25 Degrees in Africa

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Vol 6 Nr 3 2011 – R49

Country profile:

equatorial guinea The future of climate change

finance

Run up to COP 17: Durban gears up to host the big event

Energy Awards



Contents cover story Investors in South Africa are standing with their hands in their money pockets waiting for an opportunity to invest in the emerging green economy. Discussions about Climate Change Finance are a hot topic on the agenda of COP17 that will take place in Durban at the end of the year. The decisions to be made by the international community at the conference will ultimately have a huge impact on this emerging market.

Enervations

Bio-energy

4 China sourcing fair

26 Global shale-gas resources

5 No more diesel generators

28 Growing fuel

Country profile

CDM

10 An overview on

31 Capitalise on available

Equatorial Guinea

revenue now 32 The future of climate

Climate change

change finance

14 The role of REDD+

perspectives Oil and gas

34 Durban to showcase green

16 Libya’s sweet & sour

colours to the world

17 Puma energy buys

Electricity

5 BP businesses

38 Budget for an

Renewables

18 Is a renewable power

39 Hydropower industry

energy strategy

revolution on the way?

19 Sessa member will go

Energy efficiency

to Germany for

43 Affordable telecoms

renewables course

solution for rural Africa

44 CFL street lights win

Solar water heaters

Instant update

20 The spotlight on solar

49 Hype around climate

water heaters

change conferene

Nuclear energy

Energy events

25 The case for nuclear power

53 Energy events

www.25degrees.net


Climate finance This issue of 25° in Africa includes numerous articles of great interest in the current energy and climate change space. First we tackle the issue of climate finance: what are the financing mechanisms everyone keeps referring to? Climate finance has received a lot of press coverage since the launch of the Green Climate Fund last year. With Trevor Manuel on the committee, we hope that Africa’s voice will be heard and that the importance of funding for Africa for adaptation and mitigation strategies will be impressed on world leaders. How do we access these? How much is in the kitty and will South Africa see the benefit of it any time soon?

Publisher:

Read more about the future of climate change finance on page 32.

The 25º In Africa team:

National Energy Policy out for comment The National Energy Act, 2008 Regulations on the allowance for energy-efficiency savings Government Gazette no. 34596 was released by the Department of Energy for public comment recently. The document is open to public comment for 60 days (until 15 November). Refer to pages 32-38 of the document, which refers to the tax allowance for energy-efficiency savings regulations that stipulate that companies can submit certificates of energy savings issued by accredited persons to the South African Revenue Service to claim tax benefits. Comments and queries must be addressed to Maphuti.Legodi@energy.gov.za. To find SANAS-accredited persons who can verify energy savings according to the regulations, visit the Council for Measurement and Verification Professionals of South Africa’s (CMVPSA) website at www.cmvpsa.org.za. COP 17: Run-up to Durban In this issue we also feature an in-depth article on the run-up to COP 17 in Durban in just a few months. It includes commentary from the industry as well as from Yvo De Boer, whom I met during a visit to South Africa recently in his capacity as head of sustainability for KPMG. Read more on the subject and get acquainted with it on page 34.

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.

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

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

assistant business unit manager Alida Edwards Tel: +27 82 325 6617 E-mail: alida@25degrees.net Advertising sales professional Shannon Pringle Tel: +27 84 619 8023 E-mail: shannon@25degrees.net Journalist Theresa van Tonder – Senior Journalist Tel: +27 82 325 0332 E-mail: theresa@25degrees.net Nichelle Lemmer Tel: +27 72 209 2040 E-mail: nichelle@25degrees.net Freelance Journalists Dave Soons business unit coordinator Zuerita Gouws Tel: +27 12 347 7530 E-mail: zuerita@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 Gerda Bezuidenhout E-mail: gerda@mediainafrica.co.za Proofreader Elizabeth Kruger Reproduction & Printing Business Print Centre


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ENERVAT IO N S

china sourcing fair stages

second successful edition in South Africa from 30 November to 2 December 2011 The China Sourcing Fair is set to facilitate another productive sourcing platform for global buyers and suppliers at the Gallagher Convention Centre in Johannesburg on 30 November to 2 December 2011.

