25Degrees in Africa JNL 3'10

Vol 5 Nr 3 2010 – R49

FIFA World Cup

Carbon footprint & offset measures

Impacts of

fossil fuel subsidies

The real

sustainability issues of biofuel projects in Africa

Valorising wasted materials in local municipalities

Contents Number 3 2010

cover story Picture courtesy Linda Ness & Associates

Greening the FIFA World Cup The construction of stadiums, infrastructure and sporting facilities, coupled with the number of international visitors into South Africa, will have huge environmental effects on the country. Find out what the country is expecting in terms of carbon emissions and what the plans are to offset these impacts.

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10

Read more from page 14.

34

60

Enervations

Biofuels

50 Royal Danish Embassy - 12 years

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Wiring device innovations

24 Waste to energy

52 Nissan Speed Control

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Shipping innovations

29 Misconceptions of biofuels and sustainability

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Roller Ball Run

Country profile

CDM solar water heating

54 The clean development mechanism

34 French helps with SWH program

56 Programmatic CDM 58 Carbon solutions for businesses

10 An overview on Egypt

Nuclear energy

60 Lessons from the EU

36 SA bids to become supplier to US

62 Projects in Africa on the increase

Electricity

Instant update

Climate change

38 World Bank loan for Eskom

64 Green products and exhibitions

18 Communicating climate policy engagement

40 The projected costs

65 Medupi Power Station

20 Emissions reporting

42 Nersa’s tariff increase

66 Kenya’s successful feeding tariff

43 Eskom and Exxaro signs coal agreement

66 Earth Hour

22 BP focus on others

Energy efficiency

Energy events

23 Positive Energy Consortium

48 Bringing the passive-house to life

67 Energy events

greening 2010 14 Greening the FIFA World Cup

Oil and gas

www.25degrees.net

Greening 2010 With 2010 World Cup fever rife in South Africa, we’ve decided to take an in-depth look at the estimated carbon footprint and proposed greening measures to offset the emissions. A massive 67% of carbon emissions are attributed to air travel for the international visitors.

Due to the distance of South Africa from Europe and the USA, and the distances locally (which are not supported by green transport nodes), the travel carbon footprint amounts to an enormous sum of the total emissions.

This makes for quite interesting reading. Read more on page 14.

Electricity and energy confusions Though we try hard to demystify the energy and electricity situation in South Africa, I must admit to finding it somewhat confusing at times with conflicting messages and facts from different spheres. The appearance that we all seem to be pulling in the right direction does give me hope, albeit with a dash of scepticism.

At times, it appears that even in government, the right hand is slapping at the left. Let me cite an example: Eskom’s pricing mechanisms, including the World Bank loan. Not only does the tariff hike and loan not cover the full operating and interest costs of Eskom in the initial years, now it appears that new building might be delayed due to the massive funding gap that Eskom is still struggling to bridge.

Finance Minister, Pravin Gordhan, has been quoted as saying that NGO’s concern for the environment indicates a lack of understanding of the country’s economy. As Saliem Fakir, WWF South Africa’s Living Planet Unit Head, points out, this demonstrates a lack of understanding of South Africa’s international commitment to move to a low carbon economy and raises serious questions about consensus of key stakeholders in agreeing to a realistic approach to future energy planning in the country.

This needs to be addressed in the heart of government and forged throughout its entire system. A cohesive, comprehensive understanding and implementation plan must be agreed on and executed with steely diligence.

Visit us on www.25degrees.net for more articles and information.

Marlene E van Rooyen

Publisher:

Media in Africa (Pty) Ltd www.mediainafrica.co.za • www.25degrees.net International Contact Information: Tel: +27 12 347 7530 • Fax: +27 12 347 7523 E-mail: marlene@25degrees.net 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 Marlene van Rooyen Tel: +27 83 327 3746 E-mail: marlene@25degrees.net Founder Schalk Burger (1943 – 2006) senior Sales executive Andre de Wit Tel: +27 84 513 2580 E-mail: andredw@25degrees.net Journalist Adriénne Brookbanks Tel: +27 82 468 4566 E-mail: adrienne@25degrees.net business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 E-mail: zuerita@25degrees.net Industry Consultant Lourens van Rensburg E-mail: lourens@25degrees.net Imbewu Sustainability Andrew Gilder – Climate change and CDM legal specialist

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.

Publishing Manager Liezel van der Merwe

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.

Financial Manager Fanie Venter

The focus of the publication is on energy, 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 published bi-monthly as a print publication. 25º in Africa is also available as a free web download. For more information, please contact the editor or editor’s assistant on Tel: +27 347 7530 or visit us on www.25degrees.net

Design and Layout Ilze Pohl Accountant Sietske Rossouw E-mail: sietske@mediainafrica.net Proofreader Hesca Joubert Reproduction & Printing Business Print Centre

E NE R VATIO NS

Right: The Arteor 3.5” touch screen controls all electrical functions, including lighting, roller shutters, temperature, sound and the alarm system.

Wiring device

innovations A

new dimension in wiring devices has been introduced by Legrand. These specialists in the design and manufacture of products and systems for electrical installations and information networks recently launched the Arteor range – which encompasses simple switches, to the most advanced home automation systems – and they now also provide a multitude of stand-alone and system functions for commercial and residential environments.

“Legrand has combined stylish design and leading-edge technology to create new wiring devices with numerous functions and various finishes that meet the requirements of the most basic electrical functions, as well as complicated and demanding automation tasks,” says Legrand’s National Sales Manager, Timothy Mountjoy. “Designers of the Arteor range have worked with the ‘flow of energies’ slogan to produce elegant fittings with a fine balance between function and form.”

new range is its compatibility with international socket and flush-mounting box standards in commercial and residential sectors,” explains Mountjoy.

Create your own environment Arteor offers a flexibility that enables users to create a variety of scenarios, such as a cinema environment, subdued lighting with automatic closing of curtains, or the simple adjustment of a thermostat. Key devices in this range include dimmers, lighting controls, scenario controls and multimedia touch screens.

Devices have an innovative profile that gives the illusion that the product is not attached to the wall.

Video security and surveillance Reliable video door entry security systems and video surveillance has also been incorporated into the Arteor range in order to address customer’s growing need for crime prevention and detection. Other safety features include an emergency lighting device, which automatically lights up in the event of a power failure and automatic infra-red switches that manage light and ventilation in passageways and dark areas.

Arteor is available with round and square rocker plates. The circular shape, which ensures functions are harmoniously integrated, is easy to handle and universal icons ensure easy recognition.

The fittings for this range of wiring devices come with for all countries including South African standards.

These wiring devices have a bevelled profile giving the illusion that the product is not attached to the wall.

The home automation systems that the Legrand Group offers are suitable for the requirements of specifiers, designers and anyone who want basic or integrated and advanced systems with a variety of functions.

“To reinforce the high-end character of these devices, the most sophisticated and innovative materials have been selected, giving Arteor a multicultural identity in line with its international positioning. These materials include woven metal, red mirror and marine leather. Other finishes like plastic, metal, tattoo, wood and brushed steel are also available. What’s also important about this

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Extra flat and slim lined Devices in the Arteor range have an innovative profile that gives the illusion that the product is not attached to the wall. The bevelled profile is attributed to the ‘bi-material’ plates, which are extra-flat and slim lined and reminiscent of the contemporary flat-screen design.

The shape of conventional rocker plates has also been modified by the designers, thereby introducing a new round design for easy navigation of the controls. The circular shape, which ensures functions are harmoniously integrated, is easy to handle and universal icons ensure easy recognition.

Legrand’s electronic expertise is also embodied in the Arteor range, providing an efficient solution to all requirements of architects, interior decorators, electricians and home owners who call for a flexible, efficient, modern and aesthetically pleasing system.

Legrand SA Tel: +27 11 444 7971 E-mail: legrand.south-africa@legrand.co.za Website: www.legrand.co.za

Shipping innovations

to protect the environment D

NV (Det Norske Veritas), an independent foundation with the purpose of safeguarding life, property and the environment, has introduced a new container ship concept. Quantum is the name of the concept ship and it’s designed to transport more cargo while using less fuel, thereby reducing the impact on the environmental.

According to DNV, the future of the shipping industry in general and the container ship segment in particular will depend on a company’s need to adapt to uncertainties.

The new container ship has a design speed of 21 knots, but it can operate efficiently at speeds between less than 10 knots and over 22 knots. The novel 49.0-metre Widedeck design increases the ship’s container capacity and a beam of 42.5 metres ensures good stability. Another example of the ship’s innovative design solutions include the way in which the need for ballast water is minimised as well as LNG (liquefied natural gas), which is introduced as part of the ship’s fuel.

Illustration of the new container ship concept Quantum

6.5 metres wider than this at deck level. The total container capacity would be 6 210 TEU. “Even if it would be possible to realise the Quantum within three to five years, this is a concept ship designed to stir up a debate about shipping innovation.

All the aspects of the concept design is unlikely to appear in a single ship, but certain aspects will be taken further on a case by case basis. I am convinced of this,” comments President and Chief Operating Officer of DNV, Tor Svensen.

Ship designed to stir up a debate

Svensen referred to the automotive industry, which has long traditions of introducing new concepts as a lodestar for the future development of new cars. “We all know that the shipping industry is facing tough times. But now is the time for innovation and a focus on new solutions. DNV has a strong technical and financial platform. This platform is to be used to solve problems we all are facing, especially the environmental challenges,” Svensen.

If the concept design for Quantum is realised, the ship will be 272.3 metres long, its beam would be 42.5 metres at the water line and it would be

For more information, visit www.dnv.com, to which full acknowledgement and thanks are given.

South Africa launches

new radar network

for weather services

S

outh African Weather Service’s (SAWS) new state of the art weather radar network was launched on 29 March 2010. ZAR240-million has been granted by government for infrastructure investment in order to upgrade and replace its over 30 year old radar systems to bring about a substantially improved weather observation network.

The radar network consists of 12 new Doppler weather radars and the infrastructure network ranges from Automatic Weather Stations, Automatic Rainfall Stations, a sophisticated Lightning Detection Network, computer infrastructure, satellite receiving equipment and weather radars.

According to the SAWS and the Minister of Water and Environmental Affairs, Buyelwa Sonjica, the new weather radars will play a vital role in enhancing adaptation tools and products such as the Severe Weather Forecast project and the Flash Flood Guidance System that minimise loss of life and damage to property in events of severe weather.

Predicting severe weather will be much more accurate

prediction of and warnings about severe weather in South Africa will become much more accurate. Government also plans to enhance research capacity and improve its service delivery in this regard.

“South Africa has a good reason for the investment rolled out in this project.

As a country we are proud of our one-hundred and fifty years’ experience in the weather services’ arena. The scientific progress that will be resultant of this investment will assist our communities in the long-term, especially with the major concerns of climate change now upon us.

We need to keep our place at the cutting edge of technology and assist our scientists to achieve the ideals of the work they have to carry out for a better South Africa, a better Africa, and a better world.

Our people deserve it,” Sonjica told delegates at the launch, which coincided with the SAWS’ celebration of 150 years of organised meteorology in South Africa.

For more information, visit www.dwa.gov.za, to which full acknowledgement and thanks are given.

The above infrastructure developments at SAWS are believed to assist the 2 5 o in A f rica

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Press photo BASF

The 100% recyclable expanded polypropylene has been used to construct a roller ball. A roller ball run is a construction in which a ball rolls over a course simply by gravity.

Roller ball run

made from expand expanded polypropylene BASF has patented a roller ball, called viavario, from its expanded polypropylene, Neopolen. The ball run consists of modules which can be joined together to create new tracks and it benefits from the expanded polypropylene’s features such as low weight, impact strength, durability and a wide range of colours.

About the product A roller ball run is a construction in which a ball rolls over a course simply by gravity. Produced by the construction system manufacturer isorast® in Germany, the ball is pollutant-tested and flexible, yet so stable that the individual parts of the track can be repeatedly dismantled and accurately fitted together again. Viavario is also suitable for outdoor use due to the fact that the foam absorbs little water.

Viavario is available as a modular system with two golf balls and 36 units.

A module consists of lightweight cubes that weigh 50 grams each, in which straight sections, double straight sections, curves, ramps or openings are impressed. According to the manufacturer, the game is suitable for children of three years and upward.

High energy absorption Neopolen P is a flexible material that consists of expanded, predominantly closed-cell, air-filled particles. The material distinguishes itself by its high energy absorption and very good resilience: the particles absorb the energy on impact and then release it again over a period of time, during which the foam returns to its original shape.

There is no loss of absorption properties, causing the material to maintain its form and avoid breakages. “In addition to these properties, we were particularly impressed with the wide range of high-quality colours ranging

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from black through signal red, grass green and blue to yellow and burgundy.

Because Neopolen is easy to foam into different geometries, intricate constructions can be produced with arches and curves, also shaped rails over which the balls travel with a minimum of vibration, friction and noise.

The track therefore offers new combination options, such as switchbacks,” said Manfred Bruer, Managing Director of Isorast.

Versatile and environmentally friendly Neopolen P, an expanded polypropylene (EPP), offers very good shock absorption, low weight and it has a high thermal stability. The particle foam combines high energy absorption, isotropic deformation behaviour, low water absorption and good chemical resistance.

These properties open up a lot of applications ranging from automotive construction, packaging and transport containers to applications in sport and leisure. This expanded polypropylene is also 100% recyclable.

For more information, visit www.viavario.de, www.neopolen.com or www.basf.com.

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

ENERVAT I O N S

A

South African Air Quality Information System (SAAQIS), which will enable policy-makers and the general public to be able to access centralised air quality information, has been launched by the Department of Environmental Affairs (DEA) at the South African Weather Service.

This web-based interactive air quality information system is set to become a research portal for strengthening policy development related to air quality issues. It has been developed and tested for a period of three years and the latest information can be accessed at www.saaqis.org.za.

Assessing pollution, emissions and air quality All provinces and local municipalities that have air quality monitoring stations have been encouraged to report its air quality data to the SAAQIS so that the country can begin to assess whether air quality is improving and also identify areas where potential air pollution problems exist. To date, 42 air quality monitoring stations are reporting to the SAAQIS and most of these stations belong to networks such as the Mpumalanga province, Ethekwini Metro municipality, City of Johannesburg Metro Municipality, Tshwane Metro Municipality and the national DEA. Changing policy-making in the country In the past, policy-making in this area has been based largely on ad-hoc air quality information often with no historical data to understand air quality trends and impacts. For the first time, policy-making can be driven by air quality information which will make it possible for air pollution trends to be determined for each area being monitored thanks to the SAAQIS. The first phase (which the development of the air quality monitoring data reporting system) has been completed, the second phase will focus on the emissions inventories from sources such as industries, vehicles, residential dwellings as well as other energy sources. The third and last phase will focus on air pollution modelling which will enable real-time forecasting of air pollution similar to weather forecasting.

Chief Director: Air Quality and Climate Change at the Department of Environmental Affairs, Peter Lukey, spoke about the many benefits for the public in general in his keynote address at the launch of the information system.

“All reporting stations verify their data and feed it directly into the SAAQIS. The system will always contain the latest updated data of a location and can give the status of air quality or pollution according to the chosen day and time when checked on the website,” commented Lukey.

For more information, visit www.deat.gov.za, to which full acknowledgement and thanks are given.

L

ighting importer and distributor, Eurolux, has announced its joint ownership of the locally designed Ni9htwatcher technology. According to the company, this decision and announcement follows an increasing international and local interest in security lighting range, as well as an opportunity to exhibit the Ni9htwatcher at both the Frankfurt Lighting and Las Vegas DIY Fairs.

The microprocessor controlled light features a motorised 150 Watt halogen floodlight that detects any motion in the 210 degrees Passive Infrared (PIR) covering zones and automatically turns towards the movement.

The Ni9htwatcher has an active covering range of 10 metres plus.

Eurolux director, Shaun Bouchier, describes the Ni9htwatcher range as a total security solution. “It is a PIR linked security light that comes with optional add on features such as a built-in wireless camera that can be linked to a wireless handheld LCD monitor, wireless television receiver or a handheld wireless alarm receiver as an early warning signal. This means that the moment motion is detected you not only know about it, but you have a visual and are able to determine whether there is a direct threat to you or not,” says Bouchier.

With any motion being detected, the light of the unit will automatically go on and turn towards the breached zone to illuminate the area while simultaneously sending an alarm signal to the wireless remote unit to audibly indicate the breach. The built-in wireless camera transmits images within the light path directly to the selected computer or handheld device and the light head will keep following the motion until no further motion is detected.

There are a number of models available in this product range. “You are able to tailor make a solution that meets your security needs, therein lies the beauty of this durable device,” concludes Bouchier.

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

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Diversified energy strategy for mining group South African-based mining group, Exxaro, is the country’s fourth-largest coal producer. This Johannesburg Stock Exchange listed mining company may be renowned for their commodity portfolio such as coal, mineral sands and metals, but their diversified energy strategy has transformed the company into one that is branching out and investing in sustainable energy solutions for the country.

“S

outh Africa, like the rest of the world, is experiencing an energy crisis that can be divided into three issues,” says Thomas Garner, Manager of the company’s Energy Growth Strategy. “There is an energy supply shortage, we are experiencing electricity tariff pressure as well as pressure to reduce our amount of carbon emissions. When you combine these three issues, there are massive opportunities and Exxaro has created a business that speaks to this market.”

Exxaro’s carbon footprint represents almost 1% of South Africa’s total emissions. Although energy and climate change are broad challenges, Exxaro has incorporated a variety of energy strategies into their long-term business strategy which are being implemented all over South Africa.

The build of the 100 MW wind farm is set to start in 2012 and it’s anticipated that the project will supply electricity to the National Grid under the Renewable Energy Feed-in Tariff (REFIT) scheme.

“We will be measuring the wind with an 80 m measuring mast for at least another year in order to get bankable measurements,” says Garner. “Besides supplying energy to the national grid, we are also looking at providing electricity for other industrial institutions and local municipalities. We are hoping to expand the wind farm to 200 MW over time.”

Wind in the Cape

Exxaro is also planning another 40 MW wind farm project in the Eastern Cape in Tsitsikamma. The Tsitsikamma Community Wind Farm (TCWF) project is a joint venture between South African energy company Watt Energy and Exxaro, and other key partners include the Tsitsikamma Development Trust (who represent the community that owns the land) as well as a number of other Danish partners.

Exxaro will be building a wind farm in the Western Cape near Brand-se-Baai and Koekenaap, which is near their Namakwa Sands mine. The company has

Garner explains that the TCWF project is also focused on local development and the upliftment of the local people.

“We decided to create various projects that will become part of the bigger energy business. The aim is to become the leading clean energy Independent Power Producer (IPP) in South Africa,” says Garner.

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been measuring wind with a Lidar since November 2009 and with an 80 m wind mast since March 2010.

25 o i n Africa

ne 2010 • •

•

Exxaro continues developing renewable energy projects.

A budget for the company’s energy and carbon management programme is set (approximately ZAR9-million).

The programme is broadened to focus on climate change and associated risks.

2009 •

• •

Exxaro pays a large amount for electricity (more than ZAR600-million) and forecasts electricity costs for 2011 to be some ZAR1,3-billion.

Exco approves energy and carbon strategy framework.

Exxaro participates in SA Research Centre for Carbon Capture and Storage with local and international partners.

2008 • • •

•

Exxaro spends ZAR460-million on electricity.

South Africa realises the extent of its energy crisis.

Dedicated manager appointed to focus on energy projects and opportunities.

Exxaro placed fifth in South Africa’s CDP leadership index chapter for the energy-intensive sector.

2007 • • •

Exxaro spends ZAR358-million on electricity.

Exxaro forms clean energy forum.

Group reports on carbon emissions for the first time (358-million tonnes of CO2e).

2006 • Electricity is highlighted as a major cost to the group.

• Exxaro adopts the Energy Efficiency Accord signed by Kumba Resources.

“We are planning to have an 80m wind measuring mast up by August, and the wind farm will supply electricity to the national grid through the REFIT if a PPA is signed between the wind farm and the Independent System and Market Operator. The wind farm will also supply electricity to local community, schools and homes,” says Garner.

Concentrated solar in Limpopo Exxaro is currently studying three sites in Lephalale, Limpopo, in order to choose a location for a 250 MW Concentrated Solar Power (CSP) plant in the area. The company has already installed measuring equipment and the goal is to supply green energy to the national grid.

These projects, which will be a joint venture with Promethium Energy, are intended to use waste heat and waste gas to generate energy.

“There is a pipeline of approximately 350 MW waste to energy projects,” says Garner. “The first project, which will be at our Namakwa Sands Smelter, is anticipated to generate 13 MW of electricity from furnace gas. This project is anticipated to reach financial close by the third quarter of this year.”

Other projects that Exxaro is investigating include a coal bed methane project in Botswana and a solar project in Namibia.

“Our strategy is to be a diversified company and the Energy Growth division at Exxaro is a group of committed people. Our plans are in place and we are constantly pushing forward and looking for new energy opportunities,” concludes Garner.

Exxaro Resources Ltd Tel: +27 12 307 5000 Fax: +27 12 307 3400 Website: www.exxaro.com

“We are assessing the suitability of the various sites from a central location.

These measurements need to be taken over a 12 month period and we are busy deciding on different CSP technologies at present,” says Garner.

Co-generation projects Garner explains that quite a few co-generation projects are being considered.

