WWF Expectations for the Copenhagen Climate Deal” and “A Copenhagen Climate Treaty, A proposal for an amended Kyoto Protocol and a new Copenhagen Protocol by members of the NGO community”, these documents are both visionary in that they encourage the creation of an adequate and fair treaty.

The treaty is based on the premise that all peoples, nations and cultures have the right to survive, to develop sustainably and to alleviate poverty.

The final agreement must balance the need for short-term action with medium- and long-term certainty and vision on all aspects of the Bali Action Plan and the need for a legally binding form.

A Copenhagen Climate Treaty, A proposal for an amended Kyoto Protocol and a new Copenhagen Protocol by members of the NGO community

Excerpts: What the deal looks like

It must be ambitious, but must also safeguard the poorest people. There must be no trade-off between ambition and equity. The shared vision maps out the international effort required to fundamentally tackle climate change while meeting sustainable development goals. It outlines the overall longterm global objectives for the four building blocks: mitigation, adaptation, technology and finance, showing what it takes to transform the world to a zero-carbon economy over the coming decades, including global emissions cuts of at least 80% below 1990 levels by 2050. It will additionally enshrine equity and the right to survival for countries, communities, cultures and ecosystems, as well as the right to develop sustainably in accordance with the UNFCCC principles. The agreement then operationalises the shared vision for a 5-year commitment period for from 2013 to 2017, to be followed by subsequent 5-year periods, for all four building blocks.

The treaty’s legal structure The Copenhagen Climate Treaty should consist of three pieces: an amendment to the Kyoto Protocol, a new Copenhagen Protocol and a set of decisions by the supreme body of the Convention and its Protocols. The Copenhagen Protocol and amended Kyoto Protocol should be viewed as a package encompassing the international community’s response to avoiding dangerous climate change. The Convention and Protocol decisions should lay the groundwork for the immediate and early action needed up to 2012 for mitigation and adaptation, including some of the decisions that will need to be adopted at COP15 by Parties to the Copenhagen Protocol.

The global carbon budget

The document is a draft version of what the agreement in Copenhagen should look like. It is meant to encourage and provoke countries into thinking hard about the level of ambition, scope and detail that needs to be agreed in Copenhagen, the path to get us there and what comes afterwards.

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The overall ambition of the Copenhagen deal must be to keep the rise of the world’s average annual temperature as far below 2°C warming as necessary, compared to pre-industrial levels, to avoid catastrophic climate change. The planet’s annual global carbon budget from all sources of greenhouse gases would in 2020 be no higher than 36.1 Gt CO2e (gigatons of CO2 and other greenhouse gas emissions ), roughly equal to 1990 levels and would need to be reduced in 2050, in other words by 80% below 1990 levels. To put the world rapidly onto an emissions reduction pathway that can achieve that, global emissions need to come back to 1990 levels by 2020.

The new Copenhagen Climate Facility (CCF) would be an enhanced finance & technology mechanism learning from the experience of already

climate change

existing institutions. It should reflect a democratic decision-making structure with an equitable and balanced regional representation, ensuring significant representation from developing countries, as well as formal representation from relevant stakeholders.

Need for an emergency science review clause The state of climate science is evolving rapidly. The Copenhagen Agreement should include a regular review provision, with the first review beginning in 2014 and based on the AR5. The agreement should also include an ‘emergency review clause’ which could be triggered by a double majority of industrialised and developing countries based on emerging science that demonstrates the need for even stricter targets.

•

vast majority of these being achieved domestically (30-35%).

Developing countries as a group should pledge to reduce their actual emissions substantially by deviating by at least 30% below a ‘busi- ness as usual’ pathway by 2020, including REDD, provided they receive guaranteed adequate finance, technology and capacity-building support from industrialised countries.

An adaptation and risk prevention framework for the most vulnerable: The new climate treaty must enable vulnerable countries to adapt where possible to the current and future consequences of climate change, by putting in place an Adaptation Action Framework.

Progress in the negotiations on adaptation requires:

The new agreement must also build trust through transparency and rigorous data collection and verification in a manner that reflects the different capabilities of countries. Creating such a system will allow Parties to be more ambitious, trusting that others are also reaching to the outer limits of what is possible. The compliance system must therefore also be strengthened.

• • •

WWF Expectations for the Copenhagen Climate Deal

Finance to make the transformation happen:

Massive flows of secure and predictable funding Immediate provision Recognition that a ‘business as usual’ emissions pathway without a sharp peak and decline well before 2020 means many vulnerable states, communities and ecosystems will reach the point where adaptation is no longer possible

Countries should come to Copenhagen ready to agree to a new Copenhagen Climate Facility to govern finance raised through a basket of mechanisms that together will raise finance on the necessary scale.

•

•

This support must be new and additional to overseas development assistance (ODA), and the vast majority of it should be paid into the Copenhagen Climate Facility.

Additional mechanisms are needed which must be predictable and transparent, like the Norwegian proposal to auction carbon allowances of roughly 10%, a compelling option that could deliver large-scale climate finance.

A framework for technology: Despite the increased development of low-carbon, efficient and sustainable technology, the scale and speed of deployment remains far behind what is needed. WWF proposes to organise future technology efforts under the UNFCCC through a series of targeted five-year Technology Action Programs which would aim to deliver on technology objectives, aiming to increase cooperation on innovation for environmentally and socially sustainable technologies.

Legal form and institutions: The Copenhagen deal must be a ratifiable outcome comprising an amended Kyoto Protocol and a Copenhagen Protocol and a set of decisions for implementation.

Commitment period and review mechanism:

Excerpts: Mitigation ambition: •

•

The rise in global average temperatures needs to be limited to far less than 2°C above the pre-industrial levels.

Developed countries as a group should commit to binding absolute emission reduction targets at least 40% below 1990 levels by 2020, the

The Copenhagen agreement should maintain the Kyoto Protocol’s 5-year commitment period system in order to be relevant to political cycles and help to ensure compliance, while the global carbon budget will help to provide long-term certainty of the overall global reduction pathway. * For the full reports: The full Copenhagen expectations paper can be downloaded at: http:// assets.panda.org/downloads/copenhagen_expectations_paper__wwf.pdf.

The full proposal for an amended Kyoto Protocol can be downloaded at: http://www.wwfchina.org/wwfpress/publication/gdl/CPHtreaty.pdf.

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biofuels

GM sugarcane could enhance Brazil’s sugar, ethanol and energy industries

BASF BASF and Centro de Tecnologia Canavieira have announced their cooperation in plant biotechnology which could see them offering sugarcane growers higher-yielding and drought-tolerant sugarcane varieties within a decade.

Centro de Tecnologia Canavieira (CTC) and BASF have announced a cooperation agreement in plant biotechnology that will see the companies combine their competencies in sugarcane breeding and biotechnology to bring sugarcane growers higher-yielding and drought-tolerant sugarcane varieties. Their goal is to arrive at varieties with yield increases of 25% within roughly the next decade, resulting in an almost unprecedented jump in productivity for any crop. ”We entered this cooperation because we are strongly committed to the continuous development in technologies for increasing yield and to reduce production costs in sugarcane,” explains Nilson Zaramella Boeta, CEO of CTC. “The great leap in sugarcane quality and productivity that CTC and BASF start working on today will certainly support Brazil’s position as the leading global player in sugar, ethanol and energy,” he added.

“The key objective of this cooperation is to develop sugarcane varieties that will produce 25% more yield than the varieties currently on the market. This type of yield increase would mean that the average quantity of sugarcane harvested could rise from 80 to 100 tons per hectare,” said Marc Ehrhardt, Group Vice-President, BASF Plant Science. He added that BASF are proud to cooperate with CTC, one of the world’s leaders in improving sugarcane production through conventional breeding as well as biotechnology. The cooperation is another example of BASF’s plant biotechnology strategy by which they aim to increase efficiency in farming by bringing BASF’s superior genes to farmers around the world in cooperation with the best partners.

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Additional value The yield increase that the partners are targeting will create significant additional value that will be shared among sugarcane, ethanol and energy producers, as well as CTC and BASF. The agreement also provides the possibility for both companies to evaluate the development of sugarcane varieties with herbicide-tolerant characteristics in the future.

BASF

BASF Holdings South Africa (Pty) Ltd Tel: +27 11 203 2422 Fax: +27 11 203 2430 E-mail: petra.bezuidenhout@basf.com Website: www.basf.co.za

biofuels

Mozambique’s government approves

biofuels projects Mozambique's Council of Ministers have approved another two major projects for the production of biofuels as part of government's strategy to reduce the country’s dependence on imported fossil fuels.

Enerterra SA, a company with Portuguese and Mozambican interests, and Zambezi Grown Energy Limited, with Mozambican, Asian and South African interests, will jointly implement these projects in the central province of Sofala.

In addition, the Council of Ministers approved a new resolution that grants temporary Land Use and Exploitation Rights (DUAT) to both companies to start their businesses.

Luis Covane, Spokesperson for the Council of Ministers, noted that Enerterra has been granted an area covering 18 920 hectares in the locality of Mazamba, administrative post of Inhaminga, district of Cheringoma, for the production of Jatropha. This particular project is valued at US$53-million (ZAR413,4-million), and is expected to employ 5 000 seasonal workers, and 25 permanent staff. Ten percent of the biodiesel produced will be used for domestic consumption, and the balance for export, mainly to Europe.

Similarly, Zambezi Grown Energy Limited was granted 15 000 hectares in the district of Chemba, also in the province of Sofala, for the production of sugar cane for energy generation and biodiesel. The project is budgeted at US$224-million (ZAR1742,2-million) and aims to produce 100-million litres of alcohol annually.”Of the 100-million litres of alcohol produced per year, 10% will be sold in the domestic market and the balance exported to Europe, USA and Japan, while the electricity produced will be integrated into the national grid,” explains Covane.

These two companies join some further 12 companies who are currently investing in the production of biofuels in the country.

For further information, visit http://allafrica.com to which full acknowledgement and thanks are given.

No 3 2009 25 o in Africa

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biofuels

International research on “Our continent’s efforts are currently flawed by uncoordinated and ill-informed projects that focus on first generation crops.

bioenergy takes shape

Biofuels researchers at Stellenbosch University (SU) have joined forces with some of the world’s leading experts in the field to seek resolution of issues relating to the sustainable production of bioenergy. These efforts form part of the new ‘Global Sustainable Bioenergy: Feasibility and Implementation Paths’ project, launched in response to the substantial confusion and growing uncertainty about whether the world should look to bioenergy (biofuels, heat, and electricity) to play a prominent role in the future.

“We want to establish once and for all whether large-scale production of bioenergy is possible and, at the same time, can also benefit both humanity and the environment,” explains GSB representative for Africa Professor Emile van Zyl, holder of the SANERI Senior Chair of Energy Research: Biofuels and other clean alternative fuels in the SU Department of Microbiology.

“There are just as many critics for as against bioenergy, and the GSB wants to ensure clear-cut answers that can provide policy frameworks and advise strategy to ensure a sustainable result on a global scale,” he says. The project will place sustainable bioenergy production within the context of new issues such as climate change, increased production yields and enhanced technological advancement.

Van Zyl believes that Africa is probably the continent with the greatest potential for bioenergy/biofuel production, cautioning, “Our continent’s efforts are currently flawed by uncoordinated and ill-informed projects that focus on first generation crops.” He adds, “On top of this, weak political commitment and a lack of policy frameworks for the whole continent leaves Africa vulnerable to potential exploitation from abroad, as has been the case with other resources in the past.”

It is believed that a scientific and well-coordinated project such as GSB can unveil Africa’s true potential as a bioenergy provider in that it can help bioenergy to become an important strategic partner to the agriculture

and forestry sectors. It addresses energy security, while at the same time assisting in economic wealth creation to the larger population.

The first stage of the GSB project will consist of meetings held at five locations around the world to examine and plan for issues within a regional and continental context, starting in November 2009. The regional event for Africa is being planned to be held in Stellenbosch from 16 to 19 March 2010.

The second stage of the project will then address the question: Is it physically possible to meet a substantial fraction of future world mobility and/or electricity demand from plant sources while our global society also meets other important needs, including feeding humanity, habitat preservation, and maintaining environmental quality?

The third stage, on the other hand, will address implementation paths including technical, social, economic, political and ethical issues, and will aim to develop policies and strategies for a responsible transition to a sustainable, worldwide bio-based society.

Headed by Prof Lee Lynd of the Thayer School of Engineering, Dartmouth College and Mascoma Corporation, Prof Nathanael Greene of the American Natural Resources Defense Council and Prof Tom Richard of Pennsylvania State University, the three-stage project is predicted to deliver a noteworthy, coordinated contribution to this field of research.

For further information please contact: Stellenbosch University Department of Microbiology Prof Emile van Zyl Tel: +27 21 808 5854 E-mail: whvz@sun.ac.za Website: www.sun.ac.za The renowned biofuels expert, Prof Lee Lynd (left) of Dartmouth College in the USA, was one of the speakers at a special BioEnergy Seminar Series organised by the Biofuels Research Chair in the Stellenbosch University (SU) Department of Microbiology. The meeting was also addressed by Prof August Temu, a respected academic leader in agroforestry in Africa, and Director of Partnerships at the World Agroforestry Centre who spoke about the role of agricultural education in food security for Africa. With them is seminar organiser Prof Emile van Zyl (right), holder of the SANERI Senior Chair of Energy Research: Biofuels and other clean alternative fuels at Stellenbosch University. Photo: Engela Duvenhage.