The fair’s December 2010 staging saw thousands of buyers checking out various quality products from greater Chinese exhibitors. More than just providing buyers with quality suppliers and cost-effective products, the China Sourcing Fair also presented a free conference programme featuring relevant topics on China sourcing for beginner and veteran entrepreneurs. More than 5 800 buyers attended the first annual China Sourcing Fair on 1–3 December 2010 at the Gallagher Convention Centre. Tommy Wong, the president of Global Sources Exhibitions, oversaw the debut of this event. Chen Yong, deputy consul-general of the People’s Republic of China, and Li Yuan, commercial counsellor of the Economic and Commercial Counsellor’s Office for the Embassy of the People’s Republic of China in Johannesburg, were also in attendance. The three-day event featured specialized co-located shows with electronics, gifts and premiums, home products, garments and textiles, fashion accessories, and hardware and building materials. The fairs displayed an extensive array of products from greater China and provided buyers from

China Sourcing Fair: solar and energy saving products expands to South Africa Creating more business opportunities for global buyers, another China Sourcing Fair will also debut in South Africa. The China Sourcing Fair: Solar and Energy Saving Products opens at the Gallagher Convention Centre in Johannesburg on 30 November to 2 December 2011. The three-day event is aimed at bringing greater China’s suppliers of quality and reasonably priced products to buyers in South Africa and its neighbouring markets. The fair is also a profitable platform for entrepreneurs who want to start a sustainable business at the height of green energy demand and global environmental awareness. China’s trading presence in Africa has grown over the last years, as South Africa’s demand for China-made products remains strong. In 2009, China’s exports to South Africa grew by 39.5% to over USD 27-billion. Capitalize on China’s solar and energy-saving products

The three-day event is aimed at bringing greater China’s suppliers of quality and reasonably priced products to buyers in South Africa and its neighbouring markets. Africa with a convenient one-stop sourcing platform. Additionally, the India Sourcing Fair made its debut in South Africa at the same time and venue. Suppliers from India showcased a variety of high-quality decorative and functional products that attracted numerous volume buyers.

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Get the latest innovations at the China Sourcing Fair: Solar & Energy Saving Products. The fair presents a wide array of renewable energy products, which is becoming increasingly popular in today’s booming alternative energy market. Invest in solar and energy-saving products in these categories: • LED displays and commercial lighting. • Energy-efficient lighting and accessories. • Solar and wind-power products. Register now for your free admission to the fair at: www.chinasourcingfair. com/southafrica/jagj


EN ERVATI O N S

diesel generators for Wilderness Safaris Having taken the decision to dispense with the loud and disturbing diesel generators at its Xigera Lodge in the Moremi area of the Okavango Delta in Botswana, Wilderness Safaris now has a 35kW SolarWorld Africa system installed by the SolarWorld distributor On Track. Diesel generators have always been the energy solution for these luxury lodges, which are situated far away from any form of electrification, but these have now been replaced in favour of silent, clean solar energy in the form of this array located only 300m from the camp. The system was put together by Corrie van Wyk and his team of engineers at On Track Alternative Power (Pty) (Ltd), an established distributor of SolarWorld Africa solar technology. On Track has a reputation within the conservation industry for its ability to complete projects in the most challenging and ecologically-sensitive environments. “We have been working with Wilderness Safaris since 1999 and have a well-established name with operators for consistently reliable and technically sound engineering in the most difficult environments in subSaharan Africa,” says owner Corrie van Wyk.

with luxury lodges, diesel generators ran most of the camps but had to be located far away from guests because of the sound and air pollution associated with these traditional off-network power generators. The Xigera system was designed to answer to the rapidly increasing price of fuel and the ever-growing demand on all consumers to reduce carbon emissions. “We are once again very pleased to support another project which strongly highlights the manifold use of these systems, whether for ecologicallysensitive tourism operations or rural village electricity supply”, says SolarWorld Africa’s managing director, Gregor Kuepper. However, the biggest challenge was not in the assembly of the system, but in the actual transport of the individual system components to the lodge. Although the equipment is road-freighted to Maun from South Africa, equipment cannot be transported into the delta by vehicle. However, for three months of the year the lodge can be accessed by river and it was in this small window that they were able to complete the arduous task of transporting the equipment by boat along the river – a journey of eight hours to the camp from Maun, Botswana’s tourism capital on the edge of the delta. Once the boat was docked, an off-road vehicle pulled the boat up to dry land to unpack the equipment safely. The jeep transported the equipment to the location where the wooden array structure was in place. On Track built a wooden walkway at the height of the base of each string in order to facilitate cleaning as local wild birdlife settles on the modules. An electrified fence surrounds the entire installation to prevent hyenas from chewing through the system or an elephant from pushing against the fencing. The entire system has been earthed with copper wiring in the event of frequent lightning strikes. Cabling of the system, although fairly uncomplicated, was a fairly hazardous action as the cabling had to run through a river frequented by crocodiles and hippopotamuses. On Track’s team had men in place to note the presence of these animals while the cabling took place.