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cou ntry prof ile: egypt

A series of dynasties ruled Egypt for over three millennia and the last native dynasty fell to the Persians in 341 BC. These rulers were replaced by Greeks, Romans and Byzantines and in the 7th century Arabs started to rule Egypt, introducing Islam and the Arabic languages to a country which they would rule for the next six centuries.

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c o untry p ro f i l e : e gyp t

A

fter the completion of the Suez Canal in 1869, Egypt became a significant world transportation hub, but also fell heavily into debt.

Britain seized control of Egypt’s government in 1882 in order to protect its assets and in 1952 Egypt (who was partially independent from the UK by 1922) acquired full sovereignty and overthrew the British-backed monarchy.

The annual Nile River flood, coupled with semi-isolation provided by deserts in the East and West of the country, has allowed for the development of one of the world’s greatest civilisations. Egypt has the largest growing Arab population in the world and limited land as well as dependence on the Nile has caused the government to continuously overtax resources and stress society. The Egyptian government has been struggling to meet the demands of the country’s growing population and economic reform, massive investment in communications and physical infrastructure continue to prevail.

Location: Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip and the Red Sea north of Sudan.

Climate: Desert. Hot, dry summers with moderate winters.

Terrain: Vast desert plateau which is interrupted by the Nile valley and delta.

Elevation extremes: Lowest point: Qattara Depression -133 m Highest point: Mount Catherine 2,629 m Natural resources: Petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead and zinc.

Land use: Arable land: 2.92% Permanent crops: 0.5% Other: 96.58% (2005) Natural hazards: Periodic droughts; frequent earthquakes; flash floods; landslides; a hot, driving windstorm called khamsin occurs in spring; dust storms; sandstorms.

Current environmental issues: hot, driving windstorm called khamsin occurs in spring; dust storms; sandstorms, periodic droughts; frequent earthquakes; flash floods; landslides.

General economic overview: Most of Egypt’s economic activity takes place in and around the highly fertile Nile valley. Although Egypt’s economy was highly centralised when it was ruled by former President Gamal Abdel Nasser, it has opened up considerably under former President Anwar El-Sadat and current President Mohamed Hosni Mubarak.

From 2004 to 2008, Cairo aggressively pursued economic reforms in order to facilitate GDP growth and attract overseas investment. These reform efforts have been slowed down by the global recession and Egypt’s GDP growth also slowed to 4.5% in 2009, affecting exportoriented, including manufacturing and tourism, and Suez Canal revenues.

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cou ntry prof ile: egypt

Domestic sectors such as energy, transportation, telecommunications, retail trade and construction in the country continued to grow, keeping economic growth from falling further in 2009. The Egyptian government announced three separate stimulus packages between 2008 and 2009, totalling US$6.3-billion but it’s not clear how much has been spent.

• • • • • • • • • • • •

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GDP (purchasing power parity): $470.4-billion (2009 est.)

GDP (official exchange rate): $188-billion (2009 est.)

GDP – real growth rate: 4.5% (2009 est.)

GDP – per capita (PPP): $6,000 (2009 est.)

GDP – composition by sector: Agriculture: 13.1% Industry: 37.7% Services: 49.2% (2009 est.)

Population below poverty line: 20% (2005 est.)

Industrial production growth rate: 3.9% (2009 est.)

Electricity production: 118.4-billion kWh (2007 est.)

Electricity consumption: 104.1-billion kWh (2007 est.)

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• • • • • • •

•

• •

•

Electricity exports: 814-million kWh (2007 est.)

Electricity imports: 251-million kWh (2007 est.)

Oil production: 675 000 bbl/day (2009 est.)

Oil consumption: 712 700 bbl/day (2009 est.)

Current account balance: -$3.3-billion (2009 est.)

Exports: $22.91-billion (2009 est.)

Export commodities: Crude oil and petroleum products, cotton, textiles, metal products, chemicals and processed food.

Export partners: Italy 9.5%, US 7.1%, Spain 6.2%, India 6%, Syria 4.7%, Saudi Arabia 4.6%, Japan 4.5% and Germany 4.5% (2008).

Imports: $43.98 billion (2009 est.)

Import partners: US 10.2%, China 9.9%, Italy 7.3%, Germany 6.8%, Saudi Arabia 4.8% (2008).

Debt external: $28.45-billion (31 December 2009 est.)

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

c o untry p ro f i l e : e gyp t

solar energy targets and gas problems Egyptian officials have been reported to say that the country’s oil and gas reserves will be depleted within the next three decades, encouraging a shift to alternative energy sources. In December 2009, Egypt announced plans to bring its first solar power unit online in 2010 in an effort to generate 20% of its energy from renewable energy sources by 2020 (www.ae-africa.com).

E

uropean governments, which depend significantly on Russia for energy, are investigating renewable energy options in order to cut greenhouse gas emissions by 80% below 1990 levels by 2050. Although some of these plans envisage importing solar energy from Africa, Egypt is set to install capacity of 140 MW from a solar project south of Cairo for domestic consumption by the end of 2010.

Electricity and Energy Minister Hassan Younes told Reuters: “Solar energy is four times as expensive as energy generated from combined cycles so when this figure starts going down to three or two times as much, this is when we will see developing countries go heavily into the business”.

At a conference on renewable energy, Younes said that Egypt could export to Europe via Libya and Tunisia, which are in turn linked with Morocco and Spain.

“Exports are in our plan, but taking into consideration the development of suitable technology and its spread so that the price goes down,” said Younes.

According to www.nationsencyclopedia.com, commercial oil was first found in Egypt in the 1930s and large oil fields were later discovered in the Sinai Peninsula, the Gulf of Suez, the Western Desert, and the Eastern Desert. In March 2010, Egypt announced it will house a factory producing raw materials and gas to generate solar energy run by a Dutch company. This plant is expected to produced 3 000 tons of polysilicon for solar cells and 1 500 tons of gas to manufacture the cells, annually.

According to www.ae-africa.com, Egypt’s major problem is that it’s facing a natural gas growth rate of approximately 8% per year – domestically produced gas only being 6% annually. The government has consequently started studying ways to import gas from Iraq in order to meet domestic demand. Although solar energy is relatively expensive, Egypt needs to now determine whether importing Iraqi gas to power a solar energy plant (among other projects) would be beneficial.

Sources: www.ae-africa.com, www.nationsencyclopedia.com.

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GR E E NING 20 10

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he 2010 FIFA World Cup is one of many international sport events hosted around the world each year. Like many of these events, stadium construction, sporting facilities, accommodation and related infrastructure needed to be built. All the added construction, coupled with the large number of international visitors into the country, could potentially have huge environmental effects on a country. 25° in Africa finds out what South Africa can expect in terms of carbon emissions and what the country is doing to offset these consequences.

According to the Feasibility Study for a Carbon Neutral 2010, FIFA World Cup by the Department of Environmental Affairs and the Norwegian Embassy in South Africa, the estimated carbon footprint of the 2010 FIFA World Cup is 896 661 tonnes of carbon dioxide equivalent (tCO2e), with an additional 1 856 589 tCO2e contributed by international travel.

The FIFA World Cup is estimated to have the largest carbon footprint of any major event and, with a footprint estimated to be eight times the footprint of the 2006 World Cup in Germany, South Africa is going to have a tough time offsetting these emissions in order to reach their goal of making it a “carbonneutral event”.

Sustainable Development) have done so. The large share for international transport is expected, given South Africa’s distance from most world centres, and the fact that almost all international visitors must fly to South Africa,” reads the report.

The top reasons for the difference between South Africa’s FIFA World Cup and Germany’s 2006 World Cup is the distance between South Africa’s host cities and a lack of green transport systems in the country. “The lack of high speed rail links means the most visitors will fly multiple times between matches, leading to much higher transport emissions. For intra-city transport, much of this travel will still be in passenger cars or small buses over long distances, rather than light rail as used in Germany,” reads the report.

Proposed greening measures The Olympic Greening Policy has two main objectives: it strives to promote Olympic Games which respect the environment and meet the standards of sustainable development and, secondly, it aims to promote awareness among and educate the members of the Olympic family and sports practitioners in general of the importance of a healthy environment and sustainable development (National Greening 2010 Framework).

International travel equals 67% of footprint A massive 67% of carbon emissions are attributed to international visitors flying to South Africa for the event. The second largest contributor is intercity travel, followed by energy use in accommodation. The Department of Environmental Affairs has set up a table listing a summary of the anticipated carbon footprint of the event that lists the total of emissions by both including and excluding the highest contributor (international travel).

According to this framework, the 2000 Sydney Olympics was recognised for setting “green standards” and Vancouver’s preparations for 2010 and London’s 2012 Olympics all have a large focus on sustainability. The first event in the history of the International Athletics Associations Federation (IAAF) at which environmentally friendly measures were implemented was the 2005 World Championships in Helsinki, which provided practical guidance on how to address environmental issues at athletics events.

Summary carbon footprint for FIFA 2010 World Cup

Framework will only offset 9% of emissions

Component

Emissions (tCO2e)

Share (%)

International transport

1 856 589

67.4

Inter-city transport

484 961

17.6

Intra-city transport

39 577

1.4

Stadia constructions and materials

15 359

0.6

Stadia and precinct energy use

16 637

0.5

Energy use in accommodation

340 128

12.4

Total excluding international transport

896 661

Total including international transport

2 753 250

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The National Greening 2010 Framework and Minimum Environmental Standards for Green Goal 2010 include a variety of measures that will reduce the carbon footprint. The framework also states that “greening” does not mean “doing good for society at the expense of business or the city hosting the event. Significant cost reductions can, in fact, be achieved by using resources more efficiently and by minimising waste”.

The minimum standards were developed by the LOC and the national greening framework was developed the Department of Environmental Affairs.

The Department of Environmental Affairs report explains that although measures in this framework will reduce the carbon footprint, they will only impact the emissions from stadium and precinct energy use and intra-city transport (these emissions make up only 9% of the domestic footprint).

“While these interventions are important for raising public awareness and entrenching best practices at a local level, they will not have a significant impact on the size of the carbon footprint,” the report said.

Source: www.deat.gov.za “The Green Goal 2006 carbon footprint did not include the emissions from international air travel, nor did the 2006 Commonwealth Games, but events with fewer participants (e.g. G8 Gleneagles, 2002 World Summit on

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What the municipalities are doing The nine cities that have been selected to host the World Cup have signed a Host City Agreement with FIFA, which includes a commitment to Continues on p16

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climate ch ange

Greenpeace Climate Campaigner, Nkopane Maphiri, says that South African tax payers have paid for the built program and the program for carbon offset programme is still vague.

“South African taxpayers have indeed paid for the built programme. The real question is what we are going to do with all the stadiums post World Cup? As far as I am aware of, much still has to be decided about where the funding for the carbon offset program will go and how it will be administered. It is going to be interesting to see how this program is developed and where the figures will come from,” says Maphiri.

Maphiri believes that even though the Local Organising Committee (LOC) and South African government are making efforts to reduce emissions, many people are still waiting to see tangible results.

“From the LOC and government side, they have recognised that the country needs to do their bit to offset the emissions from the World Cup event, but we have not seen concrete action plans beyond greening some of the cities and stadiums,” says Maphiri.

environmental sustainability.Municipalities are contributing to the goal of hosting a green event with a range of planned short, medium and long term initiatives.

Pretoria and Durban are using biogas from landfill sites (the draft plan for Durban’s municipal projects also states that it’s investigating solar powered street and walkway lights for stadium precinct, beachfront and fan fest areas and that these lights will be installed where possible). Cape Town will be lighting up Table Mountain and other attractions with wind energy (bought

by Darling Wind Farm) and selling “Green Electricity Certificates” to FIFA and other public bidders, while Polokwane is planting trees to capture emissions in their stadium, practice stadia and fan park landscape.

EON Engineering is a leading African engineering consultancy, with extensive experience in the feasibility studies, integration studies and network connection designs for all forms of embedded generators into utility networks, including wind farms and other renewable energy sources.

Many of the projects will only happen after the event The report acknowledges that public awareness and contribution would be maximised if the carbon offset project were visible during the 2010 FIFA World Cup, but states many offset projects for international climate neutral events “are not implemented until well after that event has occurred”.

The Department of Environmental Affairs also believes that although substantial funds will be needed to pay for the carbon offsets, the main barrier would be funding for the management and administration of the carbon offset programme.

According to the report, offsetting the domestic carbon footprint of the 2010 World Cup could cost between US$5.4-million and 9-million. Offsetting international travel on its own would be double this amount.

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“We have so many people that will be flying over ten hours to get into the country, those emissions alone are extremely detrimental. There have been media launches about municipalities planting trees, but Greenpeace would like to see implementable projects beyond planting trees. What about the hospitality industry? They are direct beneficiaries of this event and I think the big hotel chains should be explaining how they are going to conserve water and energy,” says Maphiri.

“A lot of things are spoken about but there isn’t a whole lot of evidence about green initiatives that are up and running. It seems like we have become bankrupt of ideas because a lot of trees have been planted but not much else is being done. We want to see more sustainable solutions that will continue long after the 2010 FIFA World Cup is over,” says Maphiri.

“The Department of Environment Affairs for offsetting carbon footprint was mainly from donor funding from the Danish government and the global environment facility through the UNEP program. None of our government funding was used for offsetting. We’ve done a green review of all the stadia to identify energy saving measures and each stadium has energy efficient lighting, for example,” says Chief Director at the Department of Environmental Affairs, Dorah Nteo.

Nteo also explained that there are many environmental projects that will be launched before, during and well after the World Cup. “There are definitely green initiatives in the hospitality industry; one of the many requirements for 2010 accommodation providers is that the institutions adhere to conservation and energy saving methods. Our department is also working with UNEP to establish a carbon offset system for air travel emissions. This electronic system will enable people coming into our country to calculate their carbon footprint and offset their emissions at airports via their own credit cards. It is a complex system and we are hoping to launch it by the end of May,” says Nteo.

“Furthermore, we are designing a green passport, which visitors will get free of charge. This passport-looking document will list a number of environmentally responsible actions that visitors in our country should take.

There will also be volunteers that stamp this passport for environmentally friendly actions, such as throwing your rubbish into a bin. Once the person has a number of stamps they will be able to collect a gift, like a vuvuzela, for example. People will know that South Africa is committed to greening the World Cup and many initiatives have evolved and will continue to evolve after this event,” concludes Nteo.

Sources: www.norway.org.za, www.deat.gov.za, www.unep.org.

c l i m ate c h an g e

Addressing carbon pricing impacts on consumers

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he first article in this series considered whether a carbon tax or a domestic emissions trading scheme was the preferred policy option for South Africa’s introduction of a price of carbon into the economy. The National Treasury has stated that carbon pricing is under serious consideration, and irrespective of which instrument is selected any carbon pricing approach will have important impacts on the economy. The primary intention of carbon pricing is to provide economic signals to reduce energy use and to use less carbon intensive sources of energy. In doing so the price of most energy sources in the country will increase in the short term, as the vast majority of energy, both liquid and solid fuels and electricity, is fossil-fuel based.

Consideration could also be given to making this grant and the FBAE grant more conditional – in other words requiring Municipalities to show that they pass the entire grant through to consumers. In the case of electricity, the greater use of pro-poor tariff options, such as subsidised tariffs for households on limited services levels (such as 20-Amp supplies), should also be considered. This will help ensure that the subsidy is targeted to poor households. In the case of other energy carriers, such as paraffin, there are creative ways in which the FBAE grant can be used to subsidise fuels and to encourage the use of less hazardous or polluting fuels – such as ethanol gels.

Energy efficiency

Carbon price impacts This increase in fossil fuel energy prices is a desired outcome of carbon pricing, but it has the undesirable consequence of increasing the costs of energy to all consumers – even those poor consumers who are unable to reduce energy consumption because they already use very small amounts of energy. PDG research, based on StatsSA data, shows that poor households do not spend significantly more on energy as a proportion of income than wealthy households (see graphs below) – although, as can be seen, the wealthiest ten percent of households do spend the lowest proportion of their income on energy. However, due to the various different carbon contents of energy sources a carbon price increase does affect poor households disproportionately. PDG analysis suggests that a ZAR100/ton price of carbon will lead to an average direct increase of over 1% in household expenditure for the poorest 10% of households compared to a less than 0.4% increase for the wealthiest 10%.

A carbon price (either directly as a tax or indirectly via an emissions trading scheme) is therefore a regressive tax, in other words, it has a disproportionately higher impact on poor households than on wealthier ones. This runs counter to government tax approaches which seek to avoid regressive taxation so as to reduce rather than increase income inequality in the country. There is therefore a need to find ways to reduce the impact of carbon pricing on poor households, while retaining the desired incentives impacts of the instrument.

Another approach to mitigate the impact of household energy cost increases is to assist households to reduce energy use while maintaining their standard of living through financing energy efficiency options. Three important possibilities for energy reduction are: switching to more efficient lighting, switching to solar water heaters which can reduce energy use consumption for water heating by between 60% and 70% and improving housing insulation which can reduce heating demand by well over 50%. Of these, the last one is probably the most important for low income households. Improved insulation will reduce the use of all energy sources used for heating and is a relatively inexpensive intervention. It can also be incorporated into new subsidised housing design and therefore can be an intervention well targeted to poor households.

Impacts on energy intensive industry It’s not only consumers who will be affected by carbon pricing. Certain industrial sectors will also face serious challenges. Particularly affected will be those energy intensive firms that have limited ability to alter their energy use in the short term and energy intensive firms that are exposed to international competitors that may not be facing a similar carbon price. Further thought and research needs to be undertaken to determine the best approach to mitigating carbon price impacts on these industries will still achieving the required greenhouse gas reduction objectives.

Revenue

Options for mitigating impacts Fortunately, there are a number of available mechanisms to mitigate impacts on households. There is a relatively sophisticated energy subsidy system in place which includes the Free Basic Electricity (FBE) and Free Basic Alternative Energy (FBAE) policies of government. There are also other subsidies within the electricity system including cross subsidies at the municipal and national level. If used effectively, these subsidies could provide the mechanism to mitigate energy price increases in a way that is targeted at poor households.

However, there are problems with the current subsidy system. A first concern is that the energy subsidies are meant to be financed through the Equitable Share grant to municipalities provided by national government. In practice, much of this grant, which is currently provided unconditionally in accordance with the constitution, is not used for its intended purposes. Available data (which is quite limited) suggests that only about a quarter of Eskom customers access the Free Basic Electricity subsidy and that possibly only about 50% of poor households nationally access the grant.

As electricity prices are rising sharply in any event there are strong pressures to extend the reach of the FBE grant to as many poor consumers as possible.

Fortunately, a well designed carbon pricing system can raise significant revenue. Rough estimates of revenue from a comprehensive ZAR100 carbon tax, for example, are about ZAR45bn. As long as this tax is not seen as expanding the government’s revenue base, this provides significant scope for offsetting tax reductions, and increased welfare transfers (such as the free basic energy and electricity grants), to help mitigate the impacts of carbon pricing on poor households and exposed industrial sectors.

This is the second article of three arising out of a larger research project, carried out by PDG and funded by the British High Commission, on carbon pricing options for South Africa. There will be seven papers published from this project which will be made publicly available at the conclusion of the project in June 2010. These papers address issues of carbon pricing, carbon taxation and domestic emissions trading from a South African perspective.

PDG Tel: +27 11 482 9568 Fax: +27 11 482 9542 E-mail: mike@pdg.co.za Website: www.pdg.co.za 2 5 o in A f rica

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climate ch ange

Many companies are making significant efforts to switch to energy efficiency practices and various companies have programs in place to preserve the environment. But does the way they communicate their green efforts to stakeholders make a difference?

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BSR report entitled Communicating on Climate Policy Engagement offers concrete guidelines on how business can communicate to customers, investors, and the public on these climate policy engagement efforts.

“As we enter the season for financial and sustainability reporting, one of the most important topics on the agenda for companies to cover is climate change. To date, however, companies have lacked direction on how to report on their important work pushing for government policies that will curb climate change,” said Ryan Schuchard, BSR’s Manager: Research and Innovation.

Going “beyond lobbying” to build trust The report, which was released in March 2010, addresses why companies should report on their climate policy approach. According to the report, many stakeholders are suspicious of business’ involvement in the policy process, and this is especially true with climate change, where stories have painted the private sector involvement as self serving.

“There is a particular opportunity for business to build trust by showing how political involvement goes beyond tit-for-tat lobbying and can serve the common good, with business being an active problem-solver in deploying wide-scale, low-carbon solutions,” reads the report.

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How the leading companies are reporting An assessment was done to find out how 150 leading companies, including Hewlett-Packard, Johnson & Johnson, and Unilever, currently report on their climate policy engagement. The results showed that they commonly report on such efforts through one or more of the following mechanisms: Climate Disclosure Leadership Index (CDP): 95% of the companies submitted information about climate change activities to the CDP’s 2009 Investor Questionnaire.

Corporate website: The second most popular reporting strategy is company websites, with approximately 50% of the 150 companies addressing their climate strategy on their websites.

Annual sustainability/CSR report: Almost all the companies produced annual sustainability/CSR reports and around 95% disclose activities related to climate change or public policy in these reports.

United Nations Global Compact (UNGC) Communication on Progress (COP): Approximately 20% of the companies reported to the sustainability reporting channel for UNGC participants (COP).

Special report: Only a handful of companies issued individual reports that detail their climate strategy.

c l i m ate c h an g e

Even though the choice of reporting mechanism was uneven, the report found that companies communicated with relatively consistent language. The reporting companies cited one or more of these reasons for engagement: 1. Climate change may not be solved without public policy. Public policy is a main pillar of their climate approach.

2. Climate change is a great focus of many public policy efforts because it’s one of the greatest issues of this generation.

3. Climate policy is likely to happen and it’s likely to disrupt fundamental business drivers, making it a strategic issue.

BSR recommended that companies who want to lead in reporting take the following approaches:

“Leading companies recognise that climate change is one of the single greatest issues of our generation, and public policy is a main piece of their climate approach. Without policy change, we may not be able to solve climate change,” said Schuchard.

Use varied reporting channels. Besides a comprehensive and consistent message on company websites and sustainability reports, companies should also consider reaching key audiences through customised channels as needed.

In the report, BSR recommended companies to report on climate policy engagement because stakeholders are demanding that companies communicate transparently on their climate efforts. Customers want to judge which companies are leaders, investors want to see that companies are creating value and watchdogs are looking for inconsistencies between companies’ stated climate goals and the policies they support.

“Companies have the opportunity to lead on climate change through many efforts, and influencing policy is a strong mechanism for change.

By communicating transparently about their efforts using BSR’s recommendations, companies can fulfill commitments to stakeholders and position themselves for leadership in climate progress,” concludes Schuchard.

“BSR believes that effective climate policy is an important instrument for creating business value, and that companies can build trust with stakeholders by leading more meaningful discourse,” explains Schuchard.

For more information, visit www.bsr.org, to which full acknowledgement and thanks are given.

Be explicit. Ensure that solving climate change is a stated goal, and use clear statements of position and objectives to focus the message.

Be upfront. Be straightforward about the company’s climate policy involvement and answer potentially difficult questions in advance as opposed to waiting to be asked for explanations.

climate ch ange

South African company

removes barriers to emissions reporting

Although the climate change conference in Copenhagen failed to achieve its objectives of a binding treaty around carbon emission reductions, sustainable business is here to stay and companies need to gear themselves towards a carbon constrained future.

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South African company, sustainableIT, is doing just that, having developed TheCarbonReport.com, which now allows companies, irrespective of size, to measure and report on emissions through validated processes.

we have developed and our expertise we have been able to dramatically reduce costs to the client. Every business, no matter how large or small contributes in some way to climate change and more accountability and responsible practice needs to be adopted,” she elaborates.

In the past few weeks, investors representing US$13-trillion in assets issued a statement stressing the importance of concluding a legallybinding agreement including a global emission reduction target of between 50% and 85% by 2050. The same group urged investors, businesses, and governments not to wait for a global treaty before taking action. Actions should be taken now to curb emissions.

Businesses are certainly starting to take action. Puleng Technologies, a company of fewer than 100 staff, has engaged sustainableIT to quantify their carbon footprint. “Although we are a services-based company, we still produce emissions with the energy we consume, the paper we use and our travel, both commute and business related. We recognise that we have an environmental impact and we need to measure it so that we can manage it,” explains Steve James, Director at Puleng. “It is not just about being green, it’s about developing a programme of energy efficiency and cost reductions and TheCarbonReport will provide us with the baseline we will use,” states James.

In South Africa, due to the lack of binding legislation, measuring and voluntarily reporting on emissions has been left to the remit of companies on the JSE Top 100 as part of the Carbon Disclosure Project, as well as environmentally conscious companies recognising their responsibilities in this respect. In 2009, 68% of the JSE Top 100 voluntarily disclosed their carbon emissions, ranking only behind Brazil in disclosure response globally.

Mid-market businesses are now starting to recognise their social responsibilities in this regard as well and are starting to take action.

“The solution is geared towards businesses wanting to establish their environmental impact and is the first step towards embracing a sustainable future”, explains Tim James, Director at sustainableIT. “The cost and complexity of emissions reporting has previously prohibited many businesses from participating in voluntary emissions reporting. Through the tooling

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Aubrey Davies, Managing Director of Cape based internet service provider, I-Soft Net agrees. “We are relatively small but measuring our impact has two benefits. Firstly, it allows us to concentrate on areas where we can become more efficient, with a baseline to measure against. Secondly, it allows us to create awareness with our staff which will result in downstream environmental benefits within their sphere of influence”.

With an estimated 900 000 small and medium enterprises in South Africa, the opportunities to reduce emissions within South Africa are exponential. With energy costs continuing to rise, more businesses are expected to focus on energy and carbon reduction initiatives. However, companies are encouraged to measure first to ensure that ROI is delivered and benefits are quantified.

SustainableIT Tel: +27 21 686 6085 E-mail: tim@sustainableIT.co.za

c l i m ate c h an g e

fossil fuel A recent study for the International Institute for Sustainable Development (IISD) entitled The Effects of Fossil-Fuel Subsidy Reform: A review of modelling and empirical studies by Jennifer Ellis, analyses six major studies on fossil-fuel subsidy reform since the early 1990s.

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ccording to the report, many studies have analysed the trade-offs between economic, environmental and social impacts with the aid of complex economic models in order to help policy-makers appreciate what conditions the net effect of subsidy removal and what measures need to be taken in order to minimise negative impacts.

Economic, environmental and, in a few cases, the social impacts of fossil-fuel subsidy reform at a global level were analysed and Ellis’ report intended to determine if there are any common conclusions that can be drawn from these studies. The six studies analysed are: • The effects of existing distortions in energy markets on the costs of policies to reduce CO emissions: evidence from GREEN (Burniaux et al., 1992); • World fossil-fuel subsidies and global carbon emissions (Larsen and Shah, 1992); • World Energy Outlook 1999: Looking at Energy Subsidies – Getting the Prices Right (IEA, 1999); • Environmental Effects of Liberalizing Fossil-Fuels Trade: Results from the OECD GREEN Model (OECD, 2000); • Removing energy subsidies in developing and transition economies (Saunders and Schneider, 2000); and • The economics of climate change mitigation: How to build the necessary global action in a cost-effective manner (Burniaux et al., 2009).

•

if 20 non-OECD countries phased out consumer subsidies for fossil fuels and electricity.

Social impacts: Very little was concluded by the six studies analysed for the report and general conclusions include that there “would be social impacts associated with fossil-fuel subsidy reform, but that these impacts could potentially be offset by re-targeting some of the saved subsidy expenditure towards social programs.”

According to Dr. Zoe Lees, Sustainability Advisory Services at KPMG, many in the business sector do not look at the social risk aspects of global warming.

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Economic and environmental benefits – what about social risks?

The paper strongly supports the conclusion that there are significant environmental and economic benefits that would result from the reform of fossil-fuel subsidies and that these subsidy reforms should be a key element of a larger overall package for global climate change mitigation. Although these papers are not directly comparable, these are the broad conclusions that were made: • Economic impacts: All six studies showed that fossil-fuel subsidy reform would result in aggregate increases in gross domestic product (GDP) in both OECD and non-OECD countries. These GDP increases range from 0.1% by 2010 to 0.7% per year to 2050.

• Environmental impacts: The report shows that very little work has been done to assess the environmental impacts, such as local air or water pollution or the demand for land, of subsidy reform. The six major studies analysed concluded that fossil-fuel subsidy reform would reduce CO2 emissions, but results range from 1.1% reduction in emissions by 2010 to an 18% reduction by 2050. The most recent study reviewed (by Burniaux et al. 2009) concluded that global CO2 emissions would be reduced by 13% and GHG emissions would be reduced by 10% by 2050

“There is an incredible level of business naivety when it comes to social risks and it is a huge problem,” said Lees at a recent conference in Gauteng, South Africa. “Thesocial risk extends far beyond political rhetoric regarding poverty, and is the most important developmental issue of our decade. We know this, but how many of us are acting?”

“The worst part is that the most vulnerable are effected by climate change.

We have to start acting and move beyond political and economic debate because we have between 10 and 15 years to start combating this problem,” says Lees.

The report concludes that efforts to facilitate comparisons of results among studies of fossil-fuel subsidy reform need to be considered and that this could be done through consistency in defining global regions for analysis, and in the model outputs required to assess social impacts (for example, the social welfare effects for each region).

Lees commented that climate change mitigation will have various effects on a global level. “When we start implementing adaptation and mitigation actions, we have to think not only of emissions from the stacks of factories but of our lifestyles, product designs and infrastructure as well. We talk of the low carbon economy, but are we evolving fast enough and do we understand what that is? Government wants to promote hybrid vehicles, but do we have the experts and technicians for this? Have we thought about the skills and infrastructure gap? If we are going to re-train people to be able to implement these new “low carbon” technologies, who will pay for this, and how long will it take?

“We have a skills shortage for the current technologies that we are using, and this shortage is not limited to South Africa, it is a global dilemma. Skilled workers get poached and so we need to deal with retaining skilled people as well as attracting others,” concludes Lees.

2 5 o in A f rica

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O IL AND GAS

BP out of 5 African countries;

focus on others On 2 March 2010, BP announced that the company is pulling out of Namibia, Malawi, Tanzania, Zambia and Botswana.

“This follows a strategic review by BP into its refining and marketing businesses in southern Africa which showed the company should focus on those countries which offered the greatest synergies with its supply portfolio which are Mozambique and South Africa,” said Sipho Maseko, BP Africa’s Chief Executive.

Maseko told governments and employees in South Africa and Mozambique that the company is staying in these two countries and will be investing to grow the market share and grow BP’s value chain position. “I would like to stress that BP is, and will stay, committed to Africa,” said Maseko.

to see our operations grow significantly,” explained Maseko.

Maseko said that BP is looking to sell the business, which will offer good value and great potential to a purchaser, particularly given the strong economic outlook of the region as whole.

BP Africa employs approximately 1 760 staff in Namibia, Botswana, Mozambique, South Africa, Tanzania, Malawi and Zambia. The company is also engaged in oil and gas exploration activities in Angola, Algeria, Egypt and Libya.

“A new owner can build on our good assets and grow the business further.

All of our operations are leading marketing businesses, with strong market shares, well run operations, experienced and capable employees and strong health and safety performance,” concluded Maseko.

“We have significant operations in Angola, Mozambique and South Africa and in Algeria, Egypt and Libya. We will continue to grow and invest in those markets, especially in the value chain infrastructure. We have discussed with the South African and Mozambique governments our desire to remain, and invest in, these two countries where we prefer

For more information, visit www.bp.com, to which full acknowledgement and thanks are given.

NATURAL GAS CONFERENCE 2010 Register today and make an informed decision about natural gas

the Evolving Energy Source

South African Pipeline Gas Association (SAPGA) is proud to announce the 3rd annual Natural Gas Conference 2010. Conference delegates are envisaged to be existing and new customers of natural gas, gas suppliers, gas practitioners, providers of equipment and services, consulting engineers and government officials.

Visit www.sapga.co.za for more information.

3rd Natural Gas Conference 2010 Date: 7 & 8 September 2010 Location: Indaba Conference Centre, Fourways, South Africa Contact: Elrien Bootha Tel: +27 11 431 2016 Emial: elrien@sapga.co.za

The Natural Gas Conference will share information on: • Learning… how your company can become more greener & fuel efficient in 2010.

• Adopting… renewable technological solutions.

• Engaging… networking opportunities with other industry partners & government.

• Exposing… your company to domestic and international trends • Collaborating… with the entire spectrum of industry suppliers and end users.

Expect these topics of interest to be discussed over the 2 day conference: • Regulatory aspects relating to product and equipment • New Technology and future development imploding on gas systems • Environmental issues and green effect • Availability and sustainability of gas – exploring new sources • Economy and the way forward with gas – dismissal or prosperous?

• Training & Learnership expectations for the gas industry • Optimisation of gas burner systems • Co-generation and alternative fuel sources • Insurance - impact of regulatory compliance on your home, offices and facility • … case studies.

“Glowing stronger every day”

O I L A ND G A S

e th s in jo y n a p m o c s a g d n a r e w Po

consortium members and specialists,” said President of Total Gas & Power, Philippe Boisseau. “Our objective is to actively contribute to projects that allow us to more effectively manage fast-growing energy demand while reducing greenhouse gas emissions.”

The consortium was created in October 2008 and it brings businesses – each an acknowledged expert in its field – together to work on the challenges related to the buildings of the future. Goals of the consortium include reducing energy use in future office buildings, increasing their capacity to produce energy from renewable sources and optimising the carbon footprint of buildings over their life cycle.

On 12 April 2010, Total announced that it has joined the Positive Energy Consortium. The company will be leading the working group on integrating photovoltaic in office buildings. Photovoltaics technology can be used with other solutions to create positive energy buildings, which produce more energy than they use.

Total has been in the solar energy industry since 1983 through its interests in two companies, Photovoltech and Tenesol. Photovoltech, in which Total holds a 50% interest alongside GDF SUEZ, produces photovoltaic cells based on a crystalline silicon technology and Tenesol, in which Total holds a 50% stake, specialises in manufacturing, designing and operating photovoltaic solar energy systems.

“In adherence to the Positive Energy Consortium, we would like to bring our know-how in the field of photovoltaics and share our expertise with the other

For more information, visit www.total.com, to which full acknowledgement and thanks are given.

biofu els

Waste

a better alternative

“Currently there are two dire problems under the spotlight in South Africa; the energy supply crisis and the proliferating creation of waste. Authorities are hard pressed to find effective and sustainable solutions to these quandaries.

However, there is a possible solution to satisfy both problems simultaneously,” says Quentin van Coller, Business Development manager at Nyamezela Group.

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yamezela Group, in conjunction with Matrix Strategic Solutions (a company based in Switzerland), is poised to promote a sustainable and proven “waste-to-energy” (W2E) technology solution in the South African market. Matrix Strategic Solutions specialises in potential development (as opposed to resource utilisation) of sustainability solutions in the fields of energy, environmental and biotech technologies. Matrix Strategic Solutions has a successful track record of international projects of profitable installations, successful sites and unique breakthroughs in their fields of expertise.

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Long term detrimental health effect of the landfill sites – toxic gases, odours and the contamination of ground water.

Environmental impact and pollution from the incineration by-products in landfills.

Litter on landscapes.

Increasing cost of waste disposal.

Local and global results of carbon emissions pollution.

Electricity supply not keeping pace with population and industry growth.

Attempted recycling initiatives not being successful due to budgets, awareness programs, infrastructure and the manpower to be able to fulfil the desired objectives not readily available.

“South Africa has waste, lots of it and the volumes are spiralling out of control,” says Van Coller before explaining that the W2E solution addresses and eliminates all of the above problems with a one-stop sustainable solution that turns garbage into a valuable resource for producing energy as well as a number of ‘clean’ by-products. “This solution fulfils the objectives and criteria publicised in numerous waste management policies and documents generated at local and national level.”

Dumping sites reaching saturation point

“The Consulting Engineers and Energy and Minerals Divisions at Nyamezela Group already have extensive experience in the management of solid waste as well as undertaking projects in the energy/electrical industries,” says Van Coller.

According to Van Coller, the following problems are increasing in magnitude with little or no resolution on the horizon: • Mounting volumes of waste generation from residential, commercial and industrial sectors.

• Increasing volumes of illegal dumping and the creation of toxic and medical waste.

• Decreasing availability of adequate landfill sites.

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“As a developing nation, the primary disposal of all solid waste in South Africa is to dump the waste into designated landfills or onto dump sites. But we are reaching a saturation point in landfills, so where to next?” asks Van Coller.

“In developed countries, due to legislation as well as a shortage of ‘waste’ or spare land for landfills, most waste treatment processes are based on incineration where the matter is destroyed with numerous by-products.”

Incineration of waste materials converts the waste into incinerator bottom ash, flue gases, particulates or fly ash and heat, which can in turn be used to generate electric power. The flue gases are cleaned of pollutants before they are dispersed in the atmosphere.

“Fundamentally, the energy of the waste is converted to thermal energy, while the flue gas only carries a small amount of reusable energy. However, the popularity of this technology is waning as the detriments are now far outweighing the benefits,” says Van Coller.

How the W2E solution works The W2E solution is deployed in a modular fashion by using an optimised module (thermal units) size handling up to 40 000 tons of waste per annum (tpa). For higher quantities of waste processing, an additional 40 000 t.p.a. modules are added in parallel and feeding into a bank of electricity generating units, thus establishing a high degree of redundancy.

“This approach has proven to be more economical than building large thermal blocks, which are difficult to control. Although these modules are all contained in one building, the modularisation allows for a decentralisation strategy, thereby optimising waste removal logistics, urban structure, investment cost and electricity usage in the grid.”

any ashes or residual particles in the syngas due to the lack of forced incineration. But since certain volatile molecules in their combination form a combustible gas, the syngas is ideal for electricity generation,” says Van Coller.

The W2E process is designed around the gasification process (pyrolysis), whereby it is accepted that the process gas or syngas will contain certain molecular chains which are based on hydrocarbon chains (petroleum products and plastics), which will form dioxins and furans upon cooling and condensation.

The W2E process is designed similarly to a naturally occurring gasification system – the volcano. The self-sustaining combustion system (lava) allows the solids to convert to gases on the surface and the surface determines the volume of the process gas. This is time independent.

“It is for this reason that the process gas will undergo high energy and high temperature cracking by means of a plasma stream, where the remaining molecular chains are cracked into isolated and inactive molecules. This again is a physical process – high kinetic energy is used to crack certain ‘ionic’ molecular links and ‘ionises’ these molecules to become inactive. There is no chemical reaction – it’s physics. This cracking process must be controlled in such a way, that the combustible elements of the gas are not combusted, i.e. the gas is not burnt up. This is only possible when the chemical composition of the gas is known,” says Van Coller.

“As long as organic matter is present, a process gas will be generated.

The temperature of this system is high – around 1 500°C, so even steels will melt. Certain rocks will also melt and the enclosed carbon will be released, leaving behind a slag. Generally the gasification process does not generate

After the cracking process, the unwanted elements can be simply filtered out on a chemical basis. According to Van Coller, these filtering processes are standard technology and easily controlled. “An example would be how chloride is filtered out by means of calcium carbonate resulting in calcium chloride.

“The W2E process is a pyrolysis process also termed gasification,” says Van Coller.

Differences between incineration and W2E gasification:

Incineration • Incineration produces toxic bottom ash, fly ash and slag, which needs to be landfilled.

• Incineration loses significant amounts of thermal energy.

• A minimum of 60% of the system investment is for filtering, denox etc.

• Incineration is an old and obsolete technology.

W2E • W2E produces no toxic by-products.

• No ash residue.

• All slag is vitrified due to the high temperature and this end product (tiny vitreous pebbles) can be used in road construction.

• No reactive or residual toxins for landfilling.

• The process is designed with an energy transformation focus.

• A W2E plant is a modular system of individual process sections supplied by established companies.

• The W2E process is a conservational and green approach to the waste and mess generated by civilisation.

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biofu els

About the W2E system Pyrolysis is the physical decomposition/transition process of condensed organic substances by heating. Decomposition implies the breaking down of present forms of matter, changing the form (from a solid to liquid or from a solid to a gaseous form). Gasification is the transition from a solid to a gaseous form, without the fundamental destruction of matter, which is the case during the incineration process.

Gasification is a process that converts carbonaceous materials, such as coal, petroleum, biofuel, or biomass, into carbon monoxide and hydrogen by reacting with the raw material, such as house waste, or compost at high temperatures with a controlled amount of oxygen and/or steam. The resulting gas mixture is called synthesis gas or syngas and is itself a fuel. Syngas and flue gas are generally of different composition. Gasification is a method for extracting energy from many different types of organic materials.

It should be noted, that Linde has a process, by which plastics can be gasified on the basis of steam.

“The costs of electrification are set to treble in the next two years and waste is escalating out of control. We can make a difference and I believe this is an exciting time to introduce this type of solution to South Africa,” concludes Van Coller.

Key performance indicators of the W2E system There are many companies making use of the gasification process in order to generate electricity and the list of companies installing and those operating plants on the basis of biomass or wood chips, is long. There is nothing unproven in this process. The only drawback is, when using contaminated woods, the filtering system will have to be designed to be able to cope with the toxins,” says van Coller.

Plant capacity:

120 000 t.p.a.

Process capacity:

13.7 t/hr (329 t/day)

Electricity generation:

270 GWh p.a.

Generator capacity nominal:

33 750 kVA

CO2 savings:

338 000 t.p.a.

Matrix Strategic Solutions and Nyamezela Group offer a number of additional add-ons which make the system more efficient (full documentation of the processes can be obtained from Nyamezela Group). “The costs of electrification are set to treble in the next two years and waste is escalating out of control. We can make a difference and I believe this is an exciting time to introduce this type of solution to South Africa,” concludes Van Coller.

CO2 certificate value:

Approximately ZAR 57 500 000 p.a

Plant capacity:

200 000 t p.a.

Process capacity:

22.8 t/hr (548 t / day)

Electricity generation:

747 GWh p.a.

Generator capacity nominal:

104 460 kVA

CO2 savings:

980 000 t.p.a.

CO2 certificate value:

Approximately ZAR 160 660 000 p.a.

For more information, contact Quentin van Coller on +27 21 5510626 or Quentin.coller@eniginpartner.com.

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biof ue l s

Combining engineering and technology for RE solutions

B

osch Projects, leaders in the field of developing and implementing renewable energy solutions in Africa, is a specialist energy business unit that has been making a significant contribution towards reducing CO2 emissions. The company integrates engineering and technology to provide multi-disciplinary solutions, from concept to conclusion, in diverse sectors that include the sugar industry, power utilities and materials handling, as well as commercial and industrial operations.

Some of the solutions Bosch Projects provides include biofuels projects, ethanol distilleries, power generation and reticulation, cogeneration as well as energy from waste. The company also focuses on energy optimisation, feasibility studies, consulting services, process engineering and plant performance assessments. Their team of energy professionals consists of specialists in the fields of consulting, equipment design, project management and engineering.

Optimising production with innovative software

Processes by Bosch Projects are designed to be cost effective, through versatile Energy and Mass Balance software which optimises the following: • Plant efficiencies • R.FH11 Equipment selection Degrees Ad 6.4 4/6/10 3:22and PMconfiguration Page 1 • Co-generation of renewable electricity into the national power grid • Cleaner air emissions using advanced scrubber technology

• Reduced carbon footprint • Sustainable energy production and job creation One-stop umbrella services Bosch Projects has been involved in many renewable energy projects that extend from feasibility and consulting studies to large construction and plant upgrade projects. These services also include equipment supply, commissioning, operator training and operations management.

Quality controls in engineering Internationally established quality controls are of paramount importance in the local engineering sector. Bosch Projects is compliant with the ISO 9001: 2000 International Standard for Quality Management Systems, which confirms the company’s commitment to providing clients with a world class consulting, project engineering and operational management service.

Bosch Projects (Pty) Ltd Tel: +27 31 250 0576 Fax: +27 31 250 0503 C M Y CM MY CY CMY K E-mail: carrb@bproj.co.za Website: www.boschprojects.co.za

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biofu els

This article will form part of a series on biofuels and biogas. The next article in this series will focus on the different uses and applications of waste water treatment projects.

“W

The Hessequa project

“Waste has economic value because it has negative or zero input cost and costs are not linked to commodity prices,” says Rosslee.

The Hessequa High Temperature Conversion of Waste (HTCW) is the first of its kind in the Southern Hemisphere. Located in the Municipality of Hessequa on the Garden Route of the Western Cape Province of South Africa, the non-incineration plant is planned to be operational in 2012, where all Hessequa’s waste will be recycled into usable products “virtually emission free and without the production of dioxins and furans, which all landfills and incinerators produce”. (www.hessequa-htcw.co.za).

aste is a resource. It should not be considered as scrap to be disposed of, rather as a resource to be reintegrated in production cycles after its recovery,” said Dwight Rosslee at the Institute for International Research’s Alternative & Bio-Energy Forum. His presentation, entitled Municipalities: valorising currently wasted resources focused on current practices and viable alternatives to finding, developing and implementing sustainable waste solutions.

The waste spiral Rosslee explained what he calls a ‘waste spiral’. “The population increases and rapid urbanisation occurs. When people want to improve their living standards, there is an increased demand on our natural resources and materials. Domestic waste increases between 2% – 4% per year above population growth and our fixed facilities and infrastructure can’t handle the increasing amount of waste, leading to environmental pollution,” says Rosslee.

“But waste as a raw material can be used to reduce the depletion of natural resources.”

According to the project website, the plant will have a useful lifespan of 40 years and all kinds of waste, including municipal solid waste, hazardous, medical, (dried) sewage sludge, tyres and even builder’s rubble can be processed with the industrial gasification technology that is used.

The HTCW was born after more than ten years of research and development under strict emissions and environmental laws in the European Union.

Pyrolysis, which is the chemical decomposition of condensed substances by heating, which occurs spontaneously at high enough temperatures, turns organic materials to gas and effectively reduces the waste materials back to their molecular origins.

Local issues Municipal waste is a local environmental issue because it’s generated locally, disposed of locally and it’s a local expense on municipalities. “But waste is just as much a national, regional and global issue as well. Community waste contributes to environmental problems such as habitat destruction, surface and groundwater pollution and other forms of air, soil and water contamination. Incorrect disposal of waste can also create toxic substances and greenhouse gasses,” says Rosslee.

The landfill time bomb According to Rosslee, burying waste in landfills is the most affordable and convenient method of waste disposal in South Africa, but in five years the waste generated will exceed landfill capacity in five of the nine provinces, by up to 67%.

In South Africa, we have landfill sites meeting international standards, of which we can be proud. However, waste disposal in landfill sites is not sustainable – we are destroying valuable resources and creating long-term financial and environmental liabilities for future generations.

Rosslee, who is a Director at Biogas Power, believes that the primary goal of valorising municipal solid waste is to reduce the rate at which landfill airspace is used and that energy is a welcome by-product of this programme.

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This gas combines with other components to produce a synthesis gas with good energy value. Uses for synthesis gas (syngas) include being, an environmentally friendly replacement for liquefied natural gas (LNG), a fuel to generate electricity and converted through a secondary process to produce methanol and bio-diesel. The heat generated from the HTCW plant is for purification/desalination of water, district heating or conversion to electricity for the community.

“From each ton of mixed municipal waste, the HTCW plant will recycle the material to produce; 1.6 MWh of electricity or 380 litres of diesel or 4.65 MWh of syngas or 33,500 litres of drinking water. Exact production figures will depend on the energy value of the incoming, presently wasted resource,” Rosslee continues.

“Besides the energy benefits, there will also be odour control, vermin reduction, pollution control and employment opportunities for the community.

The environmental benefits are huge and municipal waste is a growing problem that needs to be addressed. Some municipalities are already taking action. There are sustainable results-driven solutions that should be implemented,” concludes Rosslee.

For more information, visit www.hesseque-htcw.co.za or www.biogaspower.co.za, to which full acknowledgement and thanks are given.

biof ue l s

Unravelling the misconceptions of biofuels and sustainability

in Africa

A

ccording to a report entitled Analysis of opportunities for biofuel production in sub-Saharan Africa by the Council for Scientific and Industrial Research (CSIR) in Pretoria, South Africa, biofuels are regarded as a potential mechanism to stimulate agricultural development, create jobs and save foreign exchange within the developing world and especially Africa.

Although biofuels as an environmentally friendly alternative to fossil-fuels, initially generated a euphoric reaction, many studies and reports have highlighted the potential impacts of food security, poor energy efficiencies and the potential harm that biofuels can have. Biofuels are a relatively new concept and, although bioethanol was used as a petroleum supplement in the past in countries including Malawi, South Africa and Zimbabwe, it’s only in the last few years that large-scale biofuel production has been seriously considered, reads the report.

“Everyone knows there is no simple answer to the food versus fuel debate, but I think that a lot of people use the problems related to biofuels in order to deflect from the real sustainability issues,” says Graham von Maltitz, Senior Researcher at the department of Natural Resources and the Environment at the CSIR. The report states that Africa has the lowest per capita energy consumption and biomass in the form of charcoal, and fuelwood continues to be the main fuel source for most sub-Saharan countries. Low consumption levels reflect low economic development, and also hinder economic development.

“Food insecurity did not originate from biofuels, it is a global problem that has been around for years,” explains von Maltitz.

Media attention that doesn’t apply to Africa “When America started using maize for biofuels, the food security issue of maize and biofuels received widespread media attention that seemed to seep into our local media,” says von Maltitz.

“But Africa’s maize and biofuels issues are very different from America’s food security issues. We do not use any maize for biofuels and the only large South Africa maize to biofuel project was killed a few years ago,” says von Maltitz while referring to a large scale biofuel project that was put to a halt in Bothaville, in the Free State province.

“We see this type of debate in the South African media, but it is not a South African argument. America can produce a lot of maize and they give their farmers huge subsidies, making their maize cheaper. By subsidizing maize, they are able to produce cheap food that they push into the third world.

In essence, they are undercutting our maize production through uncompetitive practices,” says von Maltitz.

Lorren Haywood, another Senior Researcher at the department of Natural Resources and the Environment at the CSIR, says the potential sustainability problems of the availability of cheap maize are often underestimated.

“It is cheaper to get maize from the US to South Africa than it is to in some instances to transport maize internally in our own country. Most African countries have agricultural economies that get taxed, so our farmers operate in real world prices without subsidies and all the incentives that overseas producers enjoy, making the issues hugely complicated and not just a simple food versus fuel debate,” says Haywood.

National impact According to von Maltitz, using foreign models to draw conclusions about food security and biofuels without further investigation have also created many misconceptions about the food versus fuel debate in Africa.

“Almost every existing large biofuel producing country is food secure, but would Tanzania be food secure if it invests extensively in biofuels? We can’t be entirely sure. Research has suggested that South African maize farmers would be totally bankrupted if they produced as much maize as they could due to a lack of a market for surplus maize, which would result in prices dropping below production costs. It has been estimated that we have over 3-million hectares of additional land that could potentially be use for maize or other biofuel crops , so we have the potential to be food secure as well as producing some fuel,” says von Maltitz.

Small scale farmers in Africa “There are so many sides to this aspect of biofuel production because there is a need for both development and for environmental sustainability. It’s not clear whether biofuel production is a good land use option for Africa especially when undertaken as large scale corporate farming options (which will give investors more control over production, but have limited benefit sharing).

Small scale private farming options could lead to greater equity, with biofuels becoming a cash crop. However profits would have to be sufficiently high to compensate for reduced food crop production,” says von Maltitz.

Haywood says that 2008 shook the biofuels industry in Africa. “There was such a huge investment in Africa and now it is less clear as to where things are going. There have also been a lot of de-investments from companies that were planning huge biofuels projects in many African countries because they were not making money. Some of these companies are listed and trading on the London stock exchange, but they have yet to produce 1l of fuel,” says Haywood.

Protecting our own people According to Haywood, South Africa is one of the very few African country with a biofuels strategy and investment opportunities from overseas firms can often seem too good to be true. “Too many African countries do not have the legislation in place to protect their own people. To the world, Africa looks like a large supply of cheap land and labour. We need to get the legislation in place to not only protect our environment, but also the people who will be impacted by the biofuels industry,” concludes Haywood.

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SOLAR WATE R HEAT IN G

Premium solar products for sub-Saharan Africa

NASTEP Solar is a renewable energy organization pursuing sustainability in the Sub-Saharan Africa market through the marketing and distribution of premium solar products suitable for both domestic as well as commercial applications.

N

AST Environmental Projects (Pty) Ltd (NASTEP Solar) was established during 2007 and subsequently secured the sole distribution rights of Himin Solar Energy Co. Ltd. Nastep Solar focuses on the supply of Solar Water Heaters (SWH’s) but distributes the full range of Himin solar products, comprising Solar Water Heaters, Solar Water Heater collectors, Photovoltaic panels, energy saving glass, and a range of solar lights which include traffic, garden and streetlights.

Himin one of the largest producers of solar water heaters and vacuum tubes in the world. They produce in excess of one million SWH’s annually. Their annual production capacity equals 50% of the world’s annual solar production.

The company produces more than two million square metres of solar energy every year. The energy generated is equivalent to that of 20-million tons of coal per year, without the associated environmental pollution.

Locally, NASTEP Solar created regional franchises in order to ensure national access and support of their products. As far as Sub-Sahara Africa is concerned, Nastep currently has representation in Nigeria, Namibia, and Malawi, and plan to ensure representation in all Sub-Saharan African countries.

The advantages of dealing with Nastep are; • • • • • • • • •

•

• •

Access to their premium Himin brand of products; Wide range of solar water heaters, comprising of: High and low pressure integrated SWH’s, Pumped split system SWH’s, Thermo siphon split system SWH’s Unlimited supply availability from Himin; Five Year guarantee on all Himin products; National coverage of franchises with regards to sales and support; International accreditations of the Himin brand include ISO 9000:2001, DIN, TUV, as well as the sought after European CE Mark; Local accreditations include the relevant SABS‘s SWH Conformity Report and Eskom accredited supplier status; Member of Sustainable Energy Society Southern Africa (SESSA); A tailor-made in-house financial plan is available to finance the purchase of any Nastep SWH within 24 hours.

Nastep’s short term vision includes; •

• •

Establishing of a local manufacturing facility which Himin has already committed to; In-house training and accreditation in respect of Nastep installers; Expand the franchise network to other Sub-Saharan Africa countries.

NASTEP Solar Tel: +27 8600 HIMIN E-mail: info@nastep.co.za Website: www.nastep.co.za

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S O L A R WAT ER H EAT I N G

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SOLAR WATE R HEAT IN G

Solar distributing network makes SWH accessible for all

Solar Distributors Africa (SDA) has built a large national network that provides state of the art solar technology to the industry. The company’s focused approach to supplying a comprehensive range of top quality solar water heating products to the supply chain is creating a number of opportunities for people interested in entering the solar industry.

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S O L A R WAT ER H EAT I N G

T

he products that SDA supplies conform to the applicable manufacturing quality standards and the company urges all their dealers to set high installation standards.

• Access to accredited training courses supported by our suppliers.

• Technical back up available.

How to get quality SWH at competitive prices

“There are a number of benefits of being part of our distribution network.

It allows each of the parties involved to focus on their area of expertise. In doing so, we can all be the best at what we do. It eliminates the need to duplicate; we streamline the entire sales and distribution network, which saves money,” says Pretorius. “This network will improve the general awareness regarding solar water heater products, cost and installations. By increasing the efficiency in the supply chain the overall cost is driven down, making SWH’s affordable for the man on the street. Our vision is that every household in South Africa should benefit from the abundance of sun energy by having access to a suitable solar water heater.”

Pretorius explains that SDA is able to supply quality solar water heating products at lower costs due to their volume of purchases and relationships in the industry. “SDA has been in the industry for a number of years. We have identified the key players and know who and what to look out for. We enable our suppliers to stay on the cutting edge of technological developments in solar water heating. Quality product is not negotiable. Local manufacture is preferred.

Theuns van Aardt, a director at SDA, agrees that there is great value in a local supply chain. “A high-quality supply chain for the SWH industry can change the way people in the industry do business. We want to enable SWH business across South Africa to be able to get the stock, be it panels, geysers or entire systems, in their respective areas. This is a local initiative, driven by local companies to address the need for solar water heating in South Africa,” says van Aardt.

By purchasing our products in bulk we in turn supply our dealers at lower prices, a saving which should find its way down to the consumer,” says Pretorius.

For more information about SDA, e-mail anton@sdafrica.co.za or theuns@sdafrica.co.za.

“Dealers wanting to sell certified solar water heaters now have access to a national distribution network with a comprehensive product range,” says Anton Pretorius, a director at SDA. “We have at least 15 solar systems that have been approved by Eskom’s Demand Side Management program, with more currently being tested. Our straightforward solar distribution network makes quality products available at affordable prices; dealers no longer need to spend time or money on sourcing, warehousing or transport.”

Benefits of using this solar distribution network •

• • •

•

A comprehensive range of Eskom accredited solar water heating products available on you doorstep.

Top quality products supplied at discounted prices.

No franchise fees required whilst joining a national supply chain.

None of the problems associated with importing from suppliers 10 000 miles away.

Immediate benefits of national branding and marketing.

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Solar water heating

French helps South Africa

with SWH program

T

he French Development Agency (AFD) is appraising large scale solar water heater (SWH) rollout projects in South Africa that AFD could finance. In order to share experience on such projects and draw lessons that may be used in the context of South Africa, AFD invited key stakeholders to a workshop focused on the successful Tunisian experience (the PROSOL program).

“We are trying to share our experience in Tunisia to help determine the best way to implement the South African program,” says Rafik Missaoui, who designed the programme in Tunisia and gave a presentation of the PROSOL program including a description of the institutional structure, sharing of risks and level of responsibility of the various stakeholders involved.

The PROSOL Project in Tunisia Currently AFD is advising South African stakeholders on how the Tunisian PROSOL program can be replicated locally. Tunisia is the northernmost country in Africa bordered by Algeria, Libya and the Mediterranean Sea. Tunisia enjoys an important level of solar radiation with over 300 sunshine days per year. According to the AFD, the PROSOL program in Tunisia allowed them to save between 70-80% due to energy dedicated to water heating. Based on the energy mix used for water heating in Tunisia (mainly LPG and natural gas), this represents an annual reduction of ca. 0.11 ton of CO2 per installed m² (1 SWH unit = 2.5 m² on average).

The first solar water heating rollout program was launched in 1985, through a local State owned manufactory. The rollout implementation started slowing down after a few years due to insufficient reliability of the equipment and the whole industry progressively lost credibility.

After drawing lessons from the first program, a second program was launched in 1995. The program encompassed several (private) suppliers as well as equipment quality controls. In addition to tax incentives, the success of this program was economically relying, on significant investment subsidies granted by GEF (Global Environment Facility) which equaled 35% of the investment amount. Therefore, the end of the GEF subsidies in 2001 immediately led to a drop in new solar water heating installations.

Declining market led to program launch It was in a declining solar water heating market that the PROSOL program

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was launched in 2004. Compared to the previous GEF program, the PROSOL one includes a new important feature namely a credit system, initially in the form of a vendor program and subsequently bank loans. As a result, the residual upfront cost of the solar water heating (after subsidy) is spread over a five year period and paid by the household through its electricity bill, which remains, in most cases, roughly unchanged thanks to the energy savings generated by the equipment. Therefore, from the consumer point of view, the installation of the solar water heating is attractive, being almost free of charge and generating savings over the long run (once the equipment is repaid).

Solar technology used for the program The SWH systems installed in Tunisia are almost solely comprised of flat plate collectors. Solar heat pipe technology was briefly introduced as 3 000 units imported from China were installed during the programme.

According to Missaoui, the heat pipe technology installations were inadequate for the residential installations due to the rather bad water quality in some areas, the high temperature reached by the collectors particularly in the summer and the frequently required maintenance.

What the program has achieved Since the PROSOL program’s inception, the rollout pace has sharply increased (from 7 500m² in 2004 to 90 000m² in 2009, resulting in a currently installed base of 160 000 solar water heating units). These figures represent a penetration rate of only 6.5%, thus leaving room for further growth.

sol ar water h eatin g

A solar water heating program in Tunisia allowed the end user to save between 70-80% on energy costs for water heating. Tunisia is the northernmost country in Africa.

“The AFD is very active in Tunisia. It knows a lot about these types of energy efficiency and renewable energy programs and it is trying to apply the best practice in other countries,” concludes Missaoui.

“The idea is to establish a sustainable new sector for SWH in South Africa. In order to meet the demand for renewable energy, we need an innovative financial and institutional mechanism,” says Missaoui.

“The financial mechanism is based on two components. The first part is a small subsidy which will come from the Demand Side Management (DSM) subsidy in order to make solar water heaters profitable for the end-user.

The second component of the financial mechanism consists of a loan,” said Missaoui, explaining that the loan is intended to be issued over a period of six to seven years in order to make the reimbursement equal to the energy saved by the household, ensuring no additional pressure on the consumer’s expenses.

According to Missaoui, in South Africa, the program could be designed so that the loan is reimbursed through municipalities in order to ensure that loan repayment is easy and cost effective. “The Department of Energy plans to implement SWH programmes and I have been invited by the AFD to share our experience with such programs. We can help South Africa optimise the process, avoid wasting time and advise them on where the pitfalls are in such a program’s implementation,” says Missaoui.

“The AFD is very active in Tunisia. It knows a lot about these types of energy efficiency and renewable energy programs and it is trying to apply the best practice in other countries,” concludes Missaoui.

For more information, visit www.afd.fr, to which full acknowledgement and thanks are given.

nu clear energy

South Africa bids

to become supplier of

nuclear product

to US

South African Company NTP Radioisotopes (Pty) Ltd, a subsidiary of Nuclear Energy Corporation of South Africa (Necsa), is currently bidding to become the sole supplier of Molybdenum-99 (Mo-99) to the United States market.

M

o-99 (commonly referred to as Moly) is a key nuclear product used in hospitals for critical radioisotopes and is also used in medical diagnostics, imaging applications and for treating tumours and cardiovascular diseases. According to www.necsa.co.za and www.ntp.co.za, the product is used in close to 50-million imaging procedures around the world each year, over 20-million of which are in the United States. www.world-nuclear-news.org recently reported that Canada’s MDS Nordion used to supply the US with Mo-99, but the extended shut down of the NRU reactor at Chalk River has led to a shortage of isotope. The US consequently called for proposals from LEU (low enriched uranium) – based supply of Mo-99 instead of high-enriched uranium (HEU) due to proliferation concerns.

SA is dominant global supplier “Canada’s MDS Nordion has been shut down due to a coolant leak. This has led to a catastrophic supply shortage across the world, given that MDS Nordion was the leading global supplier. South African company NTP Radioisotopes has now become the dominant supplier of Mo-99 to the US market,” said Necsa in a statement on 13 April.

NTP Radioisotopes produces the nuclear product in its Safari-1 research reactor at the Pelindaba facility outside Pretoria,

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South Africa. The reactor has been running on LEU fuel since June 2009 and a change over to LEU target plates, which is expected to be completed this year, will make NTP the world’s first commercial producer of Mo-99 using a fully converted LEU production process (www.word-nuclear-news.org).

According to Necsa, the production technology has been centre stage in discussions at the Next Generation Nuclear Security Summit held in Washington during April because weapons grade uranium is customarily used in this process. Due to the Obama administration driving to eliminate the use of weapons grade uranium around the world, NTP’s low enriched uranium (LEU) route to Mo-99 is receiving a great deal of attention in the US. At the summit, Harvard University nuclear expert professor Matthew Bunn said that South Africa’s competitors had been caught napping by these new developments and the world now had no excuse for the continued use of LEU in the production of medical radioisotopes, when ground breaking technologies utilising LEU fuel and target plates have been successfully applied by NTP on an industrial scale. “South Africa’s innovation has put the fear of God into the competitive isotope market. It has converted its production process to LEU and will rapidly ramp up its supply of LEU based radioisotopes to global markets,” said Bunn.

“Several years ago we realised LEU was the way to go. We have been gearing up for this opportunity and we are confident that our experience in industrialising nuclear technology over several decades will decide the procurement process in our favour,” said Rob Adam, Chair of the Board of NTP and CEO of Necsa.

Sources: www.world-nuclear-news.org, www.necsa.co.za and www.ntp.co.za.

e l e c tri c it y

lighting at South African

soccer stadiums Philips ArenaVision lighting in action.

S

pectators and TV viewers alike will have the best possible viewing experience at six of South Africa’s top sports stadiums after the installation of new state of the art Philips sports lighting.

As a global leading provider of sports lighting, Philips has installed its ArenaVision sports floodlighting system at the Soccer City, Ellis Park, Royal Bafokeng, Moses Madhiba, Peter Mokaba and Nelson Mandela stadiums, to ensure these stadiums now rank internationally with the most advanced and best-lit sporting stadiums.

ArenaVision’s sports floodlights is claimed to have already equipped more than half of the world’s major football stadiums, and the

technology has been further improved since the Germany World Cup. Philips has developed – exclusively for the new ArenaVision systems – a new powerful 2 000W single-ended metal-halide lamp. In combination with the new optics designed around this axial concept, it maximises optical efficiency and enables accurate light distribution with a minimum of spill light.

In addition the new ArenaVision, systems offer easy lamp fitting and replacement, full IP65 compliance, a new safety knife connector system and a breakthrough electronic hot-restrike solution – while continuing to offer all the benefits of its predecessor as well.

Energy Awards 2010 – Call for nominations Have you submitted your SANEA ENERGY AWARDS 2010 nominations yet?

If not, please do so without delay – the deadline is Friday, 28 May 2010!

SANEA wishes to recognise all individuals, companies and projects making noteworthy contributions in the Southern Africa Energy Sector and therefore welcomes nominations from anyone interested in energy.

Please enter now! Visit the SANEA website: www.sanea.org.za.

We look forward to receiving your nomination!

South African National Energy Association Energy People Working Together 25 o in A f rica

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electri cit y

World Bank loan for Eskom: local views T

lack of support from major shareholder countries such as Britain, the United States and the Netherlands, who abstained from voting.

The World Bank loan as three components:

According to a Dutch Foreign Ministry spokesman, the Netherlands does not think the loan is a good proposal because they believe Eskom is not doing enough to develop alternatives to coal (www.reuters.com). The U.S. Treasury said that it abstained because of “concerns about the climate impact of the project and its incompatibility with the World Bank’s commitment to be a leader in climate change mitigation and adaptation.”

he US$3,75-billion loan for Eskom to develop a new coal-fired power plant was approved by the World Bank on 8 April 2010. The loan forms part of Eskom’s long-term financing of a multi-year investment programme aimed at expanding power generation capacity by about 50% (from about 40 000MW, to 80 000MW) and, according to Eskom and the South African Embassy, it will ensure security of electricity supply required for economic growth and development.

• •

•

US$3.05-billion for the Medupi power station US$260-million for investments in renewable energy (1 000 MW wind and 100 MW concentrated solar power projects) US$-485-million for investment in low-carbon energy efficiency components comprising power plant efficiency improvements and road to rail coal transportation.

The controversial loan caused uproar from environmentalists, who are pointing fingers at the World Bank because of the bank’s policy to be a leader in climate change mitigation and adaption.

According to a statement by the World Wide Fund for Nature (WWF) South Africa, the NGO is less than enthusiastic about the approval of the loan because the decision “fails to adequately recognise the opportunities for renewable energy development in South Africa or to provide specifics of how the claimed public benefits, including contribution towards achieving universal access to energy services, will be achieved”.

“There must be a clear impetus and political will to move away from coal as the primary source of energy,” says WWF South Africa’s Living Planet Unit Head, Saliem Fakir.

Richard Worthington, Climate Change Programme Manager at WWFSA, says that other countries, such as the US, refrained from showing their support because of international as well as local pressures.

“America is internally under pressure to push the World Bank’s strengthened mandate to lessen poverty as well as move away from fossil fuel investments,” says Worthington. “America would not want to be a barrier to South Africa’s development aspirations so it can’t oppose the loan because the government has clearly asserted the position that South Africa need this money and the coal-fired power plant. At the same time, they also have to be responsive towards their own society groups who are fighting climate change,” said Worthington.

Economic development or environmental sustainability?

Government and Eskom insist that there is no alternative but to build Medupi in order to ensure energy security. In a statement by the World Bank, Obiageli Ezekwesili (World Bank Vice-President for Africa) said that the loan would help South Africa achieve reliable electricity supply.

“Without an increased energy supply, South Africans will face hardship for the poor and limited economic growth,” said Ezekwesili (www.reuters.com).

International controversy Board decisions by the World Bank are achieved through consensus from member countries (as opposed to voting). The loan was approved despite the

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South Africa’s Finance Minister, Pravin Gordhan, has been quoted as saying that NGO’s are more concerned about the environment than the country’s economy when it comes to opposition against the World Bank loan.

e l e c tri c it y

“This demonstrates a lack of understanding of South Africa’s international commitment to reduce its carbon emissions and to move to a low carbon economy. Furthermore the fact that the Minister so easily dismisses the concerns of key stakeholders does not bode well for a transparent consensusreaching approach to future energy planning in the country,” said Fakir.

“Both the tariff increase and the World Bank Loan have engendered heated discussion and debate about energy in our country. After all the heat and dust has settled, we as South Africans must reach an informed consensus about all matters relating to energy because it affects each one of us in our daily lives,” said Hogan.

Will the loan be enough?

Local politics and the loan

Even with the $3,75-billion World Bank loan and Nersa’s approved 25% tariff increase, Eskom will still be facing “serious funding gaps”, said Minister Barbara Hogan, Department of Public Enterprises in Parliament, on 15 April 2010.

“Not only does the tariff hike not cover the full operating and interest costs of Eskom in the initial years going forward, but it also means that the Kusile build will be delayed due to some serious funding gaps. This has the potential to endanger the security of supply of energy in the future if appropriate steps are not taken by government,” said Hogan.

Since the World Bank loan was approved, the conflict of interest following the proximity between the ANC, its investment company and the company supplying boilers to Medupi, Hitachi, has been debated. On 2 April, the Democratic Alliance (DA), which is the opposition party to South Africa’s governing African National Congress (ANC) party, sent out a newsletter, entitled An ignoble and corrupt parasite, stating that many people don’t realise that the World Bank loan has serious implications for the country’s democracy.

Medupi a temporary solution Fakir says that the fact that the majority of the loan will be used for a coalfired power plant is detrimental to the goals of initiating more renewable energy solutions in the country.

“The recent announcement that the loan includes a small quota to be used for renewable energy development entrenches the myth that renewable energy cannot contribute to base-load supply, or is best suited to ‘niche applications’.”

Hogan says that those who do not believe that government is not concerned with renewable energy must be assured that government is serious about their climate change commitments.

“For those concerned that government is not committed sufficiently to renewable energy, let me assure you that this is not the case. In fact, I am very excited that Eskomthrough the World Bank loan will lead the largest pilot project on CSP and wind in Africa. So as a government, we are serious about our long term low carbon trajectory as well as the commitments we have made on climate change internationally,” said Hogan.

Joanne Yawitch, Change Programme Manager at the Department of Environmental Affairs and Tourism (DEAT), told delegates at a WWF roundtable meeting in March that she supported the South African government’s application for the loan. “Although we need to find alternatives to coal-fired power plants, South Africa needs the loan to build Medupi. South Africa needs to make clear commitments in order to address climate change and reduce our greenhouse gas emissions over time. Given the energy supply challenges we face, Medupi remains an important development to go ahead,” said Yawitch.

“Building Medupi will ensure our country’s sustainability. Eskom’s current coal-fired power plants are not sufficient to provide electricity for the country’s demand and we will have to build a new power plant to ensure energy security. But the new coal-fired power plant should only be seen as a temporary solution, we have to start acting now if we want to have renewable and cleaner energy sources in the future,” said Yawitch.

“Remember that Eskom’s coal-fired power plants not only supply electricity for South Africans, it is also exported to our neighbouring countries. The World Bank loan is needed to ensure the sustainability of our economy as well as the development of other African countries,” explained Yawitch.

The Medupi power station will be built by Hitachi Africa, which is 25% owned by the ANC’s investment arm, Chancellor House, which will give the ANC a ZAR5.8-billion stake in the deal and make an estimated ZAR1-billion profit (www.da.org.za).

“It is no exaggeration to say that, if the loan is granted and the deal goes through, no opposition party may ever be in a position to compete fairly with the ANC again. The ANC will entrench its single party dominance and, in doing so, gravely weaken our democracy,” wrote Helen Zille, Leader of the DA. Dr Mario Oriani-Ambrosini, MP from the Inkatha Freedom Party (IFP), challenged the ANC to do the right thing and subject the World Bank loan to the review and approval of the parliamentary Portfolio Committee on Public Enterprises. “At least if so approved, someone will bear the political responsibility for this outrageous corruption,” wrote Oriani-Ambrosini.

According to www.mzansipolitics.com, Hogan told journalists ahead of her budget speech in Parliament that the ANC would not benefit from the loan.

“I don’t understand what the conflict of interest is, when there is no political party involvement, where there is no beneficiary,” Hogan said.

“One of the issues that come up continually is that the World Bank loan covers the boiler contract, which is what the Hitachi contract is for. The World Bank loan does not cover the Hitachi contract. It is completely separate from the boiler. So the World Bank is not involved in funding the boiler programme that Hitachi has contracted for.” (www.mzansipolitics.com).

Gary Pienaar, senior researcher at Idasa, an independent public interest organisation that promotes sustainable democracy based on active citizenship, says that transparency and inclusiveness is needed with regards to not only the World Bank loan, but also a variety of energy-related processes.

“South Africans need to know what the World Bank conditions are for the loan – and if there are any that may be of particular concern. The South African government has responded to public concerns about the loan with several recent reassurances. Nevertheless, the loan comes at a moment when important decisions are being taken about South Africa’s energy choices and its long-term energy future. Associated decision-making processes, such as the revised Renewable Energy White Paper and the upcoming IRP2 process, should be handled with the necessary transparency, consistent with government’s assurances to this effect” said Pienaar.

Sources: www.saembassy.com, www.eskom.co.za, www.wwf.org.za, www.reuters.com, mzansipolitics.com 25 o in A f rica

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electri cit y

The projected cost of

generating power

in 2010 and beyond

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joint study by the International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA), entitled the Projected Costs of Generating Electricity: 2010 Edition was released in March. Amongst other key conclusions, the report determined that the cost of electricity in the coming years will depend on a number of key parameters, mainly the costs of raising financial capital and the price of carbon.

The report comprises the latest data on the costs of electricity generation for a wide variety of fuels and technologies and it is set to establish a |global benchmark for the costs of power supply. Projected Costs of Generating Electricity: 2010 Edition is the seventh in a series of studies on the costs of power generation and the analysis was closely overseen by an international Expert Group on Electricity Generating Costs with more than 50 representatives from 19 OECD member countries, the European Commission and the International Atomic Energy Agency (IAEA). Experts from Brazil, India and Russia also participated.

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“In a period when many countries are looking to invest in electricity capacity while working to reduce carbon emissions, it provides an indispensable basis for any discussion about electricity generation choices,” said IEA Executive Director Nobuo Tanaka and NEA Director-General Luis Echávarri.

“To bolster competitiveness of low-carbon technologies such as nuclear, renewables and CCS, we need strong government action to lower the cost of financing and a significant CO2 price signal to be internalised in power markets,” stressed Echávarri.

No technology has consistent advantage for baseload generation The study shows that no technology triumphs overall for baseload generation at a global level consistently – it all depends on the specific circumstances.

Domestic conditions and the competitiveness of a generating technology will depend on a number of factors, especially the cost of capital and the price of carbon.

A common standardised measure of cost (the levelised cost of electricity (LCOE) per MWh over the lifetime of a plant) was used and a carbon price of USD 30 per tonne of CO2 was assumed during the study. Results for two real

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interest rates, namely low financing costs (5%) and higher financing costs (10%) were used to demonstrate different solutions.

When financing costs are low (5%), nuclear energy followed by coal with carbon capture are the most competitive solutions. With higher financing costs (10%), coal-fired generation followed by coal with carbon capture and gas-fired combined cycle turbines (CCGTs) are the cheapest sources of electricity. Besides interest rates, generation costs of renewables are heavily dependent on local resources and fast technological improvement. Where local conditions are favourable, hydro and wind are competitive generation technologies in 2010.

Strengths and weaknesses of each technology According to the report, each technology has strengths and weaknesses, which are not always captured by the study methodology and depending on the particular circumstances: • Nuclear – Although nuclear power has the ability to deliver significant amounts of very low-carbon baseload electricity at stable costs over

•

•

•

•

time, it has to manage high amounts of capital at risk as well as the cost of decommissioning and waste disposal together with social concerns about safety and proliferation.

Coal – Coal fired power plants are economically competitive in the absence of a sufficiently high carbon price, especially where coal is cheap. This advantage, however, is quickly reduced as carbon costs rise.

Coal with carbon capture – The study found that when coal with carbon capture is based on low coal prices and estimates of carbon capture costs (but not storage), can be competitive when a CO2 price is applied. The disadvantage is that carbon capture has not yet been demonstrated at commercial scale for power plants.

Gas – The three advantages that gas presents include: low capital costs, a lower CO2 profile in comparison with other fossil fuel technologies and a high operational flexibility. The disadvantage is that gas-fired plants depend highly on gas price levels and depending on its price relative to other fuels, notably coal, gas may not be competitive for continuous use in base-load power production.

On-shore wind – Wind is non-dispatchable, so it cannot be strictly considered as a baseload technology. On-shore wind depends highly on favourable local conditions but is competitive in individual cases in the absence of system costs.

Government choices matter The cost of capital is essentially a function of the risk faced by each option for generating electricity – market risk, technology risk, construction and regulatory risk. Governments play a key role when it comes to the costs of raising financial capital and smart government action can do a lot to reduce the risks of low-carbon technologies that have high capital costs.

For more information, visit www.nea.fr, to which full acknowledgement and thanks are given.

2 5 o in A f rica

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electri cit y

Nersa’s

tariff increase –

what now?

Eskom’s power tariff increased by 24,8% on 1 April 2010 and subsequent increases of 25,8% for 2011/2013 and 25,9% for 2012/2013 will follow. The National Energy Regulator of South Africa (Nersa) approved these increases in February which were less than the 35% increase that Eskom applied for.

Over ZAR400-billion of projects

Industries which will be hit the hardest

Cornelis van der Waal, Frost & Sullivan Energy Programme Manager, wrote in an article that “Eskom is between a rock and a hard place. For many years government prevented the utility from constructing new capacity, but now that the build programme is well under way, the decision makers cannot afford to provide the state-owned utility with what it needs to fund its ZAR400-billion + programme”.

In the past, South Africa has been seen as a country that provides relatively cheap electricity and Van der Waal believes that the tariff increase will have a massive impact on many companies’ ability to compete on the international market.

Funding for these programs, particularly the Medupi power station, needs significant capital that Eskom and the South African government will have to raise. Although a US$3,75-billion loan from the World Bank was approved in April 2010, government ministers have acknowledged that Eskom will still need financing for their multi-year investment program, even with the tariff increase.

According to Van der Waal the most practical scenario would be for Eskom to sell an equity stake in Kusile. With the World Bank funding – and potential further loans – it is very likely that Medupi will be completed without external equity. The certainty around Kusile is much lower specifically after the pressure from the US, UK and the Netherlands not to invest further in large coal projects. The DOE will urgently have to look at nuclear as a potential alternative. Renewable energy also holds potential, but the immediate need is for base load power and hence most likely nuclear.

“This will result in further insecurity of supply in an already fragile system.

Eskom will in any case have to commit to using its open cycle gas turbine plants (which run on diesel) until at least 2013. This will obviously increase its operational costs significantly and hence leave less money for the actual build program,” says Van der Waal.

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“South Africa already struggles with a negative balance of payments and if our manufacturing and industrial suppliers become even less competitive based on input costs, it could mean an even higher deficit. This is something that has to be looked at urgently by government and its broader stakeholders,” says Van der Waal.

Industries expected to be hit the hardest include sectors where electricity amounts to a significant part of operational expenditure such as petrochemicals, gold and platinum mining and metal smelters.

Renewables more attractive Frost & Sullivan believes that renewable energy projects, particularly wind, will be able to compete with traditional base load power in the not too distant future without being dependent on special tariffs.

“For such projects to materialise though, the single buyer office (SBO) needs to be established as a matter of urgency. Best indications are that it will be established early in 2011 – but the question remains how it will be skilled and who will take responsibility for it,” explains Van der Waal.

In a statement by Earthlife, the non-profit organisation stated said that NERSA ignored its own costing which showed that wind and solar would be cheaper in the long run. “The approved tariff increase can be viewed as a

e l e c tri c it y

missed opportunity for South Africa to include renewable energy in its energy mix,” said Earthlife. Frost & Sullivan, however, is more optimistic on the opportunities for renewable energy.

“The renewable energy space is certainly an exciting market in which to be involved in at the moment and early movers will enjoy the benefits of market access and preferential tariffs,” said Van der Waal.

WWF has advocated that at least 15% of South Africa’s electricity supply should be generated from renewable resources by 2020. “Independent research and mainstream institutions have established that the best way to manage potential cost escalation and portfolio risk in electricity supply is to move from carbon intensive sources to free and effectively infinite renewable resources,” Saliem Fakir, WWF South Africa’s Living Planet Unit Head.

The IRP2

opportunity to comment on the integrated energy plan.

“The department respects and acknowledges the disparate and sometimes conflicting interests of various stakeholders. It is therefore our intention to balance these varying interests and eventually emerge with a credible country plan,” said Peters.

Peters explained that the consultation will include the role and the scope of the IRP2, the need to balance the security of supply, the country’s growth priorities, and affordability of various technologies as well as carbon emissions.

Brian Statham, Chairman of the South African National Energy Association, says that he hopes the IRP2 will show more long term goals than the IRP1.

“The Minister of Energy has asked people to comment on the draft and the final version is due in July. I hope that the country’s energy plan will be mapped out for at least 15 – 20 years,” says Statham.

On 31 March 2010, the Department of Energy announced that the stakeholder engagement process, that will outline the public participation process for South Africa’s second integrated resource plan (IRP2), was approved. The IRP2 is the much anticipated plan that will detail South Africa’s energy mix for the next 20 years.

“I would like to see the IRP2 showing more clarity on the role renewables and nuclear energy will play. If South Africa is serious about reducing the country’s carbon footprint, we are going to have to look at building more nuclear power stations,” says Statham.

“The stakeholder engagement process will facilitate the participation of interested and affected parties in the development of the much awaited and all important IRP2 which is expected to outline how we intend to meet the country’s electricity requirements,” said Minister of Energy, Dipuo Peters.

“WWF encourages all stakeholders to engage in the IRP2 process to prevent any further lock-in to carbon-intensive infrastructure and to insist that this process be aligned with the review of renewable energy targets and policy, due to be gazetted in November this year,” concluded Fakir.

During this process, stakeholders are going to be given the opportunity to participate in various energy areas and they will be given the

Sources: www.earthlife.org.za, www.info.gov.za, www.wwf.org.za, www.frost.com.

Eskom and Exxaro sign coal agreement for

Medupi

O

n 31 March, Exxaro announced that the Medupi Coal Supply Agreement with Eskom had been finalised. “Eskom signed a definitive agreement on 26 March 2010. In terms of the revised agreement, the delivery of first coal is planned for the second quarter of 2012 with a ramp-up to full production by 2015,” the coal mining company said in a statement.

On 19 September 2008, Exxaro and Eskom signed the Medupi Coal Supply and Off-Take Agreement (CSA) which stated that Exxaro would supply an average of 14,6-million tonnes per annum of power station grade coal to Eskom’s new Medupi base-load power station, under construction near Lephalale in the Limpopo province from a brownfields expansion project at Exxaro’s Grootegeluk mine.

During August 2009, Eskom formally requested Exxaro to review certain commercial terms of the CSA, leading Exxaro to delay its Grootgeluk Medupi Expansion Project funding programme as well as the placement of additional contracts associated with the Grootegeluk Medupi Expansion Project.

Exxaro’s Grootegeluk mine

“At the time, Exxaro’s capital expenditure for the Grootegeluk Medupi Expansion Project was estimated at ZAR9-billion and delivery of first coal was planned to commence in the fourth quarter of 2011 with a ramp-up to full production by 2014,” reads a statement on www.exxaro.com.

The review of the agreement has now been finalised and “Exxaro will now resume its funding programme as well as the placement of additional contracts for the Grootegeluk Medupi Expansion Project”.

The company says the revised agreement was subject to the fulfilment of certain suspensive conditions, including the respective companies’ board approvals and Exxaro securing its funding.

“Exxaro will supply an average of 14,6-million tonnes per annum of power station grade coal to Eskom’s new Medupi base-load power station for a period of 45 years.”

For more information, visit www.exxaro.com, to which full acknowledgement and thanks are given.

25 o in A f rica

43

eNE R GY E FFICIEN CY

Energy-efficient lighting: The alternative to new power station construction The CIE 2010 conference, which took place in Vienna from March 14 – 17 2010, gave academics, lighting industry professionals, designers, researchers and representatives of regulatory authorities the opportunity to discuss best practice and the latest developments in the field of light and illumination.

A

ccording to the International Energy Agency (IEA), lighting accounts for 19% of global electricity consumption and for these delegates at the conference, the message was clear: A more efficient use of daylight augmented with the use of more efficient lamps and the latest lighting technology now enable us to save energy without sacrificing good lighting.

And the technologies required are already available.

After the arguably disappointing outcome of the UN Climate Change Conference in Copenhagen, a number of international organisations are now looking at ways of reducing worldwide energy consumption.

Against this backdrop, the CIE 2010 conference, organised by the International Commission on Illumination (CIE), chose lighting quality and energy efficiency as its theme.

Leading experts in the fields of science and industry, as well as representatives of regulatory bodies looked at the latest technological and scientific trends, and recommendations were made for reducing the amount of energy used for lighting amongst consumers.

Modern lighting technologies Modern lighting electronics are helping to improve the energy efficiency of light generation. Lamps with high luminous efficacy, electronic control devices, luminaires optimised in terms of light distribution as well as the use of daylight and effective light management all ensure excellent lighting quality, which in turn improves the individual’s health and sense of wellbeing.

“Good lighting brings safety, security and a better quality of life. But people are unaware of the amount of energy consumed by lighting and its impact on the environment. We already have the technologies required to provide good

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quality, energy-efficient illumination, so our aim is to highlight designs which will reduce energy consumption quickly and sustainably without sacrificing lighting quality. Even a small cut in the amount of electricity used for lighting around the world would remove the need to build additional power plants,” said CIE President Franz Hengstberger.

“The smartest, most effective way of saving energy is to use daylight.

Intelligent lighting control systems have the highest energy-saving potential.

Lighting which is automatically adapted to levels of daylight consumes up to 60% less energy than conventional, non-adjustable solutions,” comments Peter Dehoff, Head of Strategic Lighting Applications at lighting systems manufacturer Zumtobel.

LEDs vs CFLs One of the topics that was widely discussed during the conference was light emitting diodes (LEDs), which offer significant environmental and energy-efficiency benefits compared with conventional light bulbs and energy-saving lamps.

Professor Wout van Bommel, an international lighting consultant and former CIE President, believes that although energy-saving lamps are more of a temporary solution; the future of lighting |and energy efficiency belongs to LEDs. “LEDs will completely replace conventional light bulbs. They are still fairly expensive, but significantly more effective than alternative lighting technologies. Disposing of LEDs is also straightforward. Switching to LEDs now would make a major contribution to reducing global electricity consumption,” said Van Bommel.

Professor van Bommel concluded by predicting what the future of lighting will incorporate. “Futuristic daylight products such as transparent OLED windows, solar windows which store heat from sunlight and use it to heat rooms, and translucent concrete will all help to increase the levels of daylight in interior spaces.”

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

Tridonic Tel: +27 11 923 9686 E-mail: trevor@tridonic.co.za

energy e f f i c ien cy

h it w te a v o n in d n a te a Cre Eskom’s Energy Efficient Lighting

Design Competition Energy Efficient Lighting Design Competition –

to be won

Eskom is calling all electrical engineers, electricians and technicians and any other inventive spirits with creative flair to take part in this year’s Energy Efficient Lighting Design Competition. The cause is a worthy one, the challenge is refreshingly different and the incentive (prize money of R200 000) makes it well worth the effort.

Scientists estimate that the human brain produces about 20 watts of electricity. Although that’s not enough to power the traditional light bulb, it can do the trick for the average energy efficient luminaire which, at 20 watts, has the ability to equal the performance of its 100-watt incandescent counterpart. For the purpose of Eskom’s Energy Efficient Lighting Design Competition, participants are invited to harness their brain power for a different purpose altogether.

Students and professional designers are invited to think outside the box and design (and build) imaginative lamp prototypes that are functional and pleasing to the eye by using energy efficient light sources.

Two fold competition for students and professionals Eskom is inviting both students and professional designers to think outside the box and design (and build) imaginative lamp prototypes that not only work, but that are also aesthetically pleasing. All designers need to make use of energy efficient light sources for their projects.

Professional designers are also invited to submit innovative energy efficient designs, systems or products that are suitable for residential applications. These may include, for example, a complete lighting system that caters for a low-cost housing development.

Eskom Energy Efficiency Lighting Design Competition Tel: +27 12 997 1334 E-mail: amroux@mweb.co.za Website: www.lighting-design.co.za

Remember, the key word is energy-efficiency and the closing date for entries is 30 July 2010.

For more information, visit www.lighting-design.co.za 25 o in A f rica

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eNE R GY E FFICIEN CY

Harmlessness to health confirmed by certificate

BASF specialty foam Basotect® satisfies the requirements of the Oeko-Tex Standard 100

B

asotect®, the melamine resin foam from BASF, is now certified to the Oeko-Tex® Standard 100. Tests carried out by an independent test institute have shown that the two grades Basotect V 3012 and Basotect G satisfy the human ecological requirements of the standard in product class III. The two product grades, which are used in household and construction applications, are thus deemed to be harmless to health in usage and processing. This means that no substances which are hazardous to health are released and absorbed through the skin.

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areas with enhanced fire-safety requirements, for example buildings, cars, and trains. Basotect V 3012 is used as a household cleaning eraser thanks to its lightly abrasive qualities; in the clothing industry the foam is processed e.g. to shoulder pads.

Oeko-Tex® Standard 100

The certificate is awarded for a year. The Oeko-Tex® certification center can demand renewed product testing at any time in order to verify that the product characteristics match the requirements of the certificate.

The two product types were tested for extractable heavy metals, banned azo dyes, formaldehyde, organic tin compounds, chlorinated benzenes and phenols, perfluorinated compounds, plasticisers, and highly volatile organic compounds. Foam articles are also checked for emissions in order to prevent the emission of possible pollutants into the air. Both Basotect grades achieved results considerably below the limit values.

The Oeko-Tex® Standard 100 is a globally uniform testing and certification system for textile raw materials, intermediate and endproducts at all stages of processing which aims to completely remove all harmful substances. The tests for harmful substances comprise substances which are prohibited or regulated by law, chemicals which are known to be harmful to health, and parameters for precautionary measures to safeguard health. The tests are carried out by authorised, independent textile research and test institutes. Over 82 000 certificates have been awarded to date. The certificate can be identified by the slogan “Confidence in Textiles”, the particular test number and the test institute.

Basotect® as sound absorber and cleaning application

Further information at www.basotect.com and www.oeko-tex.com.

BASF manufactures Basotect® in the form of blocks which are processed by foam finishers to molded ready-to-install components. The melamine resin foam is noted for its low density (<10 g/l), excellent soundabsorption, high level of fire safety and temperature resistance. Thanks to its low flammability, Basotect G is used primarily to acoustically insulate

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

25 o i n Africa

South Africa’s economic

hub unveils

Integrated Energy Efficiency plan

G

auteng has launched its strategy to reduce overall energy consumption by 18% from business-as-usual projections and reduce CO2 emissions by 49% (in relation to 2007 levels) by 2055. The strategy was launched on 5 March 2010 by Gauteng Premier, Nomvula Mokoyane, who said that certain behaviours, such as switching on lights to brighten a room, have become instinctive and learnt traits without thinking about its impacts.

“We hardly sit back and reflect on our behaviour and its impact on energy related matters. I presume we are least bothered about knowing the source of the energy we exploit,” Mokoyane said in the speech. “However, the reality is that energy permeates all aspects of our lives. It is a cross-cutting issue and impacts on all spheres of development such as social, economic and environmental.”

According to Mokoyane, the load-shedding that Gauteng experienced in 2008 was an eye-opener to the danger of doing “business as usual”. “It became clear that there is a need to diversify the present energy mix and move towards alternative energy sources such as natural gas, as well as various forms of renewable energy,” said Mokoyane.

47% of renewable energy added to the mix The Integrated Energy Strategy states that renewable energy and clean technologies could contribute 47% of Gauteng’s energy by 2055. “It is clear that the province must place emphasis on the low hanging fruits in renewable energy and energy efficiency. Energy efficiency and renewable energy offer considerable scope for enhancing the profitability of business and contributing to economic development,” said Mokoyane.

The development of the strategy took over a year and it is spearheaded by the Department of Local Government and Housing. A significant part of the strategy is the use of solar geysers in households. “In the next financial year we will rollout 30 000 such geysers and 180 000 over the MTEF (Medium Term Expenditure Framework),” reads a statement issued by the department on 23 February 2010.

During the launch of the strategy, the Department of Local Government and Housing representative, Kemraj Ojageer, told delegates that the department will now be focusing on the implementation of the strategy. Besides a monitoring framework (which is to be developed), Gauteng can also expect an “energy office” for the province and the department will also undertake more detailed energy modelling and scenario assessments with the hopes of publishing a provincial state of energy report each year, according to Ojageer (www.polity.org.za). Ojageer explained that the department was planning on finalising most of these aspects by the end of 2010.

Sources: www.gov.za, www.polity.org.za, www.gautengonline.gov.za

eNE R GY E FFICIEN CY

Bringing the passive-house to life The BASF Mobile Energy-Saving House on tour in Europe

T

he MESH, BASF’s Mobile Energy-Saving House, is going on a tour through Europe. From the end of March to May 2010 the company will be sending the miniature passive house on a journey through Austria, Slovakia, the Czech Republic, Poland, Denmark, the Netherlands, Belgium, the United Kingdom, France, Switzerland and Italy. The 24-square-meter building of solid wood construction, which toured Germany in 2009, has been enhanced by the addition of various energy-efficient building applications with BASF products and customers’ system solutions, from sound proofing via solar collectors to energy-saving plastic windows.

Visitors can find out about the main aspects of a passive house: innovative insulation with the BASF products Neopor® (EPS: expandable polystyrene), used mainly for façade insulation, and Styrodur® C extruded polystyrene rigid foam panels (XPS), which are used as compression-resistant and waterrepellent thermal insulation, e.g. beneath the foundation slab, on the flat roof and around the perimeter. The MESH will begin its European tour on March 30 in Vienna and will end up on May 29 at the Passive House Conference in Dresden, Germany.

All the relevant solutions for designing a passive house Designed as an authentic passive house, with full thermal insulation and a seamless airtight shell, the MESH is an example for the planning and construction of a passive house, with easy to install soundproofing and thermal insulation, energy-saving windows and intelligent air conditioning.

Besides an external thermal insulation composite system (ETICS) featuring Neopor and formwork elements with Styrodur C by Lohr Element, Germany, the MESH also offers the following new construction elements suitable for a passive house: •

•

•

48

decorative sound absorbers made from the BASF foam Basotect®, which is lightweight, easy to work with and flame-retardant; solar thermal collectors made by heating engineering manufacturer Viessmann, Germany with Basotect thermal insulation. Basotect shows good insulation properties over a long period, even when exposed to high temperatures. It positively influences the air exchange in the collector at different climatic conditions; the energy-efficient and economical energeto® window profiles made by the window system manufacturer aluplast, Germany.

The triple-glazed window system, which is designed to meet the criteria of the future EnEV 2012 standard, incorporates several BASF products: Two flat strips of the engineering plastic Ultradur® High Speed (PBT: polybutylene terephthalate) are extruded into the profile replacing the 25 o i n Africa

conventional thermally conducting metal reinforcement in the frame- sash construction, thus avoiding thermal bridges and making the windows 20% lighter. On the surface of the window profile, a foil coating made by Hornschuch, Germany and including the BASF pigments Lumogen®, Sicopal® and Sicotan® reduces heat build-up creating brilliant colours and long-life surfaces. These technologies help energeto® windows to achieve 20% better insulation performance than standard steel-reinforced plastic windows; and the Isokorb® XT by Schöck, Germany with a core insulation made of Neopor: According to the manufacturer, the insulation element is the first, and so far the only, connecting element for load-bearing insulation components that is certified as so-called “thermal-break element” by the Passivhausinstitut Darmstadt, Germany.

Passive house: Economic feasibility and climate protection A passive house can make do without conventional heating or air conditioning, yet it stays cool in summer and warm in winter. Passive houses are not only energy-saving houses, but have a palpably better indoor climate than conventional buildings. A current EU Directive stipulates the standard of “nearly zero energy buildings” to become the future energy standard for all new buildings. The building style typically includes a seamlessly insulated shell and a refined ventilating and heat recovery system. The energy demand is low: A passive house, as defined by the Passivhausinstitut Darmstadt, Germany has a residual heat demand of 15 kWh per square meter per year for heating, which corresponds to a fuel value of 1.5 liters of heating oil.

The total amount of primary energy used for any extra heat, hot water and electricity must not exceed 120 kWh per square meter per year.

MESH initiators MESH was launched in early 2009 by BASF and five German partners: r-m-p architects, window and door manufacturer Ludwig Häußler, building systems provider Nilan Deutschland, stay-in-place formwork and floor panel manufacturer Lohr Element, and wood element manufacturer inholz.

Further information and tour dates at www.mesh.basf.com.

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 NERGY EFF I C I ENCY

The Embassy of Japan is going ‘green’ by switching their facilities to new photovoltaic power generation.

The Embassy, which is situated in Pretoria, will now receive electricity from 410 solar panels and it is estimated that 90 metric tonnes of CO2 emissions will be saved annually by using these panels.

According to Japanese Ambassador Toshiro Ozawa, an estimated 90 metric tonnes of CO2 emissions will be saved annually by using these new solar panels.

Embassy of Japan receives

410 solar panels “O

ften, the issues of economic development take precedence over issues of climate change. Such an approach, however, can be disastrous for the future of our planet earth,” said Ambassador Toshiro Ozawa at the launch of the Embassy’s new facilities on 21 April.

The 410 solar panels can generate 100kWh in the daytime. The system was supplied by Sanyo. “It is one of the largest solar power generation systems for office use in South Africa,” comments Ozawa.

A commitment to the environment “We also note that South Africa will be the host country of the climate change negotiations called COP17 next year. After the COP16 negotiations in Cancun, Mexico later this year, the international attention focused on South Africa can surpass the current interest in South Africa generated by its hosting of the FIFA World Cup,” said Ozawa.

At last year’s Copenhagen conference in Denmark, the Japanese government pledged US$15-billion over a three-year period to assist developing countries with adaptation, mitigation and access to renewable energy solutions. As part of this commitment, Japan has recently signed an agreement with the Kingdom of Lesotho to provide US$5-million this year for adaptation and mitigation and Ozawa commented that the country was prepared to do more in African regions.

About the technology In May 2009, Sanyo announced that it had broken its own record for the world’s highest energy conversion efficiency*2 in practical size (100 cm2 or more) crystalline silicon-type solar cells, achieving an efficiency of 23.0%*3 (until now 22.3%) at a research level for its proprietary HIT*1 solar photovoltaic cells.

The HIT (Heterojunction with Intrinsic Thin layer) solar cell comprises of a single thin crystalline silicon wafer sandwiched by ultra-thin amorphous silicon layers. The lightweight and compact design of HIT cells means that the total number of panels needed is reduced and a much smaller surface area is required for the installation.

The HIT panels are manufactured using low iron armour plate glass to withstand impacts such as hail. The cells also operate over a wider range of light spectrum so that power can be delivered even under cloudy conditions.

For more information visit www.sanyo.com and www.za.emb-japan.go.jp to which full acknowledgement and thanks are given.

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eNE R GY E FFICIEN CY

In February 2010, The Sustainable Energy and Environment for Development programme (SEED), the national capacity building initiative developed by Sustainable Energy Africa, celebrated its 12th year of proactively tackling the need for sustainable energy in the country’s urban development.

Peta Wolpe, Managing Director at Sustainable Energy Africa and Osman Asmal, Director of Environmental Resource Management at the City of Cape

12 year

& A

first-ever study on energy in South Africa’s major cities, conducted by the programme, determined that energy consumption is on a par with Berlin, London and Paris while development levels remain far lower; almost 100% of energy consumption is fossil-fuel based and the indicative modelling shows that without intervention, energy consumption will double within twenty years.

Tackling these realities is the mission of SEED. The programme, which has had four phases of implementation, has received the ongoing support of the Embassy of Denmark to South Africa as part of the Danish Embassy’s Urban Environmental Management Programme.

The overall Urban Environmental Management programme received funding of ZAR300-million from 2006 to 2010 that was shared between eight local partners (national, provincial, local government and non-governmental organisations).

“The Danish government has been a major funder and supporter from the start and has been instrumental in allowing us to move forward with critical goals and strategic phases set by our programme. We would like to thank them for their invaluable contribution and look forward to the coming years of promoting sustainable, low carbon urban futures,” says Peta Wolpe, Managing Director at Sustainable Energy Africa.

Dan E. Frederiksen, Ambassador of Denmark to South Africa, says that the programme has significantly raised awareness of energy concerns. “The strides made by the programme are considerable; it has created critical awareness amongst energy decision makers at local level on the importance of integrating sustainable approaches into urban development.”

“Moreover, Sustainable Energy Africa has not only provided guidance but |also workable strategies on how to overcome barriers that now see us at the implementation phase of this ambitious and noteworthy project,” says Frederiksen.

Energy advisors for local government A key highlight of the first phase of the programme was the successful deployment of energy advisors within local government with a focus on integrating energy efficiency in the housing sector.

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The approach of building capacity within local government has remained at the heart of the programme through its life. A major success of the programme has been the development of a vibrant learning exchange network amongst pioneering cities.

Building city energy management The second phase of the programme integrated energy data collection and planning processes. The studies revealed that 50% of national consumption takes place in South Africa’s major cities, which affirmed the programme’s objective of building city energy management capacity. This finding led to the pioneering of integrated city energy and climate change strategies that now actively guide city development in some eight South African cities.

During the third phase, the programme established that energy efficiency and solar water heater implementation could reduce city energy consumption by as much as 25%. Phase four continues to grow with knowledge-sharing networks in order to support sustainable urban resilience for South African cities. The focus is reconceptualising the structural underpinnings of our cities – spatial, transport and infrastructure planning.

Inspiring new approaches to environmental resource management The 12-year celebratory event also hosted the launch of Tomorrow’s Cities, an inspiring short film that uses animation to depict the critical urban environmental resource challenges and inspires new approaches towards meeting these.

For more information, visit www.sustainable.org.za and www.ambpretoria. um.dk, to which full acknowledgement and thanks are given.

e NERGY EFF I C I ENCY

How energy analysts can

secure cost reductions E

nergy Management has a team of experienced analysts who can study your business profiles in order to identify usage patterns and potential areas for cost reduction.

• Power generators for all needs • Supply and installation of solar panels Which industries are saving?

The National Energy Regulator of South Africa (NERSA) has approved a 24.8% Eskom tariff hike to the 2010/11 financial year, effective April 2010. This fact only strengthens the need to have your municipal accounts analysed and potential cost savings identified and implemented.

Energy Management has helped a broad range of sectors save on their municipality accounts through their specialised technical energy solutions.

These are only a few of the recent case studies that have secured significant refunds on their municipal and or telecoms bills:

Once potential energy savings areas are identified, Energy Management meets with the respective councils and/or telecoms supplier and manages the implementation process through to the final stage until the client can see the cost saving benefits.

Technical services

Industry

Annual Savings Secured

Refunds Secured

Educational Institution

ZAR991 000

ZAR2 539 600

Financial Services Provider

ZAR1 402 000

ZAR814 000

Old Age Home

ZAR204 367

ZAR729 500

Energy Management Tel: +27 11 463 7350 E-mail: info@energymanagementsa.co.za Website: www.energymanagementsa.co.za

• Power factor correction to reduce electrical load • Motion sensor technology • Geyser/air conditioning load control

The Natural Alternative

Egoli Gas (Pty) Ltd 1 Annet Road, Cottesloe, Johannesburg, 2092 Private Bag X10, Auckland Park, 2006 Tel: 011 356 5000

Fax: 086 557 6672

e-mail: cservice@egoligas.co.za

www.egoligas.co.za

Piping NATURAL GAS from planet EARTH to JHB’s doorstep!

The natural alternative for cleaner pastures.

eNE R GY E FFICIEN CY

Energy conservation prize for Nissan Speed Control

N

issan Motor Co., Ltd, Yokohama, has announced that its eco-drive support system, Eco-mode function and Navigation-linked speed control, employed in its compact vehicles has won the ANRE (Agency for Natural Resources and Energy) Director-General’s award in the 20th annual Energy Conservation Prize.

Nissan’s eco-drive support system, Eco-mode function and Navigation-linked speed control, is a practical system which enables eco-drive at a relatively low cost and is expected to contribute to considerable energy conservation by employing it in a wider range of vehicles in the future.

When a vehicle is starting, cruising, and decelerating before going into a curve, this system – where the engine, CVT and the navigation system are in cooperation – can enhance in-use fuel efficiency (given that in-use fuel efficiency-enhancing effects differ depending on one’s driving environment and technique) without any special driving skills. The system has already been adopted in the Nissan Tiida and Tiida Latio vehicles released in May 2009, as well as in the Cube released in November 2009.

Each of the following technologies is employed in this system: Smooth Acceleration Assist – which assists soft acceleration that eco-drivers do with engine control; Smart-rev Control – which, at the time of slow acceleration, identifies flapping acceleration and maintains engine revolution constant to avoid uneven speed change and unnecessary fuel consumption; Eco-mode Function – which is an enhanced version of Smooth Acceleration Assist. A mode can be changed by a flip of a switch; and Navigation-linked Speed Control – where the engine brake is optimised to reduce unnecessary fuel consumption by providing route-information via the on-board navigation system including information on the next curve and the distance to the next

tollgate, in addition to information from the vehicle. (These latter two functions are only for vehicles equipped with the HDD CARWINGS navigation system).

This is the third consecutive year that Nissan has received this award, following its eco-driving service available on the CARWINGS navigation system in 2008 and the X-TRAIL 20GT featuring clean diesel engine in 2009.

Nissan has been addressing a wide range of actions under Blue Citizenship, which represents the company’s desire to protect the blue planet and to be a corporate citizen that can live symbiotically with people and society. These efforts range from such global issues as the environmental protection to contribution to communities, promoting diversity and making personal mobility available to as many people as possible.

Nissan continues promoting its comprehensive environmental action plan, Nissan Green Program 2010, based on the Blue Citizenship spirit by introducing effective technologies, products and services into the market.

The ANRE award is open to the public, and covers a wide range of energy conservation innovations, including use of new energy- and resource-saving or high energy-efficient materials, equipment and systems for non-military use. It recognises innovative ideas to help accelerate wider commercial application of new energy conservation technologies.

For more information, contact: Nissan Motor Co., Ltd. Communications Department Global Communications and CSR Division Tel: +8145 523 5552 Website: http://press.nissan-global.com/EN

Optimised arc tubes in energy saving lamps

E

nergy efficient lamps with optimised arc tubes not only enable designers to match the light output to the requirements of the space, but also allow you to save energy without reducing the light level.

Venture Lighting is leading the way in developing H.I.D lighting energy efficient products to reduce overall energy usage costs throughout South Africa, without compromising on lighting quality.

The company’s pulse start metal halide lighting systems are widely regarded as one of the most advanced available offering better light than conventional systems, excellent colour uniformity, longer life and significant energy savings

Product features • • • • • •

Higher lumens compared to standard designs (350W up to 37 000 Lm) Longer lamp life (up to 20 000 hours) Faster warm up and hot restrike Improved lumen maintenance Reduced colour shift UV Shield option available

Energy saving lamp applications Industrial high bay and low bay fittings/mining/power stations Large retail outlets/petrol station canopies

Extended product range Venture Lighting’s Uniform range of metal halide lamps has now been extended to include 200W, 320W and 350W lamps, giving designers the freedom to choose from a range of lamps that match their project requirements. The lamps operate on a reactor/ignitor ballast system specifically designed to realise the best performance from these light sources, including longer life and better lumen maintenance.

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Making the most of Venture’s highly efficient lighting technology can result in significant benefits in terms of restoring our overall environment to a greener and cleaner world.

Venture Lighting Tel: +27 21 709 0180 E-mail: sales@venturelighting.co.za Website: www.venturelighting.com

CDM

Perverse incentives in the

Clean Development Mechanism

Andrew Gilder, IMBEWU Sustainability Legal Specialists (Pty) Ltd.

COP15 - further guidance to the CDM The annual Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) also acts as the Meeting of the Parties (MOP) to the Kyoto Protocol (collectively the COP/MOP) and, every year since the inception of the Clean Development Mechanism (CDM), the COP/MOP has provided so-called “Further guidance relating to the CDM”. Given that the CDM and its institutions are, ultimately, creatures of an international legal instrument (Kyoto) and that the final authority on the CDM is the COP/MOP, the yearly “further guidance” is the formal manner in which the COP/MOP refines the direction being taken by the CDM. COP15, Copenhagen, December 2009, was no exception and certain aspects of the further guidance provided from the Danish capital are particularly relevant to the CDM in South Africa.

Perverse incentives in the CDM The CDM rules seek to guard against the mechanism becoming a perverse incentive for developing countries to avoid promulgating climate-friendly national policy. If, for example, a developing country was of the view that it stood to gain financially from the CDM, e.g., for the reason that it operates a carbon-intensive economy with good potential for implementing CDM projects and generating and selling carbon credits, such country might decide against the introduction of policies aimed at reducing the carbon-intensity of its economy, in order to preserve the CDM potential. In this instance the CDM would be an incentive not to legislate in an environmentally friendly manner, hence becoming a perverse incentive. The manner in which the CDM rules deal with this scenario is to differentiate between so-called “E+” and “E-” national policies for the purposes of calculating a proposed CDM project activity’s baseline.

“E-” policies are relevant for the purposes of this article and are defined, in the CDM rules, as “national and/or sectoral policies or regulations that give comparative advantages to less emissionsintensive technologies over more emissions-intensive technologies (e.g., public subsidies to promote the diffusion of renewable energy or to finance energy efficiency programs)”. “E-” policies that have been implemented since 11 November 2001 (the date of adoption of the initial set of CDM rules) need not be taken into account in developing a baseline scenario for a proposed CDM project activity.

Observers of South Africa’s Renewable Energy Feed-In Tariff (REFIT) are likely to note a correlation between the definition of an “E-” policy and the idea of a feed-in tariff for power generation.

REFIT might be characterised as a policy that gives comparative advantage to less-emissions intensive technologies, i.e., renewable energy technologies. It’s for this reason that the 2009 further guidance relating to the CDM is of particular interest.

Clarifications to perverse incentive rules The further guidance relating to the CDM from COP15: • affirms that it’s the prerogative of a CDM host country, to decide on the design and implementation of policies to promote

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C DM

•

•

•

or give competitive advantage to low greenhouse gas emitting fuels or technologies; requests the CDM Executive Board (EB) to ensure that its rules and guidelines related to the introduction or implementation of the abovementioned policies promote the achievement of the ultimate objective of the UNFCCC, i.e., the reduction of human-induced greenhouse gas emissions to levels that would prevent dangerous interference with the climate system, and do not create perverse incentives for emission reduction efforts; calls on the EB to consolidate, clarify and revise, as appropriate, its guidance on the treatment of national policies; and, directs the EB to work on the enhancement of objectivity and transparency in the approaches for demonstration and assessment of additionality and selection of the baseline scenario for CDM projects inter alia through the development of guidance for the treatment of feed-in tariffs in the additionality analysis for renewable energy project activities.

The further guidance is interesting for, at least, two reasons. Firstly, it seems to clarify that the rules on “E-” policies apply, both, to CDM baselines and additionality whereas there was previously some debate on this dual applicability; and, secondly, it requires the EB to provide guidance on the use of feed-in tariffs in the CDM. This is good news for South African renewable energy investors because recently published draft Rules on Selection Criteria for Renewable Energy Projects under the REFIT Programme indicate that not all renewable energy projects using the identified REFIT technologies, e.g., wind, small hydro, landfill gas, will be eligible for the REFIT subsidy. Consequently, the importance of a carbon finance stream, as might be obtained via the CDM, to those renewable energy projects that are ineligible for REFIT will be an important consideration in the project’s investment analysis.

CDM and REFIT There is also an assumption in the market that REFIT’s adverse impact on the financial additionality of renewable energy projects will negate the CDM potential of such projects. Put another way, the assumption is that the cash-flow represented

by REFIT will make a project financially viable without the need for carbon finance, consequently removing an underlying reason for the CDM, namely to provide an extra project finance stream. Renewable energy project developers are strongly advised to test this assumption before simply dismissing carbon as a possible project finance stream. The operation of the CDM perverse incentive rules means that REFIT might not need to be taken into consideration in the assessment of a proposed project’s additionality and in the demonstration of its baseline.

Furthermore, a project’s additionality may be assessed in a couple of ways, including using a barrier-test as opposed to via a purely financial analysis. Taken together, these factors mean that it may be possible to implement a renewable energy project as a CDM project and claim, both, REFIT and a carbon finance stream.

IMBEWU Sustainability Legal Specialists (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. Those seeking to participate in climate change-related activities are advised to seek specific legal advice. Contact: andrew@imbewu.co.za.

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CDM

When your project is too small to claim carbon revenue “There are certain institutions that can justify doing their own CDM project but other installations are too small to claim individual carbon revenue,” says Duncan Abel from Unlimited Energy, a company who has initiated a solar water heating programmatic CDM project. The project is currently in the validation process.

“With solar water heating, for example, each installation saves approximately two tons of CO2 a year and the carbon revenue for this equals about ZAR200 (this ZAR200 can be collected for 10 years, which equals ZAR2000). This figure seems rather insignificant, but programmatic CDM allows you to group a bunch of projects together and claim a large amount of carbon revenue,” explains Abel before adding that one would need to at least 30 000 – 40 000 solar water heater installations to make programmatic CDM a viable option.

“There are a lot of costs involved. You need auditors who are approved by the United Nations and this is still a very new field. Many times, you are working with methodologies that don’t suit your exact program and you have to find ways to get around the technical barriers,” says Abel.

U

nder the Clean Development Mechanism (CDM), rich nations can invest in carbon emissions reductions made by clean energy projects in developing countries and earn Certified Emission Redutions (CERs) that can be sold for profit or used to meet greenhouse gas targets. Although traditional CDM entails only one project, programmatic CDM allows an unlimited number of identical project activities to be registered within a single Programme Project Design Document (PDD).

What makes programmatic CDM a more attractive alternative is the fact that a range of different initiatives and programmes can be combined so that there is only one programme design document (PDD) and individual participants don’t need to design and submit documentation – saving time, money and effort.

South South North, a non-profit organisation pursuing structural poverty reduction and climate change mitigation and adaption in Cape Town, has facilitated various CDM pilot projects between project owners, technical advisors and project beneficiaries over the past few years. The organisation is currently busy structuring a programmatic CDM project which will provide solar water heaters and thermal performance improvements in subsidised housing throughout South Africa.

The project is still in the development phase.

“The transaction costs for CDM projects are high, but programmatic CDM reduces these costs because you can spread these costs out over various projects. The monitoring aspect of the project is also simplified,” says Steve Thorne, Project Manager of the project.

According to www.unep.org, the CDM has been criticised for only focusing on individual projects and the high administration costs of getting the project approved. Grouping a number of smaller projects that bring emissions reductions have proven to be expensive, but programmatic CDM allows developers to deploy projects at scale to provide the same approved standards or methodologies from the start.

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Methodology application for programmatic CDM Methodology application for programmatic CDM projects are more challenging than traditional CDM projects. After the first pilot projects were submitted to the UNFCCC for validation, feedback to the Executive Board stated that Programmes of Activities (PoAs) for programmatic CDM projects have to be revalidated every time its baseline methodology is revised and, given the high frequency of methodology revisions for conventional CDM projects, this could lead to a significant workload for PoA coordinators, valuators and the CDM Executive Board (www.unfccc.int).

“One of the obstacles of our program, for instance, was the fact that there is a methodology for thermal heating but not specifically solar water heating, so you have to adapt to certain frameworks and the criteria is tough,” explains Abel. “You need to find ways around these issues. We have been dealing with the people who implemented a similar program in Mexico, which has helped a lot. You need experts to assist you”.

Only two registered projects so far

Feedback on programmatic CDM to the Executive Board of the Unite Nations Framework Convention on Climate Change (UNFCCC) in 2008 stated that after one year of existence of guidelines for Programmes of Activities it seemed obvious that the new instrument had not been embraced by the market. Only four PoAs had been submitted after the first year, which was much less than the high expectations to the initiative (www.unfccc.int).

Although the administrative and sustainability benefits are obvious, only two programmatic CDM projects worldwide have been registered. In Mexico, the CUIDEMOS Energy Efficient Lighting programmatic CDM project will distribute 30 million energy saving lights (CFLs) to low-income households throughout Mexico. CO2 emissions are estimated to be cut by 7.5-million tonnes over ten years, households will save approximately US$165-million per year off their energy bills and US$200-million will be saved on government electricity subsidies.

The other programmatic CDM project is a methane capture and combustion project from Animal Waste Management System of the 3S program farms of the Sadia Institute in Brazil.

Thorne believes that the programmatic CDM arena is still very new and the industry is still adjusting to these types of programs. “The programmatic approach is only a recent innovation. For a long time the rules were not really complete and a lot of work has been put into the processes in order to make the rules and methodologies more transparent,” says Thorne.

Geoff Stiles, MD of Marbek Resource Consultants, says that lack of experience (due to the relatively new industry) is the major setback regarding programmatic CDM projects. “The countries, as well as the CDM Executive Board (EB) lack experience in handling this type of CDM application and approval process,” says Stiles.

Waiting in the validation queue Thorne explains that project owners are put into a validation queue when they submit their programmatic CDM project for validation and registration by the UNFCCC. “Besides the project development, which can take a while, it can also take some time to get to the top of the validation queue. Our project is in the validation queue, but there are not enough accredited valuators because working on validation is not popular. It is a lengthy process and, for large scale projects, you can’t do the verification (which is much more lucrative) and monitoring if you did the validation of the project. There is a lot of inequality between the supply and demand of accredited valuators because I believe the demand is high,” says Thorne.

Why South Africa needs programmatic CDM projects for change Government has set the target for 1-million solar water heating installations in South Africa by 2015 and a further 5.6-million by 2020. Although the Eskom rebate has increased the number of solar water heating installations in the country, Abel feels that the rebate alone will not achieve government’s goals.

“These are big numbers and a shift towards renewable, clean energy needs to be driven by the private sector. The problem is that around 20 000 solar water heaters get installed in South Africa every year and approximately 600 000 electric geysers get installed every year – that’s a huge difference,” says Abel.

“We are not going to see an organic shift towards renewable energy solutions.

To make real change happen, we have to get everybody involved.”

“It is still a lengthy process,” says Abel. “We have been developing this program for the past 18 months and we hope to be registered by the end of the year.”

Thorne says that unless government steps in and forces people to switch to renewable energy solutions, the private sector will be driving the shift to sustainable energy alternatives. “In some countries, government is able to enforce these types of rules and regulations. South Africa is less disciplined and it is not a popular approach,” says Thorne.

Why are the costs so high?

How programmatic CDM can change the way we do business

Thorne explains that the validation process is expensive due to the liabilities and risks involved in validating the project. “The UNFCCC puts a lot of responsibility into the hands of the valuators. If they make a mistake registering the programme they have to forfeit the credits, so it puts them in a difficult position.”

Stiles comments that businesses could make money by utilising programmatic CDM. “It is an easier and more cost effective way of obtaining CERs and selling them for a profit,” says Stiles.

“Because the liability is so high, the costs go up for the auditors. These auditors also need accreditation from the UNFCCC, they get tested and a crew is sent out to witness their work and competencies. We pay for the effort, expertise and risks involved,” says Thorne.

According to Thorne, more businesses are becoming interested in obtaining CERs and how they can profit from programmatic CDM projects. “There is quite a bit of knowledge being passed around and certain institutions are very aware of what is available and what can be done. The problem is that we do not have a culture of having energy in our back yard, but this is changing due to hiked electricity prices and environmental issues,” explains Thorne. “It also has a lot to do with branding, not only making money.”

After the validation process Besides the validation and registration process with the CDM Executive Board, one also has to get the processes in place regarding the implementation of the project seeing as it involves a large number of similar applications and various stakeholders.

“You need to keep your stakeholders informed so that they know what’s happening and you also have to put processes in place so that people can access their carbon revenue. Programmatic CDM basically takes away the administrative duties of each stakeholder having to claim their carbon credits individually because it gets passed on by the people running the project so that they don’t have to deal with it,” says Abel.

According to Abel, programmatic CDM takes the administrative duties away from decision makers and key stakeholders and it enables a larger rollout of effective renewable energy programs.

“Insurance companies, for example, replace close to 250 000 electric geysers every year. If you can make solar water heating systems a viable economic alternative with CDM funding, you’ve covered a huge market with regards to turning to renewable energy solutions. Municipalities have requirements to reduce their energy use but, once again, CDM project registration and renewable alternatives are seen as costly. By getting everyone involved and registering a bunch of installations under one project, you are able to cut costs substantially,” concludes Abel.

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CDM

Carbon solutions for businesses T

he carbon landscape, along with all the energy, sustainability and environmental impacts, are challenging. Promethium, a company dedicated to low carbon and energy solutions in South Africa, understands the unique challenges that companies face when it comes to energy strategies, undertaking pre-feasibility studies for potential projects and turning the studies into technically viable, bankable projects.

“The world economy is being restructured to include the cost of greenhouse gas emissions as part of the cost of using energy,” says Robbie Louw, a Director of Promethium Carbon. “Energy is the primary resource of the modern economy. There are two ways to reduce carbon emissions: Use energy more efficiently and use alternative, low carbon, sources of energy.

Consumers of energy will only do this if the cost of carbon is priced into the cost of energy. This can be done either through a cap and trade system or through a carbon tax,” says Louw.

Promethium provides a range of services for a variety of carbon related projects including all technical, environmental, regulatory, financial and commercial aspects of a project. Carbon and climate change strategies for large corporates are formulated to coincide with the planned corporate growth path for electricity, security of energy supply as well as the identification of opportunities to initiate energy-efficiency projects.

“Promethium offers full turn-key solutions that are customised for each client and project. We have been in the carbon business since the European Union Emission Trade System (EU ETS) was launched in 2003 and our goal is to remain leaders in the South African carbon industry,” says Louw.

•

•

Clean Development Mechanism (CDM): Promethium assists clients with identifying CDM opportunities and developing these to a stage where the carbon emission reduction (CER) credits generated can be sold.

Voluntary Emission Reductions (VERs): VERs allow emission- reduction projects to earn VER credits, each equivalent to one ton of CO2. Projects qualify to generate VERs by meeting the requirements of various VER schemes. Promethium can assist clients in identifying VER opportunities and developing these to a stage where the VER credits generated can be sold.

Turn-key plans and projects What sets Promethium apart from other companies is their 360° umbrella offering that encompasses all aspects of carbon services. “When it comes to CDM projects, for instance, we offer a complete cradle-to-grave service,” says Louw. “A good example of a CDM project that Promethium provided services for is the Beatrix methane project for Goldfields. This project is situated in the Free State and it has been nominated for international awards.”

“We can provide a carbon strategy at corporate board level,” says Louw before explaining that a carbon strategy is something that is usually implemented at top management level. “But we can also provide smaller carbon projects, which are equally important.”

In 2009, Exxaro was able to offset the carbon footprint relating to the printing and distribution of their 2009 Annual Report by installing a 300-litre solar geyser and additional monitoring and verification equipment at a home for elderly residents near the company’s Pretoria head office.

Carbon services •

•

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Carbon footprint: Organisations from different industries are calculating their carbon footprints as a first step towards carbon literacy. Calculating a carbon footprint typically entails identifying the various sources of greenhouse gas in an organisation and quantifying the volumes thereof. Promethium has the necessary expertise to assists clients in a wide range of industries and agricultural areas with the determination of their carbon footprints, such as Gold Fields, Exxaro, Plascon, Group Five, Westfalia avocados, KWV distillery, The Times newspaper, the Medi-Clinic hospital group and more Carbon Disclosure Project (CDP): Promethium assists a number of the top 100 JSE listed companies in completing their CDP submissions. During 2009 three of Promethium’s clients were listed in the Climate Disclosure Leadership Index (CDLI). The CDP is an initiative by institutional investors from the private sector that requests listed companies to provide information about their carbon footprint, their corporate governance with respect to climate change and the risks and opportunities the business is exposed to.

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“This project will not only reduce the home’s monthly running costs, but it also contributes to the company’s sustainability goals. Promethium is able to execute smaller projects as well as large carbon projects for many of the big mining conglomerates in the country,” says Louw.

“We basically give companies guidance so that they can reposition themselves to identify and mitigate the risks of climate change in the world’s transition to a low carbon economy as well as make full use of all the opportunities available. Many cases have proved that the opportunities in this area can outweigh the risks, all it takes is getting the right team on board to make sure your company has all the information, tools and expertise to decide on a strategy and make the plan work for each company,” concludes Louw.

Promethium Carbon Tel: +27 11 706 8185 Fax: +27 11 706 1510 E-mail: robbie@promethium.co.za Website: www.promethium.co.za

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CDM

What are the

success factors

for a robust carbon market?

Lessons from the

EU

“A carbon market changes the behaviour of a country at a corporate level and it ultimately changes the behaviour of electricity end-users. With or without a global climate change agreement, the European cap and trade scheme is here to stay and Africa can learn a lot from our past experiences,” says Mark Lewis, Managing Director of Commodities Research and the Global Head of Carbon Research at the Deutsche Bank.

EU’s carbon market evolution In the beginning of 2005, the European Union’s Greenhouse Gas Emission Trading System (EU ETS) was implemented. According to ec.europa.eu, the EU ETS is the largest multi-country, multi-sector Greenhouse Gas Emission Trading System world-wide.

“Between 2005 and 2007 the carbon market was volatile and the carbon price was €30 per ton at its highest,” says Lewis. “In April 2006, however, there was a very sharp reduction. This was the end of the second phase of the EU’s carbon market implementation and the price was zero because the supply of allowances was less than the emissions.”

“This is an important lesson because you have to ensure price tension by supplying fewer allowances than emissions. To rectify this, we tightened the cap significantly,” says Lewis.

The impact of the recession and the global recovery also affected the EU’s carbon market. “The recession caused production in the EU to fall, once again

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lowering the carbon price. It is now around €13 per ton, but with the global recovery we expect prices to continue to rise.”

Four important lessons about carbon price structuring According to Lewis, there are four imperative lessons that the EU has learned from their carbon market and carbon price structuring:

1

Time frame “Africa has to get the time frame right for implementing a carbon market,” says Lewis before explaining that the time frame to implement a carbon market in a country needs to be long enough so that companies can make the necessary changes in their business plans and operations.

“You have to give people time to strategise and adjust because it affects everyone’s bottom line. But you also have to make the time frame short enough so that the risk of non-compliance is painful. My ideal timeline for a carbon market is between seven and eight years.”

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“But the EU power generators also received free licenses. There aren’t international competitors for the EU power industry and they account for 60% of our emissions, so these license hand-outs caused the EU to make a €15-billion windfall profit (over the period 2005 – 2007) from this industry and this money was not ploughed back into renewable energy, causing consumers to rightfully ask why they were paying more for electricity and it’s not even helping the environment,” said Lewis.

Lewis feels that the EU giving their power generators free emissions was a critical mistake in their carbon market scheme. “The EU was trying to get the power sector on board the program, but they should not have received free licenses. The EU’s power sector is still receiving free licenses, but from 2013

2

Frequent information disclosure “People have to know what’s going on with the carbon price and why it’s happening,” says Lewis. “The European market did not know that there was an oversupply of carbon credits causing the price to fall down to zero in April 2006. This was approximately 17 months after the cap and trade system came into force and it caused the market to trade on a false premise.

Making information public keeps everyone in the loop of the carbon price so that there are no misconceptions.”

Carbon allowances traded in the EU ETS are not printed, but held in accounts in electronic registries set up by Member States. The registries are overseen by a Central Administrator who, through the community independent transaction log, checks each transaction for any irregularities, allowing the registries system to keep track of ownership allowances in the same way money is kept track of in a bank (ec.europa.eu).

“We needed to disclose more information because if we are asking the public to pay more for goods and electricity, there is a public and democratic interest in explaining to the public exactly why they are paying more,” says Lewis.

3

Auctioning should increase political acceptability According to Lewis, giving carbon licenses to the largest carbon emitters is politically naïve. “Our companies, like most countries, have competitors outside of the EU. It seems logical to allocate carbon licenses to big emitters so that they can remain competitive when comparing them to an overseas producer that doesn’t have to pay for their emissions – at least until a global agreement is met,” continues Lewis.

when the third phase of our program begins they will have to pay for every single ton of emissions and this is why license auctioning is critical,” says Lewis.

Lewis explains three ways in which auctioning might improve carbon market efficiency: • Static efficiency: Auctioning ensures the optimal short-term clearing price in the market. If companies get free permits in the beginning, they don’t behave the same way they would have behaved if they had to pay for their emissions and this creates distortions in the market.

• Dynamic efficiency: The current carbon price is €13 per ton, which is not enough to ensure that companies invest in new energy technologies as opposed to coal fired power. Auctioning licenses ensures that the prices increase.

• Transparency. The carbon price needs to be fully reflected to the end-user to ensure that they understand who is paying what for their carbon emissions and so that consumers are faced with behavioural decisions.

4

Avoid over allocation of licenses Lewis says that the most important precaution to take is avoiding the over-allocation of carbon licenses. “Above all – avoid dishing out too many carbon licenses and lowering the prices in the beginning of the scheme.

The cap has to be tight so that people know there is a problem and start paying true prices for their carbon emissions from day one,” concludes Lewis.

For more information, visit www.db.com, to which full acknowledgement and thanks are given.

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CDM

CDM

projects in on the

Africa

increase

I

n March, the United Nations Environment Programme (UNEP) published a report showing that over 120 carbon market projects are either up and running or in the pipeline in Africa. Although these projects range from wind power to forestry schemes, the report shows that Africa is still lagging behind the rest of the world and the potential for clean energy remains under-utilised.

Report findings about CDM projects in Africa

The report findings of these clean development mechanism (CDM) projects (although not necessarily registered CDM projects but projects in various phases of submission and approval) include: • Egypt and South Africa have more projects than other (smaller) economies in Africa, with these two countries having five and 17 projects respectively.

• Equatorial Guinea is among several countries which do not have any projects registered and countries such as Zambia, Madagascar, Cameroon, Mali and Madagascar.

• The most popular projects harvest methane gas from landfills to fuel electricity generation. They contribute close to 20% of all projects in Africa.

• Biomass energy projects are the second most popular (representing 15% followed by of all projects) hydro-electric (including run of river schemes) (10%); reforestation (14%); fossil fuel switching (8%) and wind power (7%).

• Based on the current pipeline, it’s estimated that the number of CDM projects in Africa could total around 245 by the end of 2012.

There are currently just under 4200 CDM projects in the project validation/ registration pipeline in 64 countries, of which 2111 are registered and 61 have requested registration.

“The growth of the carbon markets in Africa is both cause for optimism, and cause for concern. On the one hand, the work of UNEP and a myriad of other partners on capacity building, catalysing finance and other barrierbreaking initiatives have been bearing fruit among an ever wider range of countries,” said Achim Steiner, UN Under-Secretary General and UNEP Executive Director.

“But in order to realise only a few percentage points, more of the massive potential for wind, solar, biomass and waste into energy schemes, action across a range of challenges needs to be stepped up.”

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adaptation to climate change, CDM projects in Africa account for less than 2% of the projects registered to date worldwide. John Kilani of the Bonn-based United Nations Framework Convention on Climate Change secretariat believes that it’s not due to a lack of potential for CDM in Africa.

“Research suggests that there is a great deal of untapped potential for CDM on the continent. The overwhelming response of industry to this event is perhaps an even more compelling statement of the interest in, and potential for, CDM in Africa,” said Kilani.

According to Steiner, this was in part the responsibility of the UN, regional development banks and international funding and donor bodies. “However, there is also a great deal private national and trans-national banks and individual governments can do to make clean energy investments more attractive through innovative loans and forward-looking policies and smart market mechanisms,” he explained.

Steiner cited Kenya’s introduction of a feed-in tariff rapidly, which triggered interest by a consortium in establishing Africa’s largest wind farm (a 300 MW scheme in the Turkana region in the north of the country).

“The groundwork has been laid for Africa to boost its participation in the carbon market, which is growing as an important commodity market worldwide,” commented Kilani.

Multi-billion certificates CDM projects can earn saleable credits called Certified Emission Reductions (CERs). The value of CERs is linked to the trade price of carbon and under the Kyoto Protocol’s CDM, developed countries can invest in developing country projects in order to offset some of their own emissions. According to www. unfccc.int, the CDM could generate over 2.9-billion CERs by the end of the first commitment period of the Kyoto Protocol in 2012 (each certificate would be equivalent to one tonne of carbon dioxide).

Valuable additional income may also be soon generated via tree planting in National Parks and reserves including the Mau forest complex. This would be part of the Green Economy’s many benefits for enhancing the country’s ‘water towers’ that in turn support flows to many key river systems.

Africa still accounts for less than 2% of global CDM projects

“You are bound to do business when you bring all of the key market players together: the investors, buyers and sellers. This forum is therefore bound to boost the number of carbon offset projects in Africa,” concludes Kilani. “

Although the CDM is stimulating investment and generating funds for

Source: www.unep.org, www.unfccc.int

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Carbon Market

figures for the EU’s trading scheme

C

arbon Market Data, a European company providing carbon market research, recently issued a data summary on the latest of the EU Emissions Trading Schemes (ETS) 2009 emissions reports. According to the company’s calculations, the EU ETS emitted 57 million tonnes CO2 less than their number of freely received carbon allowances in 2009, which equals 3.3% less CO2 than the number of allowances they received for free.

These figures are derived from the verified emissions data submitted so far by 91% (in volume) of the 11,300 installations currently included in the trading scheme of the 27 EU countries (except Bulgaria, Cyprus and Malta). So-called “new entrant reserves” allowances, which are distributed for free to new installations and to installations expanding the volume or the nature of their activities, weren’t included in these calculations.

1 927-million allowances. Verified emissions data showed that these installations emitted 1 694 MtCO2 during the same period, showing an average decrease in CO2 emissions of 10.2% per installation in 2009 over 2008*.

According to Carbon Market Data, analysts anticipated the fall in CO2 emissions due to the economic recession in Europe, which strongly affected the activity of the industry. The UK government sold 25-million carbon allowances through an auction system in 2009 and the German government sold 40-million allowances through carbon exchanges.

Average decrease of 10.2% per installation

A table showing the top 15 biggest CO2 emitting installations was also included in the report. The top 14 installations are power plants (mostly fuelled with coal) and one installation is a steel factory. Seven of the top 15 emitting installations are based in Germany.

An allowance is a permit to emit one tonne of carbon dioxide. In 2009, EU countries (except Bulgaria) allocated to their installations a total of

For more information, visit www.carbonmarketdata.com, to which full acknowledgement and thanks are given.

Sebastian von Wolff: Managing Director Orbeo South Africa

O

neCarbon International has recently become part of Orbeo, a pioneering joint-venture between French Investment Bank Societe Generale and French Chemical company Rhodia. The company is headquartered in Paris, but it operates around the globe and its South African branch has just moved to Rosebank in Johannesburg.

Orbeo will be benefitting from OneCarbon International’s experience of providing an extensive portfolio of clients with intensive emission reduction projects. By combining this international know-how with Orbeo’s trading and marketing skills, the newly formed team intends to offer clients an innovative, diversified range of projects and services, such as: Developing, registering and monitoring climate change projects generating carbon credits for either compliance or voluntary offset purposes.

Designing customised solutions to meet a variety of customers needs, such as governments, voluntary offset buyers and investors.

Know-how on environmental regulatory frameworks and emission trading schemes.

Orbeo combines financial and environmental expertise in order to provide an entire carbon value chain. From project to market, Orbeo is recognised as key player in the CO2 markets and the company is a recognised developer of greenhouse gas emission reduction projects.

For more information, visit www.orbeo.com, to which full acknowledgement and thanks are given.

Orbeo South Africa Pty Ltd Tel: +27 11 021 9152 E-mail: sebastian.wolff@orbeo.com Website: www.orbeo.com

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INSTANT UPDAT E

Green

products and exhibitions and conferences in Africa

Architecture designed by Dr. Ken Yeang. International speaker to Green Building Conference and Exhibition 2010.

BASF, a global chemical company, is keeping its eye firmly on tomorrow by helping South Africa build a more sustainable future. Many of its materials and solutions are to be showcased at large events this year, such as the Green Buildings World Africa Exhibition, Eco-Building Conference and Tomorrow’s Leaders™ Conference and the Green Building Conference and Exhibition at the Gallagher Estate in Midrand from 29 – 30 April 2010.

According to www.greenbuilding.co.za, the Green Buildings Building Exhibition is Africa’s largest exhibition of green building products and services and the event attracted over 1 000 delegates and more than 100 exhibition stands to the event held in Sandton last year.

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

INSTANT

Morocco announces US$9-billion solar power project Morocco has announced a US$9-billion solar energy project. According to government officials, the project involves five solar power generation sites across the country and it will produce 2 000 MW of electricity by 2020.

Morocco is the only North African country without oil production, and the solar energy project is aimed at cutting Morocco’s oil and gas imports. Government anticipates that the project will launch the development of a renewable energy industry in the country.

Reuters quoted Amina Benkhadra, Energy Minister of Morocco, saying the government would guarantee technical and financial resources to ensure the project succeeds.

Source: www.tradeinvestafrica.com

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I NS TA NT UP D ATE

leaves UN Framework Convention Yvo de Boer has announced that he will resign his position as Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC) as of 1 July 2010 – a position he has held since September 2006 – and will be joining the consultancy group KPMG as Global Adviser on Climate and Sustainability, as well as working with a number of universities.

“Working with my colleagues at the UNFCCC Secretariat in support of the climate change negotiations has been a tremendous experience,” said Mr. De Boer. “It was a difficult decision to make, but I believe the time is ripe for me to take on a new challenge, working on climate and sustainability with the private sector and academia.”

“I have always maintained that while governments provide the necessary policy framework, the real solutions must come from business,” he said.

“Copenhagen did not provide us with a clear agreement in legal terms, but the political commitment and sense of direction toward a low-emissions world are overwhelming. This calls for new partnerships with the business sector and I now have the chance to help make this happen,” he added.

Concrete mix enhanced at

Medupi Power Station Admixtures and other construction chemicals |supplied by Chryso SA are being used to enhance the performance of the concrete mix for the Medupi power station project at Lephalale in Limpopo province.

Hannes Engelbrecht, marketing manager of Chryso, says in particular the company’s new generation plasticiser, Chrysoplast Omega 101, is playing an important role. “The admixture was selected in preference to conventional plasticisers to maintain workability while placing concrete at high temperatures.”

In addition, Omega 101’s powerful dispersant qualities have substantially reduced the water content of the concrete mix, and the product has minimised shrinkage to meet the project’s specifications and improved the rheology of the concrete mix,” Engelbrecht stated.

Construction on the ZAR80-billion, 4 800 MW power station is on track for the first of six 800 MW units to be commissioned in 2012, with the last in 2015.

It is estimated that the concrete required for the project could reach 500 000 m3.

For more information, visit www.unfccc.int, to which full acknowledgement and thanks are given.

The main contractor for the project is the Medupi Power Station Joint Venture, a partnership between Murray & Roberts, Concor and Grinaker-LTA.

Exploitation of methane gas energy

Chryso SA Tel: +27 11 395 9700 E-mail: hannes@chrysosa.co.za Website: www.chtyso.com

in Rwanda Only 5% of Rwanda’s population is currently connected to the electricity network and the country is facing substantial problems with electricity.

The national power provider, Electrogaz, is not able to satisfy the 5% of electricity users, forcing it to import around 13% of its electricity from neighbouring countries.

Rwanda has substantial hydroelectric resources, as well as natural gas deposits under Lake Kivu that could make the country self-sufficient and possibly even a net exporter. Investment opportunities for the development of new thermal power plants to run on natural gas, or new dam construction to increase hydroelectric production, are now available.

Methane gas in Lake Kivu Exploitation of methane gas energy in Lake Kivu has the capacity to support a 700 MW power plant. Opportunities in the generation of electricity and production of liquid gas, engine fuel and cooking gas are available for this project.

For more information contact the Rwanda Investment and Export Promotion Agency (RIEPA) contact Christine Akuzwe, Investor Mobilise Officer info@rwandainvest.com.

Source: www.tradeinvestafrica.com.

Rethinking climate change An exhibition at the National Gallery of Denmark, entitled RETHINK – Contemporary Art & Climate Change, presents the work of inspired artists concerned with climate change. Holding the United Nations Climate Change Conference in Copenhagen last year, Denmark is at the forefront of climate change innovations and this exhibit shows that even the creatives are getting involved.

Picture courtesy: Anders Sune Berg

Executive Secretary

The exhibition consists of 26 works created by trendsetting Nordic and international contemporary artists working in the intersection between art, culture and climate change. Cooperation between the National Gallery of Denmark, Den Frie Centre of Contemporary Art, Nikolaj Copenhagen Contemporary Art Center and the Alexandra Institute resulted in this popular exhibition which was in Denmark until 5 April.

RETHINK has been appointed “The Nordic Exhibition of the Year 2009-2010” and will tour the Nordic countries in 2010 and 2011.

Source: www.rethinkclimate.org

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INSTANT UPDAT E

Famous landmarks such as the Eiffel Tower in Paris were left in darkness as they supported this global initiative.

s ’ a y n e K successful feed-in tariff boosts investment and growth in energy sector

Picture courtesy: Terry Blanchard

Achim Steiner, UN Under-Secretary General and UNEP Executive Director.

Earth Hour – the results

A record 126 countries participated in the World Wildlife Fund (WWF) Earth Hour initiative where participants were asked to switch off their lights between 20:30 – 21:30 on Saturday, 27 March.

Over 4 000 cities and towns took part in delivering a powerful message of hope for the environment.

Picture courtesy: Reinhardt Gallowitz

Famous landmarks such as the Big Ben in London, Eiffel Tower in Paris, Pyramids in Egypt and the Victoria Falls were left in darkness to support Earth Hour.

Green Point stadium in Cape Town turned off their lights for Earth Hour.

In South Africa, Table Mountain, the Green Point stadium in Cape Town, the Moses Mabhida stadium in Durban and the Vodacom Tower in Johannesburg also turned off their lights.

Eskom estimates that the equivalent of 1-million South African households participated, based on the reduced electricity consumption and WWF SA estimates that this number could be as much as 4-million South Africans.

For more information, visit www.wwf.org.za, to which full acknowledgement and thanks are given.

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Kenya’s government has recognised that renewable energy sources such as solar, wind, small hydro, biogas and municipal waste have potential for employment and income generation. A feed-in tariffs policy with price incentives and regulatory measures for wind, small hydro and biomass-based cogeneration was introduced by the Ministry of Energy in 2008 (www.e-parl.net).

Kenya’s government financed the development of the feed-in tariff and it stipulates that Kenya Power and Lighting Company Limited, the single buyer, must buy the electricity generated from renewables. The feed-in tariff policy does not imply direct subsidies, causing it to have limited financing implications.

The policy has attracted development partners from various stakeholders in Kenya’s renewable energy market, including investment from the World Bank. In March, the United Nations Environment Programme published a report of carbon market projects in Africa and Achim Steiner, UN Under-Secretary General and UNEP Executive Director, commented that Kenya’s introduction of a feed-in tariff rapidly triggered interest by a consortium in establishing Africa’s largest wind farm (a 300MW scheme in the Turkana region in the north of the country).

The feed-in tariff policy allows power generators from mini-hydro projects to receive up to US 12 cents per kWh it produces, US 7 cents for biomass and US 9 cents for wind (www.allafrica.com).

According to www.e-parl.net, the policy is expected to boost exploitation of abundant local renewable energy sources in the country and it will continue to attract private sector capital investment in renewables. On 1 December 2009, www.allafrica.com reported that Kenya plans to extend the feed-in tariff to cover geothermal sources in addition to other renewable sources.

Sources: www.e-parl.net, www.unep.org and www.allafrica.com.

‘10

ENERGY EVENT S ENERGY EVENTS

May 2010

Introduction to Energy Management (IEMT) Location: South Africa Date: 17 – 19 May 2010 Contact: Christina den Heijer Cell: +27 82 334 0923 Tel/Fax: +27 18 294 7174 E-mail: cemanager1@intekom.co.za

MOC 2010 Mediterranean Offshore Conference & Exhibition Date: 18 – 20 May 2010 Location: Alexandria, South Africa Contact: Samuela Tramontana.

Tel: +39 0761 527976.

E-mail: st@ies.co.it Website: www.moc2010.org

Certified Energy Auditor Course (CEA) Location: South Africa Date: 17 – 20 May 2010; 11 – 14 October 2010 Contact: Christina den Heijer Cell: +27 82 334 0923 Tel/Fax: +27 18 294 7174 E-mail: cemanager1@intekom.co.za

Carbon Expo 2010 Location: Cologne, Germany Date: 26 – 28 May 2010 Contact: Lisa Kuntze Tel: +27 11 486 2775 E-mail: lkuntze@germanchamber.co.za Website: www.carbonexpo.com

Lighting Africa’s 2nd International Business Conference & Trade Fair Date: 18th – 20th May 2010 Location: Safari Park Hotel in Nairobi, Kenya Contact: HEDON Household Energy Network Website: www.hedon.info/717/events.htm

June 2010

August 2010

Western Africa Energy Week Date: 2 – 4 June 2010 Location: Accra, Ghana Website: www.petro21.com

Hydropower Africa 2010 Date: 16 – 18 August 2010 Location: Johannesburg, South Africa Contact: Spinintelligent Tel: + 27 21 700 3500 Fax: + 27 21 700 3501 Website: www.spintelligent-events.com

GBASE2010 – Green Business Africa Summit & Expo Date: 2 – 4 June 2010 Location: Nairobi, Kenya SolarGren Media Ltd Dan Kashem Tel: +254 20 248 7420 E-mail: dan@solargrenmedia.com

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E NE R GY E V E NTS

Don’t miss out!

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.

September 2010 EAPIC 2010 Date: 31 August – 3 September 2010 Contact: Spinintelligent Tel: + 27 21 7003500 Fax:+ 27 21 700 3501 Website: www.spintelligent-events.com/eapic2010/en/index.php 3rd Natural Gas Conference 2010 Date: 7 – 8 September 2010 Location: Indaba Conference Centre, Johannesburg, South Africa Contact: Elrien Bootha Tel: +27 11 431 2016 E-maill: elrien@sapga.co.za

Co-Generation World Africa Date: 13 – 15 September 2010 Location: Johannesburg, South Africa Website: www.terrapinn.com/2010/cogenza/index.stm Africa Energy Week Date: 27 – 30 September 2010 Location: Cape Town, South Africa Tel: +44 20 7978 0000.

Website: www.thecwcgroup.com

October 2010 Agribusiness Investment Summit Date: 8 October 2010 Location: Washington DC, USA Contact: Emma Sayers Tel: +27 11 783 2431 Fax: +27 11 783 2430 E-mail: esayers@africa-investor.com Website: www.africa-investor.com; www.africainvestor.tv; www.ainewswire.com

Certified Carbon Reduction Manager (CRM) Location: South Africa Date: 11 – 14 October 2010 Contact: Christina den Heijer Cell: +27 82 334 0923 Tel/Fax: +27 18 294 7174 E-mail: cemanager1@intekom.co.za

November 2010 17th Africa Oil Week Date: 1 – 5 November 2010 Location: Cape Town, South Africa Contact: Sonika Greyvenstein Tel: +27 11 880 7052 E-mail: sonika@glopac-partners.com Website: http://www.petro21.com/events

Renewable Energy Africa (REA) Conference and Expo Date: 9 – 11 November 2010 Location: Johannesburg, South Africa Contact: Nomsa Radebe, Alphabeta Communications Tel: + 27 11 706 6085 Fax: + 27 11 463 1082 E-mail: nomsa@alpha-beta.co.za Website: reafrica.co.za

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2010/03/02 05:08:54 PM