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biofuels

Sugarcane: the ideal bio-energy feedstock?

Because of its ability to convert up to 2% of solar energy to biomass, sugarcane is one of the most efficient photosynthesisers in the plant kingdom.

In addition to this, sugarcane is also suitable for further processing in that it contains fuel and water, thus making it an ideal feedstock for a range of sugar and bio-energy refining products and by-products, including: • • • • • •

Sugar Molasses Bio-ethanol Vinasse Bio-methane Fuel (steam and/or electricity)

Bosch Projects prides itself on providing low-cost, efficient solutions through: • Versatile energy and mass balance software to optimise plant

efficiencies as well as equipment selection and configuration.

• Cogeneration of renewable electricity into the national power grid.

• Cleaner air emissions using advanced scrubber technology.

• Reduced carbon footprint, sustainable energy production and job

creation.

Bosch Projects is at the forefront of developing and implementing renewable energy facilities in Africa. Using advanced technology, they are able to produce raw and refined sugar from sugarcane; bio-ethanol from sugar, molasses or sugarcane juice; steam and electricity from bagasse (sugarcane biomass); and bio-methane from anaerobic digestion of vinasse (for steam or electricity).

Production of ethanol from renewable resources is not a new concept.

Apart from being used by humans as an alcoholic beverage for over 2000 years, fuel ethanol was first used around 1908 by Henry Ford in his Model T Ford which could run on either petroleum or ethanol.

A typical conversion process of sugarcane to various energy forms is reflected in the diagram on the right:

For further information, contact Butch Carr at: Bosch Projects Tel: 27 (0) 31 250-0500 E-mail:carrb@bproj.co.za • Website: www.boschprojects.co.za

Jatropha biofuels

The Jatropha debate PART 2: How thirsty is Jatropha?

Claims that Jatropha curcas can grow well in low-rainfall regions are increasingly being questioned, yet South Africa regularly hosts biofuel conferences where the potential of Jatropha as an energy crop for Southern Africa features prominently.

Near- and long-term impacts in terms of the depletion of groundwater resources need to be evaluated for all mega Jatropha projects as rising level of shortages of water and projections for further reduction prove to be a major limiting factor in Jatropha production.

with modelling complexity increasing with each successive phase.

In order to establish the hydrological (water-use) characteristics of J. curcas, it was necessary to make field measurements of crop transpiration.

Over a period of almost two years, transpiration of J. curcas plants was continuously monitored through the measurement of sap flow using the Heat Pulse Velocity (HPV) technique. In addition, selected weather variables and, where possible, soil-water dynamics were monitored to provide the basis for the subsequent application of modelling as a means of simulating water use of J. curcas throughout potential production areas.

A cautious approach With such information largely lacking in the case of J. curcas, Government has been forced to adopt a cautious approach and to propose that, until necessary information becomes available, the large-scale cultivation of J. curcas, as with other new species having similarly uncertain water requirements, be declared a Stream Flow Reduction Activity (SFRA).

“Jatropha curcas in South Africa: An Assessment of its Water Use and Bio-Physical Potential”, edited by MA Holl of Siyaphambili Development Consulting, MB Gush of the Council for Scientific and Industrial Research (CSIR), J Hallowes from CPH2O and DB Versfeld from Dirk Versfeld cc, undertakes an assessment of Jatropha on SA soil via the evaluation of J. curcas plantings of two different ages (4- and 12-year-old J. curcas trees) at Empangeni and Makhathini using 3 phases of modelling.

• The first phase of modelling used biophysical cut-off limits, derived from a knowledge review, to eliminate all areas where J. curcas will not grow due to climatic and physical constraints.

•

The second phase sought to produce weighted estimates of potential crop yield by considering the relative importance of each of a number of index values related to overall crop yield. This assessment yielded sim- ilar results to those of the next (third) phase, in which crop-yield equa- tions provided the means of estimating crop yield.

• With crop-yield equations for J. curcas being absent from international literature, the third phase required that crop-yield equations be derived.

Does jatrop ha pose a threat at bio diversity?

www.ascension-publishing.com

In a technical brief (April 2008), the Water Research Commission (WRC) commented on the potential of the impact of large-scale planting of the biofuel crop Jatropha by saying: “New crop species introduced on a large scale have the potential of impacting on South Africa’s water resources.

International interest in Jatropha curcas as a drought-tolerant, fastgrowing crop, suitable for bio-energy production, has grown significantly in recent years. The crop has also been seen as a possible contributor to poverty alleviation and job creation.” However they cautioned “Effective management of commercially planted species in terms of possible water resource impacts requires accurate information on generalised water use and bio-physical production characteristics relevant to areas having planting potential.”

Don’t miss part 3 of the jatroph a debate:

The measurement of transpiration rates revealed certain interesting trends, including that the deciduous nature of J. curcas means maximum transpiration rates occur in summer, followed by the cessation of transpiration in the cooler and drier winter months. These amounts also differ from region to region.

The report concludes, “It appears unlikely that cultivation of J. curcas would have a negative effect on annual streamflow in South Africa and should therefore not be considered a SFRA,” but adds, “In reality very little is still known about the production potential of J. curcas in South Africa; further research, related both to water use and other aspects such as economics and invasiveness, is recommended.”

Area-specific success The report also notes, “Jatropha curcas can be most successfully grown in South Africa along the Eastern Escarpment and most areas along the coast. Places where highest yields would be obtained are in KwaZuluNatal, the Eastern Cape and certain areas of Mpumalanga. Areas of low and variable rainfall, and areas susceptible to anything more than mild frost, should be avoided.”

Crop Modelling

Water-wise, it concludes, “J. curcas should still not be considered a SFRA as it produces an improvement in runoff quantity for most of the area investigated.”

A crop modelling approach in three phases was consequently employed to obtain productivity estimates of J. curcas for different areas in South Africa,

To read the full report, to which full acknowledgement and thanks are given, visit www.ascension-publishing.com.

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renewables

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oil and gas

Engen in world-leading retail

fuel loss prevention programme

Engen, the 80% PETRONAS-owned South African downstream market leader, continues to register major successes in combating fuel loss at retail service stations, as part of its five-year Spill Intervention Programme (SIP).

At a cost of ZAR373-million, the company’s far-reaching SIP programme places it among the world’s most environmentally aware oil companies, believes Engen’s Retail Engineering and Construction Manager Pat McKune.

“SIP consists of multiple projects, all aimed at mitigating the risk of fuel entering the ground or water resources around Engen’s retail site network, which comprises 1 200 sites and 6 500 underground storage tanks,” explains McKune, adding that the project supports the company’s health and safety concerns, as well as a move to more eco-friendly fuels. Through preventing possible future leaks, it ‘future proofs’ Engen’s operations, thereby mitigating any foreseeable risks in terms of leakage.

Engen’s sites are of varying ages, and have been built to different fuel installation standards due to Engen having merged with various other networks over the years. Currently, a large number of the tanks are steel composite (glass reinforced polyester coated) tanks built according to 1991 fuel industry specs. Since 1991 no leaks from composite tanks have been recorded in South Africa.

In 2005 Engen voluntarily undertook a detailed study across it’s network to assess the risk of fuel leakage or spillage at service stations and, at the same time, re-assessed its fuel installation engineering standards, focusing on developing a Risk Assessment Profiling (RAP) tool upon which to prioritise it’s mitigatory action plan to get sites up to the new Engen standard by 2012. This RAP process ensures installations are fit for ‘new fuels’, determines other ways needed to stop fuel entering the environment and sets new installation and loss intervention standards.

Re-profiling risk With the specialist support of the Oil Industry Corrosion Control Group (OICCG), under the directorship of Steve Holt, Engen has RAP-profiled its entire network, assigning site risk weightings according to various asset integrity indicators, such as corrosion risk, stray currents, age of installation, leak history, site volume throughput and ground water vulnerability. From this data, a risk prioritised site list was being produced, with two key risk measurement factors being Failure Prediction Index (FPI) and Ground Water Vulnerability Rating (GWVR). The last-mentioned rating is based on data sourced from GEOSS, which maps the Republic’s protected environments and sensitive water resources. This GWVR data sets priorities for above ground fuel spill risk mitigatory action (eg from truck deliveries), whilst FPI data sets priorities for underground fuel installation failure mitigatory actions. “We are managing hypothetical risks and re-risk rating our existing sites as well as all new systems installed at sites,” explain McKune Risk assessment McKune says, rather than running a simple age-based tank replacement programme, Engen has developed and has been using the sophisticated risk profiling (RAP) tool for some time, along automated tank-gauging systems fitted with local and remote alarm systems and automatic shutdown systems, as well as a Statistical Inventory Reconciliation system (SIR) which provides mapping and records of fuel inventories and red flags any losses. “We believe it leads the oil industry in South Africa, and possibly the world,” says McKune of this system, adding that the company is working on a ‘live’ system that will provide real-time feedback. Their Risk Assessment Profiling is being continuously improved with the integration of more site information, leak history and asset databases, facilitating robust solutions for mitigation.

New installations All new and rebuilt sites, as well as those undergoing major upgrades, have the following elements built into their build specifications: • Steel composite tanks • Double-walled containment fuel piping • Automatic tank gauging (ATG) with pressurised line leak (PLLD) and tank leak detection to US EPA standards • Real-time statistical inventory reconciliation and remote alarm systems – with response time improvements being evaluated • Concrete to forecourts and concrete filler slabs to contain and manage fuel delivery spills • Filler and forecourt drainage / containment system • Drainage leads to six-cubic-metre oil interceptors / separators (sized to contain a full compartment a bulk-fuel truck in case of catastrophic failure) • Tank access, filler and pump island secondary containment • Oil interceptor connection to storm water/foul sewers • Engen is setting up a procedure which will ensure management & pro grammed cleaning of oil interceptors by an Engen/Municipal approved waste management company • Vapour recovery Stage 1b standard addition • ‘Reedbed’ water and sewage treatment is being piloted as a possible future option to clean discharge water from sites

www.flickr.com

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2255oo i n 33 2009 in AAf fririccaa NoNo 2009

Where systems are replaced or upgraded, new-site specifications will apply.

Continued on page 35

oil and gas Continued from page 34 Existing site interventions

Finger on the pulse

Engen is rolling out its PILP (Product Inventory Loss Policy) on 815 sites until 2012. This work will comprise some of the above interventions, namely Automatic Tank Gauging, concrete to forecourts and filler areas, forecourt and filler area drainage, oil interceptors with storm water connections, filler area secondary containment and dealer contracts with approved waste management companies. To date, almost 300 sites have been complete.

McKune believes that, with measures like the envisaged permanent remote electronic monitoring of sites, Engen always has a finger on the pulse to protect the environment, the community, and Engen and its shareholders.

“We have aligned ourselves voluntarily with world fuel installation standards and leak management processes, allowing us to prevent leaks and spills to world standards, and to take the best possible mitigating action during emergencies,” he concludes.

Dealer Training Engen’s HSEQ manual and dealer training also covers fuel loss management. An insurance penalty system leaves dealers liable for undetected fuel losses if certain incident deadlines have not been met, and regular HSE guideline communications and monthly bulletins go out to dealers to maintain a heightened awareness and vigilance.

Engen Tel: +27 21 403 5258 E-mail: Tania.Landsberg@engenoil.com Website: www.engen.co.za

Oil discovery in

Uganda

Tullow Oil plc (Tullow) has announced that the Ngara-1 exploration well, which is located in the Butiaba region of Uganda Block 2, has encountered over 8 metres of net oil pay.

Good-quality basal sands were encountered with over 8 metres of net oil pay in a 17-metre gross reservoir interval with additional potential up-dip.

Located approximately one kilometre from the crest of the structure, the well was drilled to a total depth of 741 metres and has been successfully logged and sampled.

The well is now being suspended as a future oil producer and will, along with the other discoveries made in Uganda, form part of the detailed basin development plan which the integrated project team is currently working on.

"Ngara-1 is the tenth discovery in the Victoria Nile Delta play and marks the

end of a very successful opening phase of the Tullow-operated exploration campaign in the Butiaba region of Block 2. We are now planning to integrate all regional well and seismic data with the recently acquired gravity survey.

The results from this work will further enhance our understanding of the subsurface and identify additional prospectivity within the region,” said Angus McCoss, Exploration Director.

For further information, visit www.tullowoil.com, to which full acknowledgement and thanks are given.

Investment speculation surrounds Coega refinery South Africa's Energy Minister Dipuo Peters has said that the country will consider regional investment into its 400 000 barrels-per-day planned refinery at Coega in exchange for supplies of fuel products. The $9-billion refinery, developed by national oil company PetroSA, is expected to help ease South Africa's dependence on imported fuels, with refined products exported throughout the Southern African region. PetroSA expects to make a final investment decision on the Coega project by early 2011, with the start of production by the end of 2014 or early 2015.

Source: http://www.gcis.gov.za/resource_centre/news_and_mags/ buabriefs/090708_140.htm www.sa-transport.co.za

No 3 2009 25 o in Africa

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oil and gas

West Africa’s

oil and gas routes expand

Universal Africa Lines (UAL), an international shipping liner to the West African oil and gas industries, recently opened a South African branch in launch of a fortnightly shipping route to supply West African oil and gas exploration and production bases from South Africa.

The company has taken time charter of the UAL Cape Town for three years in the form of a 12 500-ton (deadweight capacity) ship with dual deck cranes that are capable of lifting a combined 160 tons. The ship underwent her maiden voyage in May 2009, with her general ports of call set to be Durban, Cape Town, Walvis Bay, Lobito, Luanda (Sonils), Soyo, Pointe Noire, Port Gentil, Malabo, Onne (Port Harcourt) and Lagos. These destinations will encompass loading and discharge, and the possibility of including other ports, upon client request.

The shipping line’s fortnightly service will take mainly specialist equipment and supplies to the oil-and-gas exploration and production industries along the West African coast, but as a conventional carrier, it will also ship a variety of break-bulk and container cargo for oil and gas projects and commercial purposes.

Queuing up to serve West Africa Seaclad CO has been appointed as UAL’s general agent in South Africa.

Company CEO Roger Jungblut believes South Africa is becoming an increasingly important source of supplies and services that support bustling activity in the West African oil theatre, stretching from Cape Town to Nigeria.

The region produces roughly 15% of the world’s crude oil, or around 5 – 6million barrels per day.

The same is true for South Africa’s supply into Africa in general: the African Union is increasingly in favour of contained African trade, with a wealth of in-country laws requiring a large proportion of procurement to originate on the continent. “South Africa is preferred for the strength of its manufacturing

and mining industries, and its servicing expertise,” explains Haakon Røstad, UAL South Africa’s Managing Director. He adds, “Of late, SA engineering and technical know-how is in particularly high demand, as there is a big need for servicing of highly specialised equipment.” Røstad says the South African manufacturing, mining, engineering, agricultural, building and construction industries are all in a good position to serve West Africa.

A range of advantages UAL’s unique regional and sectoral focus has a range of advantages: • UAL supports South African transformation objectives and will work towards compliance with local directives.

• A ‘small’, privately-owned carrier, UAL can make quick decisions and its executives are hands-on.

• UAL sticks to its shipping schedules because of the comparative predict- ability of demand in its chosen market.

• None of UAL’s ships is older than 10 years.

• Fully loaded, UAL’s ships lie only 6 metres deep, allowing them to berth in silted-up West African ports.

• Dedicated to the oil and gas industry, UAL does not berth at multiple ports. At several of them, it has immediate berthing (Sonils, K5 and Intel Services in Nigeria).

• Heavy-lift capability – up to 300 tons.

Røstad explains that UAL’s intentions are to quickly grow the frequency of its South African voyages. “As South Africa is increasingly favoured as a supply destination to this huge market, the time for local companies and industries to increase export revenue or create an export market is now,” he concludes.

Universal Africa Lines Tel: +27 21 422 3210 Fax: +27 21 422 3212 E-mail: haakon@ual-sa.co.za Website: www.ual-sa.co.za

Oil training opportunity Dramatic changes in African markets have meant that not only oil companies but also finance institutions and regulatory bodies are keen to understand the international dynamics of the oil trading business. Due to popular demand, CITAC will run another Oil Trading Foundation course in Tema, Ghana over a one-week period between the 28th of September and the 2nd of October 2009. The course will cover crude oil and petroleum products pricing and trading, refining, shipping, contract issues and price arbitrage.

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CITAC has been offering training courses in the international oil industry since 1998 and, since then, has been involved with the training of over 150 African oil professionals for governments, refineries and state oil companies from 16 African countries, including Mauritania and the Republic of South Africa.

For further information, visit: www.citac.com.

oil and gas

Investigating the cause of the Timor Sea oil spill

The natural champion for energy of today and tomorrow!

www.picasaweb.com

Egoli gas operates and maintains a 1,200 km pipe network through which it supplies natural gas to the Greater Johannesburg Metropolitan area.

Seadrill Ltd. has reported that it is working closely with the National Offshore Petroleum Safety Authority to investigate an August oil spill involving the Montara platform off West Australia in the Timor Sea. Seadrill’s West Atlas jack up drilling rig is operating under contract to PTTEP of Thailand, who owns and operates the Montara platform. An oil leak developed on a well adjacent to where the West Atlas was working, Seadrill claims.

Our consumers include: • Domestic • Central water • Hospitality • Industrial Natural gas: the easily tapped energy source that is always available, cost effective and instant.

Environmentally friendly Egoli Gas – The natural alternative!

safe, reliable and economical

The cause of this leak is yet unknown. The Australian Maritime Safety Authority quickly sent planes to spray chemical dispersants on the water to help break up the resulting oil slick.

Seadrill said it is making another jack up available, namely the West Triton, to PTTEP to drill a relief well. Seadrill also sent an investigation team to Australia.

Once the leaking well is under control, Seadrill crews will reboard the West Atlas and assess any damage.

For further information, visit www.ogj.com to which full acknowledgement and thanks are given.

For further information, please contact Egoli Gas Main: (011) 356 5000 • Fax: (0) 86 557 6949 Emergency number: (011) 726 4702 E-mail: cservice@egoligas.co.za

www.egoligas.co.za

No 3 2009 25 o in Africa

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re n ew a b l e s

Windpower:

Solar farms

moving from demonstration in Africa and the Middle East to roll out could produce energy for Europe Twelve European companies recently launched a 400-billionEuro (ZAR4537,63-billion) initiative to plant huge solar farms in Africa and the Middle East which will produce energy for Europe. The consortium has said the massive project could provide up to 15 percent of Europe's electricity needs by 2050.

Engineering giants ABB and Siemens, energy groups E.ON and RWE and financial institutions Deutsche Bank and Munich Re are among the companies which signed a protocol pertaining to the launch in Munich. "Today we have taken a step forward," said Nikolaus von Bomhard, Head of reinsurance giant Munich Re who hosted the signing.

Siemens

Airtricity, the renewable energy division of Scottish and Southern Energy (SSE), recently signed an agreement with Siemens Energy for the delivery of 80 SWT-3.6-107 wind turbines for the Butendiek offshore wind farm in the German North Sea. The offshore project, with a capacity of 288 megawatts (MW), will be commissioned in 2012 and is located 34 kilometres off the island of Sylt at a water depth of 20 metres.

Andreas Nauen, CEO of Siemens Wind Power, says this agreement shows that the German offshore market is moving from the demonstration phase to rolling out commercial projects, adding that “with more than 90 turbines already installed offshore, the Siemens 3,6 MW wind turbine has a proven track record for the harsh environment in the North Sea”.

Germany offers favorable framework conditions for the installation and operation of offshore wind farms, with the German government setting a target of 25,000 MW offshore wind power by the year 2030. The Butendiek wind farm will receive a feed-in tariff of 15 Eurocents per kWh, and the transmission system operator is obliged to connect the wind farm to the grid on time.

With an installed offshore capacity of more than 600 MW and an order backlog totalling more than 3 300 MW, Siemens is a leading supplier of wind turbines for offshore applications worldwide. In 2008, revenue from the products and solutions in the Siemens environmental portfolio was nearly EUR19 billion, which is equivalent to approximately a quarter of Siemens’ total revenue.

Siemens Southern Africa Tel: +27 11 652 2000 Website: www.siemens.co.za

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2 5 o i n A f ri c a No 3 2009

The Desertec Industrial Initiative (DII) will see solar-power generators built from Morocco to Saudi Arabia, and electricity then pumped to Europe via underwater cables. It will also provide a "substantial portion of the power needs of the producer countries," the Desertec foundation said in a statement, as well as transform sea water into drinking and irrigation water for local populations.

Munich Re board member Torsten Jeworrek said the European companies involved had pledged to operate "as equals in a sincere and fair manner” with producer countries. "The partnerships that will be formed across the regions as a result of the Desertec project will open a new chapter in relations between the people of the European Union, West Asia and North Africa," said Jordan's Prince Hassan ibn Talal.

Countless details still need to be worked out, including where to install the plants, when the power will come on and how much it will cost, potential profits, political stability in some areas and, of course, financing. Under this protocol, a Desertec study office will be established by October and will have three years to elaborate on plans to create the network of solar farms.

The Sueddeutsche Zeitung newspaper said in June that electricity could begin flowing to Europe within 10 years. Max Schoen, president of the German association of the Club of Rome, said that the establishment of DII is “a giant leap by industry for the lasting production of human life”.

Yet not everyone is as impressed: German Social Democratic Party deputy Hermann Scheer told AFP it was not necessary to go to North Africa to collect the sun's rays, and added: "We could invest the 400 billion Euros here". Others doubt that producer countries will benefit from a plan designed with Europe in mind.

For further information, visit www.wbcsd.org to which full acknowledgement and thanks are given.

renewables

South Africa’s energy crisis is predicted to endure over the next 5 years, and will impact 90% of our country’s population.

Renewable Projects aims to contribute towards a sustainable future by providing energy saving solutions to all.

Renewable Projects offer: Comprehensive packages of effective energy saving products that deliver immediate results.

LED lighting (from accent and

High efficiency shower heads

pathway lighting to security)

(reduces water usage by 80%) Tailored solar heating systems (reduce your electricity usage by 50 – 60%)

Contact Renewable Projects today for all you energy saving solutions.

Barry du Preez: 084 959 2060 • Vincent Theunissen: 072 090 7356 Tel: 011 021 2651 Fax: 086 606 8331 info@renewableprojects.co.za

www.renewableprojects.co.za No 3 2009 25 o in Africa

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re n ew a b l e s

The Danish development fund ‘Danida’ is currently involved in the much-needed ‘Joe Slovo 3’ precinct of the N2 Gateway project.

Pictured above is the N2 Gateway project.

Energy efficiency funding

for N2 Gateway from DANIDA The Danish development fund ‘Danida’ is currently involved in the muchneeded ‘Joe Slovo 3’ precinct of the N2 Gateway project.

Danida is funding the energy efficient technologies for 49 BNG houses. In addition to the cost of ZAR10 000 for each house within the show village, Danida is also providing ZAR1 000 per house for the remaining 1 450 houses.

Annie Orgill, who works closely with Danida on this project, says, “The first stage of the project is the pilot which will allow us to see what can be replicated in terms of the other 1 500 houses. When you have ‘replicability’, it leads to sustainability. The donor money is allowing us to pilot an energyefficient model; the next stage would be to look at how to replicate this without donor funding in order to ensure a business model that’s both replicable and sustainable.

She adds that the project is doing much to alleviate poverty in that the energy-efficient interventions free up income for other vital living costs.

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2 5 o i n A f ri c a No 3 2009

renewables

49 houses are being used as an energy efficient “showcase” at the N2 Gateway project, funded by Danida.

BNG

An energy efficiency blueprint

With a ZAR15-million budget, and with aims to complete the entire N2 project by 2010, the site was dramatically influenced by Government’s Breaking New Ground (BNG) policy. Herman Potgieter, a Town Planner who works on the project, explains that, initially, the project involved ‘social housing’ which was characteristically higher density, but when the BNG policy was initiated, N2’s landscape changed to a lower density settlement.

This project is simply one part of the large N2 Gateway project. As an institutional arrangement between National Housing, and the Sobambisana Consortium and the contractors, the initiative will officially be launched in October/November 2009.

Energy-efficient measures Funding will be used to incorporate 7 energy-efficient aspects into the design of the BNG houses: • • •

• • •

SWH – Solar water heating CFLs – Compact fluorescent lamps A pergola over the front doors – to shade the house from sunlight in summer, and insulate the house during winter Bigger windows Correct orientation Larger hangover

The project is envisaged to go a long way to show what a modest amount of ZAR 10 000 can achieve in terms of technology improvements and energyefficient retrofits to BNG houses. The 40 m² houses, some single storey, some double, all with private gardens will be enjoyed by families.

As one of the biggest BNG projects South Africa has seen so far, the study also provides a model for sustainable technology especially in terms of solar water heating. This is hoped to eventually result in a new financial model for future BNG houses, or providing a blueprint for addressing the notorious inefficiency of low-income housing, which may include programmatic CDM.

Royal Danish Embassy Carsten H Laugesen Tel: +27 12 430 9349 E-mail: carsla@um.dk

Or

Sandiswa Tshaka Tel: +27 12 430 9350 E-mail: santsh@um.dk Website: www.ambpretoria.um.dk/en

No 3 2009 25 o in Africa

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p e rs p e c t i ve s

Have the G8 countries

failed

on climate goals, again?

“G8 countries have so far failed to take sufficient action to protect the world against climate change. The latest G8 Climate Scorecards report shows that Germany, followed by the UK and France, is performing better than the rest of the rich nations' group. Italy and Japan are in a lower medium ranked group. Canada, the USA and Russia are lagging behind, despite the USA moving up one rank,” stated WWF. The recent report, carried out by Ecofys for WWF and Allianz SE, ranks the top eight industrialised countries according to their climate change policies and provides an assessment of five major developing countries, including South Africa.

Just five months ahead of crucial climate talks in Copenhagen, the 2009 edition of the annual WWF-Allianz G8 climate scorecards shows that, while some efforts had been made, this action remains insufficient to set the world on a low-carbon economy course.

The report highlights the lack of a clear leader among the ranked nations, and while Germany has slightly improved, countries such as Canada and Russia have completely failed to pass the test.

Crucial outcomes needed In the foreword of the report, James Leape, the head of WWF, and Allianz board member Joachim Faber urge the nations to take action now and help seal a good deal in Copenhagen: "While there might be a bailout possibility for the financial system, no amounts of money will save the planet once climate change crosses the danger threshold," Leape and Faber wrote, adding, "It is therefore crucial to limit the rise of global temperature to below two degrees compared to pre-industrial levels."

The G8 Climate Scorecards 2009 measure countries' performance and trends in areas including development of greenhouse gas emissions since 1990, the distance to their Kyoto targets, their share of renewable energies

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2 5 o i n A f ri c a No 3 2009

and the efficiency of their climate policies. The comprehensive evaluation is based on their progress and improvement made since 1990, looking at the current status of emissions and the intended policies for the future.

Report results •

•

•

•

Germany, the United Kingdom and France have already achieved their Kyoto targets – but their long-term climate performance is not adequate to limit the global temperature rise below two degrees Celsius.

Climate initiatives so far planned or announced by the Obama-adminis- tration have helped the USA climb from the last rank up to seventh place.

Canada and Russia, which are at the bottom of the ranks, either do not have political plans to change this development or do not implement them.

The reports recognises the positive example set by South Africa in inter- national negotiations, as well as the vision and strategic framework adopted by government in response to its Long Term Mitigation Sce- narios.

Joachim Faber, board member of Allianz SE, believes: "A low-carbon future holds growth potential for G8 countries as well as for emerging nations. Future investments and product development therefore require a sustainable political framework."

Richard Worthington, WWF South Africa's Climate Change Programme Manager, concludes, "In light of this report, we encourage President Zuma to take a strong stand on climate change by advocating for the levels of domestic action, financial support and technology cooperation that are required to avoid the dire impacts in store for Africa if the international community does not keep global warming well below 2 degrees. The window of opportunity to have a reasonable chance of avoiding runaway climate change is so small that we need Heads of State to move beyond the positions brought to the UNFCCC negotiations by national delegations."

Visit www.wwf.org.za, to which full acknowledgement and thanks are given, to download the full G8 scorecard report.

perspectives

from around the world Rolf Papsdorf, CEO of Alternative Energy Development Corp. Ltd., has been named The Tech Awards 2009 Laureates. Papsdorf was one of 15 global innovators recognised for applying technology to benefit humanity and spark global change. The Tech Awards, a signature program of The Tech Museum, selected Rolf Papsdorf from among hundreds of nominations representing 66 countries.

“We are proud to be among those recognised for their contributions, and will continue to develop solutions that improve the overall wellbeing of people worldwide,” commented Papsdorf.

The Tech Awards are one of the premier annual humanitarian awards programmes in the world, striving to recognise technical solutions that benefit humanity and address the most critical issues facing our planet and its people. Peter Friess, President of The Tech Museum, believes global challenges have become increasingly strident and more deeply rooted.

“Still, there is hope,” he says. “These incredibly impressive Laureates have all proven to be equal to, or better than, the challenge to make the world a better place. By celebrating their accomplishments today, we are encouraging future innovators to work toward solutions to make the world healthier, safer and more sustainable.”

This year, the Laureates represent the truly global vision of the programme, spanning countries such as Brazil, Bangladesh, Botswana, South Africa and the Bay Area, their work impacting people in many more countries worldwide.

For further information about The Tech Awards, visit www.techawards.org.

Nominations are currently being accepted for the 2009 program.

Alternative Energy Development Corp. Ltd Tel: +27 11 708 7673 E-mail: rogi@mweb.co.za Website: www.aedc.co.za

No 3 2009 25 o in Africa

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n u c l e a r e n e rg y

www.marinebuzz.com

floating nuclear power plant

The world’s first floating nuclear power plant (FNPP), which is being constructed in St Petersburg, Russia, could be operational by the fourth quarter of 2012, Russian diversified corporation United Industrial Corporation (OPK) has reported.

The construction of the plant, being undertaken by OPK’s subsidiary Baltiysky Zavod for Russian nuclear power plant operator Concern Energoatom, is due for completion in the second quarter of 2012, after which it will undergo testing.

During May this year, OPK had reported that the project, which would be set in service in Kamchatka, in the port of Viluchinsk, in Russia, will consist of a nonself-propelled vessel with two icebreaker class reactors. Recently, it noted that the exploitation of the head floating power-generating unit,

with a KLT-40C type reactor, would be the final step of the project. OPK also stated that the global economic crisis favoured the development of the FNPP project, owing to increased energy demand.

The developer expects to see increased demand for such projects in industrialised and developing regions in the world, owing to the fact that the cost of a kilowatt hour from an FNPP is equal to that from a hydropower station. According to data released by the International Atomic Energy Agency, the demand for atomic energy will increase by 66% globally by 2030.

For further information go to http://asianenergy.blogspot.com, to which full credit is given.

Russia will assist in Belarus feasibility study Russia’s AtomStroyExport (ASE) has signed an agreement which will see them assist in a feasibility study into the construction of the Belarus’ first nuclear power plant. The feasibility study will look at the investment options available to finance the proposed plant, and is to be completed by the end of 2009.

May saw Russia and Belarus sign an intergovernmental agreement on cooperation in the field of atomic energy for peaceful purposes. The framework specifies the main directions of cooperation in the development, design, construction and operation of nuclear power plants, nuclear fuel supply, nuclear and radiation safety, as well as scientific cooperation, training and others. The agreement was approved by the Belarus council of ministers on 1 September.

Iran

An intergovernmental agreement between Russia and Belarus on cooperation in the construction of a nuclear power plant in Belarus is expected to be signed in October, with ASE saying that work is progressing on the preparation of contractual agreements, with signatures due in December. At the beginning of 2008, the Belarus’ Security Council confirmed that it intended to build, and a bill enshrining the “fundamental principles” for the introduction of nuclear power was passed in June 2008.

For further information, visit www.world-nuclear-news.org to whom full credit is given.

defies international nuclear community

In a statement to the 35-nation board of the International Atomic Energy Agency (IAEA) – which is taking a tough new look at Iran and Syria – Mohamed ElBaradei urged the Islamic Republic to “substantively reengage” with the international community on the issue.

www.wikimedia.org

The U.N. nuclear watchdog is locked in a “stalemate” with Iran over the country’s suspect nuclear program, the agency stated, pressing Tehran to answer questions that have been posed time and time again about its atomic ambitions.

Iran insists its nuclear program is peaceful, yet the United States and key allies contend it is covertly trying to build a bomb. Up-coming meeting in Vienna and the U.N. General Assembly could set the stage for a toughening of sanctions against Iran for its continued defiance of Western demands that it suspend uranium enrichment. Tehran has already defied three sets of U.N. Security Council sanctions.

Glyn Davies, the chief U.S. representative to the IAEA, stressed the agency’s sharp focus on global nuclear safety. “The importance of this cannot be overstated,” he believes.

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For further information, visit http://news.yahoo.com/s/ap/20090907/ap_ on_re_eu/eu_un_nuclear_agency_9 to which full credit is given.

electricity

The

fastest way to restore an electrical network

FPIs indicate, by way of flashing LEDs, the location of a fault. Due to visibility and accessibility issues, it has become necessary to integrate these units with communications.

The results of a survey conducted in 2007 is reflected on the graph above, which illustrates the different methods of fault finding and the average time taken to restore power, at ADC’s chosen site. Trial and error is the most commonly used method, but we can see clearly from the graph that this doesn’t work very well.

FPIs with remote indication definitely deliver the best results for money spent. The linesman is told which tee off in his vast network is the problem.

He then drives straight to that problem tee off and isolates it from the rest of the system, restoring the power to the rest of the system. The system is low powered and therefore does not require any external supply.

Communications can be achieved by various methods including protocols DNP3, IEC870-101, or SMS etc.

ADC Energy Tel: +27 11 397 8168 Fax: +27 11 397 8232 E-mail: Trevor@adcenergy.co.za Website: www.adcenergy.co.za

No 3 2009 25 o in Africa

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e l e c t ri c it y

Power company offers full service solutions intellectual capacity to provide services to “…anyone looking at all sorts of power generation”. Through utilising their own internal technology, TWP is independent of all technology suppliers and can advise and guide investors in terms of building and operating a power plant, from conception to operation. Known for their outstanding service, their clients include PG Bison, Wesizwe Platinum, Great Basin Gold and MTO Forestry, amongst others.

Ensuring their clients succeed Because TWP has such a large pres¬ence in the mining industry through its EPCM suite of services, “it became apparent that many of our existing mining clients have been finding it extremely difficult to get the power they require for their projects from Eskom. TWP is now equipped to provide these clients with alternate energy solutions that meet their re¬quirements,” Curry says.

Experts in medium-term power provider projects, TWP are also involved in retrofits, and work as far north as Eritrea. They offer a full spectrum of services, from development of mining, processing or energy projects, to biogas energy generation, with support from expert engineers and a general manager for each and every project.

Moving beyond conception

TWP Projects provide EPCM services to the renewable energy and power generation industry. Experts in the mining industry, they were a strategic catalyst for the Impala Platinum Shaft 17, pictured above.

TWP Projects provide Engineering, Procurement, Construction and Management (EPCM) services to the renewable energy and power generation industry in Africa. Its subsidiary, TWP Energy (Pty) Ltd, is actively developing various power generation projects in South Africa and other African countries on a build, own and operate basis.

With solutions for the entire spectrum of resource and reserve statements, and everything in between, including process plant and mine closure plans, TWP’s project management and professional consulting services are in demand throughout Southern Africa.

The company takes pride in its relationships with other key stakeholders in the energy sector, including the National Energy Regulator of South Africa (Nersa), and the Department of Minerals and Energy (DME), in addition to Eskom. Its projects could contribute towards Eskom’s medium-term power purchase plan (MTPPP), which is cur¬rently out on tender for company applications to submit proposals for alternate energy supplies.

Experts in their field With close to 1 500 employees, their mining focus has seen them develop mines from rights to full handover, including Nigel and Dean, Finn Platinum and Impala Platinum. Ian Curry, GM of TWP Projects Energy Division and MD of TWP Energy (Pty) Ltd, explains that the company taps into its vast

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2 5 o i n A f ri c a No 3 2009

“Technology capabilities are part of the investment solutions TWP provide,” explains Curry. “Big timber companies, the sugar industry, wind farms, solar thermal and big mining companies… the list of those we have helped to get their projects past the feasibility stage is endless.” Currently running 4 large projects with Eskom, including timber processing operations, the bulk of TWP’s projects are already going into bankability phase.

The potential for their service is particularly big in Africa, where new projects in remote areas have extreme difficulty in sourcing power supplies. TWPE is also well equipped to include Carbon Credits (CDM) into its projects as further commitment of its dedica¬tion to helping sustain the environment.

Confirmed stability Their project pipeline potential is close to ZAR2,3-billion over the next 2 years, and includes extensive government contracts. “Working in Africa, you have to align yourself with Government,” confirms Curry. As proof of this stability, Group CEO Ethan Dube claims that although 2009 saw the business climate deteriorate, “TWP yet again posted an impressive 77% improvement in turnover and 9% increase in NPAT.” He adds, “Listing on the JSE enabled TWP to deliver on its promises to fast-track organic growth, make strategic acquisitions, introduce an employee share scheme and cement its BEE position in the marlet.”

Eskom will always remain the domi¬nant base load supplier of power in SA, but there is a definite space in the power generation industry for TWP Energy to provide alternate power solutions that meet clients’ needs and make a positive contribution to the environment.

TWP Projects Tel: +27 15 291 3995 Fax: +27 11 356 7500 E-mail: ICurry@twp.co.za Website: www.twp.co.za

electricity

Eskom

gains ECA funding from international sources Eskom has negotiated and concluded an Export Credit Agency (ECA) covered financing arrangement for 530-million Euros (approximately ZAR6,1-billion) with 7 European banks. This loan will be used to fund a portion of the foreign content of the Medupi boiler contract with Hitachi Power Europe, and forms part of Eskom’s ongoing funding activities for its massive investment in infrastructure.

The loan agreement was signed between Eskom as borrower and as Mandated Lead Arrangers; HypoVereinsbank (Member of UniCredit Group); BNP Paribas; CALYON Crédit Agricole CIB; Commerzbank; KfW IPEXBank; Natixis; and as Lead Arranger BHF-BANK. KfW IPEX-Bank acted as documentation bank for the banking consortium, while Australia and New Zealand Banking Group Limited (ANZ) acted as adviser to Eskom by providing them support for the structuring and coordination of the facility.

Given the current status of international markets, the financing opportunities available to the company and the competitive financing terms of this loan, Eskom views the ECA type of financing as a critical component of its overall financing plan. “Securing power supply for present and future needs of the country remains Eskom’s fundamental responsibility. Our debt capital raising activities are an integral part of financing Eskom’s capital expansion programme and will complement other sources of funding such as the recent government support,” concluded Jacob Maroga, Eskom’s Chief Executive.

For further information, visit www.eskom.co.za, to which full acknowledgement and thanks are given.

Saving is child’s play!

Save It, an internet and cellphone-based game for schoolchildren, is available free of charge on the internet and on MXit. Launched recently by Energy Minister Dipuo Peters, the game is aimed at encouraging schoolchildren to save electricity and has been hailed by internet guru Arthur Goldstuck as a “visionary idea”.

“The initiative is visionary in that it tries to talk to children where they are, rather than trying to attract them to a government portal, which would seem an alien environment to them,” says Goldstuck.

The game has three superhero characters who set out to thwart the “Energy Guzzler”, a power-wasting monster who uses up the electricity in the home.

The characters are challenged to out-manoeuvre the Guzzler, beating him by saving all the power they can before he can undo their good work. Users can compare their scores with other MXit users across the country.

“We are very excited to be using new media to communicate with the youth, who, are, let’s admit it, already far more techno-savvy than any adult.

Reaching the hearts and minds of South Africans starts with reaching the youth: we hope that they will take what they have learnt into their homes, their schools and, ultimately, into the future,” concluded the Minister.

Save It is available on MXit in Tradepost and may be downloaded for free from www.savingenergy.co.za.

No 3 2009 25 o in Africa

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e l e c t ri c it y

Keeping production flowing With temperatures that reach as low as -27° Celsius in a snow-swept landscape, it would be easy to assume that the Letšeng Diamond Mine lies somewhere in a far flung region in the northern hemisphere. In reality, however, its location in Lesotho and this is the norm during the area’s most severe winter periods.

Mining at this remote site is continuous; running 365 days a year, 24/7, making sustainable energy supply and management a critical issue. Some three years ago, Letšeng employed the services of Barloworld Power, exclusive distributors of Caterpillar diesel engines, to install two Cat generator sets to address emergency standby power requirements. These units, however, were never intended to supply power to run the mine’s two DMS plants, and an additional solution was needed as a contingency plan. The mine’s electrical consulting engineers, Plantech, again appointed Barloworld Power to come up with a reliable and cost effective response by way of five 1 000 kVA Cat containerised gensets, each powered by a 597kW Cat C32 ACERT engine.

During unplanned power interruptions, these units start automatically in a synchronised fashion, supplying prime power within 80 seconds. In addition to full automatic operation, they can also be started manually in parallel to the Lesotho Electrical Corporation (LEC) supply during planned maintenance outages.

“In terms of the extreme weather conditions, altitude, logistics and the mine’s remote location, this has been one of the most exciting and challenging projects undertaken by the company. Being a turnkey solution,

Pictured above are the Letšeng Diamond Mine’s five 1 000 kVA Cat containerised gensets which supply prime power to run Plant 1 when a LEC shutdown occurs.

Barloworld Power was responsible for all civil, electrical and mechanical designs, procurement, manufacturing, testing, installations, commissioning and management of the alternative power generation substation and control building,” says Barloworld Power’s Whitey Visser, Business Manager: Design and Engineering Centre of Excellence.

For seamless transfer of power, contact Barloworld Power today for reliable solutions.

Barloworld Power Tel: +27 11 898 0240 E-mail: wvisser1@barloworldpower.com

Innovation drives the energy-saving messages

home

While there may not have been incidents of load shedding since April last year, it is still imperative that South Africans reduce their consumption by 10% in order to ensure that Eskom can meet the demand for energy required in the future. With energy prices having recently increased, and with the global push towards reducing carbon emissions gaining momentum, energy efficiency is increasing in popularity amongst homeowners.

At Decorex, Andrew Etzinger, GM of Eskom, commented that Eskom faces 3 significant challenges, summarising these as capital constraint challenges, the cost of producing electricity and Eskom’s significant carbon footprint.

He described the way Eskom intends to focus on energy efficiency as “urgently and boldly”, adding that the utility will spend R800-million a year on their energy efficiency drive.

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Pictured above is Eskom’s interactive Energy Efficiency stand at Decorex Johannesburg.

In answer to the need for consumer education, Eskom has developed an innovative exhibition stand which aims at educating the public on how they can save energy at home both easily and effectively. The stand was on show at the Gauteng Decorex expo, during August, with onlookers dubbing it a “practical” look at how they can make energy-efficient changes at home.

compact fluorescent lamps (CFLs), Solar Water Heaters, and energy- and water-saving shower heads. Practical, cost-effective energy savings tips were provided by trained promoters who took the public through guided interaction of each unit, and educational material was distributed as part of the stand’s public outreach drive.

The stand comprises four demo units, each promoting an Eskom-approved energy efficient technology for residential users. The demo units have been designed to be interactive, and the technologies featured include

In addition to Decorex, Eskom’s stand will also be making an appearance at other home and decór events, as well as at a number of malls in Gauteng, Kwa-Zulu Natal and the Western Cape over the coming months.

2 5 o i n A f ri c a No 3 2009

electricity

KE Consulting the Engineering Division of EON consulting (Pty) Ltd Power System Protection & Automation Specialists

• • • • •

Network wide conceptual design Protection scheme design Protection settings Fault investigations Substation Automation based on IEC 61850

Power system

• • • •

Studies and planning Quality of supply investigation Network planning Regulatory compliance

Transmission and distribution

• • • • •

Substation and line design EPCM for substations and lines Protection, metering and control design Electrification design Live line working methods

• • • •

Power station feasibility and design studies Embedded generation studies and integration Design of power station electrical systems Design of alternative energy solutions

• • • •

Utility telecommunications network design Business models, strategies and plans Technology evaluations Design of power line attached fibre optic systems

Generation

Telecommunications

Enabling business to succeed through Turn Key Solution Delivery

Optimal And Safe Network Performance

Midrand Office Contact: RG Coney Tel: 011 564 2300 • Cell: 083 800 2057 E-mail: ron.coney@kec.co.za

Improved Life Cycle Costs

On Time Delivery Of Infrastructure

Stable Network Operation

Cape Town Office Contact: IL van der Merwe Tel: 021 949 7836 • Cell: 082 889 0132 No 3 2009 25 o in Africa E-mail: izak.vandermerwe@kec.co.za

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e n e rg y e ff i c i e n c y

Re-energising global energy businesses Hailed “a dynamic and future-ready movement,” Elecrama is a world-class forum for convergence of trade and users of the electrical and electronics industry. It is a movement, rather than an event, representative of top-quality organisational, technological and management competencies.

The ultimate showcase and a barometer of the industry’s strength and maturity, it offers an unparalleled window of access to a bold new future of opportunities for exhibitors, visitors and consumers alike. To be hosted in Bombay from 20-24 January 2010, the event is expected to be a turnaround expo in the electrical and industrial equipment (E&E) realm.

Transmission and distribution electric power equipment is forecast to rise 5,3% per year to $128 billion in 2013. Robust economic growth in developing countries such as China and India, combined with rapid urbanisation and growth in fixed investment spending, will aid this boost.While Africa is seeking technical support in various sectors and participation from the Indian Government, India is looking forward to making Africa its key ally to fulfil its future needs of natural resources.

ELECRAMA 2010 provides an opportunity to showcase burgeoning issues of power transmission and distribution, grid management and scalability.

Now entering into its 9th edition, and organised by IEEMA, the expo presents a platform to showcase the technical competence of power equipment manufacturers, including switchgear, transformers, cable, conductors, winding wires right up to the segment of power electronics and design and consultancy.

With its aim of re-energising the very core of future-ready power sector companies, technology experts and the infrastructure sector at large – Elecrama is a not-to-be-missed event.

For more info contact: IEEMA Tel: + 91 22 24930532 E-mail: spmore@ieema.org

produce

from home gardens and micro-farmers

South Africa’s agricultural production is down, with far more imports than exports, leaving us with soaring food prices. The security of our food has been influenced by industrial farming methods and what some term “corporate greed”, yet the organic food industry is growing, even in times of recession, with particular demand for locally sourced fresh produce.

On a large community scale, micro-farming may just have the power to change the face of South Africa, providing adequate food, nutrition and selfworth to millions. Now is the time for South Africans to change the way they produce and purchase fresh produce.

Rob Small, founder of the Farm & Garden National Trust (the Trust), is committed to eradicating poverty through organic micro-farming. Rob, who has already helped develop over 100 community farms and 3 000 microfarmers in Cape Town, believes, “It’s time for a re-birth of our love for the earth. If consumers built a sustainable lifestyle by starting their own home vegetable gardens, buying fresh, organic produce direct from local microfarmers or supporting retail outlets that source from local micro-farmers, we will be able to show the effect and power of micro-farming.”

The Trust supports the leading urban eco-farming association, Abalimi Bezekhaya (Farmers of Home), which has initiated a micro-farming

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2 5 o i n A f ri c a No 3 2009

movement in the sub-economic townships of Cape Town, including Khayelitsha and Nyanga.

Harvest of Hope, Abalimi’s pack-shed operation in Phillipi, is a steady buyer of half of the farmers’ seasonable vegetables, while the other half is consumed in the farmer’s neighbourhoods.

Besides the social advantages of community participation, reduced crime and a general increased feeling of wellbeing, pride and self-worth, there are also environmental advantages to these township projects. Farmers believe in including robust windbreak tree, shrub and herbaceous systems which in turn encourage and protect indigenous birds and other fauna. In addition, they use environmentally sound methods to control weeds and pests and naturally maintain the fertility of the soil by growing food without chemical pesticides, herbicides, fungicides or fertilizers.

To help build and support a sustainable farming livelihood, donate a once-off or regular amount (fully tax-deductible) to the Farm & Garden National Trust, or make a bequest by adding the Trust as a beneficiary in your will. For further information, visit www.farmgardentrust.org, or call +27 21 801 9677.

BASF

Boost your building’s energy efficiency BASF and its partners offer easy-to-apply solutions to boost the energy efficiency of almost any building imaginable…

An appropriately improved insulation level, combined with phase-change materials, is a simple, cost-effective way of increasing comfort and drastically reducing the heating demand in cold countries as well as hot ones.

BASF and its partners offer solutions you can adapt to most architectural traditions.

With Eastopor© H by Elastogran, you will find the perfect solution for multilayer construction elements (sandwich elements), and a huge variety of insulation applications.

Styrodur© C has been dubbed Europe’s green insulation. This greencoloured extruded rigid polystyrene foam (XPS) is free of CFCs, HCFCs and HCFs. Styrodur© is recognised for good thermal insulation, low water absorption and high compressive strength.

Styropor©, the expandable polystyrene invented by BASF over 50 years ago, features very good heat insulation, high compressive strength, outstanding shock absorption, low weight, resistance to moisture and a good price/performance ratio.

Neopor© is innovation in insulation. These innovative black polystyrene granules by BASF are processed by manufacturers into silver-grey foamed blocks or moulded parts, saving up to 50% of raw materials while attaining the same lambda value. Contractors work with 50% lighter or 20% thinner panels, while ensuring the same level of insulation.

Overheated rooms in summer need no longer be accepted. BASF has a solution in the form of Micronal© PCM. Microscopically small polymer spheres containing a wax storage medium in their cores, these can be incorporated in plasters or gypsum boards. They melt and solidify, regulating environmental temperatures and offereing energy savings for cooling and greater comfort in winter.

BASF Holdings South Africa (Pty) Ltd Tel: +27 11 203 2422 Fax: +27 11 203 2430 E-mail: petra.bezuidenhout@basf.com Website: www.basf.co.za

e n e rg y e ff i c i e n c y

Clay face brick

really has it all!

The functional quality of strength, so synonymous with real clay bricks and clay brick masonry, is what underlies the material’s integrity, supporting the unconscious feelings of wellbeing that people who live in clay brick houses take for granted.

While it is the strength of clay bricks that elevates a home into a castle, what are usually ignored and often forgotten are the many other performance attributes this top-quality building material has that make clay brick buildings holistically competent in both function and form, and in an environmental and sustainable way.

Clay bricks in architecture have helped define civilisation and cultures. In South African architecture, clay brick and clay face brick have a wonderful heritage to be cherished, not only for the unobtrusive and enduring lifetime aesthetics of the brickwork, but for its ability to complement the natural surrounds.

It is one material that over the centuries has demonstrated an ability to ‘reinvent’ itself in the context of the times. This is no doubt due in part to fired clay’s unique intrinsic qualities but probably more so due to the flexibility of clay bricks in application with mortar to adapt to changing design trends.

Today, clay face brick’s soft colours and textures and the organic look and feel associated with flush jointed brickwork work particularly well with evolving design trends and this has permitted clay brick to sit comfortably in the modern design context.

While the natural tones of fired clay complement natural environments, it is the value of clay bricks from an energy usage perspective which is poised to extend the well-entrenched utility of clay bricks as a practical, cost-effective and superior form of walling in all forms of architecture.

Thermal modelling undertaken by Structatherm Projects in South Africa, and supported by extensive research in Australia, has confirmed the undeniable superior thermal efficiency of double-skin clay brick masonry and the material’s value as an important passive design element in the South African context.

Unlike our northern hemisphere neighbours whose climates are characterised by solar loss for large parts of the year, thus requiring an emphasis on insulation materials to keep the warmth in and cold out, the South African climate is one characterised by solar heat gain and fairly large diurnal temperature ranges. It is under such conditions that high thermal mass comes into its own, in naturally moderating internal temperatures and the need for artificial heating and cooling.

In the second instance, the elimination of maintenance eliminates future carbon debt associated with paint manufacture, setting clay face brickwork up as the ideal walling envelope in meeting the environmental sustainability imperatives of our times – and that is before considering the acoustic and air quality benefits.

In this latter regard, fired clay brick is an inert material releasing no volatile organic compounds associated with some paint finishes and no CFCs which detract from the quality of the air in habitable spaces.

It is fortunate that clay brick masonry, for all types of building and residential housing in particular, is a well-entrenched practice in South Africa. As the levels of consciousness of the environmental sustainability imperatives of the day take hold, those South Africans fortunate enough to be living in double-skin clay brick homes will reap the ongoing thermal and quality-oflife benefits such homes provide.

The, until now, little appreciated high thermal mass of fired clay, combined with the maintenance-free qualities of face bricks, is set to place the material in its own league from an holistic environmental sustainability perspective.

Those living in face brick homes will rest even more assured than others; not only because they will be saving in financial terms, but also because they will be contributing positively to carbon emission reductions, for the greater good of all.

In the first instance, the high thermal mass of fired clay is what naturally helps regulate temperatures in habitable internal spaces, minimising the use of energy for heating and cooling of buildings and putting a cap on greenhouse gas emitted in electricity generation.

Corobrik Tel: +27 31 560 3111 Fax: +27 31 565 1532 Website: www.corobrik.com

A combination of durable products with different textures, comprising Corobrik Country Classic Satin FSB, Corobrik Country Classic Travertine FSB as well as sandstone cladding and plaster and paint, were used to define a timeless and classical exterior architecture at Lakeview Village which is in Scottburgh on the KwaZulu-Natal South Coast.

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25 No No 3 2009 2o5 ioni nA fArifc ria ca 3 2009

e n e rg y e ff i c i e n c y

Showcasing South Africa’s The South African National Energy Association (SANEA) has as its Vision: “Energy People Working Together”. Their annual awards, the 2009 SANEA Awards, have again showcased some of South Africa’s best and most influential members of the energy sector, including our own Marlene van Rooyen, Editor of Walls & Roofs and 25° in Africa.

Brian A Statham (Chairman SANEA) and Dr Rob Adam (Recipient – Energy Award 09).

2009 award categories and shortlisted candidates SANEA Energy Award Winner: Dr Rob Adam Apart from his years of achievement in Government where he played a major role in defining national innovation and science and technology policy, Adam has been instrumental in fundamentally redefining national nuclear energy policy. He has used his position as chief executive of NECSA as a platform for debate on the role that nuclear energy has to play in South Africa’s future, and has defined an exciting vision of a nuclear industry in SA which adds value throughout the entire nuclear value chain.

Nominees: SASOL is a South African company who, since the 1960s, has been developing coal-to-liquids technology to a point where it has become commercially viable. They have enhanced the credibility of SA as an innovative nation, and have shown leadership and innovation in the coalto-liquids sector.

Pictured above is Marlene van Rooyen with Brian Statham at the 2009 SANEA Awards. Brian commended Marlene for her outstanding journalism.

SANEA Energy Journalism Award Winner: Chris Yelland Chris Yelland devotes himself to the world of energy with a focus on electrical energy, working tirelessly through the media to promote rational, ethical and customer-centred conduct in this sphere.

AngloGold Ashanti is the world’s third largest gold producer, domiciled in South Africa with operations in ten countries on four continents. In 2007, CEO Mark Cutifani introduced an energy and environmental conservation programme and set international targets to reduce energy usage by a massive 15%, as well as decrease the company’s greenhouse gas emissions per ounce of gold by 15%. This awareness contributed to AGA South Africa’s mines reducing energy use in absolute terms by about 10% since 2004, and by 8% when viewed from an energy intensity perspective.

Nominees: For the last three years, Marlene van Rooyen has been actively involved in 25° in Africa as Editor. 25° in Africa is a publication she initiated, researched and developed from scratch to become a leader in its industry. She manages each individual publication from initial sales pitch and editorial strategy to final production phase. Three and a half years of development and production have seen Van Rooyen familiarise herself with a wide range of environmental concerns, concepts and projects. Her dedication has seen her travel, interview and read widely in order to arrive at a quality of magazine that is truly a mouth-piece for the energy industry.

The Clean Coal Technology Research group of the North West University is now a world-recognised centre for coal research. The most recent focus of their research is a move towards preserving the environment.

Hilary Joffe is a leading South African journalist who has reported widely on the challenges facing the energy sector in South Africa over the last 2 years.

SANEA Energy Project Award Winner: Kuyasa CDM Project

SANEA Energy Education Award Winner: Prof Jan Reynders

The Kuyasa Project, the first CDM project to be registered in Africa and the first Gold Standard project registered anywhere in the world, is the realisation of collective effort by numerous individuals and organisations over several years. The impact of their work is likely to be felt by generations of South Africans for many years to come.

During his lifetime, Reynders has been a leader in the electrical engineering field. He has educated and mentored countless engineers who today form the backbone of the power sector in South Africa. In addition, his research activities have made a major contribution to knowledge in his field.

Nominees: In January 2008, Lorna Cook, Head of SAP Africa’s Global Ecosystem and Partner Group, realised that while Government and Eskom were focusing on large industries and households, there were thousands of small, medium and large companies that were continuing on a “business as usual” path with no attempt to reduce their energy consumption. Cook immediately conceptualised a programme to drive SAP Africa’s electricity savings internally through all branches throughout the country with the larger aim of rolling it out as a not-for profit programme to all businesses in South Africa.

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Nominee: Thea Holm was nominated for her ongoing enthusiasm, passion and originality in tackling the serious issues of global warming. Considering herself privileged to be in a family that already started living solely with alternative energies 34 years ago, Holm sees this position as the ultimate opportunity for showcasing their lifestyle, telling everyone how easy it is to live in an environmentally conscious manner.

For further information on the nominees and recipients, visit www.sanea.org.za.

energy efficiency

Problem:

Need a robust die-cast street light.

Solution:

CONDOR 70-150W Die cast aluminium body IP65 street light 43mm OD spigot entry.

Problem:

Lighting for open indoor areas, warehouses etc.

Solution:

Highbay HL250 MV,HPS or MH HL400 MV, HPS or MH Economic open reflector with vented control gear box for applications over 5M. Designed for use in ambient temperatures over 45 degree C.

Problem:

Large areas needing to be lit.

Solution:

MUM Flood Lights 70 – 400W Heavy duty, high performance IP65 flood light manufactured from epoxy powder coated, high pressure die cast aluminium.

Also available:

Decoratives, wide variety of decorative’s in both recessed and surface mount.

All sizes available.

Problem:

Need low energy consuming, low maintenance street lights.

Solution:

Green Street, GS224 high quality streetlight consuming 30% of the power compared to it’s HID brothers, and very low maintenance.

Problem:

Weather proof lighting.

Solution:

Weather proof range MWP118H, MWP218H, MWP136H, MWP236H MWP158H & MWP258H Manufactured from UV stabilised corrosion resistant high impact polycarbonate ideal for domestic and industrial use.

For more information contact: sales@pierlite.co.za P 083 5093326 www.pierlite.com No 3 2009 25 o in Africa

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e n e rg y e ff i c i e n c y

Workshop

highlights the need for a

holistic approach

The need for an approach focused on practical, realistic and feasible solutions was identified as critical in terms of driving energy efficiency initiatives in the region The importance of demand side management is increasingly being seen to be as important as the actual expansion of generating capacity. This precept is mirrored in numerous Energy Ministries across the region who are charged with developing legislation and regulations for energy efficiency measures.

It was against this background that the REEEP Southern Africa Secretariat and the Sustainable Energy Regulation Network (SERN) convened an Energy Efficiency Workshop in July in Johannesburg, South Africa. The Workshop’s 68 delegates included representatives from the major energy and regulatory stakeholders in the region, and international development actors, including the South African Department of Energy, the European Commission, the Development Bank of Southern Africa, Ecofys, major South African municipalities, ESKOM (the South African utility), the National Business Initiative, the National Energy Efficiency Agency, civil society, professional associations and independent consultants.

The workshop’s wide-ranging mission to discuss how to promote energy efficiency (EE) in a Southern African context included: making recommendations on current funding models for rates and tariffs for EE; providing practical solutions for the implementation of energy efficiency initiatives; discussing measures to ensure that the structuring of the price of energy reflects the actual associated costs; and stimulating an enabling environment resulting in the uptake of EE and energy management measures in Southern Africa, amongst others.

The need for an approach focused on practical, realistic and feasible solutions was identified as critical in terms of driving energy efficiency initiatives in the region. The workshop focused on discussing the current status of energy efficiency in Southern Africa, the various financing and marketing mechanisms for energy efficiency and energy savings, Demand-Side Management (DSM) in South Africa, mechanisms for energy

South Africa’s National Energy Efficiency Strategy, as presented by Tony Golding at the REEP-SERN workshop on policy and regulation for energy efficiency in South Africa, relies on the premise that energy efficiency is widely recognised as the most cost-effective way of meeting the demands of sustainable development. The drivers for EE are more pressing than ever, in particular climate change and the need for mitigation. The strategy was first published in 2005.

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management and the presentation of various local case studies regarding energy efficiency, amongst others.

A vital component of the workshop was the presentation of the experiences and mechanisms established by various European countries regarding energy efficiency and energy management. These provided a comparative backdrop against which the Southern African experience could be debated, with a view to determining whether the various implementation mechanisms would be suitable in the Southern African context.

The lively discussion brought up numerous interesting points such as the lack of regional policy or regulatory framework focusing specifically on energy efficiency in South Africa. Energy efficiency initiatives are instead instituted at a national level. It was then suggested that the role of the Southern African Power Pool (SAPP) and the RERA should be strengthened to ensure that a collective effort is made at regional levels.

Correct pricing was another element viewed to be ‘critical’. Discussion around this included the so-called “California option”, i.e. creating a tariff formula which would be made up of half the revenue from electricity sales and half from electricity savings. This decouples revenue from sales and encourages utilities to make a profit from energy savings, thus promoting energy efficiency.

An overarching theme that emerged was the need to create an environment conducive to energy efficiency in the region. An holistic approach, integrating the various stakeholders and government, as well as the policy frameworks, standards and energy efficiency mechanisms, should contribute to the changing mindsets; education, raising awareness, training and promotion of energy efficiency measures; dialogue and cohesion between governments, stakeholders, role players and the public; and skills development, adequate resources and job development.

The 2008 document was recently made available for public comment, and closed on the 13th of July. Its implementing instruments include legislation (Energy Act of 2008), regulations, standards and labelling, certification and accreditation, education, information and awareness, research and technology, energy management, financial instruments and incentives (including those by treasury). Financing will come from EE implementation projects in the public sector and local government (treasury-funded), ESCO shared service contracting etc, CDM, EEDSM funding and energy pricing.

e n e rg y e ff i c i e n c y

Waking up to the of spray foam Rigifoam supply various insulation solutions which provide substantial resistance to heat flow and provide additional benefits such as favourable acoustics and waterproofing. “South Africa is beginning to wake up to the benefits of spray foam,” believes Duncan Goldsmith, MD of Rigifoam, going on to say that they are supplying an increasing amount of this type of insulation to a variety of local buildings.

Spray foam Q & A Why spray foam?

Rigifoam believes that the ample benefits of spray foam insulation, including structural enhancement and airtightness, make it a high-performance insulation choice for South African buildings.

Spray polyurethane foam (SPF) is the ideal method for insulating commercial and residential buildings as it stops air and moisture intrusion, cuts electricity bills, strengthens structures and protects the internal air from mould, airborne pollutants, and allergens, thereby creating healthy buildings.

insects and rodents, and accounting for as much as 30% of a home’s annual heating and cooling costs. Spray polyurethane foam (SPF) seals a building envelope to create an optimal energy-efficient environment.

What benefits does spray foam offer?

Does spray foam combat moisture?

• • • • • • •

Moisture management is a critical concern in energy-efficient building design and construction. According to Building Science Corporation, the unique characteristics of closed-cell spray polyurethane foam (ccSPF) make it capable of delivering high R-values, airtightness, low permeability, good material strength, and good “liquid water holdout” or rain control.

These unique characteristics create a significant competitive advantage.

High insulation R-value Seamless air barrier Restricts moisture transmission Adds structural strength Minimises sound transmission Does not shrink or settle Promotes better indoor air quality

What are the structural benefits of spray foam?

R-value alone is not the answer!

When it comes to protection against natural disasters, roof and wall spray foam systems have shown remarkable resistance to high wind uplift and ‘blow-off’ as a result of the product’s strong adhesion, lack of fasteners, and absence of joints or edges.

Roofing spray foams, supplied by Rigifoam, have a favourable compressive strength, and can form an integral part of the structural elements of a building.

Does spray foam combat air leakages?

Small voids of 1-2% can result in a 25-40% reduction in R-value due to air leakage, contributing to problems with moisture, noise, dust, pollutants,

Spray polyurethane foam • • • • •

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Inhibits mould and mildew growth Provides favourable accoustics Prevents water vapour Prevents air leakage Improves indoor air quality by reducing dust and pollen

2 5 o i n A f ri c a No 3 2009

To find out more about spray polyurethane foam, contact Rigifoam today.

Rigifoam Tel: +27 11 421 0313 Fax: +27 11 421 0410 E-mail: duncan@rigifoam.com Website: www.rigifoam.com

Material High corrosion resistance is achieved using ADC12 aluminum alloy (as used in the motor industry). The high-pressure die cast bodies provide excellent mechanical strength and heat dissipation. 316 Stainless steel screws are standard.

Gaskets Ligman luminaires only use weatherproof non-aging silicone rubber gaskets. This provides excellent sealing qualities in corrosive and high temperature environments.

The service temperature of Ligman’s gaskets is between -40° C to +150° C Ambient Temperatures Ligman luminaires are designed for operation at -20° C to +40° C

LIGMAN MIC A small decorative garden floodlight ideal for precise lighting of plants, trees or small sculptures s $IE CAST ALUMINIUM s #LEAR TOUGHENED GLASS s !NODIZED HIGH PURITY ALUMINIUM REmECTOR

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e n e rg y e ff i c i e n c y

resource update

www.worldenergy.org,

World-wide energy The ‘Survey of Energy Resources interim update 2009’ is a unique comprehensive compilation of global energy resources. This latest update to the 2007 World Energy Council (WEC) study provides updated tables, figures and country notes for 15 key energy resources.

Excerpts from the report appear below: Coal update Worldwide, coal resources are well established, and the revisions and amendments that are made from time to time are generally more in the nature of fine-tuning than fundamental adjustments. In most countries, re-assessments of coal resources and reserves on a national basis are carried out only infrequently. A comparison of the end-2007 coal reserves compiled for this review with the end-2005 figures presented in the 2007 survey reveals that the global total has declined by some 21-billion tones, or 2.5%.

Major changes have occurred in six countries, the largest of which is a reduction of 17,6-billion tonnes in South Africa, a decline of 4,4-billion in the USA and a 2,1-billion increase in India.

An assessment of South Africa’s coal resources reveals that these remain in a state of flux. While a number of surveys (e.g. De Jager, 1983; Bredell, 1987; and later studies by the Minerals Bureau) have attempted to quantify the reserves present in each of South Africa’s many coalfields, there is not yet total consensus in respect of the tonnages that are currently economically and technologically recoverable. For the purpose of the present interim update of the Survey of Energy Resources, a figure of 30 408-million tonnes has been adopted. This level is based upon the De Jager report, with the individual coalfield reserves adjusted by subtracting cumulative coal production over the period 1982-2007, and then a view being taken of the mineability of coal in major prospective producing areas, in particular the Waterberg coalfield, but also the Springbok Flats, Limpopo and parts of the Free State coalfields. The net outcome is a total for South Africa’s proved recoverable coal reserves that is more than one-third lower than the level reported for the 2007 SER, but that is arguably more realistic in the present circumstances.

Crude oil and natural gas liquids update Compared with coal, oil (and gas) reserves tend to be more subject to change from year to year, but fundamental restatements are fairly infrequent, as the principal sedimentary basins have been identified and, in most cases, explored, at least to some extent. The end-2007 proved that recoverable reserves of crude oil and NGLs compiled for the present review are 31,9-billion barrels (just over 4-billion tonnes) higher than the end-2005 total quoted in the 2007 SER, with 13 countries accounting for the bulk of the 2,6% global increase. The chief quantitative increases in reserves are seen in Venezuela, the Russian Federation and Canada, while proved reserves in Mexico, Norway and Iran have each decreased by between 1,3 and 1,5-billion barrels.

Oil shale update At present, there are very few countries that utilise their oil shale resource

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either for direct use in the generation of electricity or for conversion into petroleum products. During the period of high oil prices in 2007-2008, and for those countries which had previously quantified their resource or undertaken feasibility studies, development of their oil shale resource came closer to being economically viable. Lower oil prices have not only reduced that viability, but the passage of time has seen the tightening of environmental regulations. Added to this, the technology for in-situ processing still has some years of research before it could be considered for use on a commercial scale.

Natural bitumen and extra-heavy oil update Although many countries possess resources of natural bitumen/extraheavy oil, it is Canada and Venezuela that dominate the market. Like oil shale, development was encouraged by high oil prices and subsequently adversely affected by the lower price and also environmental concerns.

Natural gas update As is the case with oil, proved recoverable reserves of natural gas reflect a moderate (in this instance, 2,2%) overall increase between end-2005 as quoted in the 2007 SER and end-2007 as compiled for the present interim update. Gas reserves in three countries (Iran, the USA and Kuwait) have each risen by around a trillion cubic metres, while those of Kazakhstan have fallen by a similar amount. In total, eleven countries account for the bulk of the changes in reserve levels, with the changes in 41 other countries (out of a total of 103 listed as possessing gas reserves) effectively netting off to zero.

Uranium update Uranium (U) resources and reserves, like those of other energy minerals, are subject to changes over the course of time due to new discoveries, the re-evaluation of known deposits, technological developments, depletion through production, and other factors.

Ten countries account for most of the 41,6-thousand-tonnes U increase in Reasonably Assured Resources (RAR), taken as broadly equivalent to proved reserves. The major increases in tonnage occurred in Ukraine,

energy efficiency Niger and the Russian Federation, whilst Kazakhstan’s RAR decreased appreciably. As South African uranium production is a by-product of gold mining, the substantial increase in exploration activity for gold that occurred during 2006, accompanied by the reopening of two gold mines, has been reflected in higher assessments of uranium resources. First Uranium Corp. reported in February 2009 that uranium recovery from the new plant at its Ezulwini gold mine is on schedule to commence during the last quarter of 2009.

Nuclear update When discussing energy resources, it is conventional to assess nuclear energy in terms of installed and planned electricity-generating capacity and actual or potential power generation. In South Africa, work on the demonstration Pebble Bed Reactor continued throughout 2008, but in December 2008, Eskom cancelled the construction of a second NPP and froze long-term plans for up to 17 more. Retrofitting the low-pressure turbines at the Koeberg NPP will lead to a 65 MWe increase in generating capacity.

Hydropower update The sources of energy provided by river flows and falling water are, like nuclear energy, usually discussed in terms of installed and planned electricity-generating capacity and actual or potential power generation.

The estimates of hydro-potential given in the 2008 Hydropower & Dams World Atlas 2008, published by Aqua~Media International, show a number of variations from those in the 2006 edition which provided input (along with information reported by WEC Member Committees) to the 2007 SER, but the global totals of hydropower potential are little changed.

Peat update The world’s peat resources are widespread but, owing to their comparatively shallow depth below the earth’s surface, generally well-defined. There is thus little prospect of radical new discoveries or major revisions to the resource base. Moreover, the current and prospective extraction of peat, and especially the fraction destined to be consumed for energy purposes, represents a very small proportion of the overall resource. In a few countries, however, most of which are in Western Europe, peat plays an important role in the energy scene.

Solar Energy update The harnessing of solar resources has made much progress in recent years. The cumulative installed PV power in the countries participating in the International Energy Agency-Photovoltaic Power Systems Programme (IEA-PVPS) was nearly 8GWp at end-2007, over one-third higher than at end-2006. Of this total, over 90% was grid-connected. In terms of large national markets, Germany and Japan led the world’s installed solar capacity at 3,9 and 1,9 GWp respectively. Interestingly, it was Spain that saw the highest annual growth with the 2010 target set by the Spanish Government’s Plan for Renewable Energy exceeded long before due date.

Geothermal update The world has a huge geothermal resource that can be and, in many instances is, utilised for direct use, but there are just 24 countries which experience temperatures high enough for the generation of electricity. Of these 24, just 3 saw a very significant increase in capacity between 2005 and 2007. The USA led with an estimated increase of nearly 375 MWe, but a proportion of the country’s capacity is considered to be on standby. Iceland more than doubled its installed capacity between 2005 and 2007 and although the

country already uses both its geothermal and hydro resource to a very large degree, government policy is set to expand renewable energy usage still further, as witnessed by the Iceland Deep Drilling Project. Indonesia, now a net oil importer, has turned to its enormous geothermal resource to provide a source for electricity generation. The country saw an increase of 25% in capacity between 2005 and 2007, and there are many projects either under construction or planned. Australia, which at the present time has a negligible amount of geothermally derived electricity generation, is currently undertaking an assessment of its vast hot-rock resources.

Wind energy update Like solar energy, the wind energy sector has seen very significant global growth in recent years. By end-2006, installed capacity was some 25% higher than at the end of the previous year and by end-2007 capacity had increased by a further 27%. Prior to 2008, Germany led the world in terms of installed capacity, adding about 12% in 2006 and 8% in 2007. Although Spain was ahead of the USA at the end of 2006, and despite growing by some 30% in 2007, by end-2007 the USA had overtaken it, having grown some 45%. By end-2008, having increased its capacity by nearly 50%, the USA took over the world lead. One country that has demonstrated spectacular growth during the past three years is China which has more than doubled its wind turbine capacity and now lies in fourth place.

Tidal energy update Historically, the harnessing of tidal energy has occurred in a very limited number of locations, but with the preference of countries to move away from a dependence on fossil fuels, many suitable sites are being re-examined.

Both Canada and France, where the commercial generation of electricity from tidal energy has been proved over many years, are planning to install further schemes. The first commercial-scale project in the UK became operational in late-2008 and, currently, many environmental impact studies are being undertaken.

Wave energy update The global wave resource is extremely high and in recent years, the technology to harness it has moved from academia to commercial-scale installations. The European Marine Energy Centre (EMEC) has enumerated approximately 100 wave-energy concepts, although many of them are still at the R&D stage.

Prototype devices are being tested across the world, with two countries occupying the leading developmental positions: Portugal and the United Kingdom. In the case of Portugal, the country saw the world’s first commercial wave power project become operational in late 2008 and, in the case of the UK, EMEC has become a centre of excellence and provides testing facilities for project developers.

Ocean thermal energy conversion update Some subtropical/tropical islands have particularly favourable conditions for harnessing the temperature differential between the surface water of the ocean and water at a depth of approximately 1 000 m. Moreover, where they have a high dependence on the importation of petroleum products for electricity generation, OTEC could be a desirable substitute. The capital cost of this type of installation, however, is extremely high and at the present time the global development of the technology remains at the planning/ feasibility study stage.

For further information, visit www.worldenergy.org, to which full acknowledgement and thanks are given.

No 3 3 2009 2009 25 25oo in in Africa Africa No

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cdm

DRC CDM

project a first

The World Bank has announced that it will buy 500 000 tons of carbon credits from a forest project replanting roughly 4 120 hectares destroyed by deforestation in the Democratic Republic of Congo (DRC). The bank added that it had signed an Emission Reductions Purchase Agreement (ERPA) with Congolese firm Novacel, the first of its kind in the West African country.

Replanting forests is central to the reduction in global greenhouse gas emissions because of trees’ ability to soak up vast amounts of carbon dioxide.

“We hope that this first initiative will lead to many more such projects, thus establishing a mechanism to finance sustainable development in DRC,” stated World Bank Country Director for DRC Marie Francoise Marie-Nelly.

This specific replanting will trap an estimated 2,4-million tons of carbon dioxide over the next 30 years, with revenues from the sale of the carbon credits going toward developing health, education and agricultural projects in the local Bateke community.

scheme, which allows industrial countries to invest in clean energy projects in developing countries and in return receive carbon offsets as a way of meeting their climate change targets.

This is the first project in DRC to benefit from global trade in emission reductions under the U.N.’s Clean Development Mechanism (CDM)

Visit web.worldbank.org, to which full acknowledgement and thanks are given.

European cap and trade system to

influence airlines

impose net costs on industry. Indeed, despite initially opposing the EU ETS, notes the report, all participating industrial sectors in Europe have profited from its operation to date.

Possible savings from industry While the airline industry has, in the past, been left out of many national carbon reduction goals as a direct result of the industry’s omission from the Kyoto protocol, many regions are now looking to this same sector for carbon reduction savings.

Double taxation?

The European Union is expected to release a complete list of airlines that will be required to participate in the European cap and trade system. In the interim, their preliminary list includes over 700 airlines registered in the U.S., including Delta, United and American Airlines.

Mixed reactions Many governments, airlines and industry groups view the move as a violation of national sovereignty, and a bad move for business, imposing additional cost burdens at a time when airlines are already facing difficult economic conditions. These views contrast with those of a report released recently by the German Marshall Fund: ‘Climate Policy and Industrial Competitiveness’.