The installation, commissioned for Xigera Camp, is located on a riverine island in the heart of the Okavango Delta. This part of the Moremi Game Reserve, a magnificent yet fragile wetland, surrounded by deep channels and lush vegetation, is considered to have the best game viewing opportunities in the world. In the past, ecotourism operators were forced to utilize diesel generators as most lodges are situated far from any grid. In the Okavango Delta, scattered

In total, the Xigera design took three weeks and once this was established, three weeks for the structural construction. The installation took a further 15 days. SolarWorld Africa (Pty) Ltd Claire Lockey Cellphone: +27 82 382 8737 E-mail: claire.lockey@solarworld-africa.co.za Website: http://www.solarworld-africa.co.za/ Vol 6 NR 5 2011

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ENERVAT IO N S

Local solar water heater for

developments

100% South African, 100% handmade, 100% solar-powered The Jabulani solar water heater is a locally manufactured solar water heater for low-cost developments. Doug Cunningham is the proud inventor of the Jabulani solar water heater. “I picked up some pipes lying in the sun one day. They were too hot to handle and that gave me the idea for the Jabulani.” As the project patent is still pending, Cunningham did not want to disclose too much of the product’s technical specifications. “I assure you, it is unlike any other solar water heater in South Africa.” The design and development of the Jabulani was guided by two overwhelming desires. The first was to make the manufacturing of the Jabulani as labour-intensive as possible. The second was skills development. All profits pertaining to the Jabulani project will be directed towards skills development. The design of the solar heaters is very simple. Only a little more than a pair of pliers and a screwdriver is needed for their construction. All the materials used are local and can be purchased at most hardware stores. “The most expensive item is a stainless steel base plate that carries a manufacturer guarantee of 25 years,” says Cunningham. The simplicity of this design allows for construction in rural areas. “Our intention is to identify the poorest of rural areas and take the factory to the people.”

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Laura Cunningham, Hayes Cunningham, Douglas Cunningham.

Once the candidate is qualified, he or she could apply for assistance from the holding company of Jabulani in the form of a soft loan. This entails the start-up capital to purchase trade equipment. “These fledgling businesses would be carefully mentored and guided. A course in business management would be a compulsory component of every area of training.” Cunningham feels that the successful candidates would return to their areas of origin, especially in rural areas to set up their businesses and employ others. To achieve these goals, Cunningham and his team needs qualified authorities in every province to point out the neediest areas in their province, as well as assistance in obtaining SABS approval. “When we approached the SABS in September last year we were told that they were so inundated with the approval of Chinese units that there was no space to allow for the testing of our unit.” Cunningham explains that he is very upset about the problem with the SABS. “I don’t understand why we should pay R80 000 to have our solar water heater approved by the SABS.” Cunningham feels that he is starting up this project in order to create jobs in South Africa and that he does not have to pay the same amount that international companies pay in order to have his product approved.

Cunningham and his team are aiming to build at least three factories in each of South Africa’s nine provinces. “We have an initial target of 1-million solar water heaters, which would provide employment for over two thousand people.” The funding for this project will arise from donor agencies and the sale of solar units. Cunningham and his team will also contribute their own funds to this project.

One million Jabulanis are the equivalent of three coal-fired power stations. This gives you a total saving of 40 000 tons of coal per day, as well as 2001 tons of CO2 emissions per hour, says Cunningham.

“We are grieved by the plight of our youngsters who give up 12 of the best years of their lives, only to find that they cannot obtain employment.” Cunningham says the profits from this project will go towards skills development centres. “This will allow an aspirant to be taught a skill such as motor eclectics, building, carpentry, baking, panel beating, spray painting and a host of other skills.”

