25 Degrees in Africa

Vol 7 Nr 1 2012 – R49

Choosing the right carbon consultant

Local

The ins & outs of

COP17

CDP report

published

Contents Journal 1 2012

Enervations

The green economy

alternative energy

3 Shopping centre walks the

26 Report shows SA listed

42 Renewable projects get the

companies are tackling

climate change

extra green mile

Electricity

feature 4 Taking power generation into your own hands

green light from government

Bio-energy

44 Private sector participates more

30 Bringing sustainability to

struggling industries

in South African energy sector 45 LED street lights lend radiance

Country profile 6 An overview on Seychelles

to city streets

feature 32 Carbon Disclosure Project (CDP)

Climate change

46 Factory gets green stamp

10 South African cement

perspectives

industry bolstered by

37 Improved corporate culture can

sustainability initiative

cut carbon emissions by 30%

household energy projects

14 Saving tomorrow today 20 Calcutaling your carbon footprint

industry update 52 SAEE energy company

12 Utilising carbon finance for the scale up of low-income

Energy efficiency

of the year

Fossil fuels

52 Keeping the snowman alive

38 Energy excellence in welding

53 Largest industrial DSM

39 Company strives to strengthen

peak-clipping project over

their position in the market

performs by 40%

www.25degrees.net

Editor’s Comment Publisher:

hooray for durban!

Yes, the year has turned and we are in a brand new year with its own opportunities, challenges and excitements. As promised last year, I’d still like to take the time to reflect on COP17 which was held in Durban.

Though some individuals are still reeling from the enormous amount of work they put into their side events, lobbying and general COP fever madness, I thought it appropriate to get an overview of the COP event: the outcomes, some comment from industry, new initiatives launched and projects that were showcased. This overview is featured in the latest issue of 25Degrees in Africa.

Look out for future issues of 25Degrees where we’ll be bringing you the latest action taken.

Companies disclosing carbon emissions At one such event, the national Business Initiative launched the 2011 Carbon Disclosure Project (CDP) Report. A voluntary carbon emissions reporting mechanism for at the top 100 JSE listed companies, the main objective of the report if to review and assess the disclosure and action of companies and sectors against what is seen as a best-practise response to the challenges of climate change. Of the 100 companies, 83 companies responded, making it the second highest response rate among the 60 countries surveyed.

Not only is the amount of respondents cause for celebration (an improvement of 9% from last year), but the quality of the actual responses has also improved. Edna Molewa, SA Minister of Water and Environmental Affairs commented that the CDP “shows business commitment to achieving disclosure of their carbon footprint and how they are proactively working towards its reduction.”

We applaud the companies who have committed to disclosing their carbon emissions and I look forward to seeing them implement their strategies to adapt and mitigate the risk climate change has on their business and their future.

Read more on the CDP report on page 32.

Marlene E van Rooyen

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) Advertising sales professional E-mail: marlene@25degrees.net business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 • E-mail: zuerita@25degrees.net Design and Layout Ilze Janse van Rensburg Journalists Esté Meyer Jansen Tel: +27 72 185 0819 • E-mail: este@25degrees.net Nichelle Lemmer Tel: +27 72 209 2040 • E-mail: nichelle@25degrees.net Freelance Journalists Dave Soons Imbewu Sustainability Andrew Gilder – Climate change and CDM legal specialist Publishing Manager Liezel van der Merwe Financial Manager Fanie Venter

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

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

The focus of the publication is on energy, 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.

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EN ERVATI O N S

centre walks the

extra green mile Established in 1984, the Centurion Mall was constructed around the Centurion Lake and was the only shopping centre with the standard big-name retailers of that time in Centurion until the 21st century.

In 2003, the mall underwent its first major revamp, which was estimated at around R250 million, and increased in size to 105 000m2, becoming one of the biggest shopping centres in Pretoria.

A centre of this magnitude is bound to be reliant on vast energy requirements, which prompted an initiative to measure the mall’s energy intensity in comparison with other malls in a similar situation.

After participating in the National Energy Barometer Survey last year, the Centurion Mall was awarded a second place in the shopping centre category – an indication that even with its size, its energy requirements is well-managed. The National Energy Barometer Survey is conducted annually

by Energy Cybernetics, with support from the Central Energy Fund (CEF) through the National Energy-Efficiency Agency (NEEA), as well as endorsement from the government’s national energyefficiency campaign, Save It! The award results are determined through an analysis and audit of the various entrants’ utility bills over a one-year period, as well as a survey which is specifically designed to validate the effectiveness of energyefficiency initiatives in the commercial and industrial building sector.

Prior to participation in the survey process, the Centurion Mall undertook a green initiative, which saw its management and owners re-evaluate and redefine the mall’s carbon footprint. “The process involved analysing all operational levels and areas within the mall,” says Chris le Roux, operations manager at the Centurion Mall.

He explains that the majority of lights were replaced with energy-saving lights, timers were installed in various areas to manage the hours that the lights operate and all the geysers in the bathrooms were turned off.

“Power-factor correction units were also installed.” Johann Fourie, general manager of the Centurion Mall, adds: “We started with energy-saving initiatives before we knew that any recognition would be given.”

One of the main reasons why the Centurion Mall made the decision to enter the National Energy Barometer Survey was to receive a clear indication of how the shopping centre, which is managed by UAS (Utility Administration Services), faired when compared to other similar centres.

Fourie is positive that the award is a good indication that the mall is on the correct route in becoming as energy-efficient as possible and incorporating a green approach into its long-term vision. “Every kilowatt counts,” Fourie says. According to the management, one of the biggest challenges the mall faced was that energy usage was not being measured in real time and without real time measurement, which means that real efficient energy-savings management remained elusive.

Plans to overcome this challenge have since been adequately addressed and the mall has recently commenced with remote metering applications on main supplies. A smart-meter platform will be selected which is an automated facility that allows utility management and provides for all tenants to be metered on smart meters in real time. The mall will then be able to manage not only the landlord’s usage efficiently, but also allow access for the tenants to manage their usage proactively. In the future, the Centurion Mall would like to expand the smart-metering systems in conjunction with implementing a building management system to improve its National Energy Barometer Status and become even more efficiency-focused. “We are proud to have been part of this valuable initiative and hope that this will grow to be one of the most highly recognised awards in the shopping centre industry,” notes Fourie.

The winner of the shopping centre category was the N1 City Mall. In the hotel category Imperial Hotel took the honours and in the head office category CEF House was the winner. The National Energy Barometer Survey for this year is open for participation and building owners and operators who wish to take part are invited to logon to www.energybarometer.com for more detailed information.

Energy Cybernetics Tel: +27 41 367 1041 Cell: +27 84 622 4770 E-mail: media@energycybernetics.com Website: www.energycybernetics.com

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F eature : S mart-grid ener gy-stora ge tec h no lo gy

Taking power generation into your own hands Written by Nichelle Lemmer South Africa’s energy market is under constant pressure. With Eskom running a tight system, supplementary renewable energy resources become a viable and attractive option. Taking power generation into your own hands can be a daunting task when challenged with the operational pitfalls in using renewable energy as a resource.

To optimally run a renewable energy project, one has to implement a reserve system by using smart-grid energy-storage solutions that will harvest and store excess power when it is generated, most providers of renewable energy do not comply, they have to link the energy storage to increase benefits of usage and storage at times of peak demand periods.

Smart-grid energy-storage solutions enable the user to have more control over the power generated from natural resources.

Why use smart-grid energy-storage technology?

The smart-grid energy-storage market is growing on the principles of delivering practical solutions to generate a sustainable, reliable energy source from natural resources.

The system is based on an integrated island invertor system that harvests and stores renewable energy and consists of the following components: • A 20 KW wind turbine.

• Large 7 KW photovoltaic (PV) array.

• 12 tonnes of deep-cycle lead-acid batteries.

• Over 11 invertors and controller units.

De Magalhaes explains that inventors provide usable electricity to electrical circuits by inverting the power generated by the wind turbines and solar panels, similar and/or maximising solar in day time and wind at night, when consumption is low. To ensure it is topped up early in the morning, simulation with ongoing day time renewable energy provides most satisfactory yield of approximately 30% of electrical energy each month.

“This system makes it possible to integrate energy from multiple sources into a single power solution in the hybrid system.” According to him, systems can be scaled from a small single phase requirement to large 3-phase environments where multiple inverters are clustered together for increased power generation.

Rick Fioravanti, vice-president of storage applications and support at KEMA, says using storage in combination with renewable energy benefits the user in several ways. According to him, storage can also lend itself to protection against build-up on feeders for distribution utilities. He added that it is essential to look at storage when you want to make renewable energy projects practical and economical.

In a report written by members of the Electric Power Research Institute (EPRI), Daniel Rastler, programme manager for energy storage and distributed energy resources, says transmission and distribution systems deliver electricity where it is needed but energy storage systems deliver electricity when it’s needed.

Getting started Supplementing your business or home with renewable energy sources can be a daunting task if you don’t know where to start. 25° in Africa talked to a home-grown company in Johannesburg that implemented a streamlined renewable energy hybrid system that saved them over R150 000 last year in their electrical billing. Utilising wind and solar power, the Pre-Plan Energy building generates enough clean power to effectively run various infrastructural systems in the company.

Pre-Plan Energy is geared up with an extensive energy-storage system that helps the company to manage the green energy they generate each month.

According to Tony De Magalhaes, managing director of the company, the system they use provides dedicated, uninterrupted clear power for the entire IT infrastructure, all telecommunication equipment and can also be used for the functioning of some of their critical manufacturing machinery.

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He says that by using true deep-cycle rechargeable batteries, it is possible to provide a level of power autonomy in storing any surplus electricity in these battery cells for future use these also as an outage provision much the same as a UPS but with renewable energy as a source.

De Magalhaes also uses lithium batteries in some of his installations with great success, he confirms that these are new generation batteries which are eco-friendly and have a 25 year life-span warranty. Either way linking and understanding the balance of renewable energy supply with storage is fundamental to issue a balanced and efficient system. For this reason the Preplan Group of Companies has three renewable energy plants using lithium ion batteries, one of them being the head office of Preplan International, the largest lead acid deep cycle storage facility.

Preplan claims they have the first true hybrid plant in South Africa with a two year track record which led to the cancellation of the peak power demand by the Ekhurleni Muncipality applicable to billing during daylight hours.

Feat u re : S mart-gri d energy-stora ge tec h no lo g y

Various types of energy-storage solutions

Pumped hydro storage

There are various storage technology systems on the market, each with its own results on reliability, capacity and effectiveness. To name but a few, one could look at pumped hydro, sodium-sulphur batteries, flow batteries, lithium-ion batteries, lead-acid batteries, high-speed flywheels, ultra capacitor and superconducting magnetic storage systems.

New and improved grid-scale energy-storage technologies are gaining popularity. Pumped hydro storage is efficient, but installations are expensive and time-consuming to build.

Batteries According to the website www.greentechmedia.com, batteries of many different classes are used in grid-scale energy-storage systems. “One of the most familiar technologies in use is the lithium-ion battery,” it states.

“Lithium-ion batteries are designed to perform well on the metrics needed in power-orientated grid applications, including cycle life, cost and power capacity.”

The EPRI says lithium-ion batteries are commonly used in consumer electronic products. “Lithium-ion is also positioned as the leading technology platform for plug-in hybrid and all-electric vehicles.” According to them, these batteries are compact and highly efficient.

If you are opting to use lead-acid batteries, be sure to do extensive research first. Advanced lead-acid batteries can be used for grid purposes, but are considerably different from vehicle starter type lead-acid batteries.

Greentechmedia cites that the new advanced lead-acid batteries have integrated parts such as ultra-capacitor material that greatly improves its life cycle and power delivery. This does not mean that it costs more. According to the website, it is still manufactured to be affordable.

The sodium-sulphur battery is the most popular choice for grid usage.

“It uses liquid sodium maintained at 300°C and cannot be compared to traditional sodium-sulphur batteries,” Greentechmedia states. “The various configurations of these batteries have acceptable power-, energy- and life-cycle levels for many grid applications, both power- and energyorientated.” It is the cost of this type of battery that limits its use to high value applications.

Flow batteries are the baby on the market. Its potential has been explored for decades, but is only now becoming a viable alternative for cost-effective grid installations. According to www.greentechmedia.com, these type of batteries pump their active electrochemical material through a reaction chamber, instead of containing it all inside the cell. “The batteries’ discharge time (energy) is related to the size of the tanks of liquid active material and their discharge rate (power) is independently related to the size of the reaction chamber,” it states. A number of variations on this chemistry are available and some have recently achieved low enough costs and enough life cycles to be installed in pilot grid projects.

Flywheels A flywheel consists of a system that connects a motor and generator to a spinning rotor. The rotor will spin faster with the motor to charge the system, and then slow it down through the generator to discharge it.

Greentechmedia cites that this system can be used in power-orientated installations on the grid. “Upfront costs are high, but the system has a long lifespan that could eventually make up for the initial costs of getting the system up and running,” the website states.

According to the website www.renewablenergy.no, pumped hydro storage is the method capable of storing the largest amount of energy and is the method with the largest production capacity. The website goes into detail about the functioning of a pumped hydro station, stating that it mainly consists of two vertically separated water reservoirs. “At the bottom reservoir, a turbine is placed that can be run both ways, or it could be a pump and turbine mounted on the same generator. The generator works as an engine during pumping.”

Energy is stored when water is pumped up to the highest reservoir. “The energy is harnessed by letting the water flow back through the turbine,” the website cites. “The amount of energy that can be stored depends on the vertical distance between the reservoirs and the useful volume of the reservoirs. The power capacity depends on the size of the turbine.” This kind of technology can usually be applied to big projects and is not likely to be implemented in smaller grid projects for businesses and houses.

Future prospects EPRI aims to support and accelerate the development of advanced energystorage technology options with superior performance and lower costs, as well as strategic tools to improve the value of storage.

The organisation will also explore the potential of zinc-air batteries that they believe are among the most promising advanced next-generation energystorage technologies.

The importance of using low-carbon power systems will surely be driven forward in 2012, as the global community will focus on sustainability, environmental issues and the struggle to combat climate change. In this sector energy-storage power solutions will play an essential part in ensuring that renewable energy projects are a success, from the implementation phase to the practical production and utilisation of clean energy.

Full acknowledgement and thanks are given to the Electric Power Research Institute, KEMA and Pre-Plan Energy and www.greentechmedia.com for the information given to write this article.

Electric Power Research Institute E-mail: askepri@epri.com Website: www.epri.com KEMA Tel: +31 26 356 91 11 Website: www.kema.com Pre-plan Energy Nicola Brooks Tel: +27 11 908 2765 E-mail: marketing@preplan.co.za Website: www.preplanenergy.co.za

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country profil e: SE YCHE LL E S

SEYCHELLES Mention the islands of the Seychelles and pristine, coral beaches, water sport and island wildlife instantly jumps to mind.

The chain of islands are renowned for what it can offer tourists and it comes as no surprise that the tourism industry employs 30% of the labour force and provides more than 70% of hard currency earnings.

About 75% of the Seychellois live on Mahe Island. Most of the others live on Praslin and La Digue, with the remaining smaller islands either sparsely populated or uninhabited.

Most Seychellois are descendants of early French settlers and the African slaves brought to the Seychelles in the 19th century by the British, who freed them from slave ships on the East African coast. Indians and Chinese, who constitute 1,1% of the population, account for the other permanent inhabitants.

The Seychelles’ culture is a mixture of French and African influences.

Creole is the native language of 94% of the people, however, English and French are commonly used. English remains the language of government and commerce.

About 96% of the population over the age of 15 is literate, and the literacy rate of school-aged children has risen to well over 98%. Increases are expected, as nearly all the children of primary school age attend school, and the government encourages adult education.

The Seychelles islands were uninhabited for many years, even though Western explorers were aware of it. The islands appeared on Portuguese charts as early as 1505, although Arabs may have visited them much earlier. In 1742, the French governor of Mauritius, Mahe de Labourdonais, sent an expedition to the islands. A second expedition in 1756 reasserted formal possession by France and gave the islands their present name in honour of the French finance minister under King Louis XV. The new French colony barely survived its first decade and did not begin to flourish until 1794, when Queau de Quinssy became commandant.

Captured and freed several times during the French Revolution and the Napoleonic wars, the islands were officially passed to the British under the 1814 Treaty of Paris. Independence came in 1976. Socialist rule was brought to a close with a new constitution and free elections in 1993.

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c o u ntry profi le : S EYCHELL E S

President France-Albert Rene, who had served since 1977, was re-elected in 2001, but stepped down in 2004. The then vice-president, James Michel, took over the presidency and is currently still in office after being re-elected in May 2011.

Location: A cluster of islands in the Indian Ocean, northeast of Madagascar.

Climate: Tropical marine, humid, cooler season during southeast monsoon (late May to September), warmer season during northwest monsoon (March to May).

Terrain: The Mahe group is a granitic, narrow coastal strip, rocky, hilly.

The other islands are coral, flat, elevated reefs.

Elevation extremes: Lowest point: Indian Ocean 0m.

Highest point: Morne Seychellois 905m.

Natural resources: Fish, copra and cinnamon trees.

Land use: Arable land: 2,17% Permanent crops: 13,04% Other: 84,79% Natural hazards: Lies outside the cyclone belt, so severe storms are rare, but the country is vulnerable to short droughts.

Current environmental issues: Water supply depends on catchments to collect rainwater.

GDP (purchasing power parity): $2,053-million (2010 est.)

GDP (official exchange rate): $936-million (2010 est.)

GDP real growth rate: 6,2% (2010 est.)

GDP per capita (PPP): $23,200 (2010 est.)

GDP composition by sector: Agriculture: 2,9% Industry: 30,8% Services: 66,2% Industrial production growth rate: 2% Electricity production: 250-million kWh (2007 est.)

Electricity consumption: 232,5-million kWh (2007 est.)

Electricity exports: 0 kWh Electricity imports: 0 kWh Oil production: 0 bbl/day (2009 est.)

Oil consumption: 7 000 bbl/day (2009 est.)

Oil exports: 0 bbl/day (2007 est.)

Oil imports: 7 653 bbl/day (2007 est.)

Oil proved reserves: 0 bbl (2010 est.)

Natural gas production: 0 cu m (2008 est.)

Natural gas consumption: 0 cu m (2008 est.)

Natural gas exports: 0 cu m (2008 est.)

Natural gas imports: 0 cu m (2008 est.)

Natural gas proved reserves: 0 cu m (2010 est.)

Current account balance: $-351-million (2010 est.)

Export commodities: Canned tuna, frozen fish, cinnamon bark, copra and petroleum products (re-exports).

Imports: $831-million (2010 est.)

Import commodities: Machinery and equipment, foodstuff, petroleum products, chemicals and other manufactured goods.

Debt external: $1,374-billion (31 December 2010 est.)

Energy in the Seychelles According to the website www.energyrecipes.org, the Seychelles does not produce any oil, natural gas or coals and is forced to import petroleum products to cover domestic demand. All electricity produced comes from thermal plants while electrical power on the islands is provided by the government-owned Public Utilities Corporation (PUC). The corporation is not only responsible for the supply of electricity, but also for supplying water and sewage treatment services to the islands. Under the electricity division of PUC, the generation section ensures continuous production of electrical power from four generating stations. The stations are made up of diesel-powered generators and are situated on the islands Mahe and Praslin.

The Seychelles regularly partners up with the United Arab Emirates on various energy initiatives. The partnership bore dividends as a new thermal power plant was commissioned in June last year. The 16MW dualgenerating facility allows the Seychelles to cater for the growing demand in power.

However, the islands are on a quest to reduce their costly dependence on imported oil. The oil crisis in 2008 had a lasting and significant impact on the economy of the Seychelles. The islands are already on its way to developing renewable energy from the wind and sun.

Exploring alternative energy sources are part of the Seychelles’ approach to ensure sustainability of the nation’s development. The consequences of climate change are a harsh reality for island nations who are faced with Continues on page 8 Vol 7 NR 1 2012

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country profil e: ni geria

Continued from page 7

the menace of rising sea levels, protracted droughts and catastrophic weather events. Many communities could be displaced and small islands could disappear.

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Energyrecipes.org stated that solar water heating represents real potential for reducing the use of fossil fuel in the domestic sector. The total collector area of solar water heaters (SWHs) in the Seychelles is estimated to be 2 400m2, of which only 1 500m2 are actually in use. This source represents an annual saving of 13kW per person.

If the use of SWHs is doubled, the annual average electricity consumption in the domestic sector would be reduced to 474 kWh per person, allowing savings of 1,89 GWh a year. This is equivalent to 433 tons of petroleum fuels or 1% of the inland consumption of this fuel.

There is sufficient solar radiation in the Seychelles to operate SWHs. According to data collected by the meteorology office, there was 150 to 275 hours of sunshine per month at the airport between 1990 and 1993.

With slight variations, this level of insulation is also observed in most of the lower altitude areas of the Seychelles.

Also of considerable importance and relevance is the 7MW wind farm project that the Seychelles is carrying out with the support of the government of Abu Dhabi. The Masdar wind project involves a potential investment of over $25-million and can make a significant impact in helping to provide electricity from alternative sources. This investment is also expected to lead to new employment opportunities in the field, stated the website futuredirections.org.

The Seychelles Cabinet of Ministers has approved the draft of an Energy Bill aimed at modernising electricity provision in the country, as well as creating competition in the renewable and clean energy sector in November last year.

With the proposed Energy Bill, a new series of licences will be introduced for producers who will be exclusively in the new energy and clean energy sectors, such as the conversion of landfill waste to energy, solar, wind and wave energies. The bill also aims to give consumers a choice of electricity suppliers. The Seychelles government already issued a request for proposals for a waste-to-energy incinerator project on the island of Mahe in March last year, illustrating its commitment to the new bill.

The Energy Bill 2011 also proposed ways in which to govern the electricity sector, renewable energy and energy-efficiency sectors, and also contains the legal basis for the implementation of the Clean Development Mechanism (CDM) created by the Kyoto Protocol. This bill will also extend the powers of the Seychelles Energy Commission to become the electricity regulator and the authority responsible for implementing schemes for renewable energy promotion, as well as energy-efficiency.

With the Seychelles government’s commitment to making greater use of renewable energy sources like solar and wind energy in the future, it is good news all round for tourists who stream to the islands, as it seems that the country has enough sustainable energy plans in place to keep the islands in business.

Information provided with the courtesy of www.state.gov, www. energyrecipes.org and www.futuredirections.org, to which full acknowledgement and thanks are given.

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climate change

South African

cement industry

bolstered by sustainability initiative The Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD) and South Africa’s Association of Cementitious Material Producers (ACMP) joined forces to drive sustainable development last year.

The newly formed partnership provides the platform necessary to share international best practice to facilitate industry growth. The ACMP will leverage the partnership with members and other industry stakeholders to promote development. “We are delighted to be working closely with the ACMP in South Africa. It is through collaboration that we will be able to leverage best practice and share knowledge to ensure the industry flourishes,” Philippe Fonta, a representative from the WBCSD and programme director of the CSI, says.

the world will help to ensure that the South African cement industry stays informed on global issues when deciding on policy direction, particularly around energy and carbon emissions.

The initiative will also bring international industry intelligence to the ACMP that can be translated by local members into a relevant framework for local conditions. This is to ensure that a globally competitive cement industry is flourishing.

The World Business Council for Sustainable Development is a chief executive officer-led organisation of forward-thinking companies that galvanizes the global business community to create a sustainable future

Dhiraj Rama from the ACMP says this will allow the South African cement industry to tap into global expertise and make it locally relevant. “It is an exciting new development for the cement industry and we look forward to engage our members.”

He explains that the co-operative agreement will ensure that the ACMP can transfer knowledge both ways to better inform their climate change response strategy in the context of sustainable development. “South Africa is a world leader in extending cement usage to reduce the use of limestone, a non-renewable resource.”

The agreement with the WBCSD will act as a catalyst in shaping the ACMP’s response to climate change and sustainable development. While From right to left: Philippe Fonta, Program Director - CSI, WBCSD; Harmke Immink , Director & Carbon Advisor of Promethium Carbon; Dhiraj Rama, ACMP Executive Director the ACMP will have access through this platform to international best practice and standards, the initiative will be able to expand its activities into for business, society and the environment. Together with its members, the Africa. Comprehensive engagement with peers and colleagues around council applies its respected thought leadership and effective advocacy to generate constructive solutions and take shared action.

“South Africa is a world leader in extending cement usage to reduce the use of limestone, a non-renewable resource.”

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Full acknowledgement and thanks are given to the WBCSD and ACMP for the information given to write this article.

World Business Council for Sustainable Development Tel: +41 22 839 31 11 Website: http://www.wbcsdcement.org/

c li m ate c h ang e

Industry fully supports global introduction for taxes on bunker fuel

Duane Newman

Shipping and airline companies demonstrated their support for a global introduction for taxes on bunker fuel during the 17th Conference of the Parties (COP 17) in December 2011. Being led by Oxfam and the World Wildlife Fund (WWF), the call for the additional industry tax has been supported by the International Maritime Organisation (IMO).

The airline and shipping industries were typically exempt from the original Kyoto Protocol, but given that shipping currently accounts for between 3% and 5% of the world’s carbon emissions, this was not sustainable in the long run.

Deloitte director, Duane Newman, who is also the national leader of Deloitte Sustainability and Climate Change Services, said in garnering the IMO support that the shipping industry had realised the role it plays in contributing towards the world’s greenhouse gas emissions. “In being prepared to contribute towards the Green Climate Fund through the bunker tax, the world had seen a breakthrough in attitude towards climate change with an industry willing to put up its hands and take ownership of its impact.”

Newman says the overwhelming support for a bunker tax as a mechanism for the Green Climate Fund was hopefully a spearhead for other businesses to follow suit. “I hope this is the first of many industries willing to work towards the solution,” he said.

The Copenhagen Accord established a Green Climate Fund as an operating entity to support projects, programmes, policies and other activities in developing countries relating to mitigating greenhouse gas emissions.

These projects include capacity building and technology development and transfer. It is envisioned that the multilateral funding should be delivered through effective and efficient fund arrangements with a governance structure providing for equal representation of developed and developing nations.

“The distribution of funds generated via the bunker tax has been effectively and efficiently thought out without jeopardising the shipping industry in developing nations in favour of developed ones. That is a key component of ensuring equity from this tax,” Newman said.

In the South African context, Newman said the Climate Change Policy Green Paper had outlined the framework the country would follow in introducing stringent regulations on carbon emissions for the public and private sectors. The proposed carbon tax would challenge South African companies to become more competitive, while the bunker fuel tax was another consideration for local shipping companies.

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climate change

Utilising carbon finance for the scale up of low-income household energy projects Climate change mitigation in developing countries has centred on the Clean Development Mechanism (CDM) which was established under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC). The CDM allows investments by entities from developed countries in projects in developing countries.

As a project-based approach, it has the dual objective of reducing greenhouse gas emissions and contributing to the host countries’ sustainable development goals. Although emission reductions might have been achieved in developing countries, there is a consensus that in some cases there are a lack of concrete sustainable development benefits in the current CDM portfolio of projects and that the geographical spread of projects is uneven. This weakness, in addition to the urgent need for scaling up carbon mitigation actions in developing countries, has led to calls to

identify other options in addition to a project-by-project based approach.

One of the most promising approaches in this regard is the CDM Programmes of Activities (PoA). In a PoA the normal project-by-project approval is aggregated into a broader programme including many individual actions of a similar nature. The aim of a programmatic approach is to broaden the CDM field to replicable projects with low and dispersed emissions such as those present in low-income household projects.

The framework PoA only needs to be registered once by the Executive Board (EB) of the CDM and additional CDM Project Activities (CPAs) can then simply be added at any later stage. Each proposed PoA must receive approval from the Designated National Authority (DNA) which is in charge of checking over the country’s sustainable development criterion.

ENERGY UPGRADE PROJECTS

Lower energy use and cost

Increased ambient temperature

Change in use of space, alteration of social interactions and increased sense of control

Reduced emissions

Altered ventilation

Indoor air quality

Condensation

Mould growth

Increased disposable income

ENERGY USE

Local and global environmental effects

WARMTH

Psychosocial wellbeing

Thermal comfort

VENTILATION

Winter morbidity/mortality

Respiratory diseases

Figure 1: The connections between energy upgrade projects and the well-being of the household (modified from Wilkinson et al., 2007: 1179).

In South Africa, as in many developing economies, tensions can exist between development and climate mitigation objectives.

The CDM is often viewed as an innovative mechanism attempting to integrate these dual objectives.

In 2009, Anglo American, a leading global mining company, commissioned a costbenefit analysis of energy-savings options for low-income communities. The study aimed

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to determine the options and feasibility of community-level sustainable energy projects in South Africa, quantify the benefits for the economy, the electricity sector and the communities involved.

Suggested interventions ranged from installing energy-efficient lighting, to exploring sustainable finance and management options for the implementation of projects at a community level. The study concluded that the energy-efficiency and solar water heater interventions would be suitable candidates for

carbon finance through the CDM and the CDM PoA. The findings of the report are currently being taken forward by Camco in a study for Anglo American which is exploring the options for increasing the scale of these projects and the role of Anglo American’s well established enterprise development programme, Zimele.

Among the issues being investigated is the most appropriate business model to facilitate successful implementation by local entrepreneurs, and the design of sustainable monitoring and maintenance mechanisms for such community-led implementation.

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The benefits of energy projects in low-income households

project development skills and a small number of best-practice case sites which PoA project developers can draw from.

Energy projects in low-income households create high sustainable development benefits as they reduce energy poverty. Figure 1 illustrates how energy upgrade projects (in this case energy efficiency interventions and solar water heaters) affect well-being through cost savings and emission reductions of air pollutants. It is highly desirable if a mechanism such as the PoA would enable the scaling up of such projects.

Recommendations

Way forward in the use of carbon finance Although PoAs represent an exciting new mechanism for scaling up energy projects in low-income households; key financial, institutional, technical and informational challenges remain.

For example, although the PoA approach is an attempt to reduce transaction costs and procedural delays, project developers still struggle to implement PoAs due to the lack of available additional financial incentives. Another key challenge is that government will need to play an increasingly important role if PoA success is to be guaranteed. Governments could,for example, increase the co-ordination between the different entities dealing with energy issues, act as independent knowledge brokers of information gained in project development and strengthen the capacity of DNAs to assess PoA impact in terms of sustainability and mitigation.

In addition, appropriate methodologies and baselines will need to be approved by the UNFCCC in order for project developers to effectively utilise the PoA mechanism. The limited experience with conventional CDM projects in low-income households has resulted in a negligible transfer of

These key challenges will need to be addressed by multiple stakeholders such as governments, project developers and the UNFCCC in order to create an enabling environment. It will be important to establish a supportive policy framework, explore alternative funding models and develop appropriate methodological and monitoring approaches for these types of PoA projects.

In addition, further research and pilot projects are needed to provide additional insights into the effective utilisation of the PoA approach. Finally there is a need to develop long-term visions for mitigation actions. Right now the PoA approach is a feasible option for scaling up projects, but in the future these initiatives need to be linked with ongoing discussions about other mitigation options such as Nationally Appropriate Mitigation Actions (NAMAs) in order to avoid a mismatch of approaches.

Full acknowledgment and thanks are given to Inka Schomer from Camco for this article. The author would like to thank the Climate and Development Knowledge Network (CDKN) for the financial support to conduct this research as part of her MSc at the University of Oxford.

Camco South Africa Tel: +27 11 253 3400 E-mail: Inka.Schomer@camcoglobal.com Website: www.camcoglobal.com

A 20-year track record in providing world-class climate change, energy and sustainable development solutions across Africa and internationally. o Carbon footprinting: over 1,300 organisational and product carbon footprints; accredited CDP alliance partner

o Carbon management: strategic support to the private sector in all aspects of climate change and carbon risk

o Policy development: national, regional, and international policies and

regulatory frameworks on energy, climate change and carbon markets

o Energy management: energy auditing / ‘Carbon Desktop’ - monitoring and targeting software for energy, carbon and water

o Emission reduction project development: industry leader in CDM origination, qualification and commercialisation with over 100 million tonnes of CO2 under contract

o Rural energy, biomass, REDD based land use and forestry solutions: promotion of sustainable energy access and livelihoods solutions across Sub-Saharan Africa

For further information: t +27 (0)11 253 3400 • f +27 (0)11 804 1038 • info.sa@camcoglobal.com Building 18, Woodlands Office Park, Western Service Road, Woodmead, Johannesburg, South Africa, 2080 o Vol 7 NR 1 2012 i n A fr i c a 2 5 www.camcoglobal.com 13

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COP

Written by Nichelle Lemmer Turning words into action. This was on the minds of thousands of delegates at the United Nations Framework Convention on Climate Change (UNFCCC) that took this global challenge head on during COP17, which was held in Durban last year.

South African leaders were adorned with the task of balancing extremely complex issues to lead the Durban negotiations into a neutral playfield.

Edna Molewa, the South African Minister of Environmental Affairs, said the negotiations took place against the backdrop of a global economic meltdown, with the euro-zone debt crisis still looming and an alarming slow global economic growth. “It is not surprising that the conference was extended by more than a day before it concluded.”

According to Molewa, the outcome of this COP is historic and can be ranked with the 1997 conference, where the Kyoto Protocol was adopted.

The Kyoto Protocol did not die a slow death as was expected to happen during the last week of the conference. Instead COP17 ended on a high note after countries shifted towards a legally binding agreement to lower their carbon emissions, which would come into full force in 2020.

Outcomes of Durban Molewa explains that the Kyoto Protocol has been given a second lease on life. Governments from all over the world, including 35 industrialised countries, agreed upon a second commitment period under the protocol.

The protocol will be amended and could be extended to a five-year period from 2013 to 2018, depending on the outcome of COP18. “The pledged economy-wide targets of developed countries are inscribed in the decision,” said Molewa.

“These targets will be further converted into legally binding quantified emission limitation and reduction objectives (QELRO’s) at COP18 in Qatar.” Governments aim to agree upon a legal agreement as soon as possible and aim to get the papers signed not later than 2015.

Christiana Figueres, executive secretary of the UNFCCC, is excited about the decisions made at the conference. “This is highly significant because the Kyoto Protocol’s accounting rules, mechanisms and markets will all remain in action as effective tools to leverage global climate action and as models to inform future agreements.”

Yvo de Boer, KPMG’s special global adviser on climate change, says he lost hope at one point during the conference when it looked as if the negotiations were heading for a disaster. “The

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recent COP17 meeting in Durban was its usual roller coaster ride, ending with a surprise commitment by most of the 200 countries which took part to continue the Kyoto Protocol, along with a raft of other climate change agreements. While the outcome has signalled a breakthrough for a political consensus on climate change, the outcome for business is only just becoming clear.”

Swing into action The determination of governments to agree upon a legal agreement is not just a 2012 New Year’s resolution. Work on this will commence immediately under a new group called the Ad Hoc Working Group on the Durban Platform for Enhanced Action.

Green Climate Fund, an adaptation committee designed to improve the coordination of adaptation actions on a global scale and a technology mechanism, which will become fully operational in 2012.

The adaptation committee, which consists of 16 members, will report to future COP discussions on its efforts to improve the coordination of adaptation actions at a global scale. The 16 members who shal serve in their personal capacity will consist of people all over the world. Two members were chosen from each of the five united nations regional groups. One member comes from a small island developing state. Another

De Boer is of the opinion that the deadlines for approval and implementation of the agreement have been settled, but its exact nature remains open to interpretation. “The new working group has a crucial role to play in building on the solid advances that emerged from the conference.

We need clarity on the legal nature of the outcome and the targets that will be involved for the various parties.”

The agreements made at COP17, now referred to as the Durban Platform, is the foundation upon which the legal deal will be developed. To achieve rapid clarity, parties that committed to the second period will turn their economy-wide targets into quantified emission limitation or reduction objectives and submit them for review by 1 May this year.

This will be measured using an advanced framework for the reporting of emission reductions for both developed and developing countries.

The framework takes into consideration the common but differentiated responsibilities of different countries.

“In simple terms, the Kyoto Protocol has been given a second lease of life and will now operate within the context of a broader approach to tackling climate change that will, for the first time, include all the major emitters. This is a crucial point which will impact many of the largest business operators around the world and many smaller, further down the supply chain. “But more importantly, there is a commitment to a new legal, global instrument to be approved by 2015 and planned to take effect by 2020.As a result, an international agreement for global action on climate change is within our reach and should therefore be considered within every forward looking business strategy,” said De Boer.

member is from a least developed country party. The committee also consists of two members from parties included in Annex 1 to the convention and another two members is from parties not included in Annex 1 to the convention.

The aim of the committee is to improve the adaptive capacities of the most vulnerable countries. National adaptation plans will allow developing countries to assess and reduce their vulnerability to climate change.

Ultimately the most vulnerable will receive better protection against loss and damage caused by extreme weather events.

Another key decision that will be realised this year is the implementation of the Technology Mechanism, which will be fully up and running in 2012.

A climate technology centre and network are sure to see the light of day, along with a clear procedure to select the host. The UNFCCC secretariat issued a call for proposals for hosts on 16 January 2012.

“I salute the countries that made this agreement. They have all laid aside some cherished objectives of their own to meet a common purpose that will lead to a long-term solution to climate change,” said Figueres.

Durban package deal Various other key decisions were also made during the conference that all form part of a compact Durban package deal. This includes the implementation of the Vol 7 NR 1 2012

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money. “This approach could see public-private partnerships in developing nations acting as vehicles for sustainable growth,” he explains. “Such initiatives would have the potential to build green industries, create jobs, alleviate poverty and improve infrastructure, as well as tackle climate change.” He believes that if the private sector is going to invest at scale, a robust and internationally accepted framework for evaluating achievement must be implemented.

Countries have already started to pledge to contribute to the start-up costs of the fund. This opens the doors for developing countries to get ready to access the money. A standing committee will keep an overview of climate finance in the context of the UNFCCC and will assist the Conference of the Parties. It will comprise 20 members, represented equally between the developed and developing world.

De Boer says that with a new breath of life into the Kyoto Protocol the business sector can have confidence that market-based mechanisms such as the Clean Development Mechanism (CDM) will continue.

Governments also agreed on a registry to record developing country mitigation actions that seek financial aid and to match these with support.

The registry will be a flexible, dynamic, web-based platform.

Green finance takes off Another success story that played out in the negotiating rooms is the establishment of the Green Climate Fund. Molewa said a detailed design of the fund was agreed upon that Trevor Manuel, Minister of the Presidency for the National Planning Commission, successfully steered through a year of difficult negotiations. “The design of the fund includes innovative mechanisms for bringing private sector and market mechanisms into play, which will increase the potential flow of funding into climate change responses,” Molewa said.

According to De Boer, Durban saw confirmation that the Fund will have a facility to fund private sector initiatives. This means it will actively seek to promote business involvement and catalyze further public and private

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The green economy market will be further boosted by the adoption of procedures to allow carbon-capture and storage projects into the Clean Development Mechanism under the Kyoto Protocol. The agreement also requires industrialised countries to accept long-term liability for such projects, with 5% of the carbon credits being set aside to account for any leakage of stored greenhouse gases in the 20 years after they are buried. These guidelines will be reviewed every five years to ensure environmental integrity.

Governments agreed to develop a new market-based mechanism to assist developed countries in meeting part of their targets or commitments under the convention. Details of this will be taken forward in 2012.

Countries battle it out The Kyoto Protocol will live to see another day, but it was not achieved without any hiccups. During several days of the conference tensions were

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high and delegates as well as civilians protested furiously in and outside the fences of the conference, bolting fists and showing their distrust in governments that at the time seemed to want to opt out of the deal. In the last week of COP17 it seemed as if the protocol would wither away between negotiations, but in the last sprint to the end it was revived again.

Meeting each other on a mutual playfield was not easy as countries had to battle it out to make sure that their economic objectives and growth prospects stay protected.

Countries such as Venezuela protested against the proposed deal early on. They defended their viewpoint by adding that rich countries refused to cut their emissions, but expect poor countries to sacrifice economic development to make carbon cuts. In the early stages of the negotiations Brazil and South Africa was willing to commit to the protocol under a new treaty.

The race against time As the sand from an hourglass slowly but surely sets a time limit, the earth’s rising temperatures sets a deadline for taking action against global warming. Talks at COP17 were set against this backdrop as the stated goal of the discussions was to limit global warming to 2°C. The latest analysis from climate scientists sketches rather a different picture, showing that the world is on course to see 3,5°C of warming in this century. According to the website www. climateactiontracker.org, this temperature rise will likely cause extremely severe weather impacts.

The website warned that catching up on postponed action against this will be increasingly costly. “The costs for adaptation and the residual damages from climate change will increase rapidly with warming,” the website states. A warming over 3°C could bring the world close to several potential global-scale tipping points, such as: • Possible dieback of the Amazon rainforest.

• Coral reefs being irreversibly replaced by algae and sea grass.

• Irreversible loss of the Greenland ice sheets of many centuries to thousands of years.

• Risk of release of methane hydrates in ocean floor sediments further adding to the warming.

• Permafrost thawing due to fast rising arctic temperatures.

The Centre for American Progress has shown that while these voluntary reductions are to be praised, it is not sufficient to meet a 2020 target consistent with stopping the 2°C temperature rise.

At the end of the conference Molewa re-iterated this problem. “We recognise that the ambition and scope of current commitments are inadequate.”

She explained that even if the most ambitious current emissions targets are met, emissions will exceed what science requires by an estimated 5 Gigaton (Gt) of CO2 equivalent emissions, according to the UN Environment Programme’s Emissions Gap Report.

Resistance to the second commitment period was mainly from the United States, China and Canada, but the main holdout in the end came from India. At the time they firmly stated that they will not be intimated and that these climate change negotiations were not done on an equal playfield. In the end India agreed to an agreed outcome with legal backing.

The European Union’s conditions for the Kyoto Protocol to continue were steep. They bargained with their commitment to treaty by expecting all the countries, especially the large greenhouse gas emitters like China, the United Nations and India, to start walking the talk by initiating a roadmap to create a legally binding deal in the next decade. This pulled everyone together to earnestly consider the future of the protocol and the conditions on which it will continue. These discussions led to the decision that was made in the end. Continues on page 18.

“We need to figure out what the best possible way forward is to overcome this gap, recognising that it is more than just an ambition gap. It is also an implementation gap, a financial and technology gap, a capacity gap and a legal gap,” she says.

Politicians, experts, scientists, civil groups and leaders will all have to wait for the final stamp of approval on the Kyoto Protocol, to be battled out in the next COP. This major UNFCCC Climate Change Conference, COP18, is scheduled to take place from 26 November to 7 December 2012 in Qatar, in close cooperation with the Republic of Korea.

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Two days after the talks were scheduled to conclude, countries finally agreed upon a process to develop a protocol, another legal instrument or an agreed outcome with legal force under the UNFCCC applicable to all parties. The process will commence during this year and will continue until 2015. It will only come into effect after 2020.

The deal commits the world to negotiating a new climate treaty by 2015.

This treaty would legally require all nations, including the two biggest emitters, China and the United States, to meet as-yet-unspecified emissions targets.

The European Union (EU) has already promised to register its existing emissions pledges under the extended protocol, as have a handful of other countries. Canada, however, has been unable to meet its Kyoto commitments, and announced on 12 December that it would formally withdraw from the protocol.

According to De Boer, the third phase of the EU Emissions Trading Scheme runs from 2013 to 2020, which may influence how long the new protocol period lasts, not least since the commitment of Russia, Japan and Canada before the meeting not to sign up to a second commitment period remains in force.

Was it a success?

Although the decisions made at the conference are hailed as historic and seen as real progress towards combating climate change, some civil society groups believe the deadlines to offset the legal deal set in 2020 only delays finding real solutions to the problem. “Delaying real action until

2020 is a crime of global proportions,” said Nnimmo Bassey, chairperson of Friends of the Earth International.

According to the Climate Justice Movement’s website, millions of people already suffer under the impacts of climate change. This civil group is a network of organisations and movements from across the globe that is committed to the fight for social, ecological and gender justice. The group is of the opinion that two COPs have been held after Copenhagen proclaiming “success” to save the process, but countries are running out of time to actually save the lives of and protect the environment.

Samantha Smith, leader of the WWF’s global climate and energy initiative, said the job of governments is to protect their people. “They failed to do that in Durban. Science tells us that we need to act right now because the extreme weather, droughts and heat waves caused by climate change will get worse.”

Island states threatened by rising seas, such as Grenada and Papua New Guinea, had hoped for more immediate steps. Kevin Conrad, the representative for Papua New Guinea in the negotiations, believes this is because the conference took place against the background of global economic challenges. “We need to start somewhere and then begin a process to ramp things up,” says Conrad.

De Boer says discussions on the 2015 legal agreement will take place against the background of a new assessment by the scientific community to be published in 2014. “Slowly but surely, like it or not, the world is moving forward on climate change, with business now able to seriously calculate the implications of a low carbon economy.”

Full thanks and acknowledgement are given to KPMG, the UNFCCC and the Department of Environmental Affairs for the information given to write this article.

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Calculating your

carbon footprint An emerging green economy is on South Africa’s front porch as negotiations at COP17 opened the doors for markets to explore it properly. With businesses more aware of the mark they leave on the environment and new rules and regulations like carbon tax on the horizon, a need to calculate credible carbon footprints for organisations becomes essential.

25º in Africa focuses on carbon consulting in this article, exploring the various ways in which experts in the field of carbon can point businesses in the right direction.

Getting it right the first time The main pitfall in calculating a credible carbon footprint is to do it right the first time. Harmke Immink, director and carbon advisor at Promethium, says it is essential that a company does its homework and chooses a credible person or consulting firm to calculate its carbon footprint.

She says the credibility of a carbon footprint becomes even more important when a company wants to participate in projects such as the Carbon Disclosure Project or go public with the information when using it in a marketing campaign.

“A business’s reputation will be damaged when they publish their carbon footprint without verifying it first, and it turns out to be wrong.”

Jonathan Curren, managing director for South Africa at Camco, a global carbon-consulting firm, says a company should choose a carbon consultant based on the person or consulting firm’s track record. “Make sure you use a professional who has relevant experience and knows the specific industry your business is in,” he says.

Curren says one of the biggest challenges in determining a credible carbon footprint is to have access to quality data about the direct and indirect processes of a business and the specific industry it functions in. “It is important to have access to the correct data from the beginning, as this would have a crucial impact on the outcomes of a carbon footprint.”

He says a competent carbon consultant has to research an industry he works in, fully understanding all the factors at play. “There is research available from various sectors like the manufacturing of glass, aluminium and plastics to provide a foundation on which a consultant can build on.”

Skills shortage Finding a carbon consultant with enough experience and who knows the local market may not be that easy. The list of experts in this field in the

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country is relatively short, as this is still a market in its infant phase, trying to find its feet. Immink believes that as awareness of the importance of getting a carbon footprint increases in the business sector, so will the opportunities to create new green jobs in the market.

She says that in South Africa only a handfull of carbon consultants have more than five year experience in climate change and carbon management but increasingly carbon consultants enter the market either from a environmental auditing, energy-efficiency or the sustainability business background. New entries see opportunities for growth and assist in creating awareness on carbon footrpinting throughout the economy.

Internal versus external Curren says a custom-made package of skills is necessary to meet the needs of individual companies when looking at carbon consulting.

“When appointing a consulting team, you will have a diversified skills set that could tackle the issue from various angles,” he says. But this is not always possible as a growing business does not have the capital to invest in this area. “This is when it could suit a company to hire or train one person in the company who should focus on this.”

The debate whether it would be better to train a person in-house on carbon consulting or outsource these services comes with the territory. “In a growing market that is ripe with opportunities but also pitfalls, this is a valid question,” says Immink. “One has to make sure you use a person or consulting firm that is an expert in the carbon market and knows the specific industry your business functions in.”

According to Immink, the person who is responsible for the carbon footprint should know the industry, inside and out, to avoid mistakes in calculating industry-specific carbon emissions. She says a carbon consultant needs to be competent enough to ask the right questions in order not to miss crucial information in the industry that could have a huge effect on the outcome of a carbon footprint. “A carbon consultant need to use the standards, such as ISO 14064 and then custom-design a framework for each project, within the industry guidelines for carbon footprint reporting..”

Immink further explains that it is easier to approach such a project in the beginning with the help of an expert. “I would advise companies to start this journey with a carbon-consulting firm for the first two years, just to make sure that the basic foundation is laid correctly.”

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Carbon credibility With the new carbon tax to be implemented soon, calculating a credible, verified carbon footprint is not a “nice to have” anymore. “It becomes a necessity to understand your carbon footprint and be able to manage it, this is the key to survival in the low carbon economy,” says Immink.

Measurement and disclosure is a key first step for a company to take on the path from data collection to carbon management and reduction.

Third party verification and assurance of climate data forms a key next step in advancing a company along this path. Climate change issues are increasingly incorporated into day to day business decisions, driving the need for transparency.

Immink says the South African national accreditation services (SANAS) is implementing a programme to provide accreditation to carbon auditors under ISO 14065. “There is an increasing demand for robust, complete and comparable data.”

Going green all the way Robbie Louw, also a director at Promethium, believes the South African business sector is on the right track in changing their approach on climate change. “By looking at the number of businesses who participated in the 2011 Carbon Disclosure Project, I am positive that South African businesses are stepping up to the plate.”

He says that going green is not just about getting a carbon footprint on the table. “It takes up a central position in all the decisions made at a company.” According to Louw, the risks involved in ignoring this are greater than tackling the bull by the horns. “Companies that refuse to recognise their responsibility towards the environment can even loose market value and investors will be less likely to invest in the company.”

He believes that now is the time for the business sector to become leaders in their industries and see this transformation as an opportunity to change their image, save money and to define themselves as market leaders.

Full acknowledgement and thanks are given to Promethium Carbon and Camco for the information given to write this article.

Promethium Carbon Tel: +27 861 227 266 Fax: +27 86 589 3466 E-mail: harmke@promethium.co.za Website: www.promethium.co.za Camco South Africa Tel: +27 11 253 3400 E-mail: jonathan.curren@camcoglobal.com Website: www.camcoglobal.com

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Companies can cash in on programmatic

CDM project

A brand new Standard Bank initiative will make it cost-effective and simpler for organisations who want to become energy-efficient.

The initiative enables companies to save up to 25% on their electricity bills while also generating new revenue through the sale of the carbon credits that accrue to the project.

“Our Corporate Energy-Efficient Lighting Open Access Carbon Project is a case in point. It saves big organisations the trouble and cost of each individually registering an energy-efficiency lighting Clean Development Mechanism (CDM) project. They simply plug into ours. In many cases, Eskom will assist with upfront funding for the retrofit of lighting, which reduces costs significantly. Organisations can slash their electricity costs and generate revenue from reducing their carbon footprint,” says Standard Bank’s head of carbon trading, Geoff Sinclair.

Standard Bank’s carbon trading division registered a number of CDM programmatic projects with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto Protocol. The protocol allows industrialised countries to invest in projects that reduce greenhouse gas emissions in developing countries. This enables industrialised nations to sponsor a net global reduction in carbon emissions at a lower overall economic cost for themselves.

The CDM is intended to promote low carbon development in emerging economies using environmentally-friendly energy and greater energyefficiency. All projects that qualify under the mechanism can earn saleable certified emission reduction (CER) credits, each equivalent to one ton of CO2, which can be counted towards meeting Kyoto targets.

While CDM initiatives focus on single implementations of energy-efficient or renewable energy technologies, “programmatic” CDM allows for the registration of a programme of activities that is then audited

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for carbon credits on a statistical sampling basis.

“This is particularly suited to Africa, given that many sustainable development project opportunities in sub-Saharan Africa consist of mass application of ‘micro’ technologies,” says Sinclair.

“It is also an extremely useful way of setting up a campaign through which a range of different corporations can be encouraged to retrofit their organisations with, say, energy-efficient lights or refrigeration in order to participate in the financial benefits of the sale of the resulting carbon credits.”

The CDM executive board issues carbon credits only once a carbonreducing activity is completed. Sinclair says that if organisations use Standard Bank’s programmatic CDM project, they can start generating revenue from the initiative’s carbon credits much sooner. This saves companies from having to wait, often for years, for the carbon credits to accrue to their own particular implementation.

“In doing so, the project also eliminates the production of several million tons of CO2 annually. It helps South Africa to meet its carbon reduction commitments and of course makes the planet a cleaner place to live.”

Sinclair says one South African organisation expects to save 40 000 tons a year through the lighting initiative and 25 000 tons through the refrigeration programme.

“Once organisations see the numbers related to what they save in electricity costs, as well as the revenue they can generate from carbon credits, they will understand just how compelling the business case is for becoming energy-efficient.”

Full acknowledgement and thanks are given to Standard Bank for the information given to write this article.

TH E G R EEN EC O N O MY

Carbon credit project alleviates poverty in

Nic Frances

A project in Mexico to reduce the impact of poverty through the distribution of energy-efficient light bulbs to 12-million of the poorest homes has secured carbon finance through the signing of a royalty agreement between Cool nrg and the Mexican government.

Cool nrg, a global leader in energy-efficiency projects, is undertaking the distribution of the bulbs and is generating carbon credits from the resulting energy savings. Standard Bank announced the completion of a major funding deal for Cool nrg late last year and has been working in close partnership with them to help to deliver the royalty agreement.

The agreement provides for Cool nrg to pay royalties for the rights to carbon credits, which have been pre-sold to generate revenues. The royalties will help the Mexican government to fund the cost of the light bulbs. The deal covers up to 45-million light bulbs, making it the world’s single largest energy-efficient lighting project.

Cool nrg is the only company in the world that has been successful in using the carbon credits generated through mass energy-efficient lighting projects to reduce energy poverty. “The success of the project is especially gratifying because using energy-efficiency projects to generate carbon credits is a complex and highly specialised process,” says Geoff Sinclair, head of Standard Bank’s carbon trading division.

He says the Clean Development Mechanism’s executive board (CDM EB) of the United Nations Framework Convention on Climate Change (UNFCCC), under the Kyoto Protocol, applies extremely stringent criteria to the registration of a project for carbon credits and for the results of a programmatic CDM to be monitored on an annual basis in order to get the credits to flow.

According to Sinclair, energy-efficient light bulbs that vary even slightly from the required specifications, for instance, disqualify a project from carbon credits. “Also, in order to release the credits over time, the CDM EB needs details such as the number of people actually using the light bulbs and for how many hours a day.” He says this sort of monitoring and reporting across millions of homes over periods of as long as 15 years takes a high order of skills and considerable planning.

Mexico

Sinclair says that simply rolling out millions of light bulbs to the correct homes and then getting people to actually use them is enormously difficult. “Cool nrg is the only company to have undertaken such projects successfully. This is why Standard Bank is committed to helping them set up a business in Africa,” says Sinclair.

Nic Frances, chief executive officer of Cool nrg, says his company’s interest in energy-efficiency is focused on reducing energy poverty. “For many, the reason for energy-efficiency is environmental, in terms of the reduction of carbon emissions and, therefore, the mitigation of climate change.” He says that for them climate change means the dwarfing of current levels of poverty on the planet. “Adding just a few inches to sea levels would see billions of people homeless. This is why we are motivated to use energy-efficiency to both prevent this sort of scenario and also to reduce energy poverty in its current state.”

Frances explains that energy consumes some 50% of the disposable income of very poor people. “If they have access to energy, they tend to use it first for lighting.” He believes that if one can provide them with energyefficient lighting, it puts money back in their pockets while reducing carbon emissions and helping suppliers to more easily meet the growing demands for energy.

He says they are working with Standard Bank at the moment to provide fully rounded African initiatives. “Standard Bank provides the carbon credit trading and brokering and we provide the strategy, planning, delivery, monitoring and reporting.” Cool nrg has begun work on the continent, with an energy-efficient lighting roll-out for Kenya Power.

According to Frances, they put out one or two of their own technical people on the ground for each project. “We then aim to empower local people and organisations to run with the details for the project.” He concludes that as long as the strategy for the project is clear upfront, the reduction of energy poverty is as much about giving people control over their own environments as it is about wealth generated in sophisticated financial markets.

Full acknowledgement and thanks are given to Standard Bank for the information given to write this article.

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Despite progress, climate change remains a challenge for top SA companies Nearly 95% of the JSE’s largest companies have some kind of climate change policy for addressing the climate change impacts associated with their activities, but scope for improvement on long-term strategies and adaptation plans remains a key issue. This is according to a report that investigated to what extent South Africa’s leading companies are tackling climate change.

The JSE commissioned EIRIS, a global responsible investment research provider, to explore corporate responses to climate change amongst the companies on the FTSE/JSE Top 40 Index – the largest 40 companies by market capitalisation listed on the JSE. EIRIS classified the 40 companies into twenty sectors according to their business activity and a range of climate change response indicators were then used to assess how well each company is responding to climate change.

While the analysis was conducted in September 2011, the findings of the report were released together with the Socially Responsible Investment (SRI) Index’s results in December as delegates from around the world gathered in Durban for the COP17 climate talks.

How are South African companies responding to climate change?

As shown in the chart, nearly 38% of companies on the FTSE/JSE Top 40 assessed by EIRIS have met “all core and most desirable” criteria.

A further 35% of companies met “all core” criteria. This means that both groups of companies, 73% in total, are significantly addressing the climate change risks they face. Whilst this is encouraging, it means that 27% of

40% 35%

the FTSE/JSE Top 40 must still get to grips with the climate change risks they face. The report also indicated that some of the FTSE/JSE Top 40 companies have made further investments in technological improvements in order to reduce their climate change impacts.

A total of 95% of the companies published commitments on climate change and have senior staff responsible for the issue. Many companies identified the move towards a tighter regulatory framework as a driver for their policies.

However, many still fail to take on extra initiatives they need to fully tackle the issue. In total, 58% of companies have disclosed greenhouse gas (GHG) emissions data over the past two years, but only 30% of these companies have achieved a noteworthy reduction in the operational GHG emissions over this period. The rest either did not disclose emissions data or failed to achieve reductions. The report contributed it to a lack of previous initiatives or legislation to encourage accurate and detailed disclosure amongst South African companies.

The JSE top 40 climate change report also stated that 60% of companies have set short-term GHG emissions targets, but only 23% have long-term targets, an issue that leaves considerable room for improvement. Many of the companies located in high climate change impact sectors such as mining do not have short-term targets in place. For example, only 25% of companies in the mining sector have short-term targets on climate change and only 22% have long-term targets in place.

Only 35% of companies linked performance on climate change to executive remuneration. Creating a link between executive pay and climate change risk management would move companies closer to the post-credit crunch consensus that executive pay should be more closely aligned with company performance.

On a positive note the mining and banks sectors, two of the largest sectors amongst the FTSE/JSE Top 40, demonstrated a high-quality response to climate change in general. Together, these two sectors constitute 38% of the sample.

30% 25% 20% 15% 10%

5%

0%

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Some

No evidence off

The mining sector had a high level of response with 90% of mining companies meeting the requirements to achieve either an “all core” or “all core and most desirable” assessment in EIRIS’ research methodology. All the companies in the JSE mining sector displayed at least some form of response to climate change. This may be because the entire mining process produces a significant amount of emissions. Coal mining produces methane, the most potent of greenhouse gases, much of which is

TH E G R EEN EC O N O MY

released from the coal seam during the mining process. Methane accounts for 10% of the total GHG emissions which arise from human activity.

This places more pressure on the mining sector to address the issue of climate change.

Additionally, the banking sector also showed a high level of response to managing these climate change impacts arising from office-based activities. All companies in this sector either achieved a score of “all core” or “all core with most desirable elements” within the analysis.

Progress being made, but more is needed “It is great to see South African companies making progress, but they must do more to both reduce their own impacts and plan for how they will operate in a world that has been altered by climate change. Linking remuneration to climate change mitigation targets, establishing long-term GHG emissions reduction targets and quantifying climate change risks are some of the areas where there is the biggest scope for improvement amongst JSE companies,” said Valeh Tehranchi, a research analyst at EIRIS and report author.

EIRIS’s analysis revealed positive signs of progress through improved governance, better strategies and more disclosure on climate change amongst the companies. At a global level there has been some improvement in the quality of disclosure and the improvement has been driven by engagement via institutional investors and also through other initiatives such as the Carbon Disclosure Project.

The report suggested that SA companies should expand their management of climate change risks beyond climate change mitigation so that it would include adaptation strategies. Companies should also consider the climate change impacts arising from their supply chains.

Overall the country’s companies are responding to climate change risks, but many are failing to take on the extra initiatives they need to fully tackle the issues. This could potentially damage their reputation and profitability.

“As climate change becomes a clearer reputational risk, companies have an opportunity to position themselves ahead of the curve,” wrote Tehranchi. “Early adopters of cleaner technologies have the chance to reap the benefits of a better reputation and lower risk of falling foul of financial instruments to regulate climate change.”

The report also stated that investors need to understand the climate change risks which exist within their portfolios. Investors must opt to include best-practice companies in their portfolios and ensure they are well positioned to benefit from the investment opportunities which climate change presents.

Corli le Roux, legal counsel and head of the SRI Index at the JSE, said: “We are truly encouraged by the commitments we are seeing from our companies. Plenty of scope remains for engagement, as failure to address climate change could damage reputations and profitability as investors and key stakeholders demand more responsibility from companies towards climate change. We look forward to continuing this journey towards achieving the change which may impact the very survival of our species and the planet.”

Best practice case studies: AngloGold Ashanti AngloGold Ashanti, a gold exploration, operations and marketing company, demonstrated a strong performance on climate change governance and strategy.

The company has a board committee for safety, health and sustainable development, as well as an executive vice-president for business sustainability.

The company is a signatory to the 2005 Energy-Efficiency Accord in South Africa, the Energy-Efficiency Opportunities Programme in Australia and is a member of the International Council on Mining and Metals, which has a policy and has published principles on climate change.

The company has also signed the Copenhagen and Cancun Communiqués on Climate Change. It actively engages with the government and has broad policies in place designed to deliver emissions reductions. Furthermore, the company has remuneration targets in place linked to climate change.

Massmart Massmart is a general retailer that demonstrated best-practice disclosure on climate change. The company reports both absolute and normalised emissions for scope 1, 2 and 3. Following the launch of King III, the company appointed an independent organisation to verify its sustainability reports. The company also reported against its targets and achieved a reduction in emissions of 2,65% between 2009 and 2010.

Santam Santam, a short-term insurance company specialising in the corporate, commercial and personal markets, has demonstrated leadership on working with stakeholders on public policy. As part of ClimateWise, the company has made a commitment to engaging with stakeholders on climate change policy development. The company has also participated in UNEP FI initiatives. In 2011 the company engaged with the National Business Initiative and the Department of Energy in South Africa. The company’s carbon footprint has been independently assessed and verified.

Furthermore, the company has achieved an annual decrease of 9,34% in operational GHG emissions over the last two years.

Full acknowledgement and thanks are given to the JSE and EIRIS for the information used in this article.

JSE Limited Tel: +27 11 520 7000 E-mail: sri@jse.co.za Website: www.jse.co.za Vol 7 NR 1 2012

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Report shows

this time. There is a need for everyone who considers themselves as responsible global citizens to make the necessary changes towards a more sustainable existence in order to safeguard the future of both our species and the planet.”

The SRI Index comprised listed companies which meet criteria related to their environmental, social and governance (ESG) policies, management practices and reporting. The index’s intention is two-fold: to encourage companies to operate responsibly and transparently while it encourages institutions to consider ESG factors when evaluating potential investments.

Following its inception in 2004, the SRI Index has become a benchmark for broad-based environmental, social and governance practice amongst local listed companies.

SA listed companies

are tackling climate change

“We remain impressed with how willing companies are to seriously engage on issues. The increasing depth of discussion and extent of company responses supplied affirm that companies now see ESG principles very much as a part of normal business practice. This viewpoint is reflected in this year’s SRI Index composition,” said Corli le Roux, head of the JSE SRI Index.

Two thirds of JSE-listed companies accomplished the base requirements to become a constituent of the exchange’s Socially Responsible Investment (SRI) Index. The index also illustrated that these companies continued their strong performance on social and governance issues, but that they could do more on environmental practices.

The SRI Index review assessed 109 companies, of which nine for the first time. Of the companies reviewed, 83 submitted detailed profiles and responses and the response rate was particularly high if measured in local and global terms. A satisfying 67,9% of the total assessed companies qualified for the SRI Index with a resulting index constituency of 74 companies, of which three were included in the index for the first time. * Best performers are companies that meet the thresholds for best performance in relation to environment and climate change, as well as all relevant core indicators in relation to both society and governance and related sustainability concerns, including an independent chairperson.

The exchange released the findings of the 2011 annual SRI Index review, which reviewed 109 companies, including the JSE’s Top 40, in Durban parallel to the COP17 climate change talks in December. The review encourages integrated risk management among companies and prompts investors to use responsible investment strategies. EIRIS, a global investment research provider, partnered with the University of Stellenbosch’s Business School to do the review.

The SRI Index’s best performers for five years running in alphabetical order were the Absa Group, Anglo American, Anglo Gold Ashanti, Goldfields, Merafe Resources and the Standard Bank Group.

The JSE’s director of government and international relations, Geoff Rothschild, commented at the event: “The JSE recognises climate change as being one of the most major sustainability challenges facing us at

With consistent strong performance in relation to social and governance issues, environmental practices remain a hurdle for companies, despite demonstrating improvement in this year’s review. The higher climate change entry threshold for 2011 also proved to be a challenge.

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80

The mining and banking sector continued to perform well, and this year all companies in the sectors for construction and materials, general financial, industrial metals and life insurance qualified.

Number of companies

70 60 50

Top 40

40

Mid Cap Small Cap

30

Total

20 10 0

2004/5

2005/6

2006/7

2008

Year of index review

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2009

2010

2011

Dovetailing off these results, the JSE commissioned a study into the extent to which leading South African companies are tackling climate change. The research focused on the top 40 South African companies listed on the JSE SRI Index.

The analysis reveals encouraging signs of progress through improved governance, better strategies and more disclosure on climate change. Overall, 95% of the companies analysed demonstrate at least some form

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Sectoral composition of the jse sri index 2011 Mining 19%

27%

Banks Food Producers 7%

2% 7% 4%

4% 4%

7%

7%

7%

Industrial Metals Life Insurance Construction & Materials

5%

General Retailers

2011 SRI Index best performers* (in alphabetical order by environmental impact)

High impact

Medium impact

Low impact

Anglo American plc

Barloworld Limited

Absa Group

AngloGold Ashanti

Massmart Holdings Limited

The Bidvest Group Limited

ArcelorMittal South Africa

Steinhoff International Holdings

Old Mutual

Exxaro Resources

Santam

Gold Fields Limited

Standard Bank Group

Impala Platinum Holdings

Vodacom Group Limited

Kumba Iron Ore Lonmin plc Merafe Resources Mondi Pretoria Portland Cement Company Limited Sappi Limited Woolworths Holdings

of response to climate change. But only 30% of the companies analysed have demonstrated reductions in their operational greenhouse gas emissions over the past few years.

and investment in companies. Through the evolution of the SRI Index the JSE aims to continue to identify opportunities to encourage transparency and responsibility in relation to ESG concerns.”

Le Roux says: “The JSE’s top 40 companies have certainly made some progress on climate change to date. However, much more still needs to be done to reduce their own climate change impacts and to better plan for how they will operate in a world that has been altered by climate change.

The JSE, a central player in the local economy, sees itself as influencer and regulator of listed companies. Its sustainability activities include company regulation. The listings requirements include a requirement to apply King III or explain where this has not occurred, and investment tools such as the SRI Index and customised products. The JSE also advocates sustainability advocacy with a growing focus on internal sustainability.

“From the JSE’s perspective, the priority for the SRI Index in 2011 has been strengthening investor relationships, particularly with fellow signatories of the principles for responsible investment (PRI). Going forward, our focus will be to expand the availability of analysis on company performance from the SRI Index process, an area which has been highlighted as a need for investors to strengthen their engagement with

JSE Limited Tel: +27 11 520 7000 E-mail: info@jse.co.za Website: www.jse.co.za

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mining group

business unit, identifies risks and opportunities, shares knowledge and develops the best practices in executing energy-efficiency projects. Exxaro is also addressing energy-efficiency in production design. Examples of these can be found at the group’s new coal operations in the Limpopo province and in the low energy-use houses built by the company for its employees at these operations. The energy and carbon management framework has also seen the company’s general risk register being updated to take account of climate change risks.

in CDP report

Exxaro participates in the energy debate at a local, national and international level through membership of a variety of industry and global institutions. The group has also identified opportunities in strategic minerals such as titanium and copper. These strategic minerals are essential in the transition to a low-carbon economy.

shines

Exxaro, one of South Africa’s biggest diversified resources companies with a portfolio which includes coal, mineral sands and iron ore, is seizing the opportunities that climate change is presenting to them. This is evident in the mining group’s year-on-year improvement on its ranking in the annual Carbon Disclosure Project (CDP) results announced in December.

The CDP report ranked the JSE top 100 companies on two levels. A Carbon Disclosure Leadership Index (CDLI) judges companies on the levels of transparency and quality of disclosure of their greenhouse gas (GHG) emissions. A Carbon Performance Leadership Index (CPLI) ranks the companies in terms of their emissions reduction targets and progress in achieving these set targets. Exxaro scored 94% in the latest CDLI, giving it a third position behind Goldfields and Nedbank. This was a 7% improvement from the 2010 CDP report – the company then scored 87% and held a joint fourth position on the rankings.

On the CPLI, Exxaro received a carbon performance score of an A- and is just behind the index leaders, British American Tobacco and Goldfields. In 2010 the company received a B. Besides Goldfields, Exxaro was the only other company from the energy and materials sector included in CPLI. “This is fantastic recognition for all our efforts to reduce emissions and address climate change,” said the thrilled executive general manager for business growth, Ernst Venter.

According to Venter, the mining group recognised in 2007 that it had to deal with energy in its broadest context in order to remain competitive and sustainable for the benefit of all the companies’ stakeholders. “We have been working hard to address three key issues in today’s environment.

The first issue is energy security, which means we have to ensure security of supply and have a reliable energy supply source. The second issue is economic productivity, which addresses growth in demand and price volatility. The last issue is environmental impact, which focuses on climate change, land and water use and carbon emissions.”

Exxaro has used a multi-faceted approach to deal with these challenges.

The company formed a clean energy forum in 2007. This led to the formation of the energy and carbon management framework in 2008 and a climate change position statement was finalised in 2010. The mining group is also devising a climate change response strategy.

An energy-efficiency forum, consisting of representatives from each

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In 2009 the mining group formed an energy company. Exxaro intends not only to generate power for Exxaro but also to supply electricity into the national grid, via a mix of renewable and cleaner energy sources in its road to carbon neautrality strategy.

Renewable energy “We are currently in a pre-feasibility phase for a 40MW wind farm at Brandse Baai in the Western Cape and are partnering with a local comminity in Tsitsikamma to develop a 93MW wind farm”. Exxaro is also planning to develop a 30MW solar PV power plant in Limpopo.

Cleaner fossil fuels The development of the first five-spot test for the coal-bed methane project in Botswana, with the aim of testing for economic gas flow, is progressing well. Besides the development of stand alone electricity generation projects, Exxaro is also developing co-generation projects at its Namakwa Sands and Grootegeluk business units which are located in the Western Cape and Limpopo provinces. Once operational, these projects will dramatically reduce Exxaro’s Scope 1 emmissions.

Exxaro intends to reduce its Scope 2 emissions by developing a biofuels project in Mpumalanga. This project is aimed at generating biodiesel for the group’s own use, which will not only reduce the company’s carbon footprint but also mitigate exposure to rising fossil fuel derived fuel costs.

Exxaro is also actively pursuing Clean Development Mechanism (CDM) status. The company is proceeding with project validation and eventual certified emission reduction (CER) registration with the UNFCCC for a number of its clean energy projects.

“Our participation in the CDP has been a great opportunity to introduce processes to measure the company’s carbon emissions,” said Venter.

“It provides valuable insight into the company’s overall emissions performance and allows for clear target setting.”

For more information on Exxaro’s energy and carbon management programme contact Willem van der Merwe.

Exxaro Tel: +27 12 307 5000 Fax: +27 12 323 3400 E-mail: Willem.VanDerMerwe@exxaro.com Website: www.exxaro.com

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b io-ener g y

Bringing sustainability to struggling industries

The sugar industry across Southern Africa is increasingly facing an uphill struggle against volatile market prices, decreasing demand and rising input costs. These challenges have meant that the industry needs to explore complementary revenue streams to supplement its profit margins.

feasibility study which would investigate methods of boosting economic development in Mpumalanga’s Nkomazi district through renewable energy projects.

This €400 000 nine-month project, which is partially funded by the governments of Finland and Austria and hosted by the Development Bank of Southern Africa, seeks to assist the previously disadvantaged small-scale sugarcane growers to secure their sustainability and increase their profitability through the employment of biomass-to-energy (B2E) interventions.

The project incorporates Aurecon’s Integrated Rural Energy Solution (IRES) initiative and will contribute to local economic development and government’s “electricity for all” undertaking.

Making it work for small-scale growers The IRES initiative is a combination of three tried and tested development models to further the success of rural development. These include converting B2E, cultivating energy crops and building capacity in terms of income creating activities in the rural area.

Engineering, management and specialist technical services group Aurecon focuses on providing sustainable and profitable answers to these challenges.

Aurecon provides sugarcane plantation and mill owners with a viable solution to increase revenue through the conversion of sugarcane residual into tradable consumables. The group focuses on assisting clients to exploit complementary income options that don’t impair their sugar, bagasse or molasses yields.

Knowledge in action The Mpumalanga Cane Growers Association recently contracted Aurecon and the sugar producer TSB Sugar RSA to undertake a

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“Advances in the renewable electricity and heat-generation technologies have delivered new, more versatile and well-priced B2E conversion

plants. Such plants can meet energy loads ranging from 30 W to 140 MW,” comments Jean Bouwer, Aurecon Senior Project Manager.

generated from the sale of the solid and liquid fuels, electricity and the commercial produce.

He goes on to say that a small 2 MW generation plant has the potential to generate more than 100 permanent jobs sustained through the sale of charcoal and bio-oil. The sale of these bio-fuels, in turn, creates countless employment opportunities while giving disadvantaged communities a way to generate income and to create wealth. Together with this, the dependency on natural wood resources as energy sources is lightened because more readily available fuels and electricity are on hand at affordable prices, thus stemming deforestation and land erosion while stimulating economic growth.

Aurecon’s partners in the project are the Mpumalanga Cane Growers Association, the South African Cane Growers Association and TSB Sugar RSA. The company envisages a phased approach to the project, where small-scale growers’ existing operations will be slowly transformed by enabling them to produce solid and liquid fuels for the retail market and electricity for the growers’ own use while growing sugarcane.

“The availability of sufficient quantities of renewable biomass is the key to ensure that the required energy and bio-fuels is produced to sustain the community and realise its development all year round. The introduction of an energy crop that yields both commercial produce such as fruit, grain and sugar, and feedstock creates a win-win solution for the rural community.

“Energy cannot be produced if the crops are not cultivated and the energy crop promotes food security while stimulating economic upliftment through the sale of excess commodities to markets outside the community,” explains Bouwer.

At the same time basic infrastructure such as roads, sanitation and water supply are developed, which underpin socio-economic development and can potentially boost the quality of life for the rural communities.

The provision of these infrastructures is realised through the revenue

Expansion to other regions A positive net profit figure on the project will prove that renewable energy projects can stimulate economic development in a region.

The project will not only secure existing jobs, but will also generate new employment opportunities for the embattled Nkomazi region’s small-scale growers.

Plans are being formulated to replicate this in other sugarcane producing regions in Southern Africa including Swaziland, Mozambique and KwaZulu-Natal. The project is set to rejuvenate the struggling sugar industry and associated communities across Southern and Eastern Africa.

Aurecon Tel: +27 12 427 2000 Fax: +27 86 556 0521 E-mail: energy@aurecongroup.com Website: www.aurecongroup.com

F EAT UR E: CDP

Carbon Disclosure Project (CDP) Report 2011 SA companies lead the way in disclosing emissions South Africa’s top companies are leading the way globally on measuring and disclosing their greenhouse gas (GHG) emissions.

This followed after 83 of the JSE’s top 100 companies responded to the 2011 Carbon Disclosure Project (CDP) report. It was the second-highest response rate among 60 countries in which some 3 700 of the world’s largest corporations were surveyed. The latest CDP report, which was released in December during the world climate change summit in Durban, illustrated significant progress since 2010, when 74 companies responded and SA was ranked with the fourth-highest response rate.

The high response rate, said the CDP report, “suggests that, despite shortterm concerns and the pressures associated with the economic downturn, climate change remains high on the South African corporate agenda”.

The report added that not only has the response rate been “particularly commendable”, but that “there has also been a clear improvement in the quality of the responses across all reported issues and business sectors”.

South Africa closely followed the Europe 300, which had a response rate of 89%. In addition, the statistics highlighted the positive engagement of the South African corporate sector, particularly when compared with leading emerging market countries such as Brazil, Russia, India and the People’s Republic of China (BRICS). The Brazil 80 had a response rate of 67%, the China 100’s response rate was only 11% and the India 200 reached a response rate of 28%.

The South African Minister of Water and Environmental Affairs, Edna Molewa, welcomed the fifth CDP. “It shows business’ commitment to achieving disclosure of their carbon footprint and how they are pro-actively working towards its reduction.

“The various indicators of exponential improvement in not only the response rate, but the improving quality and scope of data, rising levels of strategic importance given to this process and the increasing refinement in the identification of risks and opportunities, are all signs of the progressive significance that companies are attaching to the impacts of climate change.”

Valerie Geen, director of climate and energy at the National Business Initiative (NBI), which is the South African partner of the London-based CDP, stated that the CDP has been one of the main instruments in facilitating a mind shift. “The report promoted awareness among companies of the need to restructure and align themselves with climate change and sustainability imperatives,” said Geen.

The CDP 2011 leaders An underlying objective of the CDP was to review and assess the disclosure and action of companies and sectors against what is seen as

Of the 100 companies that were sampled, 83 answered the questionnaire, seven declined to participate, while 10 companies did not respond in any manner. Of the 83 companies that answered the questionnaire, eight elected to have their response “not public”, as compared with ten last year and 15 in 2009. This continues the trend of increasing transparency rates. Four of the eight were first-time respondents. All the companies that participated last year agreed to partake in the report this year.

The South African sample was limited to companies that are listed on the JSE and did not include large emitters such as Eskom or Transnet, nor did it include potentially large emitters from non-listed private companies.

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The JSE100 Carbon Disclosure Leadership index judges companies on the levels of transparancy and quality of disclosure of their GHG emissions.

FEATU R E: CDP

a best-practice response to the challenges of climate change. The CDP questionnaire focused on three key areas: climate change management, the identification of risks and opportunities, and GHG emissions accounting and performance in reducing them and adapting to climate change.

The CDP ranked companies on two key issues: the nature of the disclosure of their emissions and activities, and the quality of their performance in responding to climate change. A Carbon Disclosure Leadership Index (CDLI) rated companies in terms of the levels of transparency and quality of disclosure of their GHG emissions. A Carbon Performance Leadership Index (CPLI) ranked the companies in terms of their emissions reduction targets and progress in meeting them.

The mining group Gold Fields achieved the highest scores in both indices.

It was closely followed by Nedbank in the CDLI. Together with Sanlam (8th), these companies had the distinction of featuring in the CDLI for the past three years. Nedbank came second with 96 points and Exxaro Resources was third with 94 points.

For this report companies included in the CDLI were a lot more balanced across the different sectors. The more even spread across sectors was an encouraging development as it suggested that all sectors are taking climate change seriously, devoting time and resources to managing data, assessing risks and opportunities and disclosing climate change related information.

To qualify for inclusion in this year’s CPLI, a company had to achieve a GHG emission reduction of at least 2,65% as a result of emissions reduction activities over the last year and must measure, report and verify scope 1, or direct emissions from sources owned or controlled by the company, and

scope 2, or indirect emissions from the consumption of purchased electricity, heat or steam. As a consequence of more stringent CPLI entrance criteria on emissions, reductions and verification, only British American Tobacco and Gold Fields qualified for inclusion in this year’s JSE 100 CPLI. Exxaro Resources, Nedbank and Woolworths Holdings did not meet the CPLI criteria as they did not achieve a 2,65% reduction in carbon emissions.

Pick n Pay Holdings and Remgro did not meet the CPLI criteria as they did not verify their scope 1 and 2 emissions.

The top performers in 2010 were Barloworld, Gold Fields, Nedbank and Woolworths Holdings. However, in 2011 the majority of top performers came from the consumer staples sector. The list of top performers did not include any companies from the IT and telecoms sector, which was disappointing considering the great potential the sector has in providing the market with low carbon products.

The fact that 74 companies received a performance band compared to 59 in 2010 reflects that more companies are responding to the CDP’s information request and that more companies are providing adequate information to assess their performance. The sector with the highest average performance band is the financials sector, followed closely by the materials sector. The health care sector scored the lowest average performance band.

Assessing the performance of the JSE 100 Highly rated for their responsiveness in disclosing their greenhouse gas (GHG) emissions and for voluntarily working to reduce them, SA’s top companies are nevertheless still major contributors to the country’s high total emissions.

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F EAT UR E: CDP

board or executive body with responsibility for climate change.

Reflecting the carbon and energy-intensive nature of SA’s economy, the JSE’s top 100 companies accounted for about 20% of SA’s total annual carbon emissions. The coal-based electricity generator Eskom accounted for another 45% of SA’s emissions. The GHG emissions were estimated at 510-million metric tons, ranking the country among the world’s top 20 highest emitters.

As in the CDP 2010, Sasol was the biggest emitter with 61,2-million metric tons of carbon dioxide equivalent (CO²e), followed by ArcelorMittal South Africa with 11,9-million metric tons.

ArcelorMittal acknowledged that steel making is energy- and emissionsintensive, but because steel products are durable and strong it can help to save energy and hence emissions over the longer term. The company is of the opinion that steel will play a major role in any adaptation measures needed in the future.

Other companies in the top ten emitters list included Pretoria Portland Cement, BHP Billiton, Evraz Highveld Steel and Vanadium, Anglo American, Sappi, Harmony Gold Mining, Mondi Group and Gold Fields.

Woolworths Holdings predicted that consumer demand for products that are more sustainable and produced in an environmentally and socially responsible manner will grow in South Africa over the next two years, as the country recovers from the recession. The company said if they failed to respond appropriately, Woolworths will lose the connection and trust that they would like customers to have with their brand.

Woolworths Holdings predicted that consumer demand for products that are more sustainable and produced in an environmentally and socially responsible manner will grow in South Africa.

Paul Simpson, chief executive officer of the CDP, said managing carbon emissions and protecting the business from climate change impacts is fundamental to achieve sustainable and strong shareholder returns. “Business must continue to forge ahead, innovate and seek out opportunities by doing more with less.”

The JSE stated in the report that even though they do not have a climate change specific policy or committee, they regard climate change as an opportunity to provide both thought leadership - and potentially marketbased solutions.

The JSE regard climate change as an opportunity to provide both thought leadership - and potentially market-based solutions.

Additionally, in the latest report, 95% of the respondents indicated that they report on climate change in their annual reports. There was a marked increase in climate-related business partnerships either through businessto-business climate initiatives such as those administered by national business associations such as the NBI or Business Unity South Africa (BUSA) or non-governmental, academic and government partnerships.

Businesses seemed to acknowledge this fact as they are taking definite steps to mitigate climate change. Continues on page 34 As in 2010, energy-efficiency initiatives relating to processes and building services was the most common emission-reduction activity type. Behavioural change was the second most common approach.

The popularity of these activities related to their short payback periods with 47% of behavioural change activities having a payback period of less than one year. Reported investments in emission reductions activities also increased from R9,5-million to R17,9-million.

Identifying and managing risks and opportunities South Africa had the highest proportion of companies identifying climatedriven risks and opportunities of all the countries participating in the CDP. Only two companies identified no risks and five companies identified no opportunities.

About 90% of the responding companies reported having a board or executive body with responsibility for climate change. Most of these companies were in the energy and materials sector, while all the responding companies in the health care, IT and telecoms sectors reported having a

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Nedbank indicated that they are not yet in the position to assess the financial implications of their climate risk exposures on a full-book basis, but that they plan to do a complete assessment in the near future.

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The CDP report also noted that there was “an encouraging increase in the number of companies that report on having GHG emissions reduction targets”. It said that 40 companies, including almost all the high emitting companies, reported having emissions reduction targets, as compared with 31 companies in 2010 and 20 in 2009.

The report further stated “an encouraging increase” in accounting for scope 3 emissions, which consists of a wide range of other indirect emissions, for instance transport-related activities in vehicles not owned or controlled by a company, business travel, the use of sold products and waste disposal emissions.

“While it is important to track the performance of the larger direct emitters, this should not be at the cost of losing focus on these companies that have the potential to inform the behaviour of organisations and individuals within their sphere of influence,” commented the report.

According to the CDP report, “banks, for example, might have comparatively small direct emissions, but collectively they have the ability to exert a significant influence on the carbon performance of the broader business sector. Large purchasers often have a similar ability to effect change through their supply chain.

“Although there has been an encouraging increase in scope 3 emissions

FEATU R E: CDP

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F EAT UR E: CDP

improvements in disclosure, target setting, mitigation action and climate change governance practice are indicative of an increasingly proactive engagement by the South African corporate sector on climate change issues”.

The JSE100 best performance ranks companies in terms of their emissions reduction targets.

accounting, and evidence of some companies including adaptation aspects in their community engagement initiatives, there remains further potential to promote mitigation and adaptation measures throughout organisations’ spheres of influence.”

Addressing areas of concern Albeit these positive developments, there remained significant scope for further action if business is to play the leadership role that is expected of it. “The valuable improvements in disclosure and performance evidenced over the last few years through the CDP analysis process are not sufficiently widespread within and between sectors, or appropriately ambitious, to constitute the level of leadership and action that many observers deem necessary to mitigate, and adapt to, climate change,” said Jonathon Hanks, director of Incite Sustainability and lead author of the CDP report.

“While this year’s CDP process has shown improved performance and disclosure across all sectors, there are still certain high-profile companies and sectors, such as real estate, that do not appear to have sufficiently considered the potential risks and opportunities that climate change presents,” Hanks said.

The low number of companies that are currently verifying their emissions data is also a concern. For this report, 30 companies verified or are in the process of verifying the elements of their scope 1 and 2 emissions.

This is relatively static as compared with last year, when fewer companies responded and was low in comparison with international peers.

While there was evidence of some exciting initiatives on adaptation – with some companies for example exploring opportunities to develop hardier drought-resistant crops, changing product ingredients or redesigning production processes – the current level of response on adaptation was not proportionate with the anticipated likely impacts that will need to be managed.

The CDP report commented that companies are taking action on climate change in the “absence of any legislative requirement in South Africa to disclose or reduce emissions”, and that “these continuing positive

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However, businesses expressed concern about the government’s proposal to introduce a carbon tax as a key instrument to reduce emissions and meet international climate change commitments. As an example of these concerns, the CDP report quoted a cross section of business views.

“Carbon taxation or emissions taxation will increase operational costs for the business, reduce company profitability, reduce shareholder dividends, reduce the internal rate of return on business expansion ventures and indirectly result in job losses,” said the mining group Exxaro Resources.

“The proposed carbon tax for South Africa is burdensome as it will result in between a 100% and 200% increase in the scope 1 cost for our South African operations,” commented the paper maker Sappi. “For example, our Ngodwana Mill operation purchases coal at R250 per ton. The proposed low and high emission taxes will increase the costs to R550 and R750 per ton respectively. Because our South African operations have a high dependence on fossil energy, the net effect of this will cause some if not all operations to run at a loss.”

In contrast, Gold Fields advocates that a carbon tax should be ring-fenced and that all income generated should be used for renewable energy projects.

Joanne Yawitch, chief executive officer of NBI, reiterated that the CDP has been a catalyst for action, driving business to integrate climate change into strategy and in the identification of risks and opportunities, promoting the link between environmental, economic and social imperatives. Although the execution of strategy and realisation of opportunities is the next big challenge, the CDP disclosure provides encouraging evidence of revised business models and a significant investment in mitigation activities.

“Companies who have consistently and sincerely participated in the CDP will be well positioned to lead the transition to a green economy. They will be better positioned to mitigate their carbon emissions and respond to the government’s aspirations.”

To download the full report, visit www.nbi.org.za, to which full acknowledgement and thanks are given.

National Business Initiave Tel: +27 11 544 6000 E-mail: info@nbi.org.za Website: www.nbi.org.za

F O S S IL F UE LS

Energy excellence in welding Gas Management Solutions are worthy winners of the Energy Excellence Award it received at the Southern African Association for Energy-Efficiency (SAEE) awards ceremony, which was held in November 2011, with verified gas savings of 90% through welding innovation.

the welding process, paired with accurate flow meters for measurement and smart leak-detection methods employing ultrasonic equipment – the result is 90% gas savings, mega MW’s as 60% of the total cost of a cylinder is to produce the gas, much lower emissions due to reduced road transport and overall good business practice.

Already a Da Vinci Technology Top 100 qualifier and past winner of a SA Stainless Steel Development Association Award for welding, as well as the 2010 Eskom eta Award winner for the industrial innovation category, Gas Management Solutions has equally impressed the judges of the SAEE Awards committee.

Prof LJ Grobler, president of the SAEE, said: “The SAEE finds it encouraging that solutions are sought in every avenue by inventive individuals and organisations, and that solutions are not limited to the obvious energy-saving opportunities.”

Using Gas Management Solutions’ welding enabled Kwikot, the largest local manufacturer of hot-water geysers, to reduce its monthly gas consumption in 2010 from 32t to 4t, which resulted in financial savings that exceed R1,2-million per annum.

He continues: “This year we had a number of entrants that were exceptional for the annual SAEE Energy Awards Programme. The projects had very good returns and demonstrated that energy-efficiency does make good business sense.” Companies are encouraged to enter their projects to enhance the positive initiatives that materialise in the country.

A return on investment of less than six months, coupled with the energy savings, environmental benefits and transportation of gas with its resultant vehicle wear-and-tear delivers inarguable benefits to any organisation that utilises welding systems.

The 7th Southern African Energy-Efficiency Convention (SAEEC2012) will be held at Emperors Palace in Gauteng on 14-15 November 2012.

Gas Management Solutions uses shield-gas economisers to optimise

Namibia’s Kudu Gas Power Plant can be operational in 2016 if the national power utility, Nampower, succeeds in roping in an equity partner to partially finance the US$1,1billion project.

The deal to start up the 800MW power plant stalled over the years, leaving both Nampower and the government frustrated while the country’s energy requirements shortfall grows, as it is already importing 60% of its electricity.

Nampower’s managing director, Paulinus Shilamba, said the plant will start pumping power from the Kudu gas fields by 2016. However, this is a huge task for a utility battling to meet the rising demand in stagnant local generation.

Namibia faces an 80MW electricity deficit this year and it will widen to 300MW in 2015 if there is no new investment in

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For more information, contact the SAEE at info@saee.org.za or visit the website www.saee.org.za.

infrastructure. The coming end of a 150MW supply arrangement with Zimbabwe’s ZESA is worsening the country’s situation and even though Nampower could extend the deal with sixth months, it would only make the power supply situation more precarious next year.

The Kudu gas project requires Nampower, which is heavily subsidised by the state, to meet its own financial obligations in constructing the power plant.

“This is a huge project and we have no capacity to finance it alone,” said Shilamba. “Nampower will own 51% of the power station, with the balance to be farmed out to the private sector. The power utility issued tenders at the beginning of this year, leading to the final investment decision by mid-2012. The implementation of the project is planned for the end of 2012 and commercial operation will start in 2016.”

Namibia’s president, Hifikepunye Pohamba, has previously stated his disappointment in the little progress made on Kudu, but Nampower has indicated that if developments at Kudu are stalled again, it could build a 450MW coal-fired plant in the Erongo region by 2016.

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

FO S S I L FU EL S

Company strives

to strengthen their position in the market BASF plans to strengthen its position as the world’s leading chemical company. The company further developed its strategy, “We create chemistry”, formulating a road map on how to sustain and develop their position in the market.

The chairman of BASF’s board of executive directors, Dr Kurt Bock, the vice-chairman, Dr Martin Brudermüller, and the chief financial officer, Dr Hans-Ulrich Engel, presented the details of this strategy at a press conference in Ludwigshafen recently. Bock pointed out that the company had achieved its leading position thanks to its successful strategy in the past years. “We will build on this foundation and make a significant contribution to meet the needs of a growing world population.”

BASF sees population growth as a crucial trend that brings enormous global challenges, but also offers many additional opportunities, in particular for the chemical industry. In accordance with sustainable development, BASF will play a role in conserving resources, ensuring healthy food and nutrition and improving people’s quality of life. “We have summarized what we do as a company in our corporate purpose, which is to create chemistry for a sustainable future,” said Bock.

BASF targets profitable growth The company has set ambitious goals and forecasts that global chemical production will grow faster than global gross domestic product (GDP) by 2020. In this period, the company expects the global economy to grow by an average of 3% per year, while chemical production is forecast to grow on average by 4% per year. BASF continues to aim to grow two percentage points above chemical production and thus increase sales by an average of 6% per year until 2020. BASF targets sales of approximately €115-billion and seeks to further increase profitability to achieve an earnings before interest, taxes, depreciation and amortisation (EBITDA) of €23-billion in 2020.

BASF adds value as one company BASF supplies products and solutions to almost all industries. Its portfolio ranges from oil and gas, classical chemical businesses and customised products to functionalised materials and solutions. “The scope of skills and know-how that we combine under one roof is what sets us apart from our competitors. These characteristics include our innovative strength, our broad technology basis, our operational excellence and our global access to relevant customer industries,” said Bock. “We add value as one company by combining these strengths.”

The company’s unique Verbund system offers enormous competitive advantages. It will further develop this sophisticated and profitable system, which extends from production and technology to customers. In addition, BASF will sharpen its focus on customer industries. Committed, well-trained employees ensure that the entire Verbund functions efficiently worldwide.

Today innovations from the chemical industry rarely rely on the development of new chemicals. Instead, new materials and system solutions are created

“We create chemistry” BASF further develops its corporate strategy.

Dr. Kurt Bock, Chairman of the Board of Executive Directors (center), Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors (right) and Dr. Hans-Ulrich Engel, Chief Financial Officer (left).

Photo: BASF - The Chemical Company, 2011.

by combining know-how from a variety of disciplines. “Innovations of this kind require a broad portfolio, interdisciplinary cooperation and a deep understanding of customers’ value chains. We will continue to develop our portfolio in the direction of customer-focused businesses,” explained Brudermüller.

In 2020, sales of €30-billion and an EBITDA of €7-billion are to be generated with products that have been on the market for less than 10 years. Sustainability is becoming one of the main drivers of growth and value creation. BASF’s customers want sustainable products and system solutions, and the company’s employees expect BASF to closely integrate sustainability into its day-to-day activities. “Sustainability can only be achieved through innovation, and that is where chemistry plays an essential role,” said Brudermüller. “In the future, sustainability will be more strongly integrated into our business decisions.”

Business expansion in emerging markets BASF’s sales to customers in emerging markets have almost tripled in the past ten years and accounted for approximately one third of its total sales (excluding oil and gas) in 2010. In 2020, the company expects current emerging markets to contribute 45% to its sales. Investments will boost the company’s future growth. Between 2011 and 2020, BASF plans capital expenditures of €30-billion to grow to €35-billion. More than one third of this amount will be invested in emerging markets. “We already have leading positions and fast-growing businesses in emerging markets and we will build on this foundation,” said Bock.

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

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PER S PECT IV E S

Climate Change Convention (Durban) – Outcomes Andrew Gilder, IMBEWU Sustainability Legal Specialists (Pty) Ltd. Introduction The writing of this article engendered a distinct sense of déjà vu in that I felt impelled to commence with “one’s opinion of whether the outcome of the Durban Climate Change Conference was positive or not depends very largely on one’s initial viewpoint” of the value of the climate negotiations.

The déjà vu arises from the fact this is precisely what one may have written at the conclusion of the three previous annual meetings. There is even a view from some quarters that the much-lamented result of the gathering, in December 2009, in Copenhagen (Denmark), is not as iniquitous as it often portrayed, particularly given (so the argument goes) that the political cachet of the Copenhagen Accord clearly influenced the form and content of the subsequent Cancun Agreements and, now, the Durban Platform for Enhanced Action. At least one wag has commented that the climate change negotiations are likely to be waiting on this “platform” for some years to come. In my view the outcome of the Seventeenth Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC) and the Seventh Meeting of the Parties to the Kyoto Protocol (MOP7), held in Durban in November and December 2011, treads a very Buddhist-like middle path. This article will try and give a sense of this “centred” position and its implications for South Africa, but is not intended as an exhaustive analysis of COP17/MOP7.

obligations on the developing world. While this arrangement may have been appropriate when Kyoto was originally agreed, in 1997, the argument is that global realities are significantly changed in this second decade of the twenty-first century – the most important difference being that the largest emitter in the world is a developing country, namely China, whereas in 1997 the United States wore this mantle. Perhaps the most obvious conclusion that can be drawn on COP17 is that, in spite of the dire scientific warnings that we need to deal swiftly and efficiently with the climate change challenge, the world has agreed to park implementation of a new climate deal until the end of the present decade. (1)

Key decisions Durban Platform for Enhanced Action: Two ad hoc working groups have been the main arena for the climate change negotiations in recent years and Durban saw the establishment of a third, namely the new Ad Hoc Working Group on the Durban Platform for Enhanced Action. To some degree the decision on the new Working Group answers the much-debated (in recent years) question of the architecture of a future climate treaty. The agreement is to “launch a process to develop a protocol, another legal instrument or an agreed outcome with legal force under the United Nations Framework Convention on Climate Change applicable to all Parties, through a subsidiary body under the Convention hereby established and to be known as the Ad Hoc Working Group on the Durban Platform for Enhanced Action”. The work under the Durban Platform is to be concluded by no later than 2012 in order for the protocol, other legal instrument or agreed outcome with legal force to come into effect and be implemented from 2020. Two important factors are evident from the above quotation. Firstly, the future agreement will take some sort of legal form (“protocol, another legal instrument or an agreed outcome with legal force”); and, secondly the agreement will apply to all country Parties. Bear in mind that one of the stickiest issues in the current negotiations is the notion, expressed by the developed world, that the Kyoto Protocol does not impose mitigation

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Kyoto Second Commitment Period (KP2): With the looming conclusion of the first Kyoto period, at the end of 2012, and given that agreement on a KP2 was never a foregone conclusion, it was to the general relief of negotiation-watchers that KP2 was confirmed as beginning on 1 January 2013 with a view to ending on, either, 31 December 2017 or 31 December 2020, to be decided during the course of 2012. The handicap on the new period is that, whereas developed country Parties agreed to firm quantified emissions reduction or reduction obligations (QELROs) for the first Kyoto period, the agreement on KP2 is only able to “take note of” the economywide emissions reduction targets submitted by country Parties to the Convention secretariat, and of the intention of such Parties to convert these targets to QELROs for the purposes of KP2. Country Parties have been invited to submit information on their QELROs for KP2 by 1 May 2012.

Nationally appropriate mitigation actions (NAMAs) by developing country Parties: The NAMA is the route, for developing countries, towards taking on some form of a commitment to reduce their greenhouse gas emissions.

P ER S P EC TI VE S

The Durban decision on NAMAs takes this idea (which arose in the Bali Action Plan) forward to a functional level by providing for informationgathering exercises and the elaboration of low-emission development strategies, where this may be necessary. South Africa has been at the forefront of discussions on NAMAs and has already taken various steps towards defining this country’s contribution. The Integrated Resources Plan 2010 and the National Climate Change Response White Paper (2011) are replete with initiatives that are likely to be labelled South Africa’s NAMAs. Green Climate Fund: With finance always a fraught issue in the negotiations, the approval of the governing instrument for the Green Climate Fund is an important achievement. The Fund has been designated as operating entity of the Financial Mechanism of the Convention and arrangements will be concluded at COP18 to ensure that the Fund is accountable to and functions under the guidance of the Conference of the Parties to support projects, programmes, policies and other activities in developing country Parties. The downside is that capitalising the Fund has been less successful and the ambition, flowing from the Cancun Agreements, of “fast-start” finance of thirty billion US dollars between 2010 and 2012 looks unlikely to be realised.

dealing with our currently uncertain future.

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.

IMBEWU Sustainability Legal Specialists Tel: +27 11 214 0660 Fax: +27 880 6577 E-mail: admin@imbewu.co.za Website: www.imbewu.co.za

From the perspective of climate change science, praise for the Durban outcome tends to be less effusive than that coming from the politicians and lawyers. One author has commented that despite “…the celebratory atmosphere, the (Durban) Platform represents an exercise in legalese that does little or nothing to reduce emissions, and defers action for almost a decade. The stated goal of the talks was to limit global warming to 2 °C, although many developing nations and small-island states have advocated a target of 1.5 °C”. The latest analysis of current emissions reductions pledges suggests that the world is on course to see 3.5 °C of warming this century.

The next round of negotiations will commence in April this year. Their focus will be to put flesh on the skeleton of the Durban Platform. There is a large body of opinion that these efforts are too-little-too-late to avert disastrous climate change and that the global community has no choice anymore but to turn its attention to preparing for the inevitable. Against the background of this pessimism (some would label it “realism”) the unilateral negotiation process must be pursued, if only as a means to secure mechanisms for

Notes: 1. Notwithstanding the apparent legal commitment made in respect of the Durban Platform, at least one commentator has drawn the distinction between the Durban outcome and previous agreements. The following is the view of Prof. Dan Bodansky (a respected legal academic): “The Durban Platform is also pretty thin gruel as a negotiating mandate. In terms of its actual language, it is arguably weaker than the 1990 UN General Assembly Resolution (www. un.org/documents/ga/res/45/a45r212.htm) that initiated the UN climate change negotiations and led to the development of the UN Framework Convention on Climate Change. The 1990 UN General Assembly resolution called clearly

for the negotiation of a “convention” (albeit a “framework” agreement) “containing appropriate commitments.” In contrast, the Durban meeting was unable to agree on a mandate to negotiate a legal agreement and contains no language about commitments. The Durban platform could be satisfied by an “outcome with legal force” — a formulation that as far as I am aware does not have any precedent in international law. Arguably, “legal force” means the same thing as “legallybinding,” and the addition of “with legal force” to “agreed outcome” (the Bali Action Plan language) means that the outcome is something more than what Bali contemplated (which included COP decisions). But the inability to reach agreement on “legally-binding” suggests that at least

some parties thought “legal force” might mean something less. Dan Bodansky, “Evaluating Durban”, Opinio Juris, 12 December 2012, www. c2es.org/print/blog/bodanskyd/evaluating-durban.

It is interesting to note that the agreed which gave rise to the Kyoto Protocol called for the negotiation of a “protocol” as a means of building on the foundation established by the Framework Convention.

1. Jeff Tollefson, “Durban maps path to climate treaty”, Reuters, 13 December 2011, www. nature.com/news/durban-maps-path-to-climatetreaty-1.9635.

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ALT ER NAT IV E E NE RGY

Renewable

projects get the green

light from government

The projects, which represent an investment of R5-billion, are expected to reach financial close by June 2012 and commence construction shortly thereafter, and have been co-developed by Mainstream and its local partner, the pioneering renewable energy developer Genesis Eco-Energy.

The consortium’s strategic delivery partners include Absa Capital, which has fully underwritten the debt for the three projects, as well as Siemens, Suntech and Group Five Iberdrola on the technical delivery aspects of the projects.

The projects awarded include the development of a 138 MW wind farm in Jeffreys Bay, located in the Eastern Cape, as well as a 50 MW solar PV farm in De Aar, located in the Municipality of Emthanjeni in the Northern Cape. Another 50 MW solar PV farm will be developed in Droogfontein, located near Kimberley in the Northern Cape.

“The Mainstream Projects are a perfect example of how we can grow the economy through use of affordable generation, job creation and protection of the environment while meeting South Africa’s energy needs.”

The chief executive officer of Mainstream Renewable Power, Eddie O’Connor, says they won all the projects that they bid for. “The government has shown tremendous vision and foresight in creating this new and sustainable industry for South Africa, firmly placing it on the world map for renewable energy generation.”

Globeleq, an experienced owner, operator and developer of power generation facilities, and is an equity partner across all three projects.

Mikael Karlsson, the chief executive officer of Globeleq, says they believe that power generation using free and natural fuel sources like the sun and wind to generate clean electricity is a realistic energy solution.

“The Mainstream Projects are a perfect example of how we can grow the economy through use of affordable generation, job creation and protection of the environment while meeting South Africa’s energy needs.”

A consortium led by global renewable energy developer Mainstream Renewable Power was recently awarded preferred bidder status by the Department of Energy in South Africa. They have to deliver 138 MW of wind energy and 100 MW of solar PV into commercial operation by 2014. The award was made under the first round of the South African government’s Renewable Energy Procurement Programme.

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Full acknowledgement and thanks are given to Mainstream Renewable Power for the information given to write this article.

Mainstream Renewable Power Emmet Curley E-mail: Emmet.curley@mainstreamrp.com Website: http://www.mainstreamrp.com

ALTER N ATI V E EN ER GY

Energy-efficient fuel cell supplies power to local electricity grid Deputy President, Kgalema Motlanthe with Karim Kassam of Ballard Power Systems (left) and Krish Pillay of Anglo American Platinum Limited (right).

Anglo American Platinum Limited believes it can help South Africa to become a leader in fuel cells, one of the most promising renewable energy technologies in the world.

The company demonstrated the possibility of a cleaner energy future through its platinum-based fuel-cell generator at the recent COP17 conference in Durban. Various delegates, including SA’s deputy president, Kgalema Motlanthe, had the opportunity to view the future in action at Greyville Racecourse during the climate talks.

A 150-kilowatt fuel-cell installation provided clean power to the local electricity grid during the climate talks. The fuel cell uses hydrogen to generate electricity, aided by a platinum catalyst with water and heat as the only by-products. The cell operates silently and runs indefinitely as long as it has a constant supply of hydrogen and atmospheric oxygen while emitting zero emissions, all features which make this technology attractive as a clean power source.

energy-efficiency of our operations, make efficient use of available by-product hydrogen in South Africa and provide growth in global platinum demand, while creating a new industry with associated jobs in South Africa. Fuel cells further highlight the green credentials of platinum, in this case as an enabler of energyefficiency,” said Neville Nicolau, chief executive officer of Anglo American Platinum.

Nicolau further stated that platinum-based fuel cells offer high efficiency, versatility and scalability. It has the potential to be an important element in the transition to a low-carbon economy as it provides clean, reliable and cost-effective power.

Anglo American Platinum Limited’s fuel cell generator on display at COP17.

“This demonstration highlights the importance of fuel cells to our business.

Fuel-cell power systems in commercial production can increase the

This technology is hailed as a potentially environmentally-friendly replacement for the internal combustion engines. The future of fuel cells looks even brighter as moves are afoot to develop low-cost materials for fuel-cell construction. Breakthroughs have also been made in the last quarter of 2011 with a cheaper, more abundant, iron-based catalyst which provides a similar performance as platinum-based catalysts.

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

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electricity

Private sector participates more in South African energy sector

The growing demand for electricity, the liberalisation of the electricity supply industry, as well as the funding limitations and time constraints on the public utility Eskom, are driving increased private sector participation in the South African power industry.

A new analysis from Frost & Sullivan called Private Power Generation Opportunities in South Africa finds that the electricity generation industry is worth R50-billion and presents lucrative opportunities for private sector participants.

“Market growth for private power producers in South Africa is being driven by a pressing need for new generation capacity and the associated cost of financing this new build,” notes Gareth Blanckenberg, Frost & Sullivan’s energy and power systems research analyst. “Renewable energy generation is set to become the largest area of participation for private power producers in South Africa. Several projects are already in the developmental phase,” Blanckenberg says.

According to the analysis, the demand/supply gap is extremely tight at the moment.

Additional capacity needs have been forecast at 56,6 GW between now and 2030, while Eskom is facing significant time pressures and financial constraints in developing this additional capacity.

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Blanckenberg adds that tariff increases represent another encouraging trend for private power producers. Eskom’s new build programme is the primary driver behind rising electricity tariffs. “These tariffs are on an upward path that will soon make it feasible for private producers to enter the market. Private participation is likely to increase supply, ease the borrowing requirements for Eskom and reduce the funding burden on the government.”

He says that such trends are a far cry from earlier tendencies, which saw an unattractive policy environment, as well as historically low electricity tariffs. “All these factors served as deterrents to investment by private power producers.”

“Political stability, coupled with an established legal and financial system, will also make it an attractive investment destination for international project developers.”

According to Blanckenberg, a key advantage for South Africa will be the country’s significant quantities of natural resources, both conventional and renewable, that are suitable for electricity generation. “Political stability, coupled with an established legal and financial system, will also make it an attractive investment destination for international project developers.”

Private Power Generation Opportunities in South Africa is part of the Energy & Power Growth Partnership Service Programme, which also includes research in the following markets: Overview of the South African Electricity Industry (2010 Update), The IRP2010: A Frost & Sullivan Impact Analysis and South African Solar PV Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated, following extensive interviews with market participants.

According to the analysis, the demand/supply gap is extremely tight at the moment. Additional capacity needs have been forecast at 56,6 GW between now and 2030, while Eskom is facing significant time pressures and financial constraints in developing this additional capacity.

For more information on this study, send an e-mail with your contact details to Samantha James, Corporate Communications at Frost & Sullivan, at samantha.james@frost.com.

Recent efforts to liberalise the electricity supply industry have been reflected in the Department of Energy (DoE)’s mandate that independent power producers (IPPs) will contribute 30% of new generation capacity by 2030.

Rising electricity prices, and the implementation of incentive schemes, have created a strong motivation for private power producers to enter the market.

Frost & Sullivan Tel: +27 21 680 3574 Fax: +27 21 680 3296 E-mail: samantha.james@frost.com Website: www.frost.com

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e le c tri c it y

LED street lights

lend radiance to city streets A new, state-of-the-art energy-saving LED street light installation is now lighting up the streets in Durban.

Royal Philips Electronics, Eskom and Durban’s municipality worked together to showcase the sustainable lighting solution installed in six streets around the Durban International Conference Centre (ICC).

The 149 LED street lights offer energy savings of 47,4 MWh per year or 26% compared with older 250W metal halide streetlights, while at the same time providing superb light quality. In the future the street lights can be controlled externally, raising the prospect of even more energy savings by dimming the lights outside peak traffic times. The efficient, low maintenance, brighter street lights will improve road safety for drivers and pedestrians alike. The light quality will also create attractive conditions for business and commercial life, as well as generate a more secure and comfortable outdoor environment for residents.

“To this end, we are committed to using tried and tested technology in our energy-efficiency drive and investment in a low carbon future. Local authorities that consume less energy can also limit their carbon footprint and control their operating costs. These are important motivating factors which will encourage municipalities to limit their demand on electricity supply.”

According to Juan van Dongen, vice-president and chief executive officer of Philips Africa, South Africa has been very proactive in recognising that investing in energy-efficient and sustainable lighting solutions will reduce consumption and lower electricity costs overall.

Philips, Eskom, the Department of Environmental Affairs and the eThekwini Municipality formed a joint initiative to demonstrate the major advances made in energy-efficient LED lighting. Research proved that the new LED lighting can reduce energy consumption for street lighting in cities by as much as 30%.

“Like most countries, South Africa is facing an energy-constrained future and it is in Eskom’s interest to partner with local authorities to reduce consumption where possible. Although we are investing in new power stations to generate enough electricity to meet medium- to long-term demand, improved efficiency is really the only practical solution to ensure our electricity supply will be secure in the short term,” says Andrew Etzinger, senior general manager for integrated demand management at Eskom.

“Philips wants to invest in a sustainable future by delivering the most innovative and energy-efficient lighting technology. This partnership underscores our commitment to sustainability and corporate responsibility in growth markets like South Africa,” says Van Dongen.

The project made use of Philips Iridium2 street lighting. This will allow local authorities to replace the LED light module in future when an upgrade is required without having to change the light fitting or the pole itself.

Technical specifications include 112 LEDs, which provide 21 126 lumens, a colour temperature of 5 700k, 85lm/w system efficacy, 60 000 hours life and a colour rendering of 68.

The new LED street lighting in Durban gives excellent luminance and uniformity. The lighting will create a livable city with safer roads, increased security and a comfortable outdoor environment. © www.philips.com

Philips Lighting Africa E-mail: nick.kelso@philips.com Website: www.philips.com

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eNER GY EF FICIE NCY

green

stamp

of approval The Minister of Trade and Industry, Dr Rob Davies, officially opened Unilever’s R670-million state-of-the-art savoury dryfood plant at Riverhorse Valley in Durban, and endorsed it as one of the largest private investments in South Africa since the 2010 World Cup. The new plant is named Indonsa, meaning “morning star” in isiZulu, and produces brands such as Knorr, Robertson’s, Knorrox, Aromat and Rajah. It is in the start-up phase and will be in full production by the first quarter of 2012.

Minister Davies said the investment resonates well with the objectives and priorities of South Africa’s Industry Policy Action Plan (IPAP). “It is the first green manufacturing plant in South Africa that is designed to reduce its carbon footprint.”

He says it is also the first major greenfield investment since the World Cup, giving a boost to manufacturing investment, production and building local capacity for such products. “Such investments confirm that South Africa is indeed a preferred destination for investment.” Davies added that investments such as Indonsa clearly demonstrate the confidence in South Africa as an investment destination and our manufacturing capability.

a critical part of the process and we look forward to them continuing to play a role in ensuring that South Africa becomes an even more globally competitive manufacturing location, especially through increased investment in modern plant- and energy-efficiency, as well as skills development,” he added.

Going the extra green mile The global Unilever Sustainable Living Plan (USLP) and local chapter aim to reduce the environmental impact of its entire product range by 50%, source 100% of its agricultural raw materials sustainably, and assist a billion people to improve their well-being and general health. Indonsa is an example of the USLP delivered in practice.

Indonsa is a global first for the group in terms of advancing its focus on advanced sustainable green technology. It is Unilever’s second-largest plant in the world and its fifth plant in South Africa.

Davies added that South Africa’s National Industrial Policy Framework (NIPF) has confirmed that the government sees the manufacturing sector continuing to play a pivotal role in ensuring that the country achieves the higher rates of economic growth that is needed. “Unilever has been

“The advanced technology in operation at Indonsa sets new global standards in responsible and sustainable dry-food production,” said the chairman of Unilever South Africa, Marijn van Tiggelen. “For us sustainability now implies responsibility, integrity and moral obligation,” he said.

According to Unilever’s chief supply-chain officer, Pier-Luigi Sigismondi, the group aims to globally reduce carbon emissions from manufacturing and logistics by over 40% by 2020 from its 1995 baseline, at a rate of almost 5% a year. “We will continuously reduce our impact across the entire life cycle of our products and intensify the advancement of new

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e N ER GY EFFI C I EN CY

“We will continuously reduce our impact across the entire life cycle of our products and intensify the advancement of new technologies such as these used here at Indonsa to achieve our global sustainability objectives,” Sigismondi said.

technologies such as these used here at Indonsa to achieve our global sustainability objectives,” Sigismondi said.

Carbon reduction is achieved by using energy-efficient controlled zoned lighting throughout the plant, while innovative insulation methods reduce heat loads from the sun to minimise air-conditioning requirements.

Super-efficient motors drive mixers and air compressors, reducing energy requirement levels substantially.

Rain falling on the 22 000m² roof is channelled into a 1,5-million litre tank, treated and added to recycled water. The application of smart water efficiency technology virtually eliminates municipal supply, enabling the recovery of 70% of all water used in production phases. Other examples of water saving include capturing and treating condensate from airconditioning, and using it to clean toilets. All process and shower water is recycled via biological and reverse-osmosis treatment.

Indonsa’s solid waste is recycled to levels where nothing goes to landfill.

This is achieved by using recoverable packaging materials. Product waste will be designated for composting in local gardens that support poor communities, while excess is converted by a waste energy plant and the resultant energy is fed back into the national energy grid.

The plant has the ability to become the biggest savoury dry-food site at Unilever worldwide. It has been designed to produce 65 000 tonnes of products per year and has an expansion capability of up to 100 000 tonnes. The 22 000m² factory is equivalent to three soccer fields and is situated on 78 000m² of land.

Unilever Tel: +27 31 570 3000 Website: www.unilever.co.za Vol 7 NR 1 2012

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eNER GY EF FICIE NCY

Underground lighting retrofit project

a success

EcoTag’s new, energy-efficient retrofit lighting products promise massive savings on both energy consumption and maintenance. One only has to look at the underground lighting retrofitting project at Anglo Coal to see that the proof of the pudding is in the eating.

To date, the EcoTag Trust fitted EcoLights to the total value of approximately R8-million. The product was designed in Canada and is manufactured in Hong Kong to specifically suit the harsh needs of the South African mining environment. While EcoTag is registered as an official energy services company (ESCO), their products are KEMA tested, NRCS certified and complies with the SABS standards.

The test was set up as a worst-case scenario for environmental and power supply instability. A 1,1km strip of old underground section lighting was substituted with the new technology lighting. As part of the trial a full set of voltage, power factor, Lux levels and power consumption monitoring was done before and after installation.

The new lighting resulted in savings of 42,9% energy on the old system.

This was considerably greater than the anticipated nominal 33% saving that the supplier predicted.

EcoTag retrofits existing light fittings without the need for rewiring or replacing perfectly usable fittings. The benefits of EcoLight retrofit include reduced downtime, waste reduction, minimal disruption to the working environment and instant electrical savings.

Besides the major reduction in energy consumption for the area, there were a number of additional benefits to the installation. The EcoLight tubes last considerably longer than the old magnetic ballast-fitting tubes. As a result, substantial maintenance cost savings can be expected.

EcoLight not only saves up to 52% in energy usage, but the fittings’ lifespan is increased indefinitely. The technology also offers optimal lighting quality in working spaces. EcoTag’s EcoTube T5 series only has a 10% depreciation over 10 000 hours and a rated life in excess of 15 000 hours. T5 lamps use 40% less glass and 80% less mercury than a traditional fluorescent tube.

Less metal is used with the casing and less paper for the packaging. The installation of an EcoTag product takes around 30 seconds.

The new lighting tubes are the tri-phosphor type, which has higher efficiency and much-improved colour properties as well as less mercury content than the old tubes. This means a better light, and when installing new fittings potentially a lower density of fittings is required for an area to obtain the same Lux level.

installation steps • Step 1: Remove existing lamp tube • STEP 2: Replace the tube completed • STEP 3: Installation is completed * This procedure is for Magnetic Ballast style fixtures.

Use appropriate F-Adapter models for the existing ballast type.

With the installation of an EcoLight system, the heat from the ballast in each unit is reduced from more than 80 0C to about 30 0C. In addition to increasing the lifespan of the fittings, the reduction in heat will also result in lowering costs for air-conditioning equipment.

With EcoTag’s overseas back-up, they are able to tailor-make products for difficult and unique applications. EcoTag continues to re-invent the product and the company in order to keep up with new developments and designs.

A success story Anglo Coal South Africa’s New Denmark Colliery near Standerton, Mpumalanga, enjoyed great success with its underground lighting retrofit energy-efficiency project. The mine, which produces coal for Tutuka Power Station, launched a pilot project during September 2006 to investigate the feasibility of retrofitting old magnetic ballast-type system fluorescent lighting with a newer technology EcoLight electronic ballast system. The aim of the

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trial was to prove that this kind of retrofit would yield significant energysaving benefits, while at the same time reducing maintenance costs.

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The applications potential of this specific project is huge for Anglo Coal.

Supposing that ten of Anglo Coal’s local operations were to install an estimated 5 000 new units, the total possible saving could be as high as 1,658kW at the tested 42,9% saving. This amounts to a carbon emissions reduction of 5,963 tonnes of CO2 per year.

In a worst-case scenario, the assumption that lights are used on average for 12 hours per day, as opposed to the normal 24 hours per day on industrial sites, and assuming a 6,5 day per week average workload, up to 6,7 GWh of energy could be saved yearly. This is the equivalent of running 760 heaters of 1kWatt each continuously for a whole year.

The capital expenditure for this project will be in excess of R6-million. Due to the significant energy saving and the ease of retrofit of the new lights, there is potential for some significant cost benefits too.

EcoTag currently has a 15-year maintenance agreement with Anglo Coal.

EcoTag is also doing retrofitting projects with other companies such as Investec, Growth Point Properties, Coca-Cola, DHL, Fair Cape Property and many more.

EcoTag Tel: +27 12 996 1312 Fax: +27 86 273 1394 E-mail: adriaan@ecotag.co.za Website: www.ecotag.co.za

e N ER GY EFFI C I EN CY

EcoTag

®

Ecolight Master Distributor S.A

• Energy Efficient Lighting • Intelligent Motor Drive • 3 Year Guarantee on all Products

Tel: +27 12 12 996 1312 • Fax: +27 86 273 1394 • E-mail: adriaan@ecotag.co.zaVol • 7 NR 1 Website: www.ecotag.co.za 2 5 o i n A fr i c a 2012

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eNER GY EF FICIE NCY

Project improves energy-efficiency in

hundreds of

households Royal Philips Electronics has supplied solar-driven LED home lighting and sustainable cooking stoves for 200 households across the South African Ilembe district.

The launch of the project was held at the municipality of Stanger in December 2011, and was initiated by South African President Jacob Zuma.

High-level United Nations officials like Helen Clark (UNDP) and Kandeh Yumkella (UNIDO) also attended the event. Philips, as the unique private partner for the project, showcased its low-carbon solutions to improve the lives of people living in rural communities without access to the electricity grid.

The launch of the project was held at the municipality of Stanger in December 2011, and was initiated by South African President Jacob Zuma.

High-level United Nations officials like Helen Clark (UNDP) and Kandeh Yumkella (UNIDO) also attended the event.

The company supplied 200 LED solar home-lighting systems, solar lanterns and solar torches. The home-lighting system is a complete LED lighting kit that has been designed to provide low-cost, highly efficient bright light for households and small businesses. The central solar panelcharged battery pack powers two LED lights. A full day’s charging in the sun (eight hours) will provide enough light for a whole evening.

This system is cheaper to run than kerosene lamps and provides a far higher quality light. It is also safer as there is no fire risk as with kerosene and it is better for people’s health as damaging smoke is avoided. The LED lighting systems enable people to undertake more social and economic activities after sunset. This LED lighting solution also provides children with the opportunity to do homework in the evening.

In addition to this, Philips also supplied 30 new woodstoves in the municipal area to improve the lives of those who rely on biomass for their daily cooking. The specially designed stoves are extremely efficient and significantly reduce the cutting of trees for cooking as they use little twigs as fuel. The new stove cuts back carbon emissions by 90%. Toxic fumes can be cut by 95%, slashing the health risks of indoor cooking. Fuel is found quickly and easily close to home, so woman do not need to collect wood in unprotected areas.

“Today an estimated 560-million Africans live without electricity,’’ said JJ van Dongen, chief executive officer of Philips Africa. “For these people night-time means either darkness or the flickering light of a candle or kerosene lamp. However, the list of disadvantages of kerosene lanterns is long, including safety and health risks and high costs due to the link with oil prices. Using the energy of the sun to power lighting solutions can make a real difference,” he added.

According to figures from the International Energy Agency (IEA), about 1,6-billion people in the world today live without access to electricity.

According to figures from the International Energy Agency (IEA), about 1,6-billion people in the world today live without access to electricity. In sub-Saharan Africa, for example, it goes dark all year round at about 6:30pm to 7pm and this darkness holds back economic and social development. Access to effective, energy-efficient and sustainable solar lighting has the potential to strengthen Africa’s economic, social, educational and cultural activities in a life-changing way.

JJ van Dongen, chief executive officer of Philips Africa handing over Philips solar equipment to President Jacob Zuma during the launch of the project.

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Philips Lighting Tel: +31 6 51 06 69 49 E-mail: caroline.keulemans@philips.com Website: www.philips.com

e N ER GY EFFI C I EN CY

Chasing the

2016 target to phase

out inefficient lighting South Africa will become the first African country to phase out incandescent lamps. Beginning this year, the country fully supports the 2016 global deadline for the phasing out of inefficient lamps and will complete its own phase-out by the set date.

The government’s comprehensive phase-out policy for inefficient lighting was announced at the climate change conference in Durban at the end of last year. The plan is linked to a global initiative by the UN Environment Programme (UNEP) with the support of the Global Environment Facility (GEF), aimed at assisting to combat climate change through the transition to energy-efficient lighting.

World leaders commit to the Global Efficient Lighting Partnership Programme, including Mexico at COP17 in Durban.

A phase-out of inefficient lighting is one of the quickest, easiest and most effective ways to save energy and combat climate change. Electricity for lighting accounts for close to 20% of the total global electricity production and 6% of the worldwide greenhouse gas emissions, according to the International Energy Agency. The en.lighten initiative aims to halve these emissions. It is estimated that South Africa will be able to electrify over fourmillion homes with electricity saved from phasing out incandescent lamps.

“South Africa is working with the UNEP and its global partners to share these lessons learned with other African countries, who will then too phase out and reap the benefits that a transition would bring,” said Dipuo Pieters, South Africa’s Minister of Energy.

“We encourage all countries that have not yet phased out inefficient lighting to join the UNEP Global Partnership and work with us to move towards an efficient lighting world to mitigate climate change,” she said. Peters further added that South Africa faces power shortages, which could be greatly mitigated by the phase-out of incandescent lamps. The electricity saved by the phase-out will be directed to more pressing social needs.

“South Africa is committed to mitigating climate change. This measure is a key action to reduce CO2 emissions,” she said.

More than 25 developing countries from four continents have joined the Global Efficient Lighting Partnership Programme, which has been established to support countries to design and implement national inefficient lighting phase-out strategies adapted to specific country conditions.

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

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ENERVAT IO N S

IN DU S T RY UPDAT E

Saee energy company of the year The Energywise team, pictured from the back left, are Peter Gaal and Andrea Barausse, front left, Catherine Barausse and Shaun Phillpott – proud recipients of the SAEE Energy Company of the Year Award for 2011, and winner of the best single exhibition stand at the SAEEC2011.

At the 6th Southern African Energy Efficiency Convention and Exhibition (SAEEC2011), which was held in November 2011 at Emperors Palace, Gauteng, the SAEE Energy Company of the Year Award was presented to Energywise Systems Magnet Electrical Supplies of KwaZulu-Natal. The awards ceremony formed part of the official annual SAEE banquet, which marked the opening of the event. Energywise was also awarded for the best single exhibition stand at SAEEC2011 for its interactive hands-on display of water- and energy-saving devices. The editor of 25º, Marlene E van Rooyen, was one of the judges for this award.

Worldwide greenwashing has become a common problem which places the development of the energy-efficiency sector at risk – end-users are exposed to negative experiences with energy-inefficient products which are sold as “green” items.

The owner of Energywise Systems, Andrea Barausse, identified a need to make tried-and-tested products available to the South African market.

Over the past four years he has become well-known for his relentless passion in investigating water- and energy-saving devices and has executed practical experiments in his laboratory to find products that deliver optimal energy and water savings.

Together with Magnet Electrical Supplies, Energywise Systems is listed on the Eskom IDM website as the authorised supplier of 16 different energyefficient showerheads. This collaboration, together with a reputation for providing reliable and efficient products to the residential and commercial markets in South Africa, has afforded the team a performance contract with Eskom for the largest showerhead roll-out in the country to date.

This initiative is projected to reduce the demand for energy from the national grid by a whopping 330 GWh, or 110 GWh a year. “With such a contribution to the future sustainability of South Africa’s energy supply, Energywise Systems Magnet Electrical Supplies are worthy winners of the

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Energy Company of the Year Award,” said Prof LJ Grobler, president of the SAEE. Prof Grobler reiterates the importance of such projects so that energy-efficiency targets for the country can be met, and the grid’s future sustainability can be enhanced.

“This year we had a number of entrants for the annual SAEE Energy Awards Programme that were exceptional. The projects had very good returns and demonstrated that energy-efficiency does make good business sense,” continued Prof Grobler. Companies are encouraged to enter their projects to enhance the positive initiatives that materialise in the country.

For more information, contact the SAEE at info@saee.org.za or visit the website www.saee.org.za, or Andrea Barausse at andrea@energywise.co.za.

Keeping the snowman alive To end the Save the Snowman campaign, the Dutch Ambassador to South Africa, Andre Haspels, and Deidre Batchlor, a policy officer, drew the lucky winner of a bicycle. The bicycle was one of several prizes that were given to participants of the campaign.

The Netherlands Embassy is proud of the successful outcome of its Save the Snowman social media campaign, which was designed to stimulate the debate on how individuals can assit in the fight against climate change. The competition was launched just before COP17 last year and garnered nearly 3 000 page views during the conference.

The Dutch Ambassador in South Africa, Andre Haspels, said the Netherlands succeeded in drawing a lot of attention both in the media and online for the campaign. “Thousands of people interacted on the campaign website and via social media platforms such as Twitter and Facebook.”

He said participants took responsibility for keeping the snowman alive by answering daily questions on what they as an individuals would do to combat climate change. “Although the world has a long way to go, we are convinced this campaign has had an impact on all the people who were exposed to it and who learned from it.”

Haspels hopes all the snowman-savers take the lessons learned forward and will keep in mind that small changes in their daily lives can have a tremendous impact on a global scale.

Embassy of Kingdom of the Netherlands, Pretoria Tel: + 27 12 425 4534 E-mail: deidre.Batchelor@minbuza.nl Website: www.dutchembassy.co.za

Largest industrial DSM peak-clipping project over performs by 40%

EN ERVATI O N S

Powertech IST Otokon received the Energy Project of the Year Award at the Southern African Association for Energy-Efficiency’s (SAEE) awards ceremony that was held at Emperors Palace, Gauteng, in November last year.

Richard du Preez, programme manager, received the Powertech IST Otokon’s Energy Project of the Year Award for 2011 from an SAEE board member, Dr Tsakani Mthombeni.

Credit: www.saee.org.za

As the largest industrial Eskom DSM peak-clipping project, Powertech IST Otokon’s compressed air project at Goldfields Driefontein had a target of 12MW, but the project over-performed by 40% and avoided 33 tons of carbon emissions. These were only the contracted savings reported through the required measurement and verification (M&V) and not the savings in their entirety.

energy-efficiency does not lie with one product or solution – it is a holistic approach,” said Professor LJ Grobler, president of the SAEE.

The project encompassed an open architecture SCADA system controlling 50 underground valves, instruments, PLC systems, compressor efficiency and compressor controls. All the elements of the system formed part of an inclusive design process that helped to ensure the successful performance of the system with the client’s involvement.

Goldfields did not only save energy and emissions, but due to the proper design, implementation, measurement and verification of the project installation, the energy savings are sustainable.

“It is not uncommon for energy-efficiency projects to over-perform, especially if standards and M&V are applied to ensure that the savings are not only a once-off occurrence, but sustainable. The successful integration of various technologies at Driefontein highlights the fact that

Grobler stated that the 2011 entrants to the annual SAEE Energy Awards Programme were exceptional. “The projects had very good returns and demonstrated that energy-efficiency does make good business sense,” he said.

The awards ceremony formed part of the official annual SAEE banquet, which marked the opening of the sixth Southern African Energy-Efficiency Convention (SAEEC 2011) and Exhibition on 16 November 2011.

SAEEC 2011 featured some of the most interesting developments in the energy-efficiency industry with over 80 knowledgeable speakers, 50 varied exhibition stands and 500 niche-market delegates. SAEEC 2012 promises to deliver even more information and developments in the energy-efficiency sector. Diarise the seventh SAEEC 2012 at Emperors Palace in Gauteng on 14-15 November 2012.

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

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360 Vol 2 Nr 1 2012 – R49

Growth in wastewater treatment expected

A closer look at water safety Intelligent water metering •Mining water project endorsed at cop17

contents

technologies 03 Growth in wastewater treatment predicted

solutions 07 Upgraded treatment plant helps

projects 04 Walk the talk: Solar water heaters to be

donated to local communities

05

Recycling of plastics picks up in the

last two years

Feature: water efficiency 06 From the system to the tap: a closer look

boost water recycling

feature: water-metering technology 08 Intelligent water metering resource management 11 Mining water project endorsed at COP17

at water safety and testing

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EDITOR’S NOTE Water for growth and development in Africa A thematic publication by the World Water Council entitled Water for growth and development in Africa, supported by the French Foreign Ministry, highlights the importance of a mosaic of solutions in the field of water and in terms of investment on the continent.

According to Loic Fauchon, president of he World Water Council, finance, governance and knowledge are the three pillars that forms the basis for guaranteeing access to water.

Some interesting statistics from the report: ·

5% of Africa’s GDP is lost annualy due to poor access to water and sanitation.

·

Africa’s current population is said to double in the next 40 years.

·

50 % of Africans will live in urban areas by 2030 compared to 38% in 2005.

·

Africa is currently home to 1 billion people or half the world’s population.

Looking at the above and viewing this in context with our current climatic conditions – the severe weather patterns we’ve witnessed recently, including droughts, heavy and unseasonal rains, water security and resource management must be at the forefront of our developmental goals as a continent.

Africa poses several challenges when we discuss investment opportunities in the continent. Robust and sustainable economies will require a look at integration across several economic levels, leading to a diversification of economies.

The human, economic and water security issues we face is in a phase of changing context. Areas around key river basins are currently undergoing significant changes, driving change in the usage of and management of natural resources.

Under these circumstances, there cannot be enough dicussion followed by concrete action in the water field.

Marlene E van Rooyen

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.

Water360 reserves the right to edit, withhold or alter any editorial material to complement the style of the publication.

Subscriptions: Water360 is published bi-monthly as a print publication. Water360 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.

Publisher: Media in Africa (Pty) Ltd • 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 team: Editor: Marlene van Rooyen Tel: +27 83 327 3746 • E-mail: marlene@25degrees.net Founder: Schalk Burger (1943 – 2006) Publishing Manager: Liezel van der Merwe Financial Manager: Fanie Venter Accountant: Gerda Bezuidenhout • E-mail: gerda@mediainafrica.co.za Sales executive: Liza Pretorius • Tel: +27 12 347 7530 • Cell: +27 76 013 4807 • E-mail: liza@25degrees.net business unit coordinator: Zuerita Gouws • Tel: +27 12 347 7530 • E-mail: zuerita@25degrees.net Design and Layout: Ilze Janse van Rensburg • E-mail: ilze@mediainafrica.co.za Senior Journalist: Esté Meyer Jansen • Tel: +27 72 185 0819 • E-mail: este@mediainafrica.co.za Journalist: Nichelle Lemmer • Tel: +27 72 209 2040 • E-mail: nichelle@mediainafrica.co.za 360 Proofreader: Elizabeth Kruger Reproduction & Printing: Business Print Centre

Vol 2 NR 1 2012

T e c h n o l o g ies

Growth in wastewater treatment predicted

A

s the world becomes increasingly aware of the damage inflicted by industrial processing on the environment, wastewater treatment will become a more lucrative market. “Growth in this market will primarily be driven by increasing mining operations in sub-Saharan Africa,” says Sarah O’ Carroll, an environmental and water technologies research analyst at Frost and Sullivan.

According to O’Carroll, the private sector water market in sub-Saharan Africa was valued at $1,7-billion in 2010, and the mining sector accounted for 36% of this market. “The market is currently dominated by South Africa, which contributed $232-million last year, with Namibia, Botswana and Zambia largely accounting for the remainder.”

For the foreseeable future, these countries will continue to account for a large portion of the water market in the mining sector. “There are also a number of other countries whose contributions to the market will increase considerably over the next decade,” O’Carroll adds. “Tanzania, Uganda and Ghana all have developing mining industries.” She also has hope for the Democratic Republic of the Congo. “If civil unrest decreases, this will be another country to watch.”

O’Carroll says growth in mining industries can be attributed to a number of mineral mapping projects that were completed in the region in the midto-late 2000’s. “Extensive deposits of valuable minerals like copper, cobalt and gold have been found in a number of these countries, which mining companies are now seeking to exploit.” She points out that, in 2004, the government of Uganda commissioned a mineral-mapping project. “Between 2006 and 2009, mining licences increased from 229 to 316 in this country. In contrast, only 66 licences were operational in 1999.”

Over the last decade, governments in Africa have also begun to implement stricter regulations regarding effluent discharge standards. “As a result, mechanical or chemical treatment processes now have to be implemented before the effluent can be discharged into the environment,” she adds. “New mining developments, and ore beneficiation companies, are now forced to include wastewater treatment processes in their proposed plans for new operations.” O’Carroll explains that, without these treatment processes, governments will not approve the new developments. “A good example is the Obuasi mine in Ghana, which was closed for 12 days in 2007 due to the pending implementation of a revised water-management strategy to reduce contaminants in the wastewater it was discharging.”

She says VWS Envig was commissioned to install a clarification plant at a cost of $1,3-million for Anglogold Ashanti as a means to effectively treat the mine’s wastewater. “The greatest obstacle to growth in this market is the poor enforcement of effluent discharge regulations. If governments want to curb the pollution of source water, these regulations will have to be strictly enforced.”

O’Carroll is positive about South Africa’s regulations as this country has the most advanced water act in the region with regards to effluent discharge standards. “Even with this act, Gauteng still has a severe acid-mine drainage problem. This is exacerbated by a lack of skilled personnel to enforce legislation regarding effluent standards.” She says that, as a result, source water continues to be polluted in the province. Marius Keet of the Department of Water Affairs has cited the Witwatersrand, specifically the Krugersdorp region, as a key concern area.

According to O’Carroll, chemical neutralisation and dilution are the preferred means of treatment in sub-Saharan Africa, as it requires a small capital investment. “This treatment method does not really solve the problem.

Chemical neutralisation is a process whereby a chemical, like lime, is added to a solution to raise its pH so that the solution becomes neutral again.” She further explains that the solution is then diluted so that the concentration of the pollutants decreases to a sufficient level. “Consequently, the same pollutants are discharged into the environment, albeit at more favourable levels and in many cases the concentration of one, if not more, pollutants is still too high.”

She says some chemical and technology supply companies, like HeateXchange in Namibia, offer a range of bio-friendly chemicals, which can be used for wastewater neutralisation. “Companies offering these types of projects have become more favourable in recent years, as they offer an opportunity for various industries to use a more environmentally-friendly treatment process.”

O’Carroll points out that the best treatment methods for wastewater are technology-intensive and, although the vast majority of companies use chemical neutralisation, there are a number of companies which have installed these robust treatment methods. “The market for these technologyintensive wastewater treatment solutions is still small and, unless legislation is strictly enforced, this market is unlikely to see double-digit growth over the next four years.”

Looking towards 2015, there is great potential for growth in the wastewater treatment market. “The mining market in sub-Saharan Africa will see significant growth. In some countries this is expected to be double-digit, but unless governments strictly enforce legislation, growth in the wastewater treatment market will continue to be in chemicals rather than the technology market,” she concludes.

Full acknowledgement and thanks are given to Sarah O’ Carroll of Frost & Sullivan for the information given to write this article.

Frost & Sullivan Samantha James Corporate Communictions Africa Tel: +27 21 680 3574 Fax: +27 21 680 3296 E-mail: samantha.james@frost.com Website: www.frost.com 360

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p r o j e c ts

Walk the talk: solar water heaters to be donated to local communities

S

outh Africans are taking bold steps towards greening the environment, and in a true spirit of partnership (ubuntu), companies and individuals have responded to a newly-launched project called iLanga Life by donating funds.

The project aims to roll out additional solar water heaters to low-income households. The project will ensure that climate change talks that took place in Durban last year, bring about practical benefits in the lives of communities through the introduction of clean-energy technologies.

the green economy and create new job opportunities.”

Patel explains that with the contributions from companies, unions and individuals, the country can step up the rate of installation. People have to take full advantage of Africa’s abundant natural resource, the sun, and in the process relieve pressure on the national electricity grid.

IDC’s chief executive officer, Geoffrey Qhena, said he was particularly pleased with the contributions to the project. He said fundraising for the

The Economic Development Department (EDD), Industrial Development Corporation (IDC) and Eskom launched a challenge fund to bring hot water to households in Groutville, an area in the Ilembe Municipality, north of Durban on the first day of COP 17.

The launch of the project follows after the successful installation of about 211 000 solar water heaters throughout the country since the introduction of Eskom’s rebate system. This system was established to encourage the use of solar heating for domestic hot water. About 36 000 units have been installed in KwaZulu-Natal to date.

The Economic Development Department (EDD), Industrial Development Corporation (IDC) and Eskom launched a challenge fund to bring hot water to households in Groutville, an area in the Ilembe Municipality, north of Durban on the first day of COP 17. The initial target set was to raise money for 200 solar water heaters.

During COP17, the Minister of Economic Development announced that the target has been exceeded and that sufficient funds, R690 000, have been raised to install 510 solar water heaters.

Speaking at the announcement of the pledges collected from delegates, businesses and the general public, the Minister of Economic Development, Ebrahim Patel, said the project was intended to bring hot running water to more communities. “We also want to raise awareness about climate change, demonstrate the benefits of solar water heating to South Africans and provide jobs in the manufacturing and installation of the solar water units.

The project also contributes to the New Growth Path (NGP) goals to expand

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project will continue beyond COP17. “I look forward to the launch of the first phase of the installation, where everybody can witness the difference that South Africans have made for families who previously had no access to warm water,” he said.

Approximately 8 000 solar water units in low-income households have been installed across the country during COP 17.

Solar water units are being installed daily across the country. The target to increase the roll-out of solar water heaters was one of 12 commitments contained in the Green Economy Accord, which was recently signed by representatives of business, organised labour, community groups and the government. Approximately 8 000 solar water units in low-income households have been installed across the country during COP 17.

Industrial Development Corporation Tel: +27 11 269 3000 Website: www.idc.co.za

p r o j e c ts

Recycling of plastics

picks up in the last two years

T

he South African National Bottled Water Association (SANBWA) urged companies and individuals to recycle during the December holidays last year. Their technical manager, Charlotte Metcalf, says organisations such as Petco, as well as SANBWA members and the South African public have made considerable strides in recycling plastic products last year, and that it is heartening to see the increase in recycling for plastic across the board.

According to the latest Plastic South Africa figures, 28,9% of the plastics used in the country were recycled in 2009. This is up from 19,7% in 2000, when 90 457 tons of a total 460 000 tons was recycled. “Even more impressive is the recycle rate for PET, the plastic used to make beverage bottles like these used by the bottled water industry,” says Metcalf.

“Petco’s latest figures highlight that 40% of all post-consumer PET bottles consumed in South Africa are recycled. The target for 2015 is 50%.”

“Apart from creating jobs in waste management, recycling reduces the country’s dependence on importing raw materials for plastic manufacturing, shrinks the carbon footprint and ensures that used plastic bottles don’t end up in landfills,” said Metcalf.

Asked to comment on the sustainability of bottled water production in South Africa, Metcalf said is a highly efficient water industry. “Bottled water production has extremely low water usage when measured and compared to food and other beverages.”

Metcalf adds that the term “water usage” refers to how much water by volume is used to make a finished product. “This measure, also known as a company’s water footprint, includes both direct and indirect water usage.” She explains that in the bottled water industry, that would be water for rinsing and sanitizing bottles, plant and general cleaning and sanitation, vehicle washing, floor washing, toilets and water from boreholes and municipal sources.

“The South African industry benchmark is 1.8:1. There are plants that achieve ratios of as low as 1.3 to 1.4 by recycling their bottle-rinse water.” Metcalf says that this industry average equates to 22,7 litres per second. “This is actually not as high as it sounds when one considers that a golf course uses one litre per second per hole or 18 litres per second for an 18-hole golf course.”

She says this means that the bottled water industry’s annual usage is equivalent to that of one and a half golf courses.

According to Metcalf, water is a vital component of the human diet, as well as the healthiest beverage option for Figure 1: A comparison of the impact of bottled water when compared to tap water and other beverages globally. societies plagued by diseases such as obesity and diabetes. “Bottled water is also the best packaged beverage option for the environment – it has the lightest environmental South Africa currently recycles three-million bottles daily, and the recycling footprint of all packaged beverages.” She says the industry can become process of these bottles and other plastic manufacturing activities provide even more environmentally-friendly as the impact of the industry on the employment to more than 65 000 people. environment can be reduced by 25% if consumers would simply recycle their bottles.

South Africa also does not export its PET bottles for recycling, as is the case in many other countries. Instead the bottles are mechanically recycled into SANBWA fibre filling for duvets, pillows, fleece jackets, automotive parts, insulation, Tel: +27 11 884 5916 geotextiles and, most importantly, back into food-grade packaging, thereby E-mail: sanbwa_cg@worldonline.co.za closing the loop.

Website: www.sanbwa.org.za 360

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f e a t u r e : w a ter e f f i c ien c y

From the system to the tap: A closer look at water safety and testing

T

urning on a tap in your house and pouring yourself a glass of fresh water seems to be quite an easy task. What consumers are not aware of, is the intricate path this water follows to get to a residential house and the underlying factors that could influence the quality of drinking water.

25º in Africa takes a deeper look into water safety and testing and talked to Gerrit Idema, the director of Aquadoc Analytics cc, an expert in this field.

“Consumers rightly assume that the water from a tap is drinkable. This is not always the case, as the quality of water consumers receive depends on the path the it takes to get to a destination. This involves variables like the quality of the water pipes, water storage systems and the quality of water received from water suppliers.”

According to Idema, there are strict regulations, SANS 241, pertaining to the quality of drinking water that water authorities have to adhere to. “One of the key factors in ensuring that water is drinkable, is to maintain and upgrade water systems and networks.”

Finding the problem in a system Water testing involves taking samples from various strategic points in a network to point out a contaminating link. According to Idema, the link could be a reservoir, water pipes or even a water tank at an apartment block. “If a reservoir is not regularly cleaned, sediment on the bottom of it will contaminate the water,” he says. “It can also be a safe haven for various insects that love to live in dark spaces.” He adds that pipes in a system made from different materials could also have an effect on the quality of the water flowing through the system, as water may react to materials like copper.

“The responsibility of delivering quality drinking water depends on where the water was contaminated.” He says that if, for example water was contaminated in a storage tank of an apartment block, it is not the responsibility of the municipality or supplier anymore. “A water storage tank needs to be sealed tightly, giving unwanted guests no chance of a way in.”

Different sets of standards Idema says that to test the water according to a standard, one first has to decide for which purpose the water is going to be used. “Water that is used for irrigation or other purposes does not have to comply with SANS 241.”

He says that bottled water, on the other hand, has its own set of standards, SANS 1657, to regulate the industry. “These standards also have to be followed when using water in processing food or beverages.”

He explains further that there are specific requirements for the treatment of bottled water. If bottled water comes from a natural source, like spring water or borehole water, it must be bottled with the nutrients that were present in its natural source. “Various types of filtration systems or cleansing processes can be used to purify the water, but chemical treatment of the water is prohibited.”

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Written by Nichelle Lemmer

Filtration systems There are various types of filtration systems on the market. Idema says the most important factor in deciding upon a filtration system is firstly to know what the end-use of the water is. “This will be a deciding factor in choosing the right filter to suit your project.”

Sand filtration According to the website www.nano-tech.co.za, sand filtration is one of the most important basic technical processes in water treatment. “It is a mechanical separation process in which suspended particles in water are retained in a filter layer, mostly of sand, through which water is passed.”

Idema says a sand filter takes time to reach it’s optimal filtration capability, but then effectively removes flocculent particles from the water. “This type of filter is mostly used in filtration plants and should be serviced regularly for it to work effectively.” He says that if such a system does not work properly, it could contaminate the water. If the particles that stay behind in the filter are not removed, it could just be recycled into the water at a later stage.

Diatomaceous earth (DE) filtration According to a paper on diatomaceous earth (DE) filtration written by the National Environmental Services Centre in West Virginia, it is a process that uses diatoms or diatomaceous earth as a filter media. Diatom is skeletal remains of small, single-celled organisms.

The paper states that DE filtration relies on layers of diatomaceous earth placed on a filter element or septum and is frequently referred to as pre-coat filtration. “DE filters are simple to operate and are effective in removing cysts, algae and asbestos from water. It has been employed in many food and beverage applications for more than 70 years and was used specifically to filter potable water during World War II,” the paper cites. Since then this process has been used to produce high-quality, low-cost drinking water.

DE filtration is most suitable for small communities that need to comply with the rules.

Idema says this type of filtration systems works effectively in small-scale water filtration projects. “The only downside of this filtration system is that it produces waste products that need to be disposed of on continuous basis.”

To constantly deliver quality-controlled water to the end-consumer, a water system needs to be maintained and evaluated on a regular basis. Idema concludes that testing water at different key points in the system will ensure that industry standards pertaining to drinking water are upheld.

Full acknowledgement and thanks are given to Gerrit Idema from Aquadoc for the information given to write this article.

Aquadoc Tel: +27 82 578 1152 E-mail: info@aquadoc.co.za Website: www.aquadoc.co.za

s o l u ti o ns

Upgraded treatment plant helps boost water recycling

This project, known as Project Landlord, is aimed at desalinating blowdown water from the Synfuels utility cooling towers and re-incorporating it into the plant’s processes, reducing overall process waste. “Proper planning in the design phase enabled easy execution of the upgrade as the engineers allowed for sufficient space to accommodate any future equipment to be installed,” says Braybrooke.

Reverse osmosis skids, shown here, remove minerals and other particles by forcing water through a permeable membrane.

The treatment process involves blowdown water undergoing initial fine screening and cold-lime softening. From the screening process, the water is directed into the submerged ultra-filtration membranes. During this phase, hydrostatic pressure forces the water against a semi-permeable membrane, and suspended solutes of high-molecular weight are trapped.

Reducing a synthetic fuel plant’s overall environmental footprint, while producing condensate and polished water, is all in a day’s work for the teams at Sasol Synfuels refinery and Veolia Water Solutions and Technologies South Africa.

These two companies recently came together to upgrade the watertreatment plant at the refinery in Secunda. The upgrade has increased the plant’s production capacity with the addition of a fourth water treatment train.

The Veolia Water Solutions and Technologies patented Multiflo removes total suspended solids, colour, odour, algae and other impurities from water.

According to Chris Braybrooke, general manager at Veolia Water Solutions and Technologies South Africa, the addition of a fourth train increased the water-treatment plant’s production capacity to about 600m3/h of condensate and 330m3/h of polished water. “The plant was previously designed for only 400m3/h condensate and 165m³/h polished water,” explains Braybrooke.

The water is then treated with ion-exchange softeners to reduce the residual hardness, before going through spiral reverse osmosis. This removes the majority of dissolved solids from the water. The mixed-bed demineralisation process provides final purification.

The water-treatment plant, which was initially installed in 2005, included two Multiflo® clarifiers, three trains of water treatment consisting of submerged membrane installations, ion-exchange softeners, reverse osmosis and a mixed-bed demineralisation system.

Veolia Water Solutions & Technologies South Africa (Pty) Ltd Tel: +27 11 663 3600 Fax: +2711 608 4772 E-mail: info.southafrica@veoliawater.com

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f e a t u r e : w a ter - M E T E R I N G T E CH N OLOGY

Intelligent water metering

W

ater is certainly one of the earth’s most essential resources.

With population growth and climate change limiting available water resources globally, it becomes more important to put various systems in place to manage water resources. Water-metering technology can play a key role in helping consumers and businesses to manage their water usage.

meters and paves the way for the introduction of advanced metering infrastructure (AMI). “Improvements to the functionality of the meters have also created the opportunity for intelligent metering to become the norm for water utilities.”

This kind of resource management has been present for some years in the electricity industry as electricity metering has been developing smart meters for various applications. “Water-metering technology, on the other hand, has always lagged behind,” says Allan Swanepoel from Efteq. According to Swanepoel, smart water meters are becoming more popular, but tend to be limited to collecting basic meter information and offer little beyond automatic metering reading (AMR) functionality. However, he says this is changing as recent technological breakthroughs enable two-way communication with

According to www.waterindustry.org, water has always been a rare commodity in Africa, as the rapidly growing population is now closing on the 800-million mark. The website states that even in ancient times African tribes used to fight over two things: water and cattle. “History is in danger of repeating itself as today’s dwindling water resources may yet become the cause of state wars in the not too distant future.”

The need for water metering

Ilana Thushini marketing assistant at Krohne says that water sustains life and will become more and more expensive. “This means that the management of the water resources will play an important role to identify the scale of water use in water-scarce areas and the potential business risks that may arise” She says risk profiling for business especially large consumers of water like beverage manufacturing , brewing food production industries will be very important. “Water foot printing is becoming a popular method of determining the total input of water in relation to a produced product.” Thushini believes the challenge lies in putting more emphasis on sustainable water management as she thinks it does not get the attention it needs in at the moment.

Swanepoel says that the need for water resource management fuels growth in the water-metering industry as large amounts of water paid for by end-users literally goes down the drain without being used for its intended purposes.

He explains that water demand management has become the mantra for water authorities across the globe as they come to terms with levels of unaccounted for water (UFW) that can easily exceed 60%. “While it is possible to reduce the UFW levels by fixing up main reticulation systems, there can still be a lot of wastage at consumer level.” He adds that it’s not unusual to visit residential areas at all levels on the economic ladder and see water leaking from taps.

The WATERFLUX 3070 water meter • No mechanical wear • Suitable for subsurface installation • No inlet and outlet sections • Featuring remote data transfer • Battery operated, stand alone water meter; Battery life up to 15 years

According to Swanepoel, the consumer faces various challenges in finding the right water-metering system that would fit specific needs.

“The market is expanding to move towards providing unique solutions for unique circumstances and individuals.” He says this is fuelled by a growing demand from end-users to have a number of choices to accommodate unique requirements. “For example, in many countries in Africa social and cultural practices require people to provide support for extended families.

This often results in the need for additional water for eventualities such as catering for family funerals or providing care for HIV patients.” He adds that this is the gap intelligent water metering can fill by providing end-users with solutions where traditional water resource management systems fall short.

Moving beyond conventional metering Thushini says that there are distinct trends to move away from mechanical water meters to new technology type meters such as battery powered electronic water meters or water counters. “In essence all that has changed in the mechanical meter market is that the registers have become electronic, the actual meter has not changed. She says mechanical meters are problematic as they need to be sized correctly or they do not meter correctly. “Electronic meters on the other hand offer very large turndown ratio’s and can measure very low flows and very high flows with the same meter.”

She further explains that installation cost for a mechanical meter and subsequent maintenance is also problematic in the long term as the cost escalates annually and will always escalate. “Municipalities do not have the resources to do the maintenance. Electronic meters on the other hand are maintenance free.”

Swanepoel explains that the automation of water meters often involved the addition of a separate valve and some form of electronic control system to a traditional meter. “The new generation of intelligent meters use an integrated meter and valve system in a single unit specifically designed to improve reliability and reduce the opportunity for tampering,” he says.

According to him, any attempt by manufacturers to add smart functionality to water meters has been hampered by the meter’s finite source of power.

“An electricity meter can use as much power as it needs to perform all its functions, but water meters usually have to provide their own power sources.” He says this is traditionally in the form of an on-board battery. “This has forced manufacturers at the forefront of meter development to push the envelope in optimising power consumption and extending battery life.”

One of the challenges water-metering manufactures face is to produce a metering system that is flexible enough to accommodate the requirements of both water supplier and water consumer. “Requirements range from a basic water management device that releases a pre-set amount of water on a daily or monthly basis to a fully flexible payment solution,” he says. “The payment solution needs to ensure 100% revenue collection and reduced administration costs by eliminating the billing cycle. At the same time, the 360

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f at a ter Mement E T E R I N G T E CH N OLOGY Rees ou urrec: ewM a n a-g supply or air flowing through the pipes. The meter needs to operate in such a way that it can handle these events while maintaining its accuracy.”

Benefits of an intelligent water-metering system Thushini says that the advantage of metered water is that the resource can be managed as it is measured. “Unmetered water is unaccounted for water and this water is lost in the cracks and no one knows exactly what has happened to this water,” she explains. “As water will become more expensive with rising energy costs effective and accurate measuring of water will become more and more important.”

Swanepoel says that for the supply authority, there are a number of key features that make an intelligent metering system attractive. “Such a system can provide a range of payment and functioning modes available within a single meter footprint.” He further stretches the benefits by adding that the system provides ease and flexibility in moving customers between payment and functioning modes as a result of changing user or utility circumstances.

“Intelligent water metering also has the ability to ease to upgrade functionality of the installed meter base without removing the meter.”

“This technology also has the option to provide relief measures to customers who are unable to pay for water, either permanently or temporarily. It is a system that allows for the rapid replacement of any faulty meters in the field.” collection of revenue, either pre- or post-paid, requires the meter-control system to be fraud-proof and self-managing, while the meter itself needs to maintain accuracy over an extended period of operation.”

Swanepoel is of the opinion that one function that places large demands on a meter’s battery is AMR. “In order for the meter data to be of real use to a utility, a number of requirements need to be considered.” He adds that the amount of data transmitted is relatively large, particularly when advanced functionality is being used. “The transmitting of data also needs to be fairly frequent, either scheduled or on demand.” He says that if twoway communication is implemented in order to optimise advanced meter functionality, this will place even greater demands on power management and battery technology.

He says that at the same time, the meter that forms the heart of the system often needs to contend with a hostile operating environment. “Climates that include prolonged UV exposure, extreme temperatures and torrential rain pose many challenges.” Swanepoel also points out that many water authorities are only able to pump water of variable quality and with frequent disruptions to supply. “This can result in sand becoming entrained in the

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He says that this kind of technology provides a robust and secure meter management system to ensure 100% collection. “It is also fully flexible in programming the system and has the ability to accommodate unique local requirements such as multiple step tariffs, debt terms and free water allowances.” Automatic meter-reading capability is also part of the package.

This function provides consumption data, plus fault and tamper reporting.

Swanepoel says the system runs with a two-way communication medium between individual meters to change operating parameters on the meter.

“This technology also has the option to provide relief measures to customers who are unable to pay for water, either permanently or temporarily.

It is a system that allows for the rapid replacement of any faulty meters in the field.”

He is also excited about the benefits intelligent water metering offers to consumers. “The system can provide an increasing ability to allow for unique requirements for unique users and the meter is simple and easy to use.” Swanepoel further explains that these meters have a facility that users can utilise to manage their own consumption and it has a number of options for purchasing water or settling outstanding debt. “It also has access to the full range of rebates and allowances offered by their water authority.”

Swanepoel concludes that a number of meter manufacturers are now competing to provide a solution that addresses all the shortcomings of the existing meters, as well as providing a number of innovations that make the intelligent meter as attractive to all role-players as the tried-and-tested smart electricity meter.

Efteq Allan Swanepoel E-mail: allan.s@efteq.com Website: www.efteq.com KROHNE SA Tel: +27 11 3141 391 E-mail: ilana@krohnesa.co.za Website: www.krohne.com

R es o u r c e M a n a g ement

Mining water project endorsed at COP17

Malahleni water reclamation plant

will help to address long-term climate adaptation risks and promote a sustainable future for the region. This in turn provides better flexibility and self-sufficiency in terms of water usage,” he says.

The eMalahleni water reclamation plant will provide over 30 ML of potable water per day to the community of Witbank.

A

nglo American’s eMalahleni water reclamation plant was the only mining initiative to be endorsed by the United Nations Framework Convention on Climate Change (UNFCCC) Momentum for Change Initiative at COP 17.

The UNFCCC’s Momentum for Change Initiative aims to promote a workable framework to combat climate change by raising the profile of successful adaptation and mitigation projects. The initiative also supports effective private-public partnerships in developing countries.

Peter Gunther, Anglo American’s head of sustainable development for the other mining and industrial business unit, commented that UNFCCC recognition is testament to the plant’s considerable success. “Since the eMalahleni water reclamation plant was commissioned in 2007, it has created far-reaching benefits for the environment, the local community and its feeder collieries. The project also received widespread endorsement as a beat practice model.”

Gunther explained that the eMalahleni water reclamation plant was designed to take into account the remaining 20- to 25-year life of contributing mines, and to cater for post-closure liabilities. “Ultimately it

eMalahleni is a public-private partnership undertaken by Anglo American’s Thermal Coal business, BHP Billiton Energy Coal South Africa (BECSA), and the eMalahleni Local Municipality. Situated in the Witbank coalfields of the Mpumalanga province, eMalahleni uses the latest water-purification technology to desalinate 30 megalitres of water to potable quality per day.

Plans to expand the plant’s capacity to 50 megalitres per day are also on the table and will be implemented by 2013. This rising underground water is sourced from Thermal Coal’s Landau, Greenside and Kleinkopje collieries, as well as from BECSA’s disused Witbank-South mine.

The majority of this water is then pumped directly into the eMalahleni Local Municipality’s reservoirs, meeting 20% of the daily water requirements of the water-stressed region. The region consists of 510 000 people and is one of the fastest growing urban areas in the country.

To date, eMalahleni has treated 30-billion litres of water and supplied 22-billion litres of water to the local municipality. The plant also supplies eight megalitres of potable water per day to Zibulo mine, Anglo American’s Inyosi Coal Project, BECSA’s Klipspruit mine and the Phola coal-washing plant.

The plant operates at a 99% water recovery rate. The ultimate goal is for it to be a zero-waste facility through the 100% utilisation of its by-products.

It also prevents polluted mine water from decanting into the environment and the local river system, while alleviating serious operational and safety challenges.

Full acknowledgement and thanks are given to Anglo American for the information given to write this article.

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