The report reveals that Europe’s cap and trade system does not inevitably

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One major fear for U.S. carriers is that a regional approach will result in double carbon taxation, as the current climate bill that was passed in the house already includes taxation on jet fuel. In response, the EU has vowed to honour other regional pacts and to eliminate double taxation in a timely manner.

Airlines have limited options Unlike utilities who have the option to invest in renewable energies and technologies to immediately offset their carbon liability, airlines face fewer options. The most feasible are to either improve fuel efficiency or purchase additional carbon permits from the E.U. The European model does not have a hard cap, meaning that airlines can purchase as many permits as they like, provided they can afford it.

To download the report ‘Climate Policy and Industrial Competitiveness’, visit www.globe-net.com, to which full acknowledgement and thanks are given.

cdm

CDM 101 To obtain our full CDM 101 series in .pdf format, email the Editor at marlene@25degrees.net.

Carbon trading via VERs and CERs? What are they and how do they differ?

CERs The Clean Development Mechanism is the international marketplace for high-quality carbon reduction credits. Under strict regulation, Certified Emission Reductions (CERs) are generated through a complex set of project procedures, as set out in the CDM protocol. Depending on jurisdiction and established government regulation, regulated entities may be able to use CERs for compliance purposes, while unregulated entities and those wishing to voluntarily reduce their environmental impact can purchase CERs to achieve their climate goals, however this level of rigor is often not required for voluntary purchases.

CERs command a higher price than VERs, as buyers are guaranteed a credible emissions reduction established through internationally accepted standards.

VERs Voluntary Emissions Reductions (VERs) are created when an action is undertaken that reduces emissions in a voluntary carbon market. VER projects occur when: •

•

•

The country in which the reduction project occurs has not ratified the Kyoto Protocol, like the USA, or in a country that does not support the CDM, such as Canada.

The projects have not been registered or fall outside the scope of CDM approval.

The projects are too small to justify the costs of gaining CDM approval.

VERs can be sold to companies and individuals who want to reduce their carbon footprints without being regulated or required by law to do so.

VERs cannot be used for compliance-regulated emitters and are therefore developed for markets without emissions caps.

Quality concerns VER projects range widely in quality, size, and type from installing fuelefficient cooking stoves in developing countries, to installing wind power generation stations monitored to the highest level of quality. Regardless of the technology used, all projects must generate emissions reductions that are clear, measurable, permanent, and additional. The third party auditor used to “verify” a VER project is of particular importance because in the VER market, verifiers generally do not have to be specified by a body which rigorously oversees the carbon standard.

The importance of standards Standards ensure that emissions reduction projects are undertaken with rigor and they assure buyers of reductions that they are purchasing real, additional, and permanent emissions reductions. VERs are the product of an emissions reduction project developed in accordance with a specific set of voluntary standards. There are many voluntary standards being used throughout the world, each with unique rules governing project types and other factors. The price of an emissions reduction credit generated in accordance with one of the voluntary standards may be different from the price of that from a different standard.

Information for this article was obtained from Habitat Enterprises, to which full acknowledgement and thanks are given. Visit them at http:// habitatenterprises.ca.

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instant update

25° in Africa joins two online social networks: follow us, or become a fan!

25° in Africa, Africa’s Independent Energy Publication, is now on social networks Facebook and Twitter. Use your search function to search for us under “25degrees.net”. Follow us on Twitter, or become a fan on Facebook!

100% empowerment buy-out Leading empowerment agency, the National Empowerment Fund (NEF) has announced the conclusion of a ZAR41,9-million investment deal to finance a 100% buy-out of Colliery Dust Control (Pty) Ltd (CDC). CDC is a market leader with the manufacture of colliery dust control systems, and the provision of ancillary maintenance and technical support systems for the coal mining industry in South Africa. The transaction involves a partnership between the Black Economic Empowerment (“BEE”) Consortium led by Ms Babalwa Geza and Mrs Thembi Chagonda, and existing management of CDC. The deal structure leverages the skills sets of the BEE Consortium and those of the existing management team, thereby facilitating skills transfer and ensuring business continuity and growth.

Be the change you want to see – Ghandi Bending the Curve is a book born out of a need for South Africans to have access to better information about how specific sectors of society can contribute to tackling climate change.

Not just another book about the climate crisis, Bending the Curve is a guide aimed at helping those who read it to ‘move from deliberation to action’. Coauthored by 24 experts, it contains a wealth of practical ideas for making changes at work and in your personal life.

Endorsers of the book include Kader Asmal, who said: “Read this book and

join the growing number of South Africans who are doing something about climate change at home and at work. Our commitment to taking on this challenge will determine our ongoing ability to create a more sustainable and equitable South Africa.”

For further information, visit www. bendingthecurve.co.za, to which full acknowledgement and thanks are given.

CEO looks to expand his company’s success

Stuart Clarkson, new Chief Executive Officer of Siemens South Africa.

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Siemens Southern Africa has announced the appointment of Stuart Clarkson as Chief Executive Officer. Clarkson replaces outgoing CEO Siegmar Proebstl, who will be returning to Siemens in Germany. A born and bred South African, Clarkson is well positioned to lead the local operation of the electronic and engineering multinational that has had a presence in the country for over 110 years, having served in the organisation both in South Africa and internationally since 1981. Clarkson believes the prudent fiscal policies adopted by government in the past and increased spending in public infrastructure and power – two of Siemens’ main areas of competence – will ensure that the local operation continues to perform well.

“Given our extensive expertise and track record in supporting the South African government and the private sector in the fields of energy, industry, healthcare as well as information and communication technologies, I look forward to expanding our role and enhancing our contribution to the growth and development of the South African economy,” said Clarkson.

Siemens Southern Africa Tel: +27 11 652 2000 Website: www.siemens.com

Experts

instant update

in alternative power supply The early part of 2008 saw the country involved in an unexpected power supply crisis. This was a time of extreme vulnerability of power supply in SA. Accordingly, The Power Company have encouraged consumers to re-think their position regarding “alternative power supplies.”

Generators may have their place, but it cannot be denied that generators are often not exactly sized to meet specific requirements, require a high level of maintenance and stores fuel, are often noisy and require specific positioning.

The Power Company can show the end-user how to extend their generator’s life and cut down on running expenses, as well as reduce toxic emissions, thus making a more positive environmental contribution. In addition, The Power Company also provides solar PV solutions for the residential consumer, as well as larger commercial and industrial applications.

A member of SESSA, they caution that “We need to be aware, as an industry, of people bringing in cheap and substandard products.” SESSA seeks to monitor the quality of workmanship within this industry, an initiative The Power Company fully supports.

“Never before have so many South Africans been so conscious and conscientious about energy usage and the promotion of friendlier sources of energy to meet their daily needs for business and domestic use,” comments Alan Curtis, Regional Manager – Gauteng of The Power Company, adding that for sustainable alternatives, his company is a top choice.

The Power Company Tel: +27 011 79 33 138 Fax: +27 011 79 33 140 E-mail: alan@thepowercompany.co.za Website: www.thepowercompany.co.za

Simplifying

renewable energy project approvals

As a result of the recent announcements of a renewable energy feedin tariff (REFIT) by NERSA, the renewable energy market is abuzz with activity. Project developers, both large and small, are busying themselves with acquiring properties and concessions to establish renewable energy projects.

Wind and solar are attracting attention on a large scale, while smaller mini hydro, biomass and biogas projects also abound.

Amid strong competition for the available power purchase agreements (PPA’s) that will be allocated under the initial round of REFIT, it is imperative that developers prepare well-considered business cases for their projects and ensure that their funding plans are well advanced at the time of submission of project proposals under REFIT. .

Established on a philosophy of entrepreneurial thinking, CRESCO offers its clients advice on niche project finance solutions and provides them

transactional and project development support outside of traditional balance sheet finance solutions.

CRESCO helps its clients bridge the gap between a great idea and a “bankable” project. They evaluate all available information and prepare the appropriate documentation, including information memorandums and tender documentation, enabling their clients, the purchaser and prospective financiers, to objectively evaluate a specific project. They then support their clients throughout the funding process into the project’s operational phase.

CRESCO Project Finance (Pty) Ltd Francois Viljoen Tel: +27 12 665 2612 Fax: +27 12 665 3837 Cell: +27 82 787 5505 E-mail: francois@crescopf.co.za Website: www.crescoprojectfinance.co.za No 3 2009 25 o in Africa

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‘09

e n e rg y eve n t s

Carbon Markets USA Location: Washington DC, United States Date: 21 – 22 September, 2009 Contact: Santosh Sarma Tel: +971 4 813 5213 Fax: +44 207 900 1853 E-mail: santosh.sarma@greenpowerconferences.com

Sustainable Land Use Location: Stellenbosch, South Africa Date: 28 September – 3 October 2009 Contact: Jos Liebenberg Tel: +27 21 808 4069 E-mail: crses@sun.ac.za Website: www.sun.ac.za/crses

Forestry Carbon Markets & REDD Location: Washington DC, United States Date: 23 – 24 September, 2009 Contact: Santosh Sarma Tel: +971 4 813 5213 Fax: +44 207 900 1853 E-mail: santosh.sarma@greenpowerconferences.com

Biogas: Scaling up biogas production in North America Location: San Francisco, United States Date: 1 – 2 October 2009 Contact: Amit Shahani Tel: + 9714 8135 219 E-mail: amit.shahani@greenpowerconferences.com

Energy from Waste Location: London, UK Date: 28 – 29 September 2009 Contact: Smi Production E-mail: smiproduction@smi-online.co.uk Website: http://www.smi-online.co.uk/events/overview.asp?is=5&ref=3142

Next Generaton Biofuels Markets Location: Chicago, United States Date: 28 – 30 September, 2009 Contact: Amit Shahani Tel: +971 4 8135 219 E-mail:amit.shahani@greenpowerconferences.com Carbon Markets Turkey & Central Asia Location: Washington DC, United States Date: 29 – 30 September, 2009 Contact: Santosh Sarma Tel: +44 207 900 1853 Fax: +971 4 813 5213 E-mail: santosh.sarma@greenpowerconferences.com Carbon Capture and Storage (CCS) Conference Location: Johannesburg, South Africa Date: 29-30 September 2009 Contact: Anelja de Bok Tel: +27 11 704 6281 Fax: +27 86 603 7703 E-mail: anelja@africanearthevents.co.za Website: http://www.ccsconference.co.za

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Carbon Markets Mexico & Central America Location: Mexico City, Mexico Date: 6 – 7 October 2009 Contact: Santosh Sarma Tel: +971 4 813 5213 Fax: +44 207 900 1853 E-mail: santosh.sarma@greenpowerconferences.com ASIAPes 3rd IASTED (International Association of Science and Technology for Development) Location: Beijing Date: 12 – 14 October 2009 Website: http://www.iasted.org/conferences/home-658.html ISES Solar World Congress 2009 Location: Johannesburg, South Africa Tel: +27 861 988 898 Fax: +27 861 115 181/0 E-mail: info@swc2009.co.za Website: www.swc2009.co.za

Date: 11 – 14 October 2009

Bioenergy Markets West Africa Location: Accra, Ghana Date: 27 – 29 October 2009 Contact: Amit Shahani Tel: +971 4 813 5219 E-mail: amit.shahani@greenpowerconferences.com

No 3 2009 25 o in Africa

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energy events

miss out!

Greenhouse Gas Emission Reduction Strategies Location: Johannesburg, South Africa Date: 26 – 27 October 2009 Contact: Marcus Evans Tel: +603 2726 6748 Fax: +603 2723 6699 E-mail: leec@marcusevanskl.com

World Gold Conference 2009 Location: Johannesburg, South Africa Website: http://www.worldgold2009.org.za/

MENA Energy Forum (Middle East and North Africa) Location: Ritz-Carlton, Doha, Qatar Date: 9 – 10 November 2009

ANS (American Nuclear Society annual meeting) Location: Washington DC, United States Date: 15 – 19 November 2009 E-mail: meetings@ans.org www.ans.org

SAEEC 2009 Location: Johannesburg, South Africa Contact: Erika Kruger Tel: +27 (0) 18 290 5130 Fax: +27 (0) 86 512 7122 E-mail: convention@saee.org.za Website: www.saee.org.za

ENERGY 2010 Location: Johannesburg, South Africa Contact: Siyenza Management Tel: +27 11 463 9285 Website: http://www.siyenza.za.com/

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For a full list of up-coming events in the energy industry, visit www.25degrees.net, our brand new energy portal.

With a full listing of event information, including venues, costs and contact people, the site is a valuable resource in terms of planning which events you shouldn’t miss.

Date: 12 – 13 November 2009

Date: 26 - 30 October 2009

NIA (Nuclear Industry Association) ―Energy Choices Location: London, United Kingdom Date: 4 – 5 December 2009 Contact: NIA and the BNES (British Nuclear Energy Society) Energy Caribbean 2009 Date: 7 – 9 December 2009

Date: 24 – 26 February 2010

2 5 o i n A f ri c a No 3 2009

ELECRAMA-2010 Location: Mumbai, India Contact: M.G. Date Tel: +91 22 2493 0532 / 6528 / 6529 Fax: +91 22 2493 2705 E-mail: elecrama@ieema.org Website: http://www.elecrama.com/

Date: 20 – 24 January 2010

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