Jabulani Tel: +27 31 767 3035 Cellphone: +27 82 820 8838 E-mail: info@rootsofafrica.co.za Website: http://www.jabulaholdings.co.za

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Innovative funding structures

to drive the development of green industries The Green Industries Strategic Business Unit of the Industrial Development Corporation (IDC) focuses on projects that will enhance the environment and support the reduction, avoidance and adaptation of carbon emissions. The IDC has earmarked R22,4-billion for investment in green industries over the next five years. Sub-sector focus areas include non-fuel based green energy such as renewable energy, energy-efficiency and demand-side management, emission and pollution management, fuel-based green energy such as waste-to-energy and co-generation, and bio fuels, mainly bio-ethanol. Rentia van Tonder, head of the Green Industries Strategic Business Unit, says: “It’s an exciting time for renewable energy development throughout Africa. We have to find sustainable ways to meet our energy crisis as we need 50 000 MW of additional capacity by 2030. “We are confident that at least 19 000 MW can come from renewable technologies such as wind and solar power. Renewable energy projects also bring definite economic benefits to rural areas and many green-field projects encourage BBBEE and local partnerships.” So far, the IDC’s Green Industries Unit has approved 12 projects and there are over 70 other projects in development. “A definite highlight is the approval of the Solar Academy of sub-Saharan Africa (SASSA).This company has a diversified portfolio of projects, including the mass roll-out of SABS approved Tasol low pressure and high pressure solar water heaters,” says Van Tonder. In a country with abundant sunshine, fewer than 0,001% of South Africans use solar water heaters in their homes and business. Yet, heating water accounts for between 30-50% of electricity consumed by the average household. The IDC supports the mass roll-out of solar heaters through SASSA as a facilitator of bridging finance. Although consumers get back a part of the cost of their solar water heaters in the form of a rebate from Eskom, which the Tasol installer will claim on their behalf, the waiting period can be up to eight weeks. The funding from the IDC fill the gap from post-installation until Eskom pays out. The team approaches municipalities with a proposal to install free solar heaters, and works closely with them to roll out the project. Beneficiaries include the Nelson Mandela Bay, Ekurhuleni, Mangaung, and eThekwini municipal areas, to name a few. Over 200 000 households across South Africa will enjoying free hot water, thanks to the Tasol project. 44 000 have been installed to date. In April 2010 the project was accredited as a clean development mechanism (CDM) initiative with the UN Framework Convention for Climate Change,

So far, the IDC’s Green Industries Unit has approved 12 projects and there are over 70 other projects in development. which means that foreign companies investing in it will earn carbon credits to offset their own greenhouse gas emissions. According to Van Tonder, the SASSA project represents the usage of a hugely innovative funding structure, including carbon credits and the utilisation of energy-efficiency demand-side management rebates for solar water heater systems. This project created approximately 535 jobs. “It’s the first low-pressure solar heating project in the world to receive CDM registration,” says van Tonder, “which is quite an accomplishment.” The client is the London-based Standard Bank plc, which will buy the carbon credits. “The green economy is one of the priority sectors outlined by the government’s new growth path and the industrial policy action plan,” adds Van Tonder.” “We view promoting the green economy is an imperative, not just a nice-to-have.” “Green economy projects are still in their infancy, but it is vital that we spearhead development not only to create jobs, but in the long run to provide sustainable environmental benefits.” “Innovation is vital and the IDC is leading the charge for South Africa,” Van Tonder stresses. “This is our opportunity as the IDC to make a powerful impact in growing a fledgling industry in South Africa and to be the key driver of green industrialisation in South Africa.” Industrial Development Corporation Tel: +27 11 269 3000 E-mail: callcentre@idc.co.za Website: www.idc.co.za Vol 6 NR 5 2011

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country p ro fil e: E quatarial guinea

equatorial

guinea Equatorial Guinea gained independence in 1968 after 190 years of Spanish rule. This small country, composed of a mainland portion plus five inhabited islands, is one of the smallest on the African continent. President Teodoro Obiang Nguema Mbasogo has ruled the country since 1979, when he seized power in a coup. Although the country was nominally a constitutional democracy since 1991, the 1996, 2002 and 2009 presidential elections, as well as the 1999, 2004 and 2008 legislative elections, were widely seen as flawed. The president exerts almost total control over the political system and has discouraged political opposition. Equatorial Guinea has experienced rapid economic growth due to the discovery of large offshore oil reserves, and in the last decade has become sub-Saharan Africa’s third-largest oil exporter. Despite the country’s economic windfall from oil production resulting in a massive increase in government revenue in recent years, improvements in the population’s living standards have been slow to develop. The discovery and exploitation of large oil and gas reserves have contributed to dramatic economic growth, but fluctuating oil prices have produced huge swings in GDP growth in recent years. Forestry and farming are also minor components of GDP. Subsistence farming is the dominate form of livelihood. Although pre-independence Equatorial Guinea counted on cocoa production for hardy-currency earnings, the neglect of the rural economy under successive regimes has diminished the potential for agriculture-led growth (the government has stated its intention to reinvest some oil revenue into agriculture). A number of aid programmes sponsored by the World Bank and the IMF have been cut off since 1993 because of corruption and mismanagement.

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Location: Western Africa, bordering the Bight of Biafra, between Cameroon and Gabon. Climate: Tropical, always hot and humid. Terrain: Coastal plains rise to interior hills, islands are volcanic. Elevation extremes: Lowest point: Atlantic Ocean 0m. Highest point: Pico Basile 3 008m. Natural resources: Petroleum, natural gas, timber, gold, bauxite, diamonds, tantalum, sand and gravel, clay. Land use: Arable land: 4,63%. Permanent crops: 3,57%. Other: 91,8% (2005).

The government has been widely criticized for its lack of transparency and misuse of oil revenues. However, in 2010, under Equatorial Guinea’s candidacy in the Extractive Industries Transparency Initiative, the government published oil revenue figures for the first time.

Natural hazards: Violent windstorms, flash floods and volcanism. Santa Isabel (elev. 3 007m), which last erupted in 1923, is the country’s only historically active volcano. Santa Isabel, along with two dormant volcanoes, forms Bioko Island in the Gulf of Guinea.

Undeveloped natural resources include gold, zinc, diamonds, columbite-tantalite and other base metals. Growth remained strong in 2008, when oil production peaked, but slowed in 2009-10, as the price of oil and the production level fell.

Current environmental issues: The tap water is not potable along with deforestation.

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c o u ntry p ro fi le : Eq u ataria l gu inea

GDP (purchasing power parity): $23,82-billion (2010 est.). GDP (official exchange rate): $14,49-billion (2010 est.). GDP – real growth rate: -0,8% (2010 est.). GDP – per capita (PPP): $36 600 (2010 est.). GDP – composition by sector: Agriculture: 2,2%. Industry: 93,9%. Services: 3,8% (2010 est.). Industrial production growth rate: 1,8% (2010 est.). Electricity production: 28-million kWh (2007 est.). Electricity consumption: 26,04-million kWh (2007 est.). Electricity exports: 0 kWh (2008 est.). Electricity imports: 0 kWh (2008 est.). Oil production: 346 000 bbl/day (2009 est.). Oil consumption: 1 000 bbl/day (2009 est.). Oil exports: 362 900 bbl/day (2007 est.). Oil imports: 1 114 bbl/day (2007 est.). Oil – proved reserves: 1,1-billion bbl (1 January 2010 est.). Natural gas production: 6,67-billion cu m (2008 est.). Natural gas consumption: 1,5-billion cu m (2008 est.). Natural gas exports: 5,17-billion cu m (2008 est.). Natural gas imports: 0 cu m (2008 est.). Natural gas – proved reserves: 36,81-billion cu m (1 January 2010 est.). Current account balance: -$1,302-billion (2010 est.). Exports: $10,39-billion (2010 est.). Export commodities: Petroleum products and timber. Import commodities: Petroleum sector equipment, other equipment, construction materials, vehicles. Imports: $5,698-billion (2010 est.). Debt external: $794,3-million (31 December 2010 est.).

Energy developments Equatorial Guinea is the fourth-largest producer of crude oil in sub-Saharan Africa, after Nigeria, Angola and Sudan. The country’s oil reserves are located mainly in the hydrocarbon-rich Gulf of Guinea. Equatorial Guinea’s total proven oil reserves are estimated at 1,1-billion barrels. The marine border with Nigeria was settled in 2000, allowing Equatorial Guinea to continue exploitation of its oil fields. In 2001, GEPetrol was established as Equatorial Guinea’s national oil company, and in 2002 it launched operations under the Ministry of Mines and Hydrocarbons. It was originally meant to be the primary state-run institution responsible for the country’s downstream oil sector activities. However, since 2001 its primary focus has become managing the government’s stakes in various production-sharing contracts (PSCs) with foreign oil companies. GEPetrol also partners with foreign firms to undertake exploration projects and has a say in the country’s environmental policy implementation. In recent block-licensing negotiations, