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Vol 6 Nr 1 2011 – R49

Country profile:

Swaziland SA's NEW carbon tax

Reducing energy in wastewater plants

Energy management for industrial applications


Contents cover story South Africa produces about 59 different minerals from 1115 mines and quarries, although gold, diamonds, coal and platinum play the greatest role in the current economy. Our energy-intensive mining and industrial sectors have lead firms to seek out ways to reduce their operating costs as well as their dependence on local electricity. Read more about energy management in mining and industrial applications on page 22.

Enervations

Biofuels

4 The cleaning industry

45 Africa’s first carbon neutral

4 Toyota reveals new hybrids

power station

Country profile

CDM

6 An overview on Swaziland

46 CDP cities programme 47 Carbon tax

Climate change 10 The COP 16 agreements

Electricity

16 Deal or no deal

48 SA businesses

20 Global standards

50 DBSA grants loan to Eskom 51 Growth in Namibia’s mining sector

ENERGY MANAGEMENT 22 Energy management: 103 26 Smart metering

Energy efficiency 53 Energy costs in buildings will increase 58 Lighting design competition

Oil and gas 36 Far less predictable

winners 62 Industrial energy-efficiency

37 China’s first deep-water rig 37 Total sells Cameroon assets

Instant update 64 250 in Africa recognised at

Renewables 39 Egypt - one of 30 39 New thin-film technology

PICA awards 66 Lighthouse converted to solar power 67 44MW wind park for Namibia

Nuclear energy 42 Contract awarded to Necsa

Energy events

43 SA government

68 Energy events

www.25degrees.net


The roadmap to COP 17 in Durban Following the COP in Cancun, faith has once again been restored in the process of the UNFCCC and the multilateral negotiations needed to address the climate change issues. Cancun formalised many issues previously in the informal space. One of the key questions raised during the meetings involves the future of market based mechanisms. The challenges lie in the expansion and the design issues of market based mechanisms. How will we take them to scale? What metrics will be used in reporting? I am most interested to see the development of this work during 2011. It is vital that we are realistic in terms of our expectations of what can and cannot be achieved at COP 17. Striking a pragmatic balance between overachievement and under achievement would be fundamental to engaging multilateral parties. Joanne Yawitch, Deputy Director General for Climate Change – Department of Environmental Affairs, raised an important matter at a recent discussion: What are we going to do to showcase South Africa to the world in November in Durban? What do we want out of Cancun aside from the negotiations? This presents us with a golden opportunity to profile South Africa to the international community. I, for one, am extremely excited about the road to Durban and the many people that will travel on it and make a difference!

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

The 25º In Africa team: Editor Marlene van Rooyen Tel: +27 83 327 3746 E-mail: marlene@25degrees.net Founder Schalk Burger (1943 – 2006) SALES EXECUTIVE Rennie Davis Tel: +27 72 520 7069 E-mail: rennie@25degrees.net

Where is ours? Kenya is revising theirs, Uganda just launched theirs, bids are out for Ghana and Botswana is busy putting the finishing touches to theirs. What am I talking about? The REFIT, of course! And where is South Africa’s REFIT?

Journalist Adrienne Brookbanks Tel: +27 82 468 4566 E-mail: adrienne@25degrees.net

Watch this space for more in-depth news on energy and climate change.

business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 E-mail: zuerita@25degrees.net

All comments always welcome at marlene@25degrees.net.

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

Imbewu Sustainability Andrew Gilder – Climate change and CDM legal specialist Publishing Manager Liezel van der Merwe Financial Manager Fanie Venter Design and Layout Ilze Janse van Rensburg Accountant Sietske Rossouw E-mail: sietske@mediainafrica.net Proofreader Elizabeth Kruger Reproduction & Printing Business Print Centre


EN ERVATI O N S

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ENERVAT IO N S

Energy innovations for the cleaning industry Numatic International’s newly launched NuSave, ProSave and ProVac range may appear similar to the original products, but they differ in design, style and most importantly, take the environment into consideration. The new ranges incorporate the original AutoSave Energy Conservation technology, but also introduce unique features which set them apart from other products and make them easily recognisable.

About the new range

reduces power to an optimised level. • ProSave: This range adds performance to its range of economical and efficiency benefits. Using the energy saving system, ProSave vacuum cleaners operate automatically on a 50% output option and will only increase output to 100% when required. • ProVac: Complemented by a combination of sound reduction and energy conservation systems, ProVac machines deliver enhanced power and performance made possible by the TwinFlo vacuum technology. This is incorporated into both the ProVac and ProSave ranges.

• NuSave: The system implemented in the NuSave range of vacuum cleaners automatically starts in the energy conservation mode, which

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

“The NuSave range allows Numatic to further extend its offering to the cleaning industry. We strongly believe that environmentally conscious equipment will soon become the norm, and that Numatic’s new range will pave the way for a greener future,” comments Dewald Botha, general manager of Numatic South Africa.

Toyota reveals

new hybrids

On 10 January 2011, Toyota USA unveiled the low-emissions Prius family of vehicles at the North American International Auto Show in Detroit. The new Prius v midsize hybrid-electric vehicle and the Prius c Concept vehicle, which are set to broaden the appeal of Prius to all ages and lifestyles, joined the hybrid brand. Bob Carter, the Toyota Division group vice-president and general manager, explained that the Prius family all have the same core values of high fuel economy, low emissions, proven technology and environmental stewardship. “The Prius v is an all-new dedicated hybrid vehicle, and all future Prius family members will be as well. They will all share common Prius attributes, but will be unique, with a special appeal to different buyers,” said Carter. Some of the new features of the Prius include touch tracer display, solarpowered ventilation, a smart key system, lane keep assist, an advanced parking guidance system and LED headlamps. The Prius has accounted for more than 955 000 sales in the US since it was introduced in 2000. The third-generation Prius, which reached US dealerships in June 2009, has become the third-best selling Toyota passenger car in the US.

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The new cars Prius v The Prius v is set to appeal to young, growing families with active lifestyles. Featuring a compact exterior yet spacious interior, the Prius v will feature over 50 percent more interior cargo space than the current Prius. Comfortable seating for five is specifically designed for young families. Sliding second row seats allow for easier ingress and egress and rear-storage flexibility, with a 45 degree recline for greater comfort. The car was designed from the ground up, with a shape that evolved from Prius rather than being an elongated version. Prius c Concept The Prius c Concept is aimed at compact shoppers who are interested in a smaller hybrid at an entry price point and with superior fuel economy. The c represents a “city”-centric vehicle and Toyota hopes it will appeal to singles and couples who want an eco-sensitive, high-mileage Prius. The urban appeal will pursue outstanding fuel-efficiency and technology features (including some offered in the current Prius). Prius Plug-In One of the main efficiencies of the Prius has always been its hybrid system with its own on-board recharging system. The Prius Plug-In is the “best of both worlds” option, offering great fuel economy with added EV driving capability.The car can be driven approximately 21 km (depending on driving conditions) on battery power at speeds up to 100 km/h. Its’ compact Lithium-ion battery provides less weight and a quicker recharging time, taking three hours on 110 volts and 1.7 hours on 220 volts. It can be “topped up” anytime with a convenient short charge. After the EV power is depleted, the Plug-in performs like an economical third-generation Prius. Unlike pure EVs, it will be a seamless transition for consumers, with the only difference from a regular Prius that it can be plugged in at convenient intervals. For more information, visit www.toyota.com, to which full acknowledgement and thanks are given.


EN ERVATI O N S

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country pro fil e: swaz il and

Swaziland

:

Subsistence agriculture occupies approximately 70% of the population in the small, landlocked economy of Swaziland. Sugar and wood pulp remain important foreign exchange earners. In 2007, the sugar industry increased efficiency and diversification efforts, in response to a 17% decline in EU sugar prices. Mining has declined in importance in recent years with only coal and quarry stone mines remaining active.

Surrounded by South Africa, except for a short border with Mozambique, Swaziland is heavily dependent on South Africa, from which it receives more than nine-tenths of its imports and to which it sends 60% of its exports. Swaziland’s currency is pegged to the South African rand, subsuming Swaziland’s monetary policy to South Africa. Customs duties from the Southern African Customs Union (SACU) account for two-thirds of Swaziland’s government revenues, and worker remittances from South Africa substantially supplement domestically earned income. Customs revenues plummeted during the global economic crisis and Swaziland has appealed to SACU for assistance.

The country has an estimated 40% unemployment rate. Overgrazing, soil depletion, drought and sometimes floods persist as problems for the future. More than one-fourth of the population needed emergency food aid in 200607 because of drought, and more than one-quarter of the adult population has been infected by HIV/AIDS. Location: Southern Africa, between Mozambique and South Africa. Climate: Varies from tropical to near temperate. Terrain: Mostly mountains and hills, some moderately sloping plains. Elevation extremes: Lowest point: Great Usutu River 21 m. Highest point: Emlembe 1 862 m. Natural resources: asbestos, coal, clay, cassiterite, hydropower, forests, small gold and diamond deposits, quarry stone and talc. Land use: Arable land: 10.25% Permanent crops: 0.81% Other: 88.94% (2005) Natural hazards: drought. Current environmental issues: limited supplies of potable water, wildlife populations being depleted because of excessive hunting, overgrazing, soil degradation, soil erosion.

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c o u ntry pro fi le : s wa zi lan d

GDP (purchasing power parity): US$5.849-billion (2009 est.) GDP (official exchange rate): US$3-billion (2009 est.) GDP – real growth rate: 0.4 % (2009 est.) GDP – per capita (PPP): US$4 400 (2009 est.) GDP – composition by sector: Agriculture: 8.4% Industry: 42.4% Services: 49.2% (2009 est.) Population below poverty line: 69% (2006) Industrial production growth rate: -3.5% (2009 est.) Electricity production: 441-million kWh (2007 est.) Electricity consumption: 1.266-billion kWh (2007 est.) Electricity exports: 0 kWh (2007 est.) Electricity imports: 770-million kWh (2008 est.) Oil production: 0 bbl/day (2009 est.) Oil consumption: 4 000 bbl/day (2009 est.) Oil exports: 0 bbl/day (2007 est.) Oil imports: 4 100 bbl/day (2007 est.) Oil – proved reserves: 0 bbl (1 January 2010 est.) Natural gas production: 0 cu m (2008 est.) Natural gas consumption: 26.83-billion 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 (1 January 2010 est.) Current account balance: -US$213-million (2009 est.) Exports: US$1.338-billion (2009 est.) Export commodities: soft drink concentrates, sugar, wood pulp, cotton yarn, refrigerators, citrus and canned fruit.

Import commodities: motor vehicles, machinery, transport equipment, foodstuffs, petroleum products, chemicals. Imports: US$1.585-billion (2009 est.) Debt external: US$411-million (31 December 2009 est.) Information courtesy of www.cia.gov, to which full acknowledgement and thanks are given.

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country pro fil e: swaz il and

Energy in Swaziland Swaziland imports more than half of its energy requirements to fulfil the domestic and commercial needs of the country. The majority of this energy is sourced from fossil fuels, e.g. coal and petroleum. In 2007, the major sources supplied in the country were petroleum products, renewable waste from sugar mills and wood pulp from wood processing companies, followed by electricity and coal. The 2007 Energy Balance for Swaziland was compiled from 2006 – 2007 data, which indicates that the primary energy supply is met through petroleum products (23%), renewable and waste (48%), electricity (13%) and coal (16%). “Swaziland imports 80 – 90% of the electricity it supplies to endusers. In 2007, 841.5 GWh from Eskom and 93.7 GWh from EDM was imported into the country. About 200 MW potential is available for exploitation,” said Moses Dlamini, renewable energy engineer at the Ministry of Natural Resources and Energy in Swaziland at a workshop on energy and environment in Gaborone, Botswana, in 2009. According to the Renewable Energy Association of Swaziland (REASWA), local energy sources are primarily from biomass (organic matter such as wood, sugar waste, wood waste etc). “However, these energy resources are frequently used in an inefficient manner,” said REASWA in a report compiled for the Ministry of Natural Resources and Energy. “This is detrimental to the economy in terms of the balance of payments and poor operational efficiencies. In addition, there are major environmental and health impacts,” says REASWA. Climate change will impact heavily on land use and agriculture, which is of great concern to countries such as Swaziland, who are heavily dependent on agriculture. Wood fuel, which is becoming scarce in certain areas of Swaziland due to unsustainable overuse, is also a major source of accidents and respiratory illnesses in the rural homesteads of the country. “The total forest cover in Swaziland is approximately 625 400 ha. Of this, 162 400 ha are commercial plantations and 463 000 ha are indigenous forests. The amount of indigenous wood fuel available has not been sufficiently investigated. Indigenous wood fuels are harvested in a non-managed manner and it is estimated that wood fuel constitutes 80% of the total wood demand. Government (Forestry) has put in place legislation

policies to minimise indiscriminate use of indigenous forest,” says Dlamini. “The effective use of renewable energy can assist in alleviating these problems on both a local and a global scale. Although many people may not be aware of it, Swaziland has abundant resources of renewable energy, especially in the form of solar, biomass and hydro. There is also a limited potential for using wind power, although this may be restricted to certain areas,” said REASWA. Wind energy “In Swaziland, there is a potential for wind pumps and small scale turbines, although the average wind speeds are considered to be fairly low. There may also be opportunities for larger turbines in the Lubombo region, however wind measurement programmes are still ongoing and further data is required before there is any certainty in the availability of the wind resources,” says REASWA. According to Dlamini, the wind regime in Swaziland is not well documented. “However, there could be a potential for micro wind turbines. Wind pumps have been used and this application seems to hold the greatest potential for wind energy in Swaziland,” explains Dlamini. “Presently, we are measuring wind speeds around the country. Means speeds of slightly below 4m/s have been experienced, which could be sufficient for wind electricity generation. Currently, further investigations are being carried out along the Lubombo Plateau. Our aim is to establish a wind and solar regime for Swaziland in order to be able to locate favourable sites for the exploitation of the resources,” says Dlamini. Hydro energy In Swaziland, the Swaziland Electricity Board’s hydro-based installed capacity is 41.5 MW. There are presently three main hydro plants connected to the National Grid in the country, namely Ezulwini (20MW), Edwaleni (15MW) and Maguduza (6.5 MW).

Wood fuel in Swaziland On a domestic level, wood is the most important energy source for most of the population of Swaziland. It is frequently the only energy source for 70% of households in the rural areas. It is also a major energy source for peri-urban households. Wood fuel accounts for 65% of the country’s total energy consumption.

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In addition to the major grid-connected hydro plants, there are also a small number of plants operated by private companies for their own power needs. Some are integrated into the grid to ensure a balanced availability and quality of power while, others are stand alone. Sources: www.ecs.co.sz, www.cef.org.za.


c o u ntry pro fi le : S WA Z I L AN D

Providing power to the masses of

Swaziland South Africa’s largest high-voltage construction company, CONCO (Consolidated Power Projects), completed a ZAR115-million power project in Swaziland in 2008. The refurbishment project included 12 different substation sites all over Swaziland, of which three were “greenfield” sites (which refers to an undeveloped site that is earmarked for industrial projects) and nine “brownfield” sites (older substations that needed to be refurbished). Each of the substations operates on 66 000/11 000V with capacities varying from 5MVA to 40MVA. Three new 66 000V steel monopole power lines completed the project. CONCO specialises in the creation of turnkey solutions for the electricity supply industry, based on design, procurement, construction, commissioning, project management and site management for HV-installations. The company’s experience extends to collaborating with governments, utilities, municipalities, mining houses, the industrial sector, finance houses and capital investment schemes. “The Swaziland project is the first of its kind and, at the time, it was the single largest project that CONCO had done,” said Rein Dijkstra, Manager of Renewable Energy. CONCO’s 400 kV Integration Phase II Stage 1 Project, which forms part of the 400 KV Integration Scheme, was targeted at upgrading and reinforcing the substations in the country.

“One of the challenges of the project was that we couldn’t move the sites of the existing substations because the infrastructure was already there. We also needed to ensure that substations would be able to supply uninterrupted electricity, so we would only have an eight-hour downtime once a week when we could actually do change-over work on the station. We also had to bring in six new transformers with a total capacity of 120 MVA and move the existing transformer capacity of 75 MVA to another site – these moves had to coincide with one another to ensure electricity supply to the network. All the equipment for the project was transported on 55 Superlink trucks. This type of refurbishment requires a lot of careful planning, designing and project management,” explains Dijkstra. Using local resources in Swaziland

A function unique to the project was the upgrading of existing sites while keeping them energised, as well as fitting substations into small footprints. Project details Client: Swaziland Electricity Company Consulting engineers: Netgroup Project type: Greenfield and Brownfield Value: ZAR115,576,424.00 Start/completion date: December 2006 – September 2008 System voltage: 66 kV & 11 kV Substation MVA rating: 12 Substations: 195 MVA No incomer bays: 19 No transformer bays: 14 No feeder bays: 0 No bus section bays: 6 Protection philosophy applied: SEL, SOLKOR, REG DA Automation philosophy applied: SCADA, remote control Challenges: Working in live substation Major challenge to replace an entire old substation with a new one without the interruption of power (other than these scheduled on Sundays) or accidents.

The entire project was completed in 2008 and within budget. CONCO appointed Stefanutti & Bressan Building, a local subcontractor, to handle the ZAR25-million civil engineering section of the project. “We also appointed approximately 140 people from various regions of Swaziland. CONCO had safety managers, project managers and four electrical teams, which consisted of about five people per team, permanently in Swaziland. When you’re working on a project like this, you need site staff that you can trust blindly,” says Dijkstra, who was the project manager for the Swaziland project. “In order to complete the project successfully within the given amount of time, we never worked on all 12 substation sites simultaneously – the project plan was set up to ensure minimal downtime of substations and speedy completion of each site. We completed a very complicated job without the people of Swaziland knowing,” says Dijkstra when referring to the vast scope and minimal disruptions of the project. Conco Tel: +27 11 805 4281 Fax: +27 11 805 1132 E-mail: conco@conco.co.za Website: www.conco.co.za 2 5 o i n A fr i c a

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climate change

The COP16 Agreements

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c li m ate c h ang e

What happened in

Cancun? Over 9 000 delegates from 190 countries gathered in Cancun, Mexico for the 16th United Nations Climate Change Conference from 29 November to 10 December 2010. “The beauty of the surroundings in which we are working cannot hide the fact that the stakes at this particular conference are very high. The political stakes are high because the effectiveness and credibility of your multilateral intergovernmental process are in danger. And the environmental stakes are high because we are quickly running out of time to safeguard our future,” said Christiana Figueres, Executive Secretary of the UNFCCC at the opening session of the conference. On the final day of the conference, a package of decisions was adopted. The package, dubbed the Cancun Agreements, was welcomed to repeated applause by parties at the final plenary. The Cancun Agreements envision eventual rules for managing CO2 emissions and it also reiterates a promise made by industrial countries in Copenhagen for US$30-billion in “fast-start” money over the next 2 years to help vulnerable countries combat the effects of climate change. “Cancun has done its job. The beacon of hope has been reignited and faith in the multilateral climate change process to deliver results has been restored,” said Christiana Figueres, Executive Secretary if the UNFCCC. “Nations have shown that they can work together under a common roof to reach consensus on a common cause. They have shown that consensus in a transparent and inclusive process can create opportunity for all,” she said. Cancun sets us on dangerous path to runaway climate change But not everybody was satisfied with the results – Bolivia was the only nation to oppose the outcome of COP16. Bolivia’s ambassador to the UN, Pablo Solon, said: “Many commentators have called the Cancun accord a Continues on page 12

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climate change

Continued from page 11 ‘step in the right direction’. We disagree: it is a giant step backward. The text replaces binding mechanisms for reducing greenhouse gas emissions with voluntary pledges that are wholly insufficient. These pledges contradict the stated goal of capping the rise in temperature at 2C, instead guiding us to 4C or more. The text is full of loopholes for polluters, opportunities for expanding carbon markets and similar mechanisms – like the forestry scheme Redd– that reduce the obligation of developed countries to act,” said Solon (www.guardian.co.uk). “Bolivia is a small country. This means we are among the nations most vulnerable to climate change, but with the least responsibility for causing the problem. Studies indicate that our capital city, La Paz, could become a desert within 30 years,” said Solon. “The UN’s Intergovernmental Panel on Climate Change has found that in order to have a 50% chance of keeping the rise in temperature below 1.5C, emissions must peak by 2015. The attempt in Cancun to delay critical decisions until next year could have catastrophic consequences,” continued Solon. Despite the number of advances that were made at COP16, South Africa (who are hosting this year’s convention) will have a lot of planning and work to do. “There is a lot of work ahead of us,” said Alf Wills, South Africa’s lead climate negotiator in Cancun. Wills told IRIN News that South Africa is requesting at least two rounds of talks at ministerial level ahead of the Durban meeting. The next Conference of the Parties is scheduled to take place in Durban from 28 November to 9 December 2011. Continues on page 14 Elements of the Cancun Agreements include: • Industrialised country targets are officially recognised under the multilateral process and these countries are to develop low-carbon development plans and strategies and assess how best to meet them, including through market mechanisms, and to report their inventories annually. • Developing country actions to reduce emissions are officially recognised under the multilateral process. A registry will be set up to record and match developing country mitigation actions to finance and technology support from industrialised countries. Developing countries must publish progress reports every two years. • Parties meeting under the Kyoto Protocol agree to continue negotiations with the aim of completing their work

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and ensuring there is no gap between the first and second commitment periods of the treaty. The Kyoto Protocol’s Clean Development Mechanisms has been strengthened to drive more major investments and technology into environmentally sound and sustainable emission reduction projects in the developing world. Parties launched a set of initiatives and institutions to protect the vulnerable from climate change and to deploy the money and technology that developing countries need to plan and build their own sustainable futures. A total of US$30-billion in fast-start finance from industrialised countries to support climate action in the developing world up to 2012 and the intention to raise US$100-billion in long-term funds by 2020 is included in the decisions. In the field of climate finance, a process

to design a Green Climate Fund under the Conference of the Parties, with a board with equal representation from developed and developing countries, is established. • A new “Cancun Adaptation Framework” is established to allow better planning and implementation of adaptation projects in developing countries through increased financial and technical support, including a clear process for continuing work on loss and damage. • Governments agree to boost action to curb emissions from deforestation and forest degradation in developing countries with technological and financial support. • Parties have established a technology mechanism with a technology executive committee and climate technology centre and network to increase technology cooperation to support action on adaptation and mitigation.


climate change

Emerging economies becoming

leaders in climate action Continued from page 12 According to a WWF report issued at the beginning of the Cancun UN climate summit, entitled Emerging Economies – How the developing world is starting a new era of climate change leadership, emerging economies are also emerging leaders in effective climate action. “The race to grow clean technology markets and embrace a low-carbon future is well underway in some of the world’s largest emerging economies,” said Gordon Shepherd, leader of WWF’s Global Climate Initiative. The report examines emissions trends and climate action plans for five of the world’s largest developing economies (Brazil, China, India, Mexico and South Africa) and finds that these economies are acting with greater determination, ambition and energy than several countries in the developed world. “These countries now have the opportunity to build on their strong initiatives domestically to show international leadership under the UN climate process.

Temperatures in 2010 break records – WMO During COP16 in Cancun, the World Meteorological Organisation (WMO) highlighted weather extremes in various parts of the world during 2010. According to the WMO, 2010 is likely to rank in the top 3 warmest years since the beginning of instrumental climate records in 1850.

The WWF analysis shows that all five economies have reasonably strong renewable energy standards and emissions reduction plans, laying the basis for further action that will be needed in the future. Mexico is integrating its climate change mitigation and adaptation plans and has committed to reduce emissions by 50% by 2050, compared to 2000 levels. South Africa is pursuing a consistent economy-wide approach to low carbon development planning, working towards achieving about 34% reduction by 2020, especially commendable given the country’s very high dependence on coal. China is changing its energy mix and has committed to offering at least 15% of all energy from renewable sources by 2020, while emerging as the world’s largest manufacturer of renewable energy products in 2009. This is all part of securing the 20% reduction in energy intensity by 2010, compared to 2005 levels that China pledged at the Copenhagen UN climate summit.

and 0.7°C to 0.9°C warmer than any previous decade. According to the WMO, the most extreme warm anomalies occurred in two major regions, the first extended across most of Canada and Greenland and the second covered most of the northern half of Africa and South Asia. Four of the five sub-regions which are wholly or partly in Africa (the Saharan/Arabian region, the Mediterranean as well as West and Southern Africa) are on course for their warmest year on record. Major regional climate events in 2010

The global combined sea surface and land surface air temperature for 2010 (January–October) is currently estimated at 0.55°C ± 0.11°C1 (0.99°F ± 0.20°F) above the 1961–1990 annual average of 14.00°C/57.2°F. At present, 2010’s nominal value is the highest on record, just ahead of 1998 (January-October anomaly +0.53°C) and 2005 (0.52°C). The WMO’s data is also indicating that January-October 2010 temperatures are near record levels. The final ranking of 2010 will not become clear until November and December data are analysed in early 2011. Global warming strong in Africa Africa, parts of Asia and parts of the Arctic; the Saharan/Arabian, East African, Central Asian and Greenland/Arctic Canada sub-regions have all had 2001-10 temperatures 1.2 to 1.4°C above the long-term average,

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The WMO presented these findings during the UN climate meeting in Cancun and highlighted various weather extremes, which it says are consistent with the picture of man-made global warming. Some of the major regional climate events in 2010 include extreme Asian summer monsoon in some regions, extreme summer heatwaves in Russia, an abnormal winter in many parts of the Northern Hemisphere, heavy rains and flooding in large parts of Indonesia and Australia and drought in the Amazon. This preliminary information for 2010 is based on climate data from networks of land-based weather and climate stations, ships and buoys, as well as satellites. For more information, visit www.wmo.int, to which full acknowledgement and thanks are given.


c li m ate c h ang e

Risk mapping tool to assist with climate change

strategies

Businesses need to address regulatory, environmental and social, infrastructural, reputational and financial risks that relate to climate change. In order to effectively respond to these threats, strategic and operational requirements are needed. “Businesses should take a twintrack approach of managing carbon emissions (mitigation) and adapting to the impacts associated with future changes in climate,” says the Business Development Manager of ground engineering and environmental consultancy firm Golder Associates, Rob Hounsome. In order to respond proactively, businesses need to determine: • Which climate-related threats their operations may be facing, both presently and in the future; • How to measure and report on climate risk; • What opportunities could be created from climate change, and how can these be capitalised upon; and • How these threats and opportunities can be factored into decision-making or operational practices to ensure that resources are effectively allocated to increase resilience. When advising clients on climate change risks and strategies, Golder draws on its climate risk mapping tool to conduct high-level screening assessments to highlight these areas in which climate change might create opportunities for or threats to a business. Hounsome says that the tool evaluates various business functions in relation to climate risk, and assists with the development of response and adaptation plans. The following questions provide examples of how the tool may be employed: • Finance and greenhouse gas emissions risk: Has the company assessed the financial impact of reducing its carbon footprint (through purchasing carbon credits or other offsetting instruments)? • Infrastructure vulnerability and physical risk: Has the company infrastructure suffered damage as a result of severe weather events in the past (e.g. storms, flooding, ground conditions)? • Markets function and regulatory risk: Are your products and services subject to known or pending climate-related regulation which could impact the viability of the product or service?

Business continuity management These questions are analysed together with the client in order to produce a comprehensive response report, as well as a business continuity management plan, which aims to develop organisation-wide resilience. “This type of planning should allow an organisation to survive the loss of part or all of its operational capability, in this case due to climatic impacts, and ensure organisational survival in the event of significant losses of resources,” says Hounsome. “The business continuity concept should be communicated and realised at all levels of the organisation, as well as through the supply chain. Golder’s approach efficiently focuses an organisation’s climate change response strategy on the critical issues that will significantly affect its business continuity,” continues Hounsome. The climate risk mapping tool is a high-level, client-input driven method of identifying potential impacts that may threaten the survival of an organisation under a changed climate. It offers a framework for building resilience and the capability of an effective response. Most importantly, the tool aims to safeguard the interests of company key stakeholders, reputation, brand and profitability. Golder Associates Durban: +27 31 717 2790 Johannesburg +27 11 254 4800 E-mail: mail@golder.co.za Website: www.golder.com

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climate change

Deal or

no deal

– developing countries aren’t

waiting “Although developing countries urgently need a global deal on climate change, they’re not waiting for it,” said Andrew Steer, the World Bank’s Special Envoy for Climate Change ahead of the UN Climate Conference in Cancun. Steer told reporters ahead of the conference that a “silent revolution” is going on in terms of developing countries taking action. “We are struck month by month by how much innovation is going on. Over the last two years, 80% of World Bank client countries have asked that climate change must be one of the pillars we work with them on. This is up from about 10% ten years ago,” said Steer.

already operating in 43 countries. Funds allocation and implementation is well underway and the 50/50 governance structure (between developing and developed countries) is exactly what Copenhagen called for,” said Steer. “No one expects a comprehensive deal in Cancun, but progress can be made, and is being made on key building blocks toward that eventual goal. Cancun won’t be the “slam dunk” the world is looking for, but it will certainly move the ball forward and that’s what we need to do,” concludes Steer. Landmark climate finance website launched at COP16

“This is money they could be using for other things, but countries are choosing to use it for adaptation and to acquire clean technology,” said Steer. Action on soil carbon According to Steer, action on soil carbon is an opportunity to transform agriculture from a climate change problem into a solution. “Farmers are under threat from climate change, but they could also play a major role in addressing it,” said Steer. The World Bank is working with a range of partners to launch a roadmap for action on agriculture in Cancun. Other activities that the World Bank is involved in include new efforts to help developing countries develop their own carbon markets and launching a new renewable energy-initiative for small island developing states.

“Vulnerable small islands should be at the front of the queue when it comes to accessing affordable renewable energy,” said Steer. “Vulnerable small islands should be at the front of the queue when it comes to accessing affordable renewable energy,” said Steer. Steer said he hopes a process will be launched and lessons learned from existing climate change funds to aid the design of the new Green Fund. “The US$6-billion Climate Investment Funds are just two years old and are

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To help developing countries make sense of the multitude of funds and instruments available for climate finance a landmark website, www.climatefinanceoptions.org, was launched at COP16. The World Bank and the UN Development Programme (UNDP) jointly developed this webbased platform, which they hope will become the go-to site for developing countries looking to identify sources of funding to combat climate change. “Accessing finance from the growing number of climate funds – all with different criteria and requirements – is a complex and time-consuming business for many developing countries. This website disentangles the spaghetti, providing user-friendly information that will help officials, NGOs and entrepreneurs to tap into finance with a minimum of fuss,” said Steer. “Developing countries often face an information gap as they search around for funds to support their climate change development needs. These needs are demanding increasingly enormous amounts of financial flows – as much as US$100-billion for adaptation and US$175-billion for mitigation per year in developing countries by 2030. Many developing countries are already taking action from their own scarce resources,” the World Bank said in a statement. The website www.climatefinanceoptions.org documents and analyses the types of funds available, how much is available for what, the criteria for assessment as well as how the funds are governed and administered. For more information, visit www.worldbank.org, to which full acknowledgement and thanks are given.


c li m ate c h ang e

How the

IPCC works The Intergovernmental Panel on Climate Change (IPCC) is tasked with reviewing and assessing the most recent socio-economic, scientific and technical climate change information. “The IPCC is a huge and yet very tiny organisation,” reads a statement on the IPCC’s website. Scientists from all over the world contribute to the work of the IPCC as authors and reviewers on a voluntary basis. None of them get paid by the IPCC. The IPCC Secretariat, whose core staff consists of only 10 people, plan, coordinate and oversee all the IPCC activities. The IPCC is organised in 3 working groups: Working Group 1: Deals with “The Physical Science Basis of Climate Change”. Working Group 2: Deals with “Climate Change Impacts, Adaptation and Vulnerability”. Working Group 3: Deals with “Mitigation of Climate Change”. The IPCC working groups are assisted by Technical Support Units (TSU), which are hosted and financially supported by the government of the developed country who is the co-chair of that working group/task force.

Commission for Africa, World Health Organisation (WHO), World Meteorological Organisation (WMO), the World Bank and so forth. Major decisions are taken by the panel during the plenary session. For example: • Budget. • Scope and outline of IPCC reports. • The election of the IPCC chair, IPCC Bureau and the Task Force Bureau. • IPCC principles and procedures. • The structure and mandate of IPCC working groups and task forces. • The workplan of the IPCC. • Approval, adoption and acceptance of reports. The Bureau The IPCC chair, IPCC vice-chairs, the co-chairs and vice-chairs of the working groups and the co-chairs of the task force make up the IPCC Bureau. Currently, 31 members elected by the panel during the plenary session make up this Bureau.

Scientists from all over the world contribute to the work of the IPCC as authors and reviewers on a voluntary basis. The task force on National Greenhouse Gas Inventories is tasked with developing and refining a methodology for the calculation and reporting of national GHG emissions. Besides the task force and working groups, further task groups and steering groups may be established for a limited or longer duration to consider a specific topic or question.

The Bureau selects the authors’ teams for reports and they assist co-chairs with the preparation of reports.

The Bureau selects the authors’ teams for reports and they assist co-chairs with the preparation of reports. Their mandate normally corresponds to the duration of an assessment cycle (5-6 years). “They will be highly qualified experts in their field and all the regions around the world should be represented in a balanced manner,” says the IPCC.

Plenary sessions

The authors

Plenary sessions are held where the panel meets at the level of government representatives for all member countries (this panel meets once a year). Hundreds of officials and experts from research institutions, agencies and relevant ministries from member countries and from observer organisations attend these meetings.

The Bureau and working groups select authors, contributors, reviewers and other experts from a list of nominations received from governments and participating organisations. The Bureau can also identify individuals for their expertise in a special area reflected in their publications and work. Author teams are chosen to reflect a range of views, expertise and geographical areas. None of the authors get paid by the IPCC.

These member organisations include the Climate Change Secretariat, International Atomic Energy Agency (IAEA), International Labour Organisation (ILO), Food and Agriculture Organisation (FAO), Economic

For more information, visit www.ipcc.org, to which full acknowledgement and thanks are given. 2 5 o i n A fr i c a

17


climate change

Hope and

faith

to address

Key outcomes

of COP 16

climate change,

?

will it be sufficient

By Marie Parramon, Sustainability Legal Consultant at IMBEWU Sustainability Legal Specialists (Pty) Ltd

The words faith and hope have been used frequently in the description of the outcomes of the 16th session of the Conference of the Parties (COP 16) to the United Nations Framework Convention on Climate Change (UNFCCC) and the 6th session of the Conference of the Parties serving as the meeting of the parties to the Kyoto Protocol (CMP), referred to collectively as COP 16, which was held in Cancun, Mexico, in December 2010. The United Nations executive secretary, Christiana Figueres, was quoted saying that “COP 16 has restored faith”. In addition to restoring hope and faith, the key and more concrete outcomes of COP 16 are the Cancun Agreements. The Cancun Agreements refer to the combination of the COP 16 and CMP decisions, “thus bringing at least nominally the main outcomes of the two negotiation tracks under one umbrella”. [1] The decisions were adopted against the objection of the government of Bolivia. Regarding this point, the Mexican Presidency conducted the following interpretation of the UNFCCC rules, namely that “consensus does not require unanimity” and that the UNFCCC would not grant a veto right to Bolivia. In terms of the content of the Cancun Agreements, the following key matters were addressed: mitigation, monitoring, reporting and verification (MRV), adaptation, finance, technology, reducing emissions from deforestation and forest degradation in developing countries (REDD+) and the Clean Development Mechanism (CDM).

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Mitigation The main and critical point is that the parties have not managed to agree on a second commitment period for emissions reductions targets under the Kyoto Protocol. However, various experts support the position that the Cancun Agreements should assist parties in progressing towards agreeing on a second commitment period. In the Cancun Agreements, the parties recognised or rather reconfirmed that deep cuts in global greenhouse gas emissions are required according to science, and as documented in the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), with a view to reducing global greenhouse gas emissions in order to hold the increase in global average temperature below 2°C above pre-industrial levels. The parties also recognised the need to consider strengthening the long-term global goal on the basis of the best available scientific knowledge, specifically in relation to a global average temperature rise of 1.5°C. One of the tasks for COP 17 will be to work towards identifying a global goal for substantially reducing global emissions by 2050. Parties also recognised the need for a paradigm shift towards low-carbon societies offering continued high growth and sustainable development in production, consumption and lifestyles patterns, along with a transition of the


c li m ate c h ang e

workforce that creates decent work and quality jobs. In terms of emissions reduction targets, the COP and the CMP took “note” of the economywide emission reduction targets to be implemented by developed country parties, which are these submitted in terms of the Copenhagen Accord, 2009. “While incorporation of the targets into the Cancun Agreements falls short of making the targets legally-binding, it does formalize them within the UNFCCC system, and the words “to be implemented” have a notably mandatory tinge. However, these targets are still far short of IPCC recommendations for emission levels likely to keep warming below 2°C.” [2] Developing country parties, in alignment with the Copenhagen Accords, reconfirmed that they will take nationally appropriate mitigation actions (NAMAs) to reduce business-as-usual emissions by 2020. In this context a registry will be established. Monitoring, reporting and verification (MRV) In terms of MRV, which has commonly been a contentious issue between developed and developing countries, developed countries have agreed to enhance MRV of mitigation actions and climate financing, including improved and upscaled reporting on the provision of financial, technology

of forest carbon stocks). Developing countries’ actions in terms of REDD+ will depend on developed countries’ financial and technological support. Technology The Cancun Agreements established a technology mechanism to accelerate technology development and transfer under the UNFCCC. It is constituted of a Technology Executive Committee (TEC) and a Climate Technology Centre and Network (CTCN) under the guidance of and accountable to the COP. The Clean Development Mechanism (CDM) The CMP accepted operational reforms to extend and streamline Clean Development Mechanism (CDM) activities, including decisions on a CDM loan scheme and standardised baselines. Another important point was the acceptance of carbon dioxide capture and storage (CCS) in geological formations as an eligible project type under the CDM. However, the parties agreed that further work has to be done to determine the details for recognising CCS projects under the CDM. The CMP also decided that

The question is if hope and faith will be sufficient to ensure that a global agreement is reached on climate change. and capacity-building support to developing country parties and on progress in achieving emission reductions. It was also agreed that developing countries should ensure MRV of internationally-supported mitigation actions, while mitigation actions supported domestically would be subject to domestic MRV. Adaptation In terms of the Cancun Agreements, the Cancun Adaptation Framework was adopted, which includes agreements on: (i) impact, vulnerability and adaptation assessments, (ii) a process to enable least developed country parties to formulate and implement national adaptation plans, (iii) the establishment of an adaptation committee to promote enhanced action on adaptation under the convention, and (iv) a request to support developing country activities with long-term, upscaled, predictable, new and additional finance, technology and capacity-building. Finance The Cancun Agreements incorporates the financial provisions of the Copenhagen Accord. [3] In addition, the Cancun Agreements established a Green Climate Fund that is accountable to and operates under the “guidance” of the Conference of the Parties. The Green Climate Fund Board will ensure equal representation from developed and developing countries. The World Bank will serve as its interim trustee, subject to a review three years after the fund begins operations. REDD+ The Cancun Agreements established a mechanism that encourages developing countries to contribute to mitigation actions in the forest sector by the full scope of REDD+ activities (reducing emissions from deforestation, reducing emissions from forest degradation, conservation of forest carbon stocks, sustainable management of forests and enhancement

emissions reductions and associated carbon credits from land use, land use change and forestry (LULUCF) activities shall continue to be available for developed country parties as a means to achieve compliance with their emissions reduction targets. The challenge for COP 17, which will take place in Durban in South Africa at the end of 2011, will be to use the hope and faith restored by COP 16 to ensure that the parties agree to a legally binding and enforceable agreement which will set out the emissions reductions targets post 2012, requiring the careful management of the Unites States of America and China and their respective positions. The question is if hope and faith will be sufficient to ensure that a global agreement is reached on climate change, which will ultimately lead to a fundamental and legally binding shift in the world development path towards a low carbon and more sustainable development. IMBEWU Sustainability Legal Specialists (Pty) Ltd Marie Parramon, Sustainability legal consultant Andrew Gilder, Director Tel: +27 11 214 0660 Fax: +27 11 880 657 E-mail: marie@imbewu.co.za; andrew@imbewu.co.za Websites: www.imbewu.co.za & www.imbewuregisters.co.za Notes 1 Climate Focus, Briefing Note CP16/CMP 6: The Cancun Agreements, January 2011. 2 Climate Focus, Briefing Note CP16/CMP 6: The Cancun Agreements, January 2011. 3 The goals include a collective commitment by developed countries to provide USD30-billion in fast-start finance for developing countries between 2010 and 2012 and to mobilize USD100-billion a year in public and private finance by 2020 to address the mitigation and adaptation actions of developing countries. 2 5 o i n A fr i c a

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climate change

Global standards

in carbon footprinting Managing climate change as a key sustainable development issue for business and commerce requires the development of an internationally recognised carbon footprint. Carbon footprinting is the quantification of greenhouse gases (GHGs) and is associated with one or more of the following three areas: 1. A company’s operations (an organisational footprint). 2. Product manufacturing and distribution (a product footprint). 3. The entire product value chain (a supply chain footprint). “An accurate carbon footprint provides the basis for an effective company response to climate change, which includes identifying key organisational or product related emission sources, and addressing any ongoing monitoring and reporting requirements,” says Jonathan Curren, managing director of Camco South Africa. The organisational carbon footprint is the most widely used type of carbon footprint, traditionally covering direct emissions arising from company operations and activities. The Carbon Disclosure Project (CDP), to which Camco is an accredited alliance partner, is the premier platform for the voluntary disclosure of company carbon footprints. Some 3 000 organisations in approximately 60 countries, including South Africa, publically disclose their carbon footprints through the CDP. “Since 2007, the product carbon footprint has risen sharply on corporate and public agendas in response to greater need for clarity and transparency on product-related GHGs, in particular for products destined for low-carbon markets (eg the EU). To this end, two international standards – the GHG Protocol Product Standard and the ISO 14067 are under development and now close to completion,” says Curren. Marketing power of the product footprint The product footprint is closely linked to various forms of environmental labelling used to communicate the climate impact of products and services. The significant marketing power of product carbon footprint labelling has underpinned the need for harmonised and transparent quantification and reporting methods in this area. Various ISO standards on broad environmental labelling and declarations are also provided in South Africa through SANS 14020, 14021, 14025. “While these additional standards provide broad outlines for environmental labelling, clear and consistent interpretation of these standards is necessary for effective utilisation of carbon labels nationally and worldwide,” says Curren. “To date, South African businesses have only moderate awareness of the impact of carbon declarations on competitiveness and access to markets, the opportunities that exist from marketing South African goods as climate-friendly, and the risks arising from the failure to respond to national and international pressure to report on and mitigate the climate impact of products and value chains,” continues Curren.

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The supply chain carbon footprint The supply chain carbon footprint extends beyond the organisational footprint by integrating indirect GHG emissions, thereby quantifying climate change impacts and opportunities across the whole supply chain. Harmonised methods and communication are vital to maintaining the credibility and enhancing the value of supply chain footprints for both companies and consumers. “The internationally recognised GHG Protocol has released the Corporate Value Chain (Scope 3) Accounting & Reporting Standard for public comment. It is likely to be the only standard available for the quantification of value chain GHG emissions in the near future. The CDP is also trialling the implementation of supply chain carbon footprints and is in its 3rd year of implementation. As yet, no South African companies participate in the CDP supply chain initiative,” says Curren. Supply chain communication and collaboration is critical to extract full value from Supply Chain footprints. Locally and internationally, suppliers, retailers and investors etc. increasingly demand accountability and communication from upstream components of the value chain. Benefits of internationally recognised standards for product and supply chain footprints: • Promote and harmonise best practice. • Enhance the credibility of carbon footprint data and results. • Increase efficiency in streamlining data exchange along the value chain. • Support the development of flexible, regime-neutral tools for use in voluntary or regulatory GHG programmes and markets. The pressures of addressing GHG emissions are increasing, and coupled with the imminent introduction of mandatory reporting in South Africa, corporates are taking a proactive stance by undertaking a range of carbon footprints. “The use of robust international standards in the areas of product and supply chain footprints should form part of this landscape for future GHG reporting and labelling in South Africa, as companies want to tackle climate change and to get commercial benefit from their carbon footprinting activities. The use of internationally recognised standards for both product and supply chain footprinting promotes and harmonises best practice, while the transparency of standards underpins consumer confidence and unlocks the full value of product and supply chain footprints as tools for international comparison of GHG emissions and enhanced competitiveness,” concludes Curren. Camco South Africa Tel: +27 11 253 3400 E-mail: jonathan.curren@camcoglobal.com Website: www.camcoglobal.com


c li m ate c h ang e

SA claims no inefficient fossil-fuel subsidies –

G20 report

The G20, which consists of twenty of the largest economies in the world, committed to phase out fossil fuel studies. In its September 2009 Communiqué from Pittsburgh, the G20 committed to phasing out inefficient fossil fuel subsidies over the medium term because this would be a positive step in aligning fiscal, environmental and energy policies. Late last year, Earth Track and Oil Change International released a briefing paper that discusses what is needed to phase out fossil fuel subsidies. The paper, entitled G20 Fossil-fuel Subsidy Phase-out: A Review of Current Gaps and Needed Changes to Achieve Success, examines fossil fuel subsidy reporting by member countries to date, common reasons for not including particular policies among these slated for reforms and the types of organisational models that could be used to bolster the phase-out’s likelihood of success. Of the 20 member countries, eight stated that they have no fossil-fuel subsidies at all subject to phase out. Comparisons with third party studies of consumer and producer subsidies found that some of the countries

reporting very little in the way of subsidies to the G20 had tens of billions in subsidies in the other assessments. South Africa claimed it had no inefficient fossil-fuel subsidies, though the IEA had estimated more than US$8-billion in consumer subsidies, primarily to coal-fired electricity. While funding for low-income purchases of electricity may be part of this cost, the discrepancy is a red flag that more disclosure is needed,” reads the report. One of the other key findings of the report is that no country has initiated a subsidy reform specifically in response to the G20. Although half of the member countries reported at least one policy supporting fossil fuels that they have targeted for reduction or elimination, all actions appear to be programmes or changes that were already in-process prior to the G20 Communiqué, and rely on previously established timelines as well. “The G20 is neither revealing nor removing fossil fuel subsidies,” said Steve Kretzmann of Oil Change International. “Each G20 country has defined ‘inefficient fossil fuel subsidy’ as they like, reported on what they want, and then listed either no subsidies, or things that they had already said they were doing.” “There is no accountability, no oversight and review, no actual mechanism to hold these leaders to their words. Some of the analysis coming out of the OECD and IEA is quite helpful, but so far, in the process itself, there’s just no action behind the words of the G20,” said Kretzmann. To download the full report, visit http://earthtrack.net/files/uploaded_files/ OCI.ET_.G20FF.FINAL_.pdf, to which full acknowledgement and thanks are given.

A 20-year track record in providing world-class climate change, energy and sustainable development solutions across Africa and internationally. o Carbon footprinting: over 1,200 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, 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 • camcoafrica@camcoglobal.com Building 18, Woodlands Office Park, Western Service Road, Woodmead, Johannesburg, South Africa, 2080 o i n A fr i c a 2 5 www.camcoglobal.com 21


eNER GY management

Energy management

103:

Mining and industrial applications Many countries that have energy-intensive mining industries, such as North America and Australia, force the mining sector to generate their own electricity and these mines don’t automatically get access to the national grids. In South Africa, however, local mines and industrial companies have been receiving power from a state-owned power utility since the early mining days. South Africa produces about 59 different minerals from 1 115 mines and quarries, although gold, diamonds, coal and platinum play the greatest role in the current economy. Approximately 2.7% of the economically active population is employed in the mineral industry (www. climateriskandopportunity.co.za). Although electricity costs in South Africa used to be among the cheapest in the world, this is rapidly starting to change. As Eskom hikes tariffs and continues their work on the 40 000 MW new building plan, mines are forced to look at a number of options. According to the Department of Minerals and Energy (DME), the mining industry uses 6% of all the energy consumed in the country. Besides the need to avoid the devastating effects that the 2008 rolling blackouts had on this sector (according to Inside Mining, the country’s deep-level gold and platinum mines were brought to a standstill), companies also need to reduce their business risks linked to soaring electricity tariffs.

Risking access to secure energy According to the 2010 Ernst & Young business risk report entitled “Business risks facing mining and metals”, access to secure energy was ranked amongst the top 10 business risks in the mining sector. “The access to secure and affordable energy remains a significant issue for mining and metal companies as they are highly dependent on energy to extract their products. Under-investment in energy in developing countries limits the supply available for mine expansion or new projects. Disruption of energy is causing delays in project development and production, and is also causing concern over safety,” reads the report. According to South Africa’s 2010 Carbon Disclosure Project (CDP), companies in the metals and mining, energy, chemicals and industrial sectors said that increased energy costs are one of the principal risks to business (some mining companies report that in some cases energy accounts for around 12.5% of operating costs). To ensure that their energy needs are met, some mining and metals companies have invested in power stations. In Indonesia, for example, Vale Inco signed a US$300-million export facility agreement with Japanese financial institutions and will use the capital to finance the construction of a hydroelectric power plant in Indonesia where it has lateritic nickel operations. Locally, Anglo American is

South Africa’s wealth has been built on the country’s vast resources – nearly 90% of the platinum metals on earth, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold. Only crude oil and bauxite are not found here. The country’s coal-mining industry is highly concentrated, with five companies, namely Anglo Coal, BHP Billiton, Sasol Mining, Exxaro Coal, Kumba Coal and Xstrata Coal accounting for 90% of the saleable coal production. The eight largest mines account for 61% of the output.

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e N ER GY m ana ge m ent

Climate and energy-related risks “Anglo Platinum’s Amandelbult mine experienced a once in 200-year flood in 2008. The mine was shut down for two months. This illustrates the susceptibility of some of Anglo Platinum’s facilities to extreme weather events. The concern is that climate change could result in a once in 200-year flood now occurring more frequently. To illustrate the possible impact of an extreme weather event, should platinum production be interrupted for two weeks, this is equivalent to ZAR1.3-billion in revenue at current spot prices of $1700/oz. This is more than 3.5% of Anglo Platinum’s 2009 revenue.” – Anglo American “Mining companies may be exposed to litigation as a result of their role as coal producers. An example of such litigation is the ongoing class action suit brought by residents from southern Mississippi, following the devastation caused by Hurricane Katrina. The plaintiffs allege that the defendants’ operation of energy, fossil fuels and chemical industries in the United States caused the emission of greenhouse gases that contributed to global warming.” – Exxaro Resources. “One of the global financial risks associated with the Copenhagen failure lies in the possible implementation of ‘border tax adjustments’ in which countries/areas like Europe may impose life cycle greenhouse gas taxes on their borders to level the greenhouse gas emission reduction playing field.” – Gold Fields Source: www.nbi.org.za

considering investing in one of Eskom’s coal-fired power stations to ensure it has sufficient electricity for its operations. “Sustainable energy-efficiency and the reduction of emissions is a license to operate for any responsible mining and industrial business. We have found that the focus on energy and emissions management is growing as businesses realise the positive impact that this can have on their operations,” says Peter Meyer, Operations Director of Energy & Combustion Services (ECS). “Sustainable energy management goes beyond using less energy and reducing emissions per unit work done. The main drivers of implementing energy management are increasing competiveness and profitability by reducing cost and avoiding waste and rework, which increases productivity. This is further fuelled by rising energy costs and future energy shortages, as well as the need to be responsible when it comes to greenhouse gas emissions and climate change,” says Meyer.

“The real opportunity arises when customers stop thinking of energy management as a cost, but rather as a business opportunity, and embed energy management into their day-to-day operation. Investment in better technology will result in long-term savings, however, getting back to basics, i.e. mining 101 and behaviour change, is where to start before considering the investment in technology. Using innovation is key to unlocking some opportunities and understanding when performance changes,” says Meyer. According to Elan Theeboom, sustainability practitioner at the WSP Group, most mining companies in South Africa have sustainability programmes in place or they are in the process of developing programmes. “These programmes have to address rising energy costs, energy shortages, alternative energy options as well as legislation and statutory requirements,” says Theeboom. Saving industrial firms money Gerswynn McKuur, national project manager of the National Industrial Energy Efficiency Project (see article elsewhere in this issue), says that energy-efficiency has demonstrated, time and time again, that it saves industrial firms money, increases the reliability of operations, has a positive effect on productivity and competitiveness, improves security of supply and can offer attractive financial and economic returns. “So why is it not happening?” asks McKuur. “Some of the barriers to industrial energy-efficiency include the fact that management focus is on production and not energy-efficiency. There’s also a lack of information and understanding of financial and qualitative benefits, as well as a lack of adequate technical skills to assess performance, and develop and implement energy-efficiency measures and projects,” explains McKuur. “First costs are also seen as more important than recurring costs, so there’s a disconnection between capital and operating budgets. When energyefficiency knowledge exists, it also often resides with individuals rather than companies, so there’s a sustainability risk as well,” says McKuur. Theeboom says that organisational and behavioural challenges can be overcome with a well thought-out energy-efficiency strategy. “Organisational issues on the ground can play an important role in improving energyefficiency. However, technical solutions are often easier to achieve in the short-run. It’s often the organisational and behavioural elements that are most challenging. However, these can be addressed provided that a well thought-out energy-efficiency strategy is properly developed and implemented,” says Theeboom. Continues on page 24

Many companies participating in key initiatives “A large number of mining and industrial companies are signatories to the Energy Efficiency Accord. Most Top 100 JSE-listed companies are also participating in the CDP (Carbon Disclosure Project), which demonstrates a commitment to reduce their carbon footprints, in which energy efficiency plays a major role” says Tjaart Coetzee from MAC Consulting. “Energy-efficient motors and pumps, variable speed drives, advantages in design methodology to right-size equipment, improvements in fuel efficiency of mobile equipment, shutting down equipment when not running, generation of electricity from waste heat (cogeneration) are just some of the innovations that can be implemented. The Climate Change Green Paper also refers to quite a lot of innovations which can be applied,” says Coetzee. (The National Climate Change Response Green Paper can be viewed at http://www.pmg.org.za/files/docs/101117climatechange-greenpaper.pdf).

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eNER GY management

Continued from page 23 With regards to the funding of these projects, Theeboom says that energyefficiency in the industrial sector in South Africa is attracting a lot of attention from international funding institutions as they look to promote low carbon investments in developing countries. “WSP recently worked with another international consultancy to undertake a market demand study for energy-efficiency investment in the South African industrial sector (including mining and also the commercial building sector). The market study aims to assist several major international development institutions in developing finance programmes specifically for the South African market. While larger companies tend to fund energy-efficiency opportunities directly off their balance sheet – rather than accessing loans from financial institutions - the smaller and medium-sized players are typically more reliant on external finance. So these funding options are more likely to target energy-efficiency opportunities among the smaller operators in the market. We expect to see significant international funding being made available (and to some extent, already being made available) to South African companies for investment in industrial energy-efficiency initiatives over the next few years, particularly for smaller operators,” says Theeboom.

Companies who have used energy management to achieve major energy-intensity improvements include: • Dow Chemical achieved 22% improvement (US$4-billion savings) between 1994 and 2005, and is now seeking another 25% from 2005 to 2015. • United Technologies Corp reduced global GHG emissions by 46% per dollar of revenue from 2001 to 2006, and is now seeking an additional 12% reduction from 2006 to 2010. • Toyota’s North American Energy Management Organisation has reduced energy usage per unit by 23% since 2002, company-wide energy saving efforts have saved US$9.2-million since 1999. Source: Gerswynn McKuur – National Industrial Energy Efficiency Project

Delivering sustainable energy savings Edith Kikonyogo, Consulting Services Manager at ABB South Africa, gave a presentation entitled “Delivering Sustainable Energy Savings” at last year’s South African Energy Efficiency Convention (SAEEC2010). She agrees that in addition to management focus being on production rather than efficiency, the disconnect between capital costs and operating budgets in budget deliberations is another of the reasons for inaction. “There’s also often a lack of adequate skills (internally) to assess energy performance. When it comes to the systems, many organisations also have poor data integration, reporting and monitoring,” says Kikonyogo. “Most industrial enterprises that have implemented an energy management system (EnMS) achieved average annual energy intensity reductions of

Some definitions: Energy Management System (EnMS) • A logical, methodological, organised approach to managing your energy usage. • It is a management system and not a technical system. Energy Management System Standard • A published structure or framework which you may decide to use to develop your EnMS. • You may decide to have your EnMS certified to a standard. • ISO 50001 is the first international energy management system standard. • EN 16001 and MSE2009 are European and US equivalents. System Optimisation (SO) • Methodological approach to engineering review of energyusing systems with a view to optimise its energy use. Source: Gerswynn McKuur – National Industrial Energy Efficiency Project

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2.0 – 3.0% against the 1.0% reduction of business as usual. However, for companies new to energy management, savings during the first 2 years are 10-20%. EnMS accelerate the adoption of energy-efficiency best-practices and technology upgrade, enhancing productivity and competitiveness and ultimately improving the enterprises’ bottom line,” says McKuur. According to McKuur, an energy management system standard is needed within an organisation. “Most energy-efficiency in industry is achieved through changes in how energy is managed in an industrial facility, rather than through the installation of new technologies. Energy management systems provide a framework for understanding significant energy uses, an action plan to continually improve energy performance and a structure and organisational framework to sustain energy performance improvements over time. It is independent of changes in personnel,” says McKuur. Dr Tsakani Lotten Mthombeni, an energy specialist at Anglo American, agrees that an EnMs is needed so that there is one global language on energy management. “An EnMS is needed because effective energy management in industrial and mining applications requires a holistic organisational approach, instead of focusing on equipment improvements,” said Mthombeni during a presentation entitled “Challenges implementing ISO 5001 in mining applications” at the SAEEC2010. Continues on page 28


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Providing climate change services in a competitive world Governments around the world are starting to impose a cost on companies that emit greenhouse gases into the atmosphere. In some industries, the cost of carbon is fundamentally altering the structure of business supply chains. From carbon footprinting to climate change risk analysis, Environmental Resources Management (ERM) works with businesses, governments and organisations providing a wide range of climate change services. “For some companies, the regulatory developments related to climate change could have a significant effect on operating and financial decisions. We just have to look at the Carbon Tax Discussion Paper recently released by National Treasury,” says Simon Clarke, a principal consultant and the practice lead for energy and climate change at ERM. “Government’s proposal is to impose a price on carbon so that the cost of climate change can be reflected in the price of goods and services. This will influence the bottom line” says Clarke, “and particularly in cases where organisations are making capital intensive decisions which involve long lead times and / or the use of significant amounts of energy which typically produce large amounts of greenhouse gases.”

ERM is the world’s leading provider of environmental, health and safety, risk and social consulting services. Through our offices in 39 countries, we deliver innovative solutions for business and government clients, assisting them in managing their environmental and related risks.

“The climate change services that ERM provides span the entire lifecycle and maturity of any organisation. We assist clients in calculating their carbon footprint, which is usually the first step in any climate change journey, to helping organisations understand and quantify climate change risks and opportunities.” “Importantly,” says Clarke, “is that this is done in financial terms that business people can understand, and make decisions on.” Those organisations that are further along the maturity curve are actively managing the financial risk of climate change and are now looking into their supply chain. “Life Cycle Analysis (LCA) is a service that ERM provides that quantifies carbon emissions and other environmental impacts along the lifecycle of a product. This ‘cradle to grave’ approach really gets to the heart of engaging with your suppliers and consumers on the environmental impact of your products”, says Clarke. ERM’s approach to Energy and Climate Change is one that is flexible, pragmatic and tailored to their clients needs. Their team of professionals consist of individuals with a variety of skills including engineering, financial, environment and the broader sustainability agenda. The ability to quantify and discuss the energy and greenhouse gas benefits of different types of pumps at an operational level is important, but being able to talk financial numbers and the bigger picture with the CEO of an organisation is just as vital.

How can ERM assist you in meeting your climate change needs? ERM Southern Africa’s Energy and Climate Change Practice was launched at the start of 2006 and has expanded rapidly and now comprises a team of eight dedicated professionals. Supported by international experts in a wide range of climate change services, ERM provides a variety of services including: • Greenhouse gas inventories, data management and reporting, including Carbon Disclosure Project (CDP) submissions; • Climate change strategy; • Climate change risk and opportunity identification; • Greenhouse gas data assurance; • Energy efficiency and emissions reduction identification; • Clean Development Mechanism feasibility and eligibility assessments; and • Life Cycle Analaysis (LCA). Environmental Resources Management (ERM) Tel: +27 11 798 4300 Fax: +27 11 804 2289 Website: www.erm.com

ERM has been involved in numerous projects in Africa over the past 30 years and has offices in Cape Town, Durban, Johannesburg and Pretoria. ERM’s services include: • Sustainability and climate change consulting • Impact assessment and planning • EHS performance assurance • Contaminated site management • Social consulting and stakeholder engagement • Water resource management • EHS compliance and due diligence • Project safety and • Major hazard assessment Marinda van der Merwe or Simon Clarke Tel: +27 (0) 11 798 4300 Email: marinda.vandermerwe@erm.com or simon.clarke@erm.com 2 5 o i n A fr i c a 25 www.erm.com


eNER GY management

smart metering to Taking

the next level

Enermatics Energy is an Energy Efficiency Company that provides a comprehensive solution to utilities providers, residential, commercial and industrial customers that focuses on energy efficiency and demand side management. The company recently launched an energy efficiency and load management solution called WattkeeperTM, which consists of remote smart meters, that are installed in residential or commercial building or at a municipality, which link to a comprehensive back-office system which includes interfaces to billing systems and a web based application for the managing energy consumption. The company’s smart meters are used in conjunction with Wattkeeper, which is a web-based modular application that provides real-time information and control of energy uses that can be accessed on the company’s website (www.enermaticsenergy.co.za) from a client’s home computer, an internet café or cellphone via standard web browsers. The WattKeeper System is able to monitor the incoming energy and allocate power in accordance with a priority schedule, giving clients full control of supply and reduction of costs. What makes Wattkeeper unique to other smart metering systems is the fact that a client can view historical trending of individual meters and groups, compare and contrast alternative utility rates and that the electricity consumption is given in Rand-value. “The various technology components of the system were developed by Infotech over a fifteen-year period,” Raj Naidoo, technical director of Enermatics Energy tells 25º in Africa. “The idea of creating a smart meter that companies could use to measure their electricity consumption against bills from utilities was kick-started in 2004 by Custom Power Solutions (CPS), during a time when City Power came under scrutiny due to poor distribution networks, outages and faulty billing. In 2005, CPS applied for a grant from the Industrial Development Corporation, which enabled us to take our initial smart meter model and develop it into an engineering model. In 2007, Enermatics Energy was formed through a joint venture deal with Infotech due to their vast knowledge and experience with data management systems. This helped to convert the product into the versatile, flexible and most importantly, accurate energy efficiency and metering system it is today.” Since then, the company’s technologies have been used by large property groups, industrial factories as well as commercial buildings and it is the only smart meter of its kind to carry a Class 1 SABS approval. Managing a power grid Naidoo, who used to work with Eskom in the fields of network business planning and power quality, explains that the Wattkeeper iGrid is an intelligent utility management system that allows energy suppliers to efficiently manage their power grid.

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“Municipalities face many challenges with regards to managing their infrastructure. They need to recover electricity debt from consumers, they are plagued with electricity theft and they need to manage the dispatching of free basic electricity,” says Naidoo. iGrid was developed to address not only the above-mentioned challenges that municipalities face, but also provide a range of solutions that will assist them in optimising their limited resources. “Information regarding substation loading, network voltage levels and power outages can be retrieved with the Wattkeeper iGrid. This solution also identifies electricity theft and offers a unique tamper-identification tool so that municipalities can track and manage any losses,” says Naidoo. Intelligent management systems The Wattkeeper Intelligent Management Systems (Wattkeeper iBMS) help building owners and their tenants save money and reduce their carbon footprint. “Most companies are moving towards intelligent buildings to reduce costs and emissions. With the increasing price of electricity in South Africa, companies know they need to not only take action and identify where electricity can be saved, but also be sure that their electricity bills are true reflections of what their electricity consumption is,” says Naidoo. Enermatics provides services for integrated building systems throughout the lifecycle of a building. The company can assist building designers with preparation of specifications and construction documents for the building management systems, ROI calculation as well as capital planning. The solution can be installed in any type of structure, from a shopping mall, home, hospital, residential complex units or an office high-rise. If the Wattkeeper iBMS is installed in a shopping centre, for instance, the mall management is enabled to implement energy efficient alternatives, while still being able to receive an income on electricity consumption. The mall management can give tenants online access to view their monthly electricity consumption profiles and they can charge tenants a fee for this service. For a body corporate or property group that manages a number of townhouses, the Wattkeeper iBMS allows effective management of maximum demand, full control of tenant billing as well as customised tenant and complex management views. “Wattkeeper offers a user-friendly, customised solution to give you total control and transparency when it comes to energy management, energy efficiency and solutions. Smarter, greener alternatives starts with optimising the resources that you have and this is what Wattkeeper and our smart meters were designed to do,” concludes Naidoo. Enermatics Energy Tel: +27 12 483 8624 Fax: +27 12 483 8601 E-mail: info@enermatics.co.za Website: www.enermaticsenergy.co.za


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approach maximizes savings potential. Both thermal and electrical energy, along with all site process and utility areas, should be analysed in order to draw the big picture and develop an energy map so that an organisation can focus on the critical areas. Remember that people are process-focused, not just equipment-focused, so it is important to consider people, processes and equipment, in evaluating an operation to identify opportunities for improvement.” says Kikonyogo.

Continued from page 24 “At Anglo American, all business units have energy managers and there are monthly energy manager’s meetings. In some cases, performance contracts of appropriate personnel already include energy performance,” says Mthombeni, before adding that the organisation is also aspiring to have site energy managers/champions. They are also aspiring to have all significant energy consuming systems metered and monitored. Kikonyogo explains that there are four key pillars of an energy improvement programme: assess, plan, implement and monitor. “Adopting a holistic

Developing the findings of the Opportunity Identification phase into a strategic energy Master Plan is what moves the energy improvement initiative forward. Do this by prioritising,” says Kikonyogo. • Priority 1 – Quick wins with very short paybacks, mostly by optimising existing equipment and processes. • Priority 2 – Opportunities requiring some capital investment on a range from low to high (mid-term). • Priority 3 – High capex, long-term solutions, but can significantly change the carbon footprint curve. “The focus effort should be 80:20 – so choose the right 20% of projects to focus on because typically 80% of value is in the Priority 1 and Priority 2 projects. Companies can expect rapid payback on a well-developed programme – well within two years of project implementation,” explains Kikonyogo.

Industrial Energy-Efficiency

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Opportunity identification

Master plan

Implementation

“Find the savings” On-site assessment. • Recommendations. • Technology and control. • Behaviours and practices. • Monitoring and targeting.

“Develop the solution” Solution potions. • Cost estimates. • Payback & ROI. • Project specification.

“Gain the benefits” • Solution implementation. • Measure success. • Quantify benefits.


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Energy-efficiency standards In countries with energy-intensive mining sectors, governments impose energy-efficiency standards. In 2007, the DME set a target for the mining industry to reduce energy demand by 15% by 2015 and 32 industrial and mining companies have signed the energy-efficiency accord voluntarily (www.cleantechinvestor.com). “The energy-efficiency accord is a voluntary initiative between government and business to improve energy-efficiency as detailed in the energy efficiency strategy to reduce energy demand by 15% by 2015. Whilst the current accord is voluntary, legislation is on its way, which will provide energy-users with incentives and penalties for meeting (or not meeting) legislated energy-usage and reduction targets,” explains Meyer. “The energy accord is indeed voluntary and there are no energy-efficiency standards in place that regulate how much energy a mine or industrial facility may consume. This does not mean that there are no standards. “There are standards for equipment, such as motors, drives and so forth, but there is nothing that prescribes how much energy can (or should) be used by a plant or facility. Such a standard will be very difficult – probably impossible – to develop or enforce. The Energy Management Systems Standard, however, will be available during 2011. This standard (ISO 50 001) is due for publication and implementation during 2011 and we expect that this will become a very important standard to comply with for companies wishing to do international business,” explains Gustav Radloff, managing director of Energy Cybernetics. “Presently there are targets for the various sectors to improve energyefficiency and these are expected to be revised in a series of workshops to

be held in February, this year. As sectors are not accountable by law, the commitment to energy-efficiency improvement is not mandatory – however, the targets are developed by the industry players in terms of what is achievable,” comments Theeboom. Various uncertainties “I have noted with increasing concern the growing negative sentiment regarding South Africa’s mining sector, specifically in relation to our regulatory framework,” said South African Mineral Resources Minister Susan Shabangu at a media conference in Pretoria in August 2010. “Various media reports and comments from analysts and other observers on these issues have combined in recent weeks to create an environment in which companies and investors alike are facing some uncertainties. Fact and fiction have blended in an unseemly fashion, leading to uncertainty and vulnerability within the sector,” said Shabangu. “South Africa’s mining industry has been and remains the bedrock of Africa’s economic powerhouse. The mining sector, together with its related industries, remains critical to the country’s socio-economic development. With Citibank estimating earlier this year that South Africa has ZAR2.5trillion worth of mineral reserves, it is clear that the mining industry is potentially an important cog in the wheel that is driving the war against poverty and underdevelopment in our country,” said Shabangu. Carbon emissions and the mining sector In Europe, where prices have increased under the compulsory emissions trading scheme, some mining and metal companies have re-evaluated where to locate their operations to ensure better profit margins. As a result, Continues on page 30

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Continued from page 29 Europe is suffering significant carbon leakage as aluminium producers are moving their operations to regions where power is cheaper – notably the Gulf States (www.ey.com). According to Climateriskandopportunity.co.za, the high carbon intensity associated with South Africa’s electricity grid and the energy-intensive nature of many mining operations place this sector at a significant risk of emission caps, intensity targets or carbon taxation. On 11 November 2010, the National Business Initiative (NBI) and the Carbon Disclosure Project’s London office released the 2010 South African Carbon Disclosure Project (CDP) report on submissions of the Top 100 JSElisted companies. Last year was the third year that the Top 100 JSE-listed companies agreed to participate in the survey. The mining company Gold Fields emerged as the company with the highest rating (along with banking group FirstRand) for the level of their GHG emissions disclosures, scoring 93% on the South African Carbon Disclosure Leadership Index (CDLI). They were followed by Anglo Platinum with 89%. Notwithstanding the predominant contribution of the economic downturn, several companies suggest that sizeable emissions reductions were achieved at least in part as a direct result of emissions or energy reduction

Some of the climate-related opportunities identified by the metals, mining, energy and industrial sectors in the 2010 CDP include: • Increased demand for certain products, such as platinum for fuel cell catalysts, fertiliser in response to changing weather conditions, and secondary metals and other products (e.g. uranium and natural gas) used for new energy generation. • Creating viable business opportunities associated with upscaling and improving existing alternative energy technologies, and realising opportunities for energy co-generation (Sasol). Increased demand for stable assets such as gold, as a result of increased uncertainty and volatility in markets. According to Climateriskandopportunity. co.za, diversified mining companies active in areas such as uranium, copper and platinum, as well as more risk-prone areas

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activities. Harmony Gold Mining Co reported a reduction of 636 451 ton CO2 emissions (a 15.1% decrease). “There has been a decrease in South African Scope 2 emissions due to energy-efficiency initiatives and the downscaling of assets that have reached the end of their life,” said Harmony Gold Mining. Kumba Iron Ore and Exxarro Resources, however, reported increased emissions despite the economic downturn. Kumba Iron Ore, which reported a 22% increase in absolute emissions, said that the increase was a result of a 25% increase associated with electricity consumption and a 17% increase in emissions associated with diesel consumption. Exxaro Resources, which reported an increase of 504 400 ton of CO2 emissions (22%), said the increase is primarily due to increased electricity consumption and more comprehensive data gathering. Valerie Geen, Climate and Energy Director of NBI, says: “It is inspiring to see the year-on-year progress that South African companies are making in responding to climate change through the CDP. This is especially commendable given that companies are responding voluntarily in the absence of incentives or a regulatory framework. The sustainability agenda in a South African context is very much an economic and social

such as coal, opportunities exist to balance commercial risk with opportunity and to shift production emphasis with changes in global demand. Some of the opportunities that Climateriskandopportunity.co.za lists include: • Uranium reserves are plentiful in South Africa and the national uranium industry could capitalise on a sustained drive towards nuclear energy in the country, or through regulatory measures that render nuclear power more cost-competitive with fossil fuel technologies. • Copper is an important input into the development of energy-efficient equipment ranging from electrical motors to power cables and transformers. Gains could be experienced for this more modest mining sector in the country, given that the country is ranked 14th in terms of global copper reserves, but only 17th in terms of global production (Chamber of Mines of SA, 2009).

“Due to the large number of opportunities, technologies and innovations available, it is important for companies to formulate an overall energy policy and strategy – this policy then guides the implementation of these technologies in a structured and meaningful way. Without this guidance, implementation can easily become a haphazard combination of various technologies and approaches. A sound strategy will take a holistic view of the entire business, figure out where energyefficiency fits into this picture and then approach energy-efficiency from an integrated, holistic perspective – addressing individual components, business units or sections is a sub-optimal approach,” concludes Radloff. Source: www.nbi.org.za and www.climateriskandopportunity.co.za


e N ER GY m ana ge m ent

one as much as it is an environmental one. Business is expected to play a significant role in helping the country to achieve a low carbon economy,” says Green. “For mining and industrial users who contribute to over 46% of energy consumption in the country, reducing electricity consumption is an imperative in maintaining energy security and ensuring available energy for continued economic growth and socio-economic development. Since coal-fired power generation of electricity is a significant component of South Africa’s emissions profile, the CDP has assisted large companies not only to reduce consumption of energy through other solutions and measures but to prioritise energy-efficiency and the reduction of energy-intensity by investments in more efficient infrastructure, equipment and processes. Those who succeed are creating better investment opportunities for

themselves and seeing a return on their investment through cost reduction as a result of greater efficiency,” says Geen. According to the companies in this sector, some of the opportunities in the industry include the potential for brand differentiation based on transparent efforts to be more environmentally responsible and increased demand for products with lesser environmental impact. 25º in Africa would like to give full acknowledgement and thanks to Valerie Geen from the National Business Initiative, Peter Meyer from ECS, Elan Theeboom from the WSP Group, Gustav Radloff from Energy Cybernetics, Gerswynn McKuur from the National Industrial Energy Efficiency Project, Edith Kikonyogo from ABB, Tsakani Lotten Mthombeni from Anglo American and Tjaart Coetzee from Mac Group Consulting for the information provided in this article.

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climate change

Gold Fields

ZAR200million of CERs in to sell

carbon trade deal

“Electricity at Beatrix will be generated by combusting the mine methane in internal combustion engines. The project design is to install four engines with an installed capacity of 1.345 MW each. The electricity generated will displace grid electricity as Beatrix does not generate electricity on site. The excess methane that cannot be handled by the engines will be flared,” says Du Plessis. Not only will this underground mine methane reduce the amount of electricity Beatrix needs to import from the national grid, but it will also destroy both underground mine methane and non-mine methane released from the boreholes. “The destruction of this methane will result in the elimination of methane released directly into the atmosphere. Since

Methane will be extracted and converted into electricity at the Gold Fields mine in the Free State.

In 2010, Gold Fields became the world’s first gold mining company to sell Certified Emissions Reductions (CERs) in a carbon trade deal. The Clean Development Mechanism (CDM) Project captures methane gas at Gold Fields Beatrix Gold Mine in South Africa’s Free State province. The company will sell 1 700 000 CERs to Switzerland-based energy-trading company Mercuria under forward contracts which will run until 2016 (at current CER values and exchange rates, the contract is worth approximately ZAR200-million). Carbon advisory company Promethium Carbon helped develop the project by assisting in tender development, evaluation of the project as well as the tender of the project, CDP submissions, calculating the project’s carbon footprint and development of the carbon strategy. “The Beatrix project involves the destruction and utilization of methane at the mine,” says Jan du Plessis, Gold Fields Manager, Environmental Engineering. “Gold Fields’ mining activity releases underground methane. Methane is highly explosive and safety hazard. The project also involves the destruction of non-mine methane, which is methane emitting from boreholes drilled for exploration purposes by the Beatrix mine,” says Du Plessis. Converting methane into electricity The first phase of the project comprises of the installation of a methane extraction system underground and flares above the surface (this is expected to start on 11 March 2011 and will cost about ZAR42-million). The second phase of the project involves the installation of a power plant that will convert the methane into electricity. The power plant is expected to begin in November 2011 and it will have the potential to generate around 5MW of electricity.

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methane has 21 times the global warming potential of carbon dioxide, the project will result in a large reduction of GHG emissions, says Harmke Immink, a director of Promethium Carbon. Gold Fields’ Chief Executive Officer, Nick Holland, comments: ‘In addition to the obvious financial and environmental benefits, this project will result in a safer working environment for our people at Beatrix, as it eliminates the hazard of underground mine methane, and it is one of many examples that shows Gold Fields’ commitment to being the global leader in sustainable gold mining.” On 25 May 2010, London-based Energy Risk magazine recognised the project as the “Deal of the Year” for 2010 in its annual energy risk awards. Gold Fields, along with banking group FirstRand, also emerged as South Africa’s top JSE-listed company for disclosure of GHG emissions data at last year’s Carbon Disclosure Project Report, which was held on 11 November 2010. Gold Fields scored 93% on the South African Carbon Disclosure Leadership Index (CDLI) and was also recognised as one of the top four JSE-listed companies when ranked by actions taken to mitigate their carbon footprint. “We are committed to sustainable gold mining and our actions on energy efficiency and carbon emissions are integral to the way we do business. Mitigating the impact of carbon emissions starts with a detailed inventory of our footprint, which then leads to emission reducing projects,” commented Holland on receiving the CDLI award. Promethium Carbon Tel: +27 11 463 6142 Fax: +27 11 706 1510 E-mail: robbie@promethium.co.za Website: www.promethium.co.za

Gold Fields Tel: +27 11 562 9763 Fax: +27 11 562 9893 E-mail: sven.lunsche@goldfields.co.za Website: www.goldfields.co.za


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climate change

Current climate information insufficient,

says world’s

financial

institutions

The availability of and access to climate change information remains insufficient, according to many of the world’s leading financial institutions. A pioneering study launched on 12 January 2011 confirms the increasing financial relevance of climate change and the fact that insurers and lenders need better information regarding the physical and economic impacts of the world’s changing weather patterns. The report, sponsored by the German Federal Ministry of Education and Research, presents the results of an international survey undertaken by the Climate Change Working Group (CCWG) of the United Nations Environment Programme Finance Initiative (UNEP FI) and the Sustainable Business Institute (SBI), Germany. More than 60 institutions, from both developed and developing countries, took part in the survey. Financial service providers and their customers are increasingly affected by the impacts of climate change, such as extreme weather events. Moreover, the survey shows that insurers, reinsurers, lenders, and asset managers expect these kinds of risks to increase in the future. Given that financial institutions are able to influence their clients and investee companies across all sectors of the economy, they can play a key role in accelerating the implementation of adaptation measures by the private sector. But in order for the sector to manage climatic risks affecting their business portfolios and to give the best possible advice to their customers, financial institutions need access to applied information such as climate change predictions, modelling, analysis, and interpretation. Such information needs to be appropriate to the duration of contracts, the regions where customers hold assets or undertake operations and the hazards that are material to the operations of borrowers, investees, and the insured.

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“To date the key role that financial institutions and other private sector decision- makers can play in increasing the climate resilience of economies and societies has been neglected at best”, said Paul Clements-Hunt, Head of UNEP Finance Initiative. “The rapid reduction in greenhouse gases and the adaptation to the unavoidable effects of global warming need to go hand-in-hand if we are to cope with the climate challenge. This study is a first step in identifying what is needed so that financial institutions can start playing their important role in accelerating the shift to climate-resilient economies”, he added. Climate change forecasts and predictions of the resulting economic impacts will never be perfect and will inevitably feature some element of uncertainty. But the more information and expertise regarding climate change and its uncertainties that is available to financial institutions, the better these risks can be calculated. This will enable insurers, reinsurers, lenders, and asset managers to price and absorb these risks more effectively. This can be crucial not only to the performance of individual businesses and financial institutions, but to the entire economic tissue of communities affected by climate change and the social well-being it underpins. “Financial institutions are experts in identifying, quantifying and pricing risks. This expertise can be of great value to society at large when faced with the sheer uncertainty linked with changing climate patterns and the significant risks of resulting impacts”, said Mark Fulton, Managing Director at Deutsche Bank Climate Change Advisors and Co-Chair of UNEP FI’s Climate Change Working Group (CCWG). “This study confirms that what private sector institutions need in order to become real ‘adaptation catalysts’ is objective and reliable information. We need to work towards enhancing the access of private sector decision makers to climate information as well as, most importantly, improving the reliability and accuracy of our climate models and forecasts”, he added. The survey identified that such information gaps can be closed by continued research towards more reliable climate modelling and forecasting, as well as enhanced translation of scientific knowledge and existing information into user-friendly information. Such efforts are likely to require more intensive collaboration between users and suppliers, public and private actors, scientists and decision makers. For more information, visit www.unep.org, to which full thanks and acknowledgement is given.


c li m ate c h ang e

Silent moment for climate change,

says UNEP chief This article was written by UN Under-Secretary general and UNEP Executive Director Achim Steiner. The last two years have been a roller coaster ride in respect to securing a new global treaty to combat climate change. Some even despair that the window for action is closing fast. But giving up is not an option. The latest round of climate negotiations, held last year in Cancún, Mexico, put the world’s efforts on climate change back on track - albeit at a pace and on a scale that will undoubtedly leave many onlookers frustrated. President Felipe Calderón’s government in Mexico and the Executive Secretary of the United Nations Framework Convention deserve credit for gains in a range of important areas, including forestry, a new Green Fund to assist developing nations, and the anchoring of the emission-reduction pledges made at the December 2009 climate-change conference in Copenhagen. But, as the UN Environment Program and climate modelers made clear in the run-up to the Cancún meeting, a significant emissions gap exists between what is being promised by countries and what is needed to keep the rise in global temperature below two degrees Celsius, let alone move towards the 1.5-degree threshold needed to protect low-lying island states. Despite some gains, that gap - which, under the most optimistic scenario, amounts to the combined emissions of all the world’s cars, buses, and trucks - remains firmly in place post-Cancún. Indeed, no one should underestimate the magnitude of the challenge now facing South Africa, the host of next year’s talks, in terms of midwifing a new legally binding agreement to bridge this gap and securing the finance needed to bring the Green Fund into operation. Yet, while the official summit in Cancún struggled to a conclusion, an unofficial one being held a few minutes away also concluded. This parallel summit brought together progressive heads of state, regional and local government, business, and civil society, and underscored just how far and how fast some sectors of society will make the transition to a lowcarbon future and build the green and clean-tech economies of the twenty-first century. Calderón’s policies echo this momentum: by some estimates, he is transforming his country into the world’s fastest-growing wind-power market. Moreover, Mexico will also phase out old, inefficient light bulbs by 2014. And it has just retired 850,000 inefficient household refrigerators in favor of modern, energy-efficient models, with millions more earmarked over the coming years. Mexican homeowners who install energy-saving systems such as solar water heaters are becoming eligible for lower-rate “green mortgages.”

Mexico is not alone in adopting a national strategy for the transition to a low-carbon, resource-efficient green economy. Uruguay, for example, announced a strategy to generate half its electricity from renewable sources by 2015. Sixty regional and local governments, responsible for 15% of global greenhouse-gas emissions, are also taking action. Québec and São Paolo, to cite just two examples, are aiming for cuts of 20% below 1990 levels by 2020. Big companies, from banks to airlines, are contributing as well. The US retailer Wal-Mart, for example, plans to cut emissions equivalent to 3.8 million cars, in part by implementing energy-efficiency measures at its Chinese stores. Indeed, the world is witnessing an extraordinary mobilization of nationallevel projects and policies that are shifting economies onto a low-carbon path. In Kenya, a new feed-in tariff is triggering an expansion of wind and geothermal power. Indonesia is not only addressing deforestation, but will begin phasing out fossil-fuel subsidies for private cars next month. Many countries and companies are forging ahead, signaling a determination not to be held hostage by the slowest at the official negotiating table. All this may lead some to wonder why time-consuming international negotiations and UN climate summits are needed at all. But the fact is that this groundswell has in large part been catalyzed by the existing targets, timetables, and innovative mechanisms of the UN climate treaties, and not least by the momentum generated around the often-criticized 2009 Copenhagen summit. This momentum would continue to grow with a new global treaty that not only brings certainty to carbon markets and triggers accelerated investments in clean-tech industries, but that also ensures that more vulnerable countries are not marginalized. The challenge today is to unite these goals in a mutually reinforcing way. Only then will the world have a fighting chance to keep the global temperature rise in this century under two degrees, build resilience against a changed climate, and truly transform the energy structures of the past and thus the development prospects for six billion people in the future. For more information, visit www.unep.org, to which full thanks and acknowledgement is given. 2 5 o i n A fr i c a

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O IL AND GAS

Oil and gas industry far less predictable than previous years “Even shallow-water activity is limited as a less-publicised incident on one such platform has further clouded the risk profile, demonstrating that it is not just depth which is the issue, but pressure and temperature too,” says Newlands. Developing and emerging economies leading the way for growth

Ernst & Young recently released the Oil and Gas Business Risk Report 2010: Top Ten Risks, highlighting some of the biggest challenges the industry is currently facing. One of the notable results of the report is that uncertain energy policy has replaced access to reserves as the top risk facing the industry across the globe in 2010. “Peak oil long defined the major concern of this industry; however, prolonged uncertainty in the direction of energy policy, dominated by the vague outcome of the Copenhagen climate conference and the inability of the US to adopt a clear energy policy, are the dominant risks,” says James Newlands, Oil & Gas Sector Leader: Africa, at Ernst & Young. Ensuring sufficient access to oil and gas reserves at a reasonable cost, considered the top risk in 2009, will remain a significant challenge. “Many of these reserves are located in difficult environments with high exploration and production costs, increasing the risk of making new investments,” Newlands noted.

The international oil and gas industry is looking into developing and emerging economies, which are leading the way for growth. “While the global economy is recovering, it remains sluggish and fragile. Global growth remains a mixed bag, with the key economies of the United States and Japan decelerating, while Europe has stabilised. Meanwhile, India and Brazil are moving ahead strongly and China is endeavouring to engineer a soft landing,” says Newlands. While global business and consumer confidence is tenuous in most advanced economies, it is substantially stronger in the developing ones, particularly in the so-called BRIC (Brazil, India and China) economies. “The Middle Eastern and North African economies are also recovering and oil prices have stabilised at fairly high levels. Energy demand markets are notably shifting to Asia,” he adds. “Oil and gas remains a volatile and far less predictable industry than in previous years’, Newlands says. “The overarching question concerns the pace and sustainability of oil demand recovery. But what is clear, is that demand trends are led by developing countries, particularly Asia and the Middle East, while that of OECD countries remains shaky at its best,” concludes Newlands.

Exploration in challenging environments poses risks New operational challenges, including unfamiliar environments, is a related risk which has emerged for the first time in the Ernst & Young study. These challenges have grown significantly over the past year, due mainly to the increased focus on exploration and production in challenging environments such as the Arctic region and deepwater areas. “This is a risk which has as a backdrop the disaster in the Gulf of Mexico. In addition to loss of life, the Deepwater Horizon incident brought to the fore the difficulties in extracting oil and gas from inhospitable environments,” says Newlands. “The absence of clarity about regulatory and legislative changes is creating an uncertain framework for long-term investments in the industry. Uncertainty still hangs over the entire Gulf of Mexico with a deepwater drilling moratorium in effect until the end of November. The impact is substantial: some rigs have mobilised to other markets, while others are waiting it out,” Newlands continues.

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Ernst & Young’s Oil and Gas Business Risk Report 2010: Top Ten Risks include: • Uncertain energy policy. • Access to reserves: political constraints and competition for proven reserves. • Cost containment. • Worsening fiscal terms. • Climate and environmental concerns. • Price volatility. • Human capital deficit. • Supply shocks. • Overlapping service offerings for IOCs and oilfield service companies. • New operational challenges, including unfamiliar environments. For more information, visit www.ey.com, to which full acknowledgement and thanks are given.


OIL AND GAS

China’s first deep-water rig the most advanced of its kind – DNV COSL Pioneer is China’s first deep-water semisubmersible drilling platform and according to DNV, it is one of the most advanced drilling platforms ever built. The COSL Pioneer was recently delivered from Yantai CIMC Raffles and it is equipped with DP3 dynamic positioning, an anchor-mooring positioning system as well as an unmanned cabin design to be remotely controlled from the navigation and operating rooms.

“The delivery of COSL Pioneer for operation represents an important milestone in upgrading COSL’s deep-water operation capabilities,” commented COSL’s chairman, Liu Jian. COSL Pioneer was designed and constructed in accordance with the standards and regulations stipulated by Norway waters and met the requirements of the Norwegian Petroleum Safety Administration PSA, Norwegian Maritime

The platform has an overall length of 104.5m, a module width of 65 metres and a module depth of 36.85m. The platform has an overall length of 104.5m, a module width of 65 metres and a module depth of 36.85m. It has a design draught from 9.5m to 17.75m, an operating water depth of 70 – 750m, a maximum design wind speed of 51.5m per second, a maximum vertical drilling depth of 7 500m and a maximum variable deck load of 4 000 tons. The multi-function platform is able to accommodate 120 cabin crews.

Directorate NMD, DNV, the NORSOK petroleum industry safety standards and relevant traditional requirements for semi-submersible platforms. “This project is like a journey for everyone involved,” said DNV Site Manager Thomas Lo at Yantai CIMC Raffles. “It transforms the yard from infancy to maturity in order to achieve the quality level of a complex offshore project. Meanwhile,

Sasol ranks among the top 100 The QCRD Global Sustainability Index’s semi-annual report, which was issued towards the end of last year, ranked Sasol among the top 100 companies for sustainability. Investors use this index to make a quick, relative assessment of sustainability across sectors, industries and companies. The award recognises exceptional delivery in the fields of environmental, governance and social issues, along with a strong financial performance.

than 3 000 global companies on 200 complex and diverse performance metrics in order to establish individual, quantitative ratings of sustainability. “Thanks to companies like Sasol, the investment world has started to grasp the critical connection between sustainability and solid financial performance,” said CRD Analytics spokesperson Michael Muyot in a congratulatory letter to Sasol.

with the added complexity, the yard manages to maintain a matching safety record. We have seen that the yard has developed innovative technology on the way. For example, the 20 000 ton overhead crane used for mating of the upper and lower hull is the world’s number one. With the continuous investment of the CIMIC Group, we will see even more rapid development at the yard to cater for the high-end offshore market. I wish the yard all the best and I feel that this yard has great potential to be amongst the very best in China.” DNV President Tor Svensen, Area Chair for Greater China Joerg Beiler and Offshore Director Carl Arne Carlsen were invited to be present at the delivery ceremony held in Yantai. “It’s another milestone achievement for China’s offshore industry. I congratulate all parties involved. As a class society coming from the North Sea, we are very proud and happy to be actively engaged in the fast development of the Chinese offshore industry. We will continue our endeavour to support our customers and partners in their pursuit of offshore engineering,” concludes Beiler. Sources: www.dnv.com

Total sells Cameroon assets Total has announced that it will sell its 75.8% stake in its upstream Cameroonian affiliate, Total E&P Cameroon, to private independent explorer Perenco. Other shareholders in the ex-Cameroonian company include the national oil company SNH (Société Nationale des Hydrocarbures – 20%) and Paris Orléans – Groupe Rotchshild (4.2%). Current production from the mature fields operated by Total in Cameroon reaches 40 000 barrels per day (b/d), which represents an equity production of 8 000 b/d, or 0.3% of the group’s total production.

The QCRD Index serves as a benchmark for stocks of companies that are traded on a major US stock exchange and have taken a leadership role in disclosing their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and community investing.

“We believe that a genuine and informed commitment to sustainable development is integral to the achievement of our long-term objectives,” said Sasol CEO Pat Davies. “Growth without sustainability is unacceptable for all stakeholders and, as we continue on this path, it is encouraging to receive recognition such as this listing on the the NASDQ OMX CRD Global Sustainability Index.”

“Perenco, the company with which Total has finalised this agreement, is already present in Cameroon as an operator and a SNH long-time partner. It has demonstrated its competencies in optimizing mature fields, has developed new reserves off the coast of Kribi and is currently working on a project to enhance gas value. With this experience, Perenco is set to successfully pursue the exemplary cooperation developed by Total with SNH over decades. Synergies between Perenco’s exploration and production operations and Total E&P Cameroon activities will allow Perenco to optimize its industrial tool while ensuring its activities are pursued over the long-term. Perenco’s offer is respectful of commitments taken by Total towards its employees and the authorities,” said Jacques Marraud des Grottes, Senior Vice-president for Africa, Exploration and Production. “Being also present in refining and distribution, Total intends to remain an actor of the Cameroonian oil industry and will maintain its refining activities as well as its distribution network of oil products in the country.”

CRD Analytics evaluated more

Sources: www.sasol.com

Visit www.total.com, to which full acknowledgement and thanks are given.

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rene wab les

Liberia to begin construction on Mount Coffee Hydro Plant Liberian President Ellen Johnson Sirleaf told a local newspaper that construction of the country’s Mount Coffee Hydropower Plant will begin in 2011. The country aims to increase power generation by 1 000 MW with this plant. Mount Coffee will be rehabilitated in order to provide more power to locals as well as export power to the West African Power Pool (WAPP) member states. The Mount Coffee Hydro Plant had been able to provide reliable power supply to Liberians and business houses until 1990, when it was destroyed as a result of the civil war. Although construction will start in 2011, the plant will only be able to produce power in a couple of years. “We hope it will get started sometime next year. But we will not see power from Mount Coffee until around 2014-2015. Until then, we are exploring other alternative power sources, such as minihydros. In fact, there is a test going on right now with the support of USAID

for a mini-hydro, I think it’s in Lofa County. And they will try to test others,” she told the Liberian Observer. In October 2010, a conference on Liberia’s hydro-power sector was held to solidify commitments and synergy for harnessing the hydro-power potential of the country’s Saint Paul River Basin. “The restoration of the Mount Coffee Hydro-Electric Plant is an urgent national priority for Liberia,” said Vicepresident Joseph N Boakai at the conference. The rehabilitation is estimated to cost €1.5-million, according to the European Union Africa Infrastructure Trust Fund. “When the Mount Coffee Hydro Plant is fully rehabilitated, Liberia will be able to contribute power supply to its neighbours as a development partner to their economic viability,” said Boakai. According to the Liberian Observer, the country’s Minister of Lands, Mines and Energy, Dr Eugene H Shannon, said that prior to the Liberian civil war, the total energy resource capacity was 413 megawatts. The Liberia Electricity Corporation (LEC) took 198 megawatts and the remaining watts went to concession areas and private sector providers. Source: www.liberianobserver.com

Johnson control announces partnership with

CPV systems company Building energy-efficiency leaders, Johnson Controls, has partnered with German-based Concentrix Solar GmbH, a subsidiary of the Soitec Group (Euronext Paris) to support worldwide advancement of utility scale solar installations. Under this partnership Johnson Controls will build, operate, maintain and provide lifecycle support of solar installations using Concentrix CPV technology. Concentrix Solar is a leading supplier of concentrating photovoltaic (CPV) systems. “Soitec’s technical capabilities in engineered substrate solutions and Concentrix Solar’s module design combined with Johnson Controls’ global execution and operational capabilities will provide the market with a state-of-the-art and cost-effective CPV solution,” the company said in a statement. This formal alliance follows a Concentrix announcement in July 2010 about the launch of a US-based subsidiary to support the increasing demand for solar photovoltaic solutions throughout North America. Ian Campbell, Vice-president and General Manager of Global Energy Services at Johnson Controls, said that partnering with Concentrix will allow the company to differentiate its services in a rapidly expanding renewable energy marketplace. “Our proven track record in providing performance-assured engineering, construction and maintenance of energy consuming, energy

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transforming and energy producing systems throughout their life cycle positions us as a leader in the industry,” said Campbell. “We are delighted to team up with Johnson Controls, who shares our vision for sustainable and economically viable, solar renewable energy,” said Andre-Jacques Auberton-Herve, chairman and CEO of Soitec. “Together, we understand the market opportunity and positive environmental impact that solar renewable energy power will bring to both existing and future facilities, and are excited to provide integrated solutions to our customers.” “On the local front, we have recently partnered with Concentrix on a pilot site near Touws River in the Western Cape, having fulfilled the installation component of 900 solar modules fitted on 10 trackers,” said Karl van Eck, General Manager of Energy Solutions in Africa at Johnson Controls. “This formal alliance follows successful joint international projects and is a positive move for South Africa towards adopting renewable energy sources.” For more information, visit www.soitec.com, www.concentrix-solar.de and www.johnsoncontrols.com, to which full acknowledgement and thanks are given.


renewa b les

Egypt

one of 30 renewable energy markets – Ernst & Young

Ernst & Young has released its Country Attractiveness Indices, which give a numerical ranking of 30 global renewable energy markets by scoring renewable energy investment incentives and resource availability. According to the report, Egypt is one of four new entrants to the list (the other three countries are South Korea, Romania and Mexico). Egypt and Romania are both ranked 22nd as a result of their fast-growing wind markets. South Korea leads the new entrants by securing the 18th position, on the back of its ambitious targets, strong incentives and robust supply chain. Mexico completes the new line-up, ranked 25th, thanks to challenging targets and strong wind and solar resources. China leading the way China has the top position as the most attractive country for renewable energy investment. According to Ernst & Young, China’s record spending on its wind industry during the last quarter of 2010 represented nearly half of all funds invested in new wind projects around the world. Such heavy investment has ensured that approximately one in every two wind turbines that went live in 2010 was in China. The US, which topped the indices between November 2006 and May 2010, is now five points behind China.

It is estimated that average wind speeds in the Gulf of Suez reach 10m/s (www.worldbank.com). By the end of 2009, Egypt had installed wind capacity of 430MW and the country’s largest wind project to date is a US$490-million development in the Gulf of el Zayt, which has a generating capacity of 200MW. The Egyptian Government has earmarked 7 600 km² of desert land for implementing future wind energy projects, for which all land allocation permits have already been obtained by the New and Renewable Energy Authority (NREA). With regards to solar energy, it is estimated that at least 1GW of solar capacity will be required by 2020 if Egypt wants to meet its RE target while satisfying the growing demand for power. The uptake of solar projects in Egypt has been slow, despite the country being located in the “sunbelt” area that is endowed with high intensity solar radiation ranging between 2 000-2 600 kwh/m² per year.

Renewables in Egypt

To date, only 5MW of solar PV energy and 30MW of CSP (which forms part of a 150MW hybrid power plant) has been installed. High capital costs have been cited as the cause of the slow uptake of solar energy in Egypt. While the cost of solar technology is expected to decline in the next five to seven years, Egypt has no clear strategy to exploit its abundant solar resources, although the Egyptian Government is trying to stimulate investment in solar by offering free land to potential investors.

In February 2008 the Egyptian Government announced its ambitious goal to generate 20% of the country’s energy production from renewable resources by 2010. This 20% of renewable energy is equivalent to around 7GW of electricity.

In October 2010, the World Bank announced a US$270-million loan to the Egyptian Electricity Ministry to build a 100MW solar plant in the south of the country, which will be constructed during 2012-2017 and cost an estimated US$700-million.

Egypt has some of the world’s best wind power resources, especially in the Gulf of Suez area, where an estimated 7.2GW could be developed by 2022, with additional potential on the east and west banks of the Nile River.

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

New thin-film technology – power-generating windows Scientists at the US Department of Energy’s Los Alamos National Laboratory and Brookhaven National Laboratory have developed a material that could transform an ordinary-looking window into a solar panel. “Potentially, with future refinement of this technology, windows in a house or office could generate solar power,” said Hsing-Lin Wang, a cocorresponding author of a paper in the journal Chemistry Materials. The thin films are capable of absorbing light and generating electric charge over a relatively large area. The material used is a semiconducting polymer spiked with “fullerness” – soccerball-shaped, cage-like molecules composed of 60 carbon atoms. When this material is applied to a surface under carefully controlled conditions, the material self-assembles in a repeating pattern of micron-sized hexagonal-shaped cells resembling a honeycomb. “Though such honeycomb-patterned thin films have previously been

made using conventional polymers like polystyrene, this is the first report of such a material that blends semi-conductors and fullerenes to absorb light and efficiently generate charge and charge separation,” said Mircea Cotlet, a physical chemist at Brookhaven’s Centre for Functional Nanomaterials (CFN). The polymer chains pack together at the edges of the hexagons and remain relatively loose across the centres, which makes the material largely transparent. According to the researchers, the densely packed edges strongly absorb light and could facilitate electrical conductivity. The researchers still have a way to go to make the material available for commercial purposes. “Perfecting large-scale application of the material could enable a wide range of practical applications, such as energygenerating solar windows or new types of optical displays,” the Los Alamos National Laboratory said in a statement. Visit www.lanl.gov, to which full acknowledgement and thanks are given.

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Mining South Africa’s solar resources

South Africa has the potential to create nearly 200 000 new jobs by 2020 through focusing its efforts on growing the concentrated solar power industry. However, current targets being set by the government are not yet enough to stimulate this new industry. This was the view put forward by Pancho Ndebele, founder and director of the green economy development company Emvelo.

Ndebele, who is also the chairman of the Southern Africa Solar Thermal and Electricity Association (Sastela), gave a keynote address at the University of Stellenbosch Business School (USBS) on the topic of solar resources and how South Africa can benefit from this technology. The discussion forms part of the USBS’s series of Leaders Angle talks.

and transporting solar thermal electricity via high voltage DC lines from North Africa to Europe,” says Ndebele.

“Our coal resources as reported in the press recently aren’t as high as we initially thought, but South Africa has an abundance of sunshine that we can use to generate electricity,” said Ndebele. “When you compare the solar resources in our country with other renewable energy resources, solar dominates, but we lack a solid and progressive policy framework that will help unlock our country’s solar resources, the framework needs to recognises trade offs between today’s least cost of electricity generation (coal without externatilies) and an alignment with the other objectives of government such as the new growth path, the Industrial Policy and Action Plan (IPAP 2) and South Africa’s future climate change obligations,” explains Ndebele.

Studies done by the University of Stellenbosch indicate that the potential of solar gigawatts that could be harnessed in the Northern Cape is 510 GW, the Free State has 25 GW, the Western Cape has 10 GW and the Eastern Cape has 1.6 GW. “There is a total of 547 GW of solar energy that we can unlock and this total is 6.4 times more than South Africa’s 2030 electricity forecast (85 GW), as stated in the IRP2 2010. If we’re smart enough and start to act now, South Africa could easily generate up to 50% of the country’s electricity by 2050 using the sun, which is free, and we don’t have the unpredictability and volatility in costs that is common with fossil fuels,” says Ndebele.

Solar potential in South Africa 6 times more than the required capacity 2030

The market drivers of CSP “Other countries are already realising Africa’s solar potential, European companies are looking at harnessing the sun through the Desertec initiative

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Ndebele explains that one of the market drivers for the CSP industry is the


renewa b les

Types Types of of CSP CSP

renewable energy feed-in tariffs (REFIT) that were announced by NERSA in 2009 and are yet to be implemented. “REFIT levels were initially set under an assumed rand to USD exchange rate of 10:1, this has since dropped when one takes into accout the current exchange rate of 7.5:1 and does need to be revised by NERSA to reflect market realities. What happened as a result is that entrepreneurs, developers both small and large seized the opportunity and started developing potential CSP plants in anticipation of REFIT coming into effect,” says Ndebele. “REFIT also kickstarted the creation of a corridor of CSP developments in the Northern Cape and the recently announced government solar park concept falls within this corridor. The current committed build in the draft IRP 2010 has allocated, 200 MW of CSP under REFIT to be deployed by 2015 and many players are trying to get a slice of this initial allocation. Developers with a long term view hope that government will allocate a minimum of 2GW for CSP in the IRP by 2020 as this will drive down the costs of solar that can be introduced into the energy mix at tariffs far much lower than REFIT,” says Ndebele. Creating jobs “From an economic development and job creation perspective, there are many advantages of investing in CSP,” says Ndebele, the direct and indirect economic impact of mining 2 GW of CSP by 2020 are as follows: Direct Jobs • To construct a 100 MW Concentrated Solar Power Plant (CSP) requires an estimated 800-1 000 construction workers. • Once built the 100 MW plant will create an estimated 80-100 operation and maintenance jobs. Medupi (4 000 MW) will create around 300 permanent operation and maintenance jobs.

• If we set up two, 200 MW capacity CSP manufacturing plants for solar field components, an estimated 600-1 000 solar field manufacturing jobs could be created Indirect Jobs • For every 100 MW CSP plant it is estimated that 4 000 indirect jobs are created, multiplying this figure with South Africa’s productivity ratio of around 2.1 that equates to 8 400 indirect jobs per 100 MW CSP Plant. “If we deploy 2GW of CSP we can create 191 000 direct and indirect jobs by 2020, besides creating sustainable jobs, we will also displace 6-million tons of carbon emissions by 2020, we will create a CSP export industry and move our country towards a path where our future electricity will remain one of the cheapest and most affordable for present and future generations. It will make us a competive low carbon economy with one of the most predictable and affordable costs of electricity in the future for industry and society at large. To achieve this industry needs scale and hence the need for the IRP to allocate a minimum of 2GW by 2020. What South Africa needs to recognise is we built our economy and our industrial base on coal which has given us one of the lowest electricity tariffs in the world, to retain this competetive advantage as the world migrates to a globally low carbon economy we need to change gear now and migrate to a future energy mix where CSP can play a major role when combined with storage or hybridised with other fuels to produce electricity around the clock (baseload) and can be despatched to meet peak and mid-merit requirements replacing the need to build Open Cycle Gas Turbines (OCGT’s) and Combined Cycle Gas Turbines (CCGT’s),” concludes Ndebele.

Ndebele explained the main types of concentrated solar power (CSP): • Parabolic trough power plants. This type of power plant uses parabolic shaped mirrors to concentrate the solar radiation onto a tubular receiver. “This technology is the grandfather of CSP technologies and has been in operation for around 25 years. It is bankable and commercially available,” said Ndebele. • Solar Tower. The solar tower technology uses a field of flat mirrors (or slightly bended mirrors) to reflect and point solar radiation to a receiver placed on the top of a tower. Eskom has a 100 MW Solar Tower plant under development. “According to Eskom part of the reason why the solar tower was chosen is its potential for localization. • Linear Fresnel reflectors. The Linear Fresnel uses modules of almost flat mirrors which concentrate the solar radiation in a linear receiver placed above these mirrors. “The Linear Fresnel is also ideal for steam generation for industrial heating and cooling” said Ndebele • Dish Stirling. This technology uses a parabolic dish mirror (which can be comprised by one or several facets) to concentrate solar radiation in a stirling engine. “Some of you may remember that during the World Summit on Sustainable Development in 2002, Eskom had a demo plant at the Development Bank of South Africa’s Midrand offices,” says Ndebele.

Emvelo Tel: +27 74 349 4336 E-mail: info@emvelo.co.za Website: www.emvelo.co.za 2 5 o i n A fr i c a

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nuclear ener gy

US$25-million

contract awarded to

The South African Nuclear Energy Corporation (Necsa) and its subsidiary, NTP Radioisotopes (Pty) Ltd, won a US$25-million US federal award to supply molybdenum-99 (Mo-99) produced from low-enriched uranium targets.

“This significant achievement has demonstrated that South Africa has successfully implemented the world’s first large-scale, all LEU production of this critical medical isotope,” Necsa said in a statement. South Africa’s NTP is one of the world’s major suppliers of Mo-99. Mo-99 is used in hospitals in special generators to produce the very short-lived technetium-99 radioisotope, used in a range of imaging procedures. As Mo-99 itself has a short half-life of only 66 hours, steady supplies are essential. However, most of the world’s supplies of Mo-99 is sourced from only five research reactors, and international supplies have been severely impacted in recent years as several of the ageing reactors have been unexpectedly unavailable. Switching from dangerous high enriched uranium to LEU The Safari-1 research reactor’s core is powered by LEU fuel elements and the reactor irradiates LEU target plates to produce Mo-99. NTP has been working towards producing the isotope by irradiating LEU target plates instead of the traditional high enriched uranium (HEU) targets in Necsa’s Safari-1 research reactor. This process is seen as an important development in helping to remove HEU (which can be used in weapons) from the civilian sector. Conversion to full LEU production – Safari-1 was converted to use LEU fuel in 2009 - has presented various technological and operational hurdles. “The award is the culmination of many years of painstaking research and development,” said Necsa CEO Dr Rob Adam. NNSA principle assistant-deputy administrator of defence nuclear non-proliferation, Ken Baker, described the award as “part of NNSA’s commitment to develop a sustainable means of producing Mo-99 as part of a global supply network that avoids a single point of failure and does not use HEU.” NECSA Tel: +27 305 5450 Fax: +27 305 5761 E-mail: chantal.janneker@necsa.co.za Website: www.necsa.co.za

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Below: Certified to carry nuclear medical isotopes, these containers also comply with regulatory specifications in most countries. Second: The Safari-1 reactor in operation. Third: Technicians preparing Molybdenum-99 for dispatch at the NTP hot cell complex.


n u c lear energ y

Nuclear energy

a preferred solution – SA government The acute need to secure reliable energy supplies and the urgent requirement to reduce carbon emissions has put nuclear energy firmly on the agenda as a viable choice to be pursued in order to achieve an acceptable energy mix for South Africa, Energy Minister Dipuo Peters told a media roundtable ahead of the draft IRP2010 hearings in December 2010.

Nuclear danger When people hear the word “nuclear”, many still think of the unmitigated disasters and devastation of Nagasaki and Hiroshima. In November 1956, President Dwight Eisenhower said that “if men can develop weapons that are so terrifying as to make the thought of a global war include almost a sentence for suicide, you would think that man’s intelligence and his comprehension would also include his ability to find a peaceful solution,” said Eisenhower. “President Eisenhower was raising his voice in a sea of despair caused by the possibility, brought about by the nuclear weapons, of a major conflagration. We are now living seven or so decades after the fateful postulations of President Eisenhower,” Peters told a media contingent at the seminar held in Rosebank, Johannesburg.

have to learn once we embark on a successful nuclear building programme. This, of course, will happen once the cabinet has approved the final draft of the IRP2010,” said Peters. The Inter Ministerial Committee (IMC) on Energy has approved South Africa’s draft Integrated Resource Plan (IRP), which will guide the building of new generation facilities. “In 2008, the cabinet approved the Nuclear Energy Policy. Accordingly we are now in the implementation phase of this policy. In this respect, the IRP is a vital cog in our quest to ensure that the nuclear building programme that will emerge out of this process is both realistic and achievable,” said Peters. “Nuclear, because of the way it has evolved, is a subject that is usually accompanied by a lot of resistance. We all know that the prevalence, even on a small scale, of a lack of transparency, information itself contributes to

Nuclear energy is becoming a preferred solution addressing matters related to energy security and energy independence and in efforts to mitigate the dangers posed by climate change. “Nuclear energy is becoming a preferred solution addressing matters related to energy security and energy independence and in efforts to mitigate the dangers posed by climate change. A number of countries are showing renewed interest in nuclear energy while others are considering the expanding of existing programmes, as is the case with our own country,” said Peters. South Africa is catching up with the rest of the world The construction of nuclear reactors in China, South Korea, France and Japan continues. Finland has launched new reactors that are due to go online within the next decade and in 2008, the UK government affirmed the centrality of nuclear energy in responding to the twin challenges of energy security and climate change mitigation. “There are many concerns regarding nuclear energy construction costs and scheduling internationally. The truth is that some nuclear projects are actually completed ahead of schedule, implying that there are lessons we

What the draft IRP2010 says about nuclear energy The IRP2010 – which identifies future energy demand and energy composition – proposes a 14% baseload nuclear energy in South Africa’s energy mix. The details about South Africa’s nuclear energy plan must still be finalized, however, it is intended that nuclear power will be included in the energy mix from 2023. The first nuclear reactor in the country is expected to be commissioned in 2019 while the last reactor should be commissioned in 2040. There will be 10 500MW of newly installed nuclear capacity by 2028 while 21 000MW of installed nuclear capacity will be available by 2035. South Africa will be installing Pressurised Water Reactors (PWRs), which are widely considered as Generation II reactors, and it is assumed that at least 80% of the new nuclear plants’ fuel requirements will be sourced locally.

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nuclear ener gy

these fears. This is why it is essential that there is active participation in the demystification of nuclear energy applications, be it in power generation, medical, agricultural or industrial. I am convinced that at the heart of a successful peaceful nuclear programme is the presence of a major public education campaign,” said Peters. Current nuclear skills vs required skills The capital expansion, design and manufacturing programmes of the IRP2010 require 3 000 scientists and engineers as well as 24 000 artisans over the next five years. It is estimated that to develop, maintain and operate a nuclear fuel cycle, approximately 6 000 trained people are required and that an additional 2 800 related jobs will be created by 2030. An additional 12 886 engineers, scientists, operators and support staff will be required to maintain the plant resulting out of a new building programme of 10 500MW over 20 years. It is also estimated that approximately eight times that number will be required during the construction phase. The South African Nuclear Human Assets and Research Programme (SANHARP) is developing the skills needed by supporting school students to PhD candidates in their studies.

“Countries that have successful nuclear programmes have a high percentage of citizens who understand what nuclear energy is, the risks and benefits associated with it and therefore support such programmes. It is therefore the responsibility of all stakeholders – including government – to engage the public regarding nuclear energy education. This includes the media,” said Peters. South Africa’s small nuclear skills force is aging According to Peters, one of the important aspects of a nuclear expansion programme is skills development and skills transfer. “The majority of our nuclear energy workforce is ageing and for this programme to be sustainable, skills transfer should be emphasised. The nuclear industry in South Africa is relatively small – therefore it is important that we retain the talent that we have in this industry,” concludes Peters. For more information, visit www.info.gov.za, to which full acknowledgement and thanks are given.

Namibian

nuclear policy

Namibia will be developing a nuclear energy programme in order to make use of its uranium resources. Isak Katali, Namibia’s Minister of Mines and Energy, said this uranium and nuclear energy policy will be developed to cover the entire nuclear fuel cycle. “It is the expressed decision of the Namibian government to seriously consider the development of nuclear power in order to complete the national energy mix and provide sufficient energy for our development,” said Katali during Namibia’s first-ever stakeholder meeting. According to mining commissioner Erasmus Shivolo, the draft legislation and policy document are expected to be finished by mid-2011.

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due by mid-2011

Shivolo told delegates that finding a convenient storage site will be part of the policy development process, but that the nuclear waste will have to be stored in Namibia. Shivolo presented a rough outline of the new nuclear policy that included sections on setting up a nuclear waste management fund, increasing black Namibians’ participation in the uranium sector and limiting the use of the country’s uranium for peaceful purposes. According to World Nuclear News, Namibia is the world’s fourth largest uranium mining country, but it has no nuclear power of its own and relies on imports from neighbouring South Africa for about half of its electricity. For more information, visit www.world-nuclear-news.org, to which full acknowledgement and thanks are given.


b io fu e l s

First carbon neutral power station in Africa launched The first carbon neutral power station in Africa was unveilled on 23 November 2010 in Honeydew, Johannesburg. The renewable waste-toenergy gasification plant by EECOFuels is the result of a groundbreaking partnership between Nedbank Capital and EECOFuels, who have been researching and developing renewable energy solutions for a number of years. The gasification plant can convert wood chips, plant waste, saw dust and municipal solid waste into electricity, providing an off-the-grid electricity solution for waste. The state-of-the-art gasifier and GASTECH engine combination converts waste streams into electricity and is revolutionary in its tar removal system. The system has been robustly built and designed to be as maintenance-free as possible with other minor maintenance being done by the operators in the field, making it “appropriate for Africa”. Not only is the gasification plant very efficient on both small and large applications, but it also produces gas with a tar content of less than 20ppm. “The fact that EECOFuels gasification plants can be placed anywhere there is a need for waste-to-energy generation means that they operate independently of infrastructure requirements and there is no need for the transportation of feedstock for the process,” said EECOFuels managing director, Marcel Steinberg, at the unveiling of the new gasification plant. “When one combines this with the proprietary gasification technology that emits less carbon than it consumes, the EECOFuels solution is not just carbon-neutral, it is, in fact, carbon-negative,” said Steinberg.

According to Kevin Whitfield, Head of Carbon Finance at Nedbank Capital, the carbon-efficiency of this technology is what first attracted Nedbank Capital to partner with EECOFuels. “The EECOFuels model has the potential to revolutionise the way in which energy is generated on the African continent. Nedbank Capital immediately recognised the potential inherent in the EECOFuels gasification solutions and we were more than happy to offer guidance and advice to the business owners on how to best harness this potential by leveraging the appropriate carbon-based finance solutions,” said Whitfield. According to Steinberg, this partnership proved pivotal to the eventual development and successful rollout of the new EECOFuels waste-to-energy plants. “Nedbank Capital’s input, particularly regarding ways of meeting the funding requirements for this new technology in an appropriately ‘green’ manner, has been invaluable and we look forward to continuing to draw on Nedbank Capital’s financial and carbon experience as we roll out the technology across Africa, and further afield, in the months and years ahead,” concludes Steinberg. EECOFuels Cell: +27 83 282 4247 Fax: +27 86 616 1312 E-mail: marcel@eecofuels.com Website: www.eecofuels.com

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CDM

Carbon

Disclosure Project launches Cities Programme

CDP

Cities occupy just 2% of the world’s land surface, yet they consume approximately 60-80% of the world’s energy production and, although experts differ in their analysis of the overall contribution of cities to greenhouse gas emissions, estimates show urban areas could be responsible for up to 80% of total emissions. The Carbon Disclosure Project (CDP) announced the new CDP Cities programme on 1 November 2010. This programme will provide a system for cities worldwide to report their greenhouse gas emissions and climate-related strategies.

The largest cities in the world committed to tackling climate change – the 40 member cities and 19 affiliate member cities of the C40 have been asked to voluntarily measure and report to the CDP so that the cities can proactively manage risks and reduce carbon. New York, London and Toronto have already agreed to report their carbon emissions data to the CDP. David Miller, Mayor of Toronto.

Boris Johnson, Mayor of London.

Michael Bloomberg, Mayor of New York.

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Cities play an essential and leading role in accelerating solutions to climate change and the C40 cities are already making a massive impact,” said David Miller, Mayor of Toronto and chairperson of the C40. “The CDP will provide a reporting platform that allows C40 cities to track their progress on reducing greenhouse gas emissions and share that critical data with each other and around the globe.” Large companies such as Autodesk, Inc, Microsoft and Sun Life Financial are supporting the programme. “The cities of tomorrow are being shaped today by governments, businesses and citizens,” said Jay Bhatt, senior Vice-president of AEC solutions at Autodesk (lead sponsor of the CDP Cities). “To create cities that support a better quality of life while minimizing environmental impact, today’s designers need a clear picture of the impact of climate change. We are delighted to work with the Carbon Disclosure Project to assist in developing a standardized reporting platform for climate change-related information. Autodesk’s design software will help city managers to better understand their existing assets, allowing planners to develop strategies for improving the urban environment,” said Bhatt.

A case for city disclosure The CDP Cities released a report entitled “The Case for City Disclosure” along with the launch of the programme. The report was written by Accenture and it details how standard disclosure from local governments can help cities to share best practice, increase operational effectiveness and manage risk. “It is not unusual for the largest cities to produce emissions that exceed these of medium-sized countries,” reads the report. Local governments can act as leaders of change: creating a sense of urgency which can be focused for rapid and wide-spread action, proactively managing climate change-related risks of climate change, meeting carbon targets and capitalizing on low carbon economy benefits.” “Many cities are intent to reduce emissions, which is evident in the emergence of programmes that support cities to drive forward sustainability strategies. However, city officials often lack the data required to understand both their key sources of emissions and the impact of their low carbon initiatives. Identifying major risks and opportunities of climate change can also be challenging for many cities,” says the report. A common disclosure platform can provide the tool for such data collection. This data can aid cities, as well as inform critical stakeholders such as residents and the businesses located within a city. The report outlines the case for city disclosure and demonstrates how climate change reporting can become an essential component to enable cities to: • Drive economic competitiveness through the realisation of operational efficiencies and the attraction of investment and innovation. • Improve climate change risk management. • Demonstrate the value of cities’ sustainability strategies to society. Which major cities are reporting and disclosing? In October 2010, the CDP sent a questionnaire to a group of the 40 largest cities in the world and its affiliated cities (all cities are welcome to respond to the CDP regardless of whether they are included in the C40. City government representatives of any size that are considering reporting to the CDP can complete a form here: www.cdproject.net/en-US/Respond/Pages/CDPCities.aspx). The deadline for cities to respond to


CDM

the questionnaire is 31 January 2011 and the findings launched across the globe will be presented in May 2011. “New York City has tracked greenhouse gas emissions with a detailed inventory – that we make public – since 2006, and we are already seeing real reductions in our carbon emissions,” said Michael Bloomberg, the Mayor of New York City. “We have to keep the pressure on to continue our progress. The C40’s partnership with the CDP will ensure that all member cities have a reliable platform to report emissions. We will never meet the ambitious goals we set as an organization without solid data to measure our progress. As I’ve always said: if you can’t measure it, you can’t manage it.” The Major of London, Boris Johnson, said it is vital that carbon emissions from cities are quantified and that this data is in the public domain in order to track progress. “London’s city government is already committed to disclosing a range of data, not just with regard to climate change, to help catalyze change to the benefit of residents. We are happy to continue this as part of our work with the C40,” said Johnson.

According to the Carbon Disclosure Project, the CDP’s standard reporting platform is already seen as best practice by thousands of companies around the world. This same CDP disclosure process was used successfully in a 2008 pilot project of 18 cities in the United States. “This pilot project highlighted how important action on climate change is, in most cases, at an early stage and so the opportunities ahead to reduce emissions and seize future opportunities are considerable,” said the CDP. “The CDP has long been a key system through which businesses can evaluate their ability to tackle climate change,” said the CDP’s Executive Chairman, Paul Dickinson. “With cities at the forefront of our global response to climate change, it is critical that they have access to the same proven process which can help them to reduce carbon, improve operational efficiency, attract investment and increase clean technology innovations.” For more information, visit www.cdproject.net, to which full acknowledgement and thanks are given.

Carbon tax discussion paper published

for comment The South African carbon tax discussion paper was published on 13 December 2010 and will be available for public comment until 28 February 2011. The carbon tax discussion paper, “Reducing Greenhouse Gas Emissions: The Carbon Tax Option”, follows the 2008 announcement of an electricity generation levy of 2c per kWh, which was the first explicit carbon tax to be introduced in South Africa. The document can be found on the National Treasury website and it proposes three options for a carbon tax in South Africa, namely an emissions tax applied directly on measured carbon dioxide emissions, a downstream carbon tax placed on products or outputs generated from fossil fuels and an upstream tax on fossil fuel inputs based on carbon content of the fuel.

According to the Treasury, a carbon tax imposed directly on all measured emissions of carbon dioxide appeared to be the most appropriate option and the second best option would be a tax on fossil fuel inputs such as crude oil, coal and natural gas. Although these two options created adequate incentives to encourage behavioural changes, a tax on actual measured emissions would require appropriate institutional capacity to measure, monitor and verify emissions, while an upstream tax based on the estimated carbon content of the fuel in question could piggyback on the existing tax administrative system. For more information, visit www.treasury.gov.za, to which full acknowledgement and thanks are given.

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CDM

Yunus Suleman: Chairman, KPMG Policy Board in South Africa, Valerie Geen, Jon Hanks, Incite, Minister Molewa, Sue Howells, CDP London, Barney Kgope, Programme manager (Climate & Energy) NBI.

SA

businesses reducing climate change risks – CDP report The 2010 South African Carbon Disclosure Project report was launched on 11 November 2010 at the KPMG offices in Parktown, Johannesburg. KPMG is the lead sponsor for the CDP report, which showed that as many as 74 of the JSE’s top 100 companies have responded to the 2010 Carbon Disclosure Project (CDP) – the fourth highest response rate among 20 countries. “This suggests that, notwithstanding short-term concerns and the pressures associated with the economic downturn, climate change remains sufficiently high on the South African corporate agenda,” says Jonathan Hanks of Incite Sustainability, the authors of the South African CDP report. “It is heartening to see the year-on-year progress South African companies are making. This is especially commendable given that companies are responding voluntarily in the absence of incentives or a regulatory framework. Arguably though, there are sufficient business imperatives such as cost, reputation, competitiveness and business viability to act as drivers towards the transition to a low carbon economy,” said Valerie Geen, NBI director for climate change and energy. “Climate change is one of the most serious threats to sustainable development. It’s hard to identify a sector or economy that won’t be affected by climate change. I commend companies which are voluntarily disclosing their carbon footprints and making plans to lower their greenhouse gas emissions. These companies are minimising their risks by taking action now,” said Edna Molewa, new Minister of Water and Environmental Affairs. The CDP in South Africa widened its scope this year by rating the JSE’s top 100 companies not only on disclosure of their GHG emissions and climate change response strategies, but also on their performance in reducing emissions and in adopting climate change mitigation and adaptation actions. Banking group FirstRand and mining company Gold Fields emerged with the highest rating for the level of their GHG emissions disclosures, scoring 93% on the South African Carbon Disclosure Leadership Index (CDLI). They were followed by Anglo Platinum and Medi Clinic Corporation with 89%, and Nedbank with 88%. Barloworld, Gold Fields, Nedbank and Woolworths received the CDLI for their performance in climate change mitigation and adaptation. However, the report cautions that most companies “are insufficiently advanced in their

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adaptation initiatives”. It urges a more structured focus by companies on adaptation opportunities. Real estate sector lagging behind Certain sub-sectors continue to have fairly low response rates, including most noticeably real estate (only two out of twelve companies responded and three companies that participated in the previous year declined participation for the 2010 report). Hanks said that although this was disappointing, this was in line with international trends in the real estate sector. 94% of responding companies disclosed their GHG emissions “One of the highlights of the report was the number of responding companies that disclosed their GHG emissions. “This is an important increase on 2009’s 87% disclosure rate, and is accompanied by a significant increase in the disclosure of Scope 3 emissions across most sectors, as well as in the reporting of emissions intensity data,” reads the report. There has also been an increase in the number of companies verifying their data and in those reporting on their emissions in annual and/or sustainability reports. Shireen Naidoo, director of KPMG Climate Change and Sustainability Services, said that the financial services firm has seen an increasing number of requests from companies in recent months to have their carbon emissions independently assured. “This point to the need for companies to have accurate information out in the public domain, as well as to use it as a baseline for setting reduction targets,” said Naidoo. “Investors have emerged as a key group in motivating change in the businesses in which they have an interest. The CDP process helps them to deliver on these changes. The CDP report is an excellent resource about entities and their progress on climate change matters. The progress that a number of these entities have made will challenge and inspire others. Investors may also obtain insight into entities that are today already addressing how they manage their sustainability pressures,” concludes Naidoo. For more information, visit www.nbi.org.za, to which full acknowledgement and thanks are given.


CDM

Scope

1, 2 & 3 of GHG

reporting simplified Under the Greenhouse Gas Protocol Initiative (a collaboration between the World Business Council for Sustainable Development and the World Resources Institute), emissions attributable to a company are divided into three scopes. The technicalities of greenhouse gas reporting, which involves participation of hundreds of companies around the world, can seem confusing when it comes to the various scopes of reporting. Where does a company’s reporting responsibilities begin and where do they end? 25º in Africa takes a look at the different categories of greenhouse gas reporting.

Scope 1 emissions Scope 1 emissions are direct emissions from sources it owns or controls (such as company-owned cars and factory smokestacks). Direct GHG emissions are emissions from sources that are owned or controlled by the reporting entity.

Scope 2 emissions Emissions attributable to the electricity, heat and cooling the company consumes. Indirect GHG emissions are emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity.

Scope 3 emissions – everything else On 5 November 2010, the GHG Protocol Initiative released its draft Scope 3 accounting and reporting protocol, which made the world of greenhouse gas reporting more interesting. The second draft of the Scope 3 Standard was developed between July 2010 and October 2010. Past GHG protocols from 2004 and 2005 focused on Scope 1 and Scope 2, but highlighted the need for additional protocol for Scope 3, which was optional for companies to report. The new Scope 3 protocol takes the form of two documents – the Product Accounting & Reporting Standard and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard. The two sets of calculations are designed to work in tandem. Scope 3 emissions include all other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc.

About the calculation tools According to the GHG Protocol, calculation tools are electronic Excel spreadsheets with accompanying step-by-step guidance documents. “These tools were developed in partnership with industry experts and represent best practice quantification methodologies. The calculation tools are available on the GHG Protocol website and are meant to complement the Protocol and make calculations easier, but their use is not mandatory,” says the GHG Protocol on its website (www.ghgprotocol.org). Visit www.ghgprotocol.org, to which full acknowledgement and thanks are given.

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electricity

Zimbabwe plans to have power surplus by 2014, says investment banking group Despite current power rationing realities and looming threats of blackouts in the country, Zimbabwe plans to have a power surplus by as soon as 2014. This figure was reached by Imara, a company that provides updates on African markets to international clients in its suite of Africa-specific equity funds, and it is based on key statistics from the Zimbabwean Minister of Economic Development. Zimbabwean power statistics show that current power demand can be as high as 2 000 megawatts (MW) while supply is 1 500MW, but according to Imara Zimbabwe’s programme of power station development and upgrades plus utilisation of biogas technology will enable the electricity surplus. “If upgrades and expansion plans come on stream as anticipated, current capacity could be quadrupled by that date,” the company said in a statement. “International investors see power supply security as a key strategic factor when making long-term commitments to African markets. Plans to quadruple Zimbabwe’s current power capacity will therefore come as good news to investors,” says Grant Flanagan, manager of Imara’s Zimbabwe Fund. “The Kariba and Hwange power plants each have a capacity of 750MW.

The Kariba hydro plant is in good working condition and can work to full capacity, unlike Hwange that only produces between 350-550MW. Zimbabwe has three smaller coal fired plants, two in Harare and one in Bulawayo. The plan is to lease Harare and Bulawayo to private-sector operators, increase Kariba’s capacity by 300MW and upgrade Hwange, adding a further 600MW to its capacity. These initiatives would easily meet the current demand of 2 000MW,” said Imara. Additional plans call for a 2 400MW power station at Sengwa, with the first 500MW module to be commissioned by July 2014 and further modules being added thereafter (a licence has already been issued). In addition, the government is in talks with another private sector company to build a further plant of 2 000MW, again utilising Zimbabwe’s massive coal reserves. The Ministry has already issued a licence for the exploitation of waste in Harare for biogas purposes. This operation is expected to come on stream in 2013 and add a further 120MW to national capacity. “If all comes right, we would have a capacity of at least 3 000MW by the end of 2014, with a potential of 6 000MW thereafter – thereby removing power as a constraint on economic growth,” concludes Flanagan. For more information, visit www.imaraholdings.com, to which full acknowledgement and thanks are given.

DBSA grants ZAR15-billion loan to Eskom The Development Bank of Southern Africa (DBSA) will be supported Eskom’s expansion programme by approving a ZAR15-billion loan. The loan, which was approved at the end of 2010, won’t be using guarantees from the local government and it has been structured so that Eskom can draw this money over the course of five years. “This (Eskom) deal signifies a major step change aimed at ensuring that South Africa’s long-term electricity supply meets demand to ensure the economy can thrive,” said the Chief Executive of the DBSA, Paul Baloyi.

The Chief Executive Officer of Eskom, Brian Dames, commented: “Our new building programme is essential to provide the security of supply that South Africa needs if it is to grow its economy and improve the quality of life for all of its people.”

The bank, which has a significant energy investment footprint in the rest of the SADC region, is currently working with South Africa’s Department of Energy and Department of Treasury to support renewable energy initiatives across the board.

“The loan is a vote of confidence by the DBSA in Eskom. It will help us to provide South Africa with the power stations and transmission infrastructure it needs while ensuring that Eskom remains financially sustainable,” said Dames.

Baloyi added that the municipal sector currently constitutes 50% of the DBSA’s loan book. “Electricity is a major component of municipal revenue and it is only logical for the Bank to contribute to the funding of projects that will help to ensure a secure supply of energy for South Africa,” said Baloyi.

Paul O’Flaherty, Eskom’s Finance Director, noted that “the loan forms a critical part of Eskom’s funding programme until 2017 and should be seen in light of all the initiatives that we are currently putting in place in this regard.”

Eskom’s expansion projects include the Medupi and Kusile coal-fired power

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stations, as well as the Ingula Pump Storage scheme and associated transmission infrastructure. The projects will add 12 300 megawatts of additional generating and transmission capacity to the national grid by 2017.

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


e le c tri c it y

Growth in

Namibia’s

mining sector to boost demand for

electricity

Eskom welcomes ZAR20-billion equity injection Eskom said it welcomed the government’s support for a proposed ZAR20-billion of equity into Eskom over the next three years. This comes after the government announced on 28 October that it would extend its guarantees for Eskom by ZAR174bn to a total of ZAR350bn.

The expansion of Namibia’s mining industry, particularly that of uranium, is expected to lead to a rapid growth in electricity demand in the country. A new analysis from Frost & Sullivan finds that the industry generated US$222.0-million in 2009 and estimates this to reach US$790.4-million in 2014. Electricity demand from the mining industry is set to grow by approximately three per cent per annum due to augmented investments in the mining sector.

“The proposed equity injection will strengthen Eskom’s balance sheet, ensuring it can complete its building programme while remaining financially sound,” said Eskom in a statement.

Frost & Sullivan Energy and Power Systems Research Analyst Sandra Ayingono said that the opening of several uranium mines in the Erongo region will augment the demand for electricity by 300MW, by 2012. The company expects that uranium will surpass the diamond sector as the largest foreign currency earner in the mining industry between 2015 and 2020.

“While Eskom acknowledges that the proposed R20-billion equity injection will still have to be approved by Cabinet after the government finalises its consultation processes, Eskom is confident that the equity injection will be favourably considered,” said Eskom.

Namibia’s mining and tourism industries contributed to the significant rise in overall electricity demand from 2008 to 2009. The total electricity demand in the country rose by 4% over the last three years, with this trend of high growth set to remain for the long-term. Overloading transmission lines and electricity costs contribute to challenges The “2010 Updated Overview of the Namibian Electricity Industry” report states that overloading of transmission lines and the rising cost of electricity imports are posing major challenges to the development of the electricity industry. South Africa is Namibia’s major energy partner, accounting for an average of half of Namibia’s electricity supply over the last three years. As electricity tariffs increased substantially in South Africa, electricity imports to Namibia have also risen. “Promisingly, the Namibian government and NamPower are increasingly encouraging and creating an environment conducive to external investment. There is an increasingly significant market for OEMs, given the number of projects that are in the pipeline,” says Ayingono. According to the report, the design and implementation of an independent power producers (IPPs) framework represents a step towards the liberalisation of the sector and more IPPs are expected to express interest in the Namibian electricity industry. “In order to achieve cost reflectivity, electricity tariffs are expected to significantly increase by 2010. This will allow the industry to maintain and expand generation, transmission and distribution infrastructure,” concludes Ayingono. Frost & Sullivan Christie Cronje Tel: +27 21 680 3566 Fax: +27 21 680 3296 E-mail: Christie.Cronje@Frost.com Website: www.frost.com

Eskom will be using the funds to ensure that it can complete all the projects that it has committed to over the next seven years to expand its capacity. These projects include the Medupi, Kusile and Ingula power stations, as well as the associated transmission network. Eskom CEO Brian Dames has welcomed the recognition by the government of the critical role that Eskom and its new building programme have to play in supporting South Africa’s growth and development. “Our new building programme is essential to provide the security of supply that South Africa needs if it is to grow its economy and improve the quality of life of all its people. This is the largest infrastructure programme South Africa has ever undertaken. We are delighted at the vote of confidence the government has given Eskom. The building blocks are now in place to ensure we have the funding we need to complete the projects we have pledged to deliver over the next seven years,” said Dames. Visit www.eskom.co.za, to which acknowledgement and thanks are given.

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eNER GY EFFICIE NCY

IEA releases annual World Energy

Outlook

Nobuo Tanaka, Executive Director of the IEA.

The central scenario of the International Energy Agency’s annual World Energy Outlook (WEO) is the New Policies Scenario – which takes account of the broad policy commitments and plans that have been announced by countries around the world.

“We have taken governments at their word, in assuming that they will actually implement the policies and measures, albeit in a cautious manner, to ensure that the goals they have set are met,” said Nobuo Tanaka, Executive Director of the IEA. In the New Policies Scenario, world primary energy demand increases by 36% between 2008 and 2035, or 1.2% per year on average. The assumed policies make a tangible difference to energy trends: demand grew by 2% per year over the previous 27-year period. According to this scenario, NON-OECD countries account for 93% of the projected increase in world primary energy demand. IEA preliminary data suggests that China overtook the United States in 2009 to become the world’s largest energy user, despite its low per capita energy use. The country contributes 36% to the projected growth in global energy use. “It is hard to overstate the growing importance of China in global energy. How the country responds to the threats to global energy security and climate posed by rising fossil-fuel use will have far-reaching consequences for the rest of the world,” said Tanaka.

We need to use energy more efficiently and we need to wean ourselves off fossil fuels. Fossil fuels remain dominant Fossil fuels remain dominant over the Outlook period in the New Policies Scenarios, though their share of the overall energy mix falls in favour of renewable energy sources and nuclear power. The leading fuel in the energy mix by 2035 is oil, followed by coal. Of the three fossil fuels, gas consumption grows most rapidly, its share of total energy use almost reaching that of coal. Using energy more efficiently How energy markets evolve over the years is largely dependent on the strength of the economic recovery. But WEO-2010 demonstrates that it is what governments do, and how that action affects technology, the price of energy services and end-user behaviour, that will shape the future of energy

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in the longer term. “We need to use energy more efficiently and we need to wean ourselves off fossil fuels by adopting technologies that leave a much smaller carbon footprint,” said Tanaka. Government intervention in support of renewables increases from US$57-billion in 2009 to $205-billion (in 2009) by 2035 in the New Policies Scenario. The share of modern renewable energy sources, including sustainable hydro, wind, solar, geothermal, modern biomass and marine energy, in global primary energy use triples between 2008 and 2035 and their combined share in total primary energy demand increases from 7% to 14%. “Renewable energy can play a central role in reducing carbon-dioxide emissions and diversifying energy supplies, but only if strong and sustained support is made available,” said Tanaka. It’s going to get hot Although national commitments to reduce greenhouse-gas emissions will have some impact, the New Policies Scenario shows that they are collectively inadequate to meet the Copenhagen Accord’s overall goal of holding the global temperature increase to below 2°C. “Rising demand for fossil fuels will continue to drive up energy-related carbon-dioxide (CO2) emissions through to 2035, making it all but impossible to achieve the 2°C goal, as the required reductions in emissions after 2020 would be too steep. The New Policy Scenario trends are in line with stabilising the concentration of greenhouse gases at over 650 parts per million (ppm) of CO2-equivalent (eq), resulting in a likely temperature rise of more than 3.5°C in the long-term,” the IEA said in a statement. “While we don’t necessarily endorse all the detail, WWF is highly gratified with the IEA’s growing emphasis on energy-efficiency and renewable energy to enhance effective carbon abatement regimes,” said Dr Stephan Singer, Director of Global Energy Policy for WWF International. “We are also pleased with the strong push by the IEA that eradicating energy poverty for more than one third of the world’s population is a major development issue, with clean renewables best placed to deliver costeffective, equitable and sustainable solutions,” concludes Singer. For more information, visit www.iea.org and www.panda.org, to which full acknowledgement and thanks are given.


e N ER GY EFF I C I EN CY

Besides the financial incentives of having energy-efficient buildings, energyefficiency can also help to reduce the impacts of climate change. According to global strategy consulting firm McKinsey, energy-efficiency strategies are the most profitable, but also the biggest contributor to reducing harmful CO2 emissions. Derick Coetzer, director of Energy Partners, says that in South Africa, the benefits of adopting energy-efficiency initiatives are even higher due to the massive impending hikes in electricity tariffs. “Electricity prices are expected to quadruple in the next three to four years. Energy costs as a percentage of operating expenses for building owners will increase from 27% in 2009 to approximately 50% by 2015,” says Coetzer. “In the past, only a few energy-efficiency interventions would have made economic sense to implement, but the impending electricity tariff increases means that even the more altruistic initiatives are increasingly becoming financially beneficial,” explains Coetzer. “The announced NERSA tariff hikes will significantly increase the return on investment when implementing energy-efficiency initiatives on existing buildings from 19% based on the current electricity tariffs to 47% after the tariff increases in 2014,” says Coetzer.

The government offers tax rebates on money spent to install energyefficient equipment and has capital available to invest in energy-efficient projects. “Accessing funding from government departments requires an advanced knowledge of the process and can be resource intensive, which most companies want to avoid. Other incentives like carbon credits require significant upfront capital to develop the project and clients are unlikely to spend the money if they are unsure of the benefits,” says Coetzer. According to Coetzer, energy-efficient projects should be structured in such a way that it enables financiers to clearly understand the project and risks. “These projects should also be large enough to attract enough funding and commitment from financiers. As the demand for energy-efficiency solutions evolves in South Africa, most financiers will soon realise that these initiatives are all worthy investments and that they will benefit all parties in the long run,” concludes Coetzer. Energy Partners Tel: +27 21 918 4980 E-mail: info@energypartners.co.za Website: www.energypartners.co.za

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Improving

wastewater plant lifecycle costs by reducing energy

Wastewater treatment historically accounts for about 25% of a municipality’s total energy usage.

“Aging infrastructure, increasingly stringent regulating, high energy costs and budgetary constraints are some of the challenges that South Africa’s wastewater plants deal with. Funding for plant improvements is often hard to come by, forcing plants to do more with less. Energy management, through energy analysis modelling, automation and financing, are needed to make these plants more sustainable,” says Lutz Kranz, head of global municipal business for Siemens Water Technologies.

unified system, can also make treatment technologies more energy-efficient. Siemens’ Link2Site Flex system is a wireless-to-web remote monitoring and control solution that can be added to equipment or processes to optimize operation through reduced maintenance and service costs. This system gives the engineer and owner a single point of responsibility in coordinating the control strategy and operation. Alternative funding models

“Energy management entails a wide range of solutions, from reducing biosolids, adding the latest biological treatment processes, high efficiency aeration solutions and control systems, to project financing. There is not one solution that fits everyone. So, we look at the total project to determine water quality and treatment needs and then recommend options, which may include multiple technologies and automation. We also look to see if we can offer attractive financing options to help get high-return, energy minimization projects moving,” says Kranz. Siemens helps engineers to get as close to net-zero energy as possible by helping them to determine whether a specific area of the plant or the whole treatment operation needs to be improved. The company works to achieve the lowest lifecycle cost, based on what is best for their plant and budget. Reducing energy consumption

Mechanically Enhanced Biodrying (MEB), a new technology that is in the pilot testing stage, is a new method that reuses energy. Research and development is underway to create a versatile endproduct that could be used for fertilizer or fuel and that could be created with less energy than standard thermal drying technologies. It also addresses the challenges of biosolids composting when wood waste and other carbon-rich soil amendments are in short supply.

Wastewater treatment historically accounts for about 25% of a municipality’s total energy use. Biological processes of a wastewater plant account for 55%-70% of this energy use. “Siemens offers a biological process optimisation programme which integrates several key wastewater operations, including biological, solids separation, solids treatment and controls, to significantly reduce energy costs,” says Kranz, before explaining that a California wastewater treatment plant was able to reduce biosolids production by 70% and the aeration requirements from their aerobic digester by more than 90% with the Cannibal interchange bioreactor system from Siemens. Making a plant more efficient Control and telemetry systems, which integrate all processes under a

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Siemens Financial Services gives municipalities a tax-exempt finance approach, which spreads the cost of capital equipment acquisition over the life of the assets being financed and ensures that technology is up to date. These finance services are flexible and can include alternative project delivery models such as equipment lease-purchase, design-build, designbuild-finance and guaranteed savings performance contracts. “Guaranteed savings performance contracts are becoming an increasingly popular way for municipal wastewater treatment customers in North America to fund capital improvements that reduce energy use, operation costs and labour. Project costs are paid for in part or in total, with guaranteed savings generated from implementing process improvements for the facility, such as biosolids reduction, methane gas creation and usage, water conservation and reuse, high-efficiency dryer installation, aeration system upgrades and SCADA system improvements,” says Kranz.

Marc Roehl, Global Product Manager for Biosolids Technologies at Siemens Water Technologies, says that the future of energy management lies in being able to close the gap between what we can help customers to achieve today and achieving net-zero energy in the future. “We know that the energy value of municipal wastewater is 10 times higher than the energy required to treat it. But we only re-use a fraction of that energy. We’re working to change that,” comments Roehl. Siemens Tel: +27 11 652 2146 E-mail: sithembile.mokaeane@siemens.com Website: www.siemens.com


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GE to buy 25 000 electric vehicles by 2015 GE will convert at least half of its 30 000 global fleet and will partner with fleet customers to deploy a total of 25 000 electric vehicles by 2015. The US conglomerate announced that it will purchase 12 000 GM vehicles made by General Motors (GM), beginning with the Chevrolet Volt, and will add other vehicles as manufacturers expand their vehicle portfolios. GE also makes equipment for charging stations, circuit protection equipment and transformers. The company estimates it could make US$500-million in electric vehicle-related revenue over the next three years. This includes rapidly developing markets for GE’s charging station, the WattStation. “By electrifying our own fleet, we will accelerate the adoption curve, drive scale, and move electric vehicles from anticipation to action,” said GE Chairman and CEO Jeff Immelt. “This transformation will be good for our

Kayema crowned Energy Company of the year

Chevrolet Volt

businesses and for our shareholders. Wide-scale adoption of electric vehicles will also drive clean energy innovation, strengthen energy security and deliver economic value.” GM CEO Dan Akerson said: “GE’s commitment reflects confidence that electric vehicles are real-world technology that can reduce both emissions and our dependence on oil. It is also a vote of confidence in the Chevrolet Volt, which we will begin delivering to retail customers by the end of this year. We are pleased that the Volt will play a major role in this programme, which will spur innovation and benefit our companies, our customers and society as a whole.” For more information, visit www.ge.com, to which full acknowledgement and thanks are given.

The SAEE annually recognizes the outstanding accomplishments of individuals and companies in the energy field through the SAEE Awards Programme. The award is a token of recognition for the commitment to the profession and the desire to further the association’s mission, as well as for the participation in civic and community affairs.

According to the SAEE, competition for the award was tight, but the long-term benefits that Kayema’s projects will have in contributing to the energy security of South Africa, ultimately resulted in Kayema scooping the prestigious award.

The Southern African Association for Energy Efficiency has honoured Gauteng-based Kayema Energy Solutions with the organisation’s Energy Company of the Year Award.The SAEE annual banquet was held at Emperors Palace on 10 November, where the SAEE Convention and Exhibition for 2010 was formally opened. “This is testament to us for going above and beyond, and is something our whole team can celebrate having played their part in winning,” said Kayema’s General Manager, James Shirley.

Commercial projects reduce electricity consumption by 850 000 kWh Kayema has a domestic and commercial division. The commercial projects commissioned by Kayema in 2010 will reduce electricity consumption by an estimated 850 000 kWh per year. Measurement and verification processes are not always performed on domestic project savings, however using a calculation of an average of 8 kWh per day, Kayema’s high-end system installations for 2011 could realize savings of over 7 300 000 kWh per year, with a 20-year life-cycle guaranteed for 10 years. “That is equivalent to 10 medium-sized solar farms! These figures do not include the savings made through various insurance company replacement schemes, which are currently being piloted,” said the SAEE in a statement. Kayema has over 40 years’ experience developing solar water heating systems and is also an accredited supplier for the DSM programme.

Above: James Shirley from Kayema Energy Solutions receives the 2010 SAEE Energy Company of the Year award from Dr Tsakani Lotten Mthombeni, Board Member of the SAEE.

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For more information, visit www.kayema.co.za and www.saeec2010.org.za, to which full acknowledgement and thanks are given.


eNER GY EFFICIE NCY

The intricate designs and innovative fixtures of the 2010 Eskom Energy Efficient Lighting Design Competition surpassed all expectations. This annual competition is open to both students and professionals in the fields of architecture, interior design, engineering, lighting specialists and anyone else with a passion for designing energy-efficient lighting. The event, which formed part of the Eskom eta Awards function, honoured the six individual winners as well as the educational institution of the winning student. The goal of the competition is to demonstrate that efficient lighting technologies, such as fluorescent technology and LEDs, can be used in ultramodern and attractive luminaires for residential lighting.

It is also intended to encourage the design of creative and cost-effective luminaires, while promoting the use of compact fluorescent lamps (CFLs) in the residential sector. This year’s eye-catching creations presented a celebration of local talent, with an astounding variety of styles and moods. From sleek, chic and high-tech designs sculpted in metal, granite and glass, to the tongue-in-the-cheek humour portrayed by entries with names such as De-light-ful, Afro Love Affair, “Gekoekde” light, Avo-lution, the “AHA!” Lamp, Power Flower and Plumb-delier, the judges certainly had their work cut out for them in making their final selections. The organisers received a total of 567 entries and entrants had to comply with strict competition rules. The total prize money was ZAR 250 000 with ZAR 17 000 set aside for merit awards.

eskom

2010

energy efficient lighting design competition

winners Winners and special awards:

Residential luminaire design (students) Lee Hutton of Tshwane University of Technology (TUT) Fine and Applied Arts submitted the spike-lamp, which won the first prize in the residential luminaire design category. The Spike-Lamp consists of a thick, hollow glass tube that is slightly curbed and open at the top. The top is polished at an angle to produce a spike. This glass spike is filled with coloured wire lights, while six LEDs shine through the glass to slightly illuminate the apparently

sharp tip. Runners-up in this category were Ané Matthee of the University of Pretoria for her Luminest submission, followed by Navarre Ebersohn of TUT Architecture for his Ecliptic Layering Light. Residential luminaire design (professional) The 1st prize in the residential luminaire design category for professionals went to Christopher Wood for his Fissure Light. The Fissure Light table lamp is laser-cut from 3 mm Perspex sheeting. Adhesive LED tape strips are mounted on an 8 x 8 mm aluminium bar. This in turn is mounted between four coloured Perspex fins, which are illuminated thanks to the reflective properties of the material. Light is further scattered by diffuser rings. Runners-up in this category were Trevor Hollard from Johannesburg with White light and Rudie Botha from Pretoria with Woodi. Special awards

Lee Hutton of TUT Fine and Applied Arts submitted the Spike-lamp, which won the first prize in the residential luminaire design category.

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Three special awards were given out this year. Sinegugu Sosibo from the Durban University of Technology (DUT) won the Most Promising Designer of the Year award with the O-lite. The ostrich egg resting on its nest was used to represent sustainable African design. The egg is made from intertwined wire and the nest is made from individual buttons sewn onto a hessian sack. The lamp retails for ZAR460.00.


e N ER GY EFF I C I EN CY

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Ashleigh Harrington from Greenside Design Centre also won a Most Promising Designer of the Year award with the Mante Rae. The Manta Rae was inspired by a ring that had an interesting shape, depicting a sting ray. As light is projected through the holes, a pattern is cast as a shadow. Made from chromed steel sheeting, the LEDs are set in the laser cut holes, creating the illumination. Steven Tseng from the University of Cape Town also received a Most Promising Designer of the Year Award with Foldback

Clip Light. The lamp is held together by 64 black fold-back clips, clipped to one another. Smaller fold-back clips secure pieces of card, which filter the contrasting white light of the CFL (like the louvers of a window). It appears as a hovering sphere of light when suspended from a ceiling.

Ashleigh Harrington from Greenside Design Centre was one of the three finalists who won a Most Promising Designer of the Year award. Ashleigh’s lamp, called the Mante Rae, was inspired by a ring that had an interesting shape, depicting a sting ray.

Steven Tseng from the University of Cape Town also received a Most Promising Designer of the Year award with his Foldback Clip Light. The lamp is held together by 64 black fold-back clips, clipped to one another.

For more information about the EELDC, visit www.lighting-design.co.za, to which full acknowledgement and thanks are given.

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Off-grid

cellphone towers

powered by

ammonia There are 4-billion cellphone users worldwide, leaving over 2.5-billion people in the developing world who still do not have access to a telephone service. Of 4-million cellphon e towers, 400 000 are in regions without an electrical grid.

Off-grid cellphone in Africa are generally powered by diesel generators. “These diesel generators are inefficient, have high maintenance costs and need replacement every 18-24 months. They are noisy, dirty and prone to theft of diesel,” says Alistair Livesey, operations director of Diverse Energy, a company which has launched a product that is set to make waves in Africa. The PowerCube, built by UK alternative energy specialists Diverse Energy, replaces these diesel generators that are typically used to power remote, rural cellular network base stations throughout Africa where grid power is unavailable. PowerCube uses fuel cell technology, but unlike other fuel cell systems, it runs on ammonia instead of hydrogen gas as its fuel. This innovation offers a 25% reduction in total cost, and an 80% reduction in CO2 emissions. “Ammonia is stored inside the 8-foot shipping container and this fuel passes through the uniquely designed ammonia cracker, producing hydrogen to fuel the twin PEM fuel cells. One fuel cell acts as primary power and the other as back-up, just like the two diesel generators. DC:DC converters stabilize the DC power (48V) for the cellphone,” explains Livesey.

The product currently has the 8th generation fuel cell technology fitted and has evolved over a period of ten years. Ammonia is converted into the hydrogen consumed by the fuel cell of the device. Conversion – referred to as cracking – is via a diverse energy patented process to crack the ammonia to hydrogen gas to feed the fuel cell. The project was given a major boost last year when the British iAwards honoured the product with The Next Big Thing Award 2009. Local industrial gas specialists, Afrox, are the ammonia fuel source suppliers for the unit, which they are involved in developing. Afrox will also franchise ammonia delivery to operator trucks, creating many small businesses. Huge potential in Africa The first PowerCube unit arrived in South Africa in November 2010. Unit Ainra, a fully commercial BTS power plant fuelled by anhydrous ammonia, arrived in Africa to act as the company’s sales and demonstration unit. It will undergo trials under local working conditions at an Afrox test site until the end of the year before being sent to power a tower on a commercially running cellphone tower site. A further 90 PowerCubes will follow in 2011 for sell to operators as customer evaluation units destined for East and Southern Africa. “East Africa has the greatest population of off-grid towers and the most costly diesel fuel, hence our preference to place the initial 90 units in this region,” adds Livesey. Cellular market leaders such as Ericsson are predicting that more than 90% of new mobile subscriber growth will come from emerging markets such as Africa. “Remote African cellular base stations offer a huge potential, estimated at over 200 000 units, in line with current predictions. These include entirely new masts, as well as retrofits to existing diesel-powered units,” says Livesey. “PowerCube is tailored for emerging markets – it is tamper-proof, easy to install, there are zero emissions at point of use and the waste product from filters is a fertilizer that will be donated to the local community. The product will be saving network operators a lot of time and money because it costs less than alternatives and the environment comes free,” says Livesey. For more information, visit www.diverse-energy.com, to which full acknowledgement and thanks are given.

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e N ER GY EFF I C I EN CY

Modern power station

engineering solutions Aurecon provides engineering, management and specialist technical services to government and private sector clients globally. Formed through the merger of three leading engineering consultancies – Africon, Connell Wagner and Ninham Shand – the group has provided world-class technical expertise and innovative solutions on projects in over 70 countries across Africa, Asia Pacific and the Middle East. To successfully develop power projects, a project team not only needs a full understanding of modern power station engineering, but also the institutional, operational and contractual framework within which the project will be required to function. Aurecon has been involved in the prefeasibility and feasibility studies, planning, detailed design, engineering and construction management of power plants utilising gas-, biomass, solar, wind-, hydro- and coal-based generation technologies in Africa and Asia Pacific for many years.

Aurecon provides optimum “Whole of Life” asset management plans to support the achievement of production objectives.

The group provides comprehensive consultancy services and a multidisciplinary capability over the whole project cycle, from conception through to commissioning and operation. In addition, Aurecon has extensive experience in providing optimum “Whole of Life” asset management plans to support the achievement of production objectives, taking constraints such as financial resources into account. Aurecon is able to add value to almost any project, including solving complex problems in the power generation and transmission and distribution industries. In addition, Aurecon has a history of successfully developing and delivering power projects for all project structures and all power generation technologies. Aurecon offers in-depth local market knowledge combined with international expertise, delivering engineering solutions for the future – both for clients and the communities in which it operates.

Aurecon Tel: +27 12 427 2000 Fax: +27 12 427 2010 E-mail: tshwane@af.aurecongroup.com Website: www.aurecongroup.com

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Industrial

energy-efficiency

initiative introduced in SA It has been demonstrated, time and time again, that energy-efficiency saves industrial firms money, increases the reliability of operations and has a positive effect on productivity and competitiveness. The Department of Trade and Industry (the dti), the Department of Energy (DoE), the Department of Environmental Affairs, and Business Unity South Africa (BUSA), in collaboration with the United Nations Industrial Development Organisation (UNIDO) and the Swiss State Secretariat for Economic Affairs, have initiated a project to improve the capacity of the South African industry to use available energy resources more efficiently and productively. The project is housed by the National Cleaner Production Centre of South Africa (NCPC-SA) at its offices in Pretoria and Cape Town. Started in 2010, the goal of the Industrial Energy Efficiency (IEE) project is to contribute to South Africa’s industrial energy-efficiency, reduce carbondioxide emissions and demonstrate the effectiveness of in-plant energy management as a means of increasing profitability. “During the second half of last year, we introduced various training courses to industry. In 2011, we will continue training energy experts, consultants, plant personnel and practitioners and running projects to demonstrate the impact of energyefficiency practices on local industries,” says national project manager Gerswynn McKuur.

The national Industrial Energy Efficiency project team. Fltr: Phumla Makae (administration), Gerswynn McKuur (national project manager), Bo Wallander (chief technical advisor, UNIDO), and Fatimah Boltman (communication)

“At present, industry is one of the market segments that consume the most energy, so this is where the biggest opportunities lie. UNIDO research has indicated that component optimisation typically has a savings potential of 5%-10%, compared to possibly 40%-50% in the case of systems optimisation. Many people look towards a specific technology to reduce electricity consumption in industrial applications, but our courses focus on implementing entire energy management strategies – how to get the policies implemented in accordance with standards, documenting the processes and ensuring that the company sees a return on investment. Industrial energy management requires a holistic management approach,” explains McKuur.

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Gerswynn McKuur, national Industrial Energy Efficiency Project Manager

at various ◦ locations every month and will Training courses will be held be presented at three levels – introductory level, technical courses for users, and in-depth expert-level courses for company representatives and consultants. The focus will be on energy management systems and energy systems optimisation, inter alia including compressed air, pumping and steam systems. According to Bo Wallander, chief technical advisor for UNIDO, consultants will also be trained to become future trainers of the IEE courses. “This year the training will be presented by international experts from UNIDO. From 2012, however, we want to use local trainers for the project since we are very focused on skills transfer,” says Wallander.

Energy-efficiency practice will be guided by the revised National Energy Efficiency Strategy of the DoE, which is expected to be published during the first quarter of 2011. “This will be followed by the new Energy Management Standard, ISO 50001, which will be published by mid-2011 and adopted as a national standard soon thereafter. The SABS has also published SATS 50010, the technical specification for the measurement and verification of energy savings. This will enable companies to provide proof of energy savings in order to qualify for government energy efficiency tax incentives,” says Wallander. “In the efforts of South African industrial energy-users to contend with energy security and pricing challenges, while also developing a meaningful and achievable response to climate change, energy-efficiency remains the best starting point,” says Valerie Geen, a director at the National Business Initiative (NBI). “During the NBI’s work with big energy-users through the Energy Efficiency Accord, the organisation identified the need for skills development within the industry to progress in meeting its energy-efficiency targets, actions and outcomes. The NBI therefore supports the National Energy Efficiency project, which is delivered through UNIDO in partnership with the South African government and donor agencies. The project focuses on skills development at both company and train-the-trainer levels, and also addresses system optimisation. This includes an audit and systemic approach to energy-efficiency and leads to better prospects of measurement and verification of energy savings, using best practice experience and expertise. The NBI encourages more companies to take up this programme and – for those who are willing – to become demonstration sites for other companies to learn from,” concludes Geen. For more information on the project or training courses, contact the NCPC-SA. Tel: +27 12 841 2768 (Pretoria) Tel: +27 21 658 2776 (Cape Town) E-mail: info@ncpc.co.za Website: www.ncpc.co.za


INDUSTRIAL ENERGY EFFICIENCY WORKSHOPS 2011

• Become more Energy Efficient • Cut Energy Costs • Reduce Carbon Emissions • Improve Operational Reliability and Control The National Industrial Energy Efficiency Project will be hosting the following workshops in Johannesburg, Cape Town and Durban throughout 2011: • Energy Management Systems (a methodological, organised approach to managing energy usage) • Energy Systems Optimisation, with individual courses on the following: • Compressed Air Systems • Motor Systems • Pump Systems • Fan Systems • Steam Systems • Process Heating Systems

- Workshops are presented at three levels Introductory workshops Duration: Five to eight hours Cost: Free Training workshops for users Duration: Two days Cost: R900 per person Expert-level training workshops Duration: The consists of theoretical and in-company practical modules spread over a number of months Cost: R9 000 per person All workshops are presented by internationally recognised, UNIDO-approved trainers with in-depth practical experience

- WHO SHOULD ATTEND • • • • • •

Energy managers Plant and facility engineers Maintenance staff Engineering consultants Service providers to industry Suitably qualified candidates interested in training-the-trainer opportunities

- what others say • • • •

A good balance of examples, science and practical ways to improve systems and reduce loss Very practical, and excellent lecturers Anecdotes from the presenters assisted in bringing in real-life experiences and what can happen in the field Very informative. Highly recommended!

ENQUIRIES (also refer to the latest 25 Degrees e-newsletter) For bookings, more information and updates on future training events please contact us on: 012 841 2768 (Pretoria) • 021 658 2776 (Cape Town) • Email: info@ncpc.co.za Note: Key stakeholders and funders of the Industrial Energy Efficiency Project include the dti, the Departments of Energy and Environmental Affairs, Business Unity SA and UNIDO. The project is hosted by the National Cleaner Production Centre of South Africa.


INS INS TANT TANT UPDATE UPDATE

25º in Africa recognised at PICA Awards Marlene van Rooyen, editor of 25º in Africa, was nominated for the Business to Business Editor of the Year Award at the 2010 PICA Awards. This year marks PICA’s 41st award ceremony, which recognises and rewards publishing excellence in the consumer, customer and business to business sectors of the South African magazine publishing industry. “A successful editor is more than a person who has a good eye for a story. This is someone who can create a magazine that is successful on a multitude of levels. Such a person must ensure the title provides content that is relevant and engaging enough to capture a market,” said the PICA judges. “A successful editor must understand the business of magazines, including marketing, advertising, budgeting and people management. The best editors are able to carry their skills across titles and between sectors,” continued the judges. Each issue of 25º in Africa provides important and varied insights into the economics, politics and technology of energy. Van Rooyen comments that it is an honour for 25º in Africa to be nominated alongside other top publications and leading editors in the field. “Now more than ever, energy and climate issues and electricity problems are on the top of everybody’s minds. The magazine’s brand positioning is very relevant to the current global focus on energy, and the potential of immense financial investment in Africa. 25° in Africa is uniquely positioned to cater for the local and international market, focusing on the full gamut of energy issues with a particular focus on Africa, energy and the environment,” says Van Rooyen. This year’s PICA judging resulted in the most comprehensive audit of the magazine industry ever undertaken. There were 475 entries, 29 awards, 23 judges, 3 committed chief judges and 2 500 votes.

South Africa formally invited to join BRIC On 23 December 2010, the South African Minister of International Relations, Maite Nkoana-Mashabane, received a telephone call from the Minister of Foreign Affairs of the People’s Republic of China, Yang Jiechi, informing her that China, in its capacity as the rotating chairperson of the BRIC (Brazil, Russian Federation, India, China) formation, based on an agreement reached between the BRIC member states, invites South Africa as a full member into BRICS (Brazil, Russian Federation, India, China and South Africa).

I NSTA NT

In 2009, Nkoana-Mashabane wrote to BRIC counterparts to raise the possibility Maite Nkoana-Mashabane of South Africa’s BRIC membership. President Zuma subsequently met with BRIC leaders in the course of 2010. “The rationale for South Africa’s approach was in consideration of a matter of crucial importance to BRICS member states, namely the role of emerging economies in advancing the restructuring of the global political, economic and financial architecture into one that is more equitable, balanced and rests on the important pillar of multilateralism,” said Nkoana-Mashabane. “Our approach to intensify our relations with emerging powers and other countries of the South is, of course, through active and strong bilateral engagement. In addition, however, we also see the NAM and the G77 as important for South-South interaction, especially within the framework of the United Nations. “We believe that the IBSA will get a better balance, and become even stronger, with South Africa now as a member of the BRICS. We remain convinced that South Africa’s diversified foreign policy objectives and interests allow for both groupings (IBSA and BRICS) to co-exist. It is our belief that the mandates of BRICS and IBSA are highly complementary,” concluded Nkoana-Mashabane.

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INS TANT UPDATE

Prof Nico Beute receives SAEE honour Prof Nico Beute of the Cape Peninsula University of Technology was inducted into the Southern African Association for Energy Efficiency’s (SAEE’s) prestigious Dr Ian Ernest Lane Hall of Fame.

Renowned energy enthusiast, Prof Nico Beute of the Cape Peninsula University of Technology, was inducted into the Southern African Association for Energy Efficiency’s (SAEE’s) prestigious Dr Ian Ernest Lane Hall of Fame in November 2010. The SAEE’s Hall of Fame was established in 2009 and is bestowed annually on an individual whose service and commitment was used to contribute to energy-efficiency solutions for South Africa. The first SAEE Hall of Fame honour was bestowed on the late Dr Ian Lane, after whom the initiative is named.

UK: new gas and condensate discovery Total has announced that its affiliate, Total E&P UK, has made a new gas and condensate discovery in the west of Shetland on the United Kingdom Continental Shelf, close to the currently under development Laggan and Tormore fields. The Edradour exploration well lies in block 206/4, 75 kilometres north-west of Shetland in a water depth of 300 metres. “While definitive testing must still be completed, Edradour is already another meaningful discovery for us in the west of the Shetland region. It should reinforce our third production hub on the United Kingdom Continental Shelf around the Laggan and Tormore fields, after the success of our existing Alwyn and Elgin Franklin hubs,” said Patrice de Viviès, Senior Vice-President of Total Exploration & Production in Northern Europe.

“Being the Dr Ian Ernest Lane Hall of Fame makes it even more of an honour as Dr Lane was a mentor to me and had the ability to always motivate me to greater heights,” said Beute.

Ghana converts lighthouses to solar power

His 40 years of service to the Cape Peninsula University of Technology, through which medium Prof Beute founded and hosted the International Conference of Domestic Use of Energy (DUE) for 18 years and, more recently a similar achievement since 2004, the International Conference of Industrial and Commercial Use of Energy (ICUE), indicates a devotion and commitment to the industry which is deserving of special praise. One of Beute’s holistic energy-efficiency initiatives was the development of the Wattlog meter, a tool that measures electricity consumption of appliances, for a programme to educate scholars on the effective use of energy in homes. He has also been actively involved in the Gateway Discovery project since its inception in the early 90s – this is a project that takes interactive exhibits, including energy-related projects, to all sectors of South African schools.

Tideland Signal Ltd., part of marine aids-tonavigation manufacturer Tideland Signal Corp, has supplied a solar- powered rotating beacon kit to the Ghana Ports and Harbours Authority to automate the historic lighthouse at Jamestown, Accra. This installation marks Tideland’s fifth lighthouse conversion contract along Ghana’s 335 mile (539 km) coastline.

Source: www.saee.org.za

Source: www.tidelandsignal.com

The Jamestown lighthouse was fitted with Tideland’s TRB220 rotating beacon, solar regulator, 20W solar array and mounting kit charging two 12V batteries. This will enable the lighthouse to produce beams for up to 16 nautical miles when the installation is complete. The lighthouse was originally built in 1871 and it serves the oldest neighbourhood of Accra, which is now a busy fishing port.

Eskom’s CEO joins WBCSD Eskom’s chief executive, Brian Dames, has been appointed to the executive committee of the World Business Council for Sustainable Development (WBCSD). The international WBCSD association has approximately 200 members and its main focus is sustainable development. “Eskom has been a member of the WBCSD for a number of years and I am delighted to be nominated onto the executive committee of this globally renowned organisation. The WBCSD has played an important role in shaping Eskom’s strategic direction and allows us to benchmark our performance, share best practice and access cutting-edge thinking in the sustainable development field,” said Dames after his nomination was confirmed by the annual general meeting of the WBCSD in December 2010. Brian Dames

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Source: www.eskom.co.za


I N S TAN T UPDAT E

Climate Change Thinkers Forum launched The forum will be held through a series of events ranging in formats, per exclusive invitation only. These events will cater for no more than 40 individuals, allowing for intimate networking opportunities. During each forum, an expert in energy and climate-related issues will be invited to write a think-piece for an edition of 25º in Africa. This think-piece will then be presented to invitees with the background research conducted.

Niche energy publication, 25º in Africa, partnered with sustainability legal specialists IMBEWU, to host the first of many bi-monthly climate change debate forums. The first event, called the Climate Change Thinkers Forum, was held on 16 November at the IMBEWU head office in Rosebank. “The forum, which is currently at an embryonic stage, aims among other ambitions to be a non-partisan platform for information-exchange and the sharing of expertise on climate change commercial initiatives which exist and succeed in the real world of business,” explains Andrew Gilder, a sustainability lawyer from IMBEWU. Andrew Johnston, Group Company Secretary of Allied Electronics Corporation Limited (Altron Group) gave a presentation that dispelled some of the myths and fears of implementing a carbon footprint strategy throughout an operation. Johnston discussed the company’s footprint journey, which began in 2007, and how the group went about creating a business case model for carbon footprinting. The article appeared in the previous issue of 25º in Africa. Iskhus Power sponsored the event and the company’s CEO, Otto Hagar, also gave

a presentation on the changing energy management industry and how companies should use a holistic approach when looking for sustainable energy management solutions. “The first forum was a great success,” says 25º in Africa editor, Marlene van Rooyen. “What made the presentations so engaging, is the informal way in which people could ask questions and debate real-life issues. Attendees were from a variety of backgrounds, which enabled them to discuss various concerns and solutions from different standpoints,” says Van Rooyen. Attendees of the Climate Change Thinkers Forum included members from the financial sector, academic and research institutions, environmental consulting groups and energy management companies in South Africa. “The informal nature of the forum and the determination to retain a flexible approach means that the event has the potential to evolve into a platform for the ventilation of practical business issues and other climate change and carbon market-related issues, with a view to provide a conduit for the expression of views on these matters which do not, typically, find voice in other fora,” says Gilder.

44MW wind park for Namibia An international consortium has announced that it will build a wind power park near the Namibian coastal town of Luderitz. The wind park will initially add 44MW of generation capacity to the grid. The wind park is currently in a pre-feasibility phase and it will be financed through a combination of debt and equity (the cost of the project is approximately US$150-million).

“The forum will present an opportunity for a panel to discuss ideas and issues that may arise from the keynote speakers. We are looking forward to hosting more Climate Change Thinkers Forum events where real issues, solutions and opportunities are discussed,” says Van Rooyen, editor of 25º in Africa. About IMBEWU IMBEWU Sustainability Legal Specialists (Pty) Ltd (IMBEWU) is a Johannesburg-based sustainability legal specialist consultancy and also a climate change and CDM legal policy advisor to 25º in Africa. About 25º in Africa 25º in Africa provides information relating to African energy, climate change and the environment and is a well-recognised publication in the energy, climate change and the environment field. For more information, visit www.25degrees.net and www.mediainafrica.co.za, or call our offices on +27 12 347 7530.

Climate Change

hinkers Forum

Namibian United Africa Group will hold a 60% share of the project, while Japanese trading house Sojitz Corp will hold 20% and the Korean Midland Power Corporation will hold the other 20%, the group said. The park should be feeding electricity into the national grid by 2013, increasing the southern African country’s power capacity by more than 5%. Source: www.reuters.com 2 5 o i n A fr i c a

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ENERGY EVENTS ICEST 2011: International Conference on Energy Systems and Technologies Date: 14 – 16 Feb 2011 Location: Cairo, Egypt Tel: +(2010) 101 4125 E-mail: info@afaqscientific.com www.afaqscientific.com

January Carbon Markets & Climate Finance Africa Date: 25 – 26 January 2011 Location: Johannesburg, South Africa E-mail: chantell.mcneish@ greenpowerconferences.com www.greenpowerconferences.co.uk

South Africa Contact: Sean Testa Tel: +27 11 516 4048 Fax: +27 11 463 6903 E-mail: sean.testa@terrapinn.co.za www.terrapinn.com

BioEnergy World Africa 2011 Date: 30 – 31 March 2011 Location: Johannesburg, South Africa Contact: Sean Testa Tel: +27 11 516 4048 Fax: +27 11 463 6903 E-mail: sean.testa@terrapinn.co.za Website: www.terrapinn.com

Low Carbon Future – IRP2010 Conference Date: 23 – 24th February 2011 Location: Johannesburg, South Africa Contact: Cheryl Peters Tel: +27 21 689 7881 E-mail: cherylp@omegainvest. co.za www.omegainvest.co.za

Smart Electricity World Africa 2011 Date: 29 – 31 March 2011 Location: Johannesburg, South Africa Contact: Sean Testa Tel: +27 11 516 4048 Fax: +27 11 463 6903 E-mail: sean.testa@terrapinn.co.za www.terrapinn.com

March Energy Indaba 2011 Date: 1 – 3 March 2011 Location: Sandton Convention Centre, Johannesburg, South Africa Contact: Liz Hart Tel: + 27 11 463 9184 E-mail: info@siyenza.za.com www.energyindaba.co.za

February Nigeria Oil & Gas (NOG 11), Conference & Exhibition Date: 21 – 24 February 2011 Location: Abuja, Nigeria Contact: Tim Millard Tel: +44 20 7978 0083 E-mail: tmillard@thecwcgroup.com www.thecwcgroup.com

Power Indaba 2011 Date: 14 – 17 March 2010 Location: Cape Town, South Africa Contact: Spin Intelligent E-mail: le-ann.hare@spintelligent. com Hydro Power World Africa 2011 Date: 28 – 31 March 2011 Location: Johannesburg,

Power Generation World Africa Date: 30 – 31 March 2011 Location: Johannesburg, South Africa Contact: Brian Shabangu Tel: +27 11 463 6001 E-mail: enquiry.za@terrapinn.com www.terrapinn.com

Energy Efficiency World Africa 2011 Date: 29 – 30 March 2011 Location: Johannesburg, South Africa Contact: Sean Testa Tel: +27 11 516 4048 Fax: +27 11 463 6903 E-mail: sean.testa@terrapinn.co.za www.terrapinn.com On-site Power World Africa 2011 Date: 29 – 30 March 2011 Location: Johannesburg, South Africa Contact: Taryn van Zanten Tel: +27 11 516 4026 Fax: +27 11 707 8359 E-mail: taryn.vanzanten@terrapinn. co.za Website: www.terrapinn.com

Energy Efficiency World Africa 2011 Date: 30 – 31 March 2011 Location: Johannesburg, South Africa www.terrapinn.com Africa Energy Awards 2011 Date: 31 March 2011 Location: Johannesburg, South Africa Contact: Sean Testa Tel: +27 11 516 4048 Fax: +27 11 463 6903 E-mail: sean.testa@terrapinn.co.za www.terrapinn.com Power & Electricity World Africa 2011 Date: 28 March – 1 April 2011 Location: Johannesburg, South Africa Contact: Taryn van Zanten Tel: +27 11 516 4026 Fax: +27 11 707 8359 E-mail: taryn.vanzanten@terrapinn. co.za Website: www.terrapinn.com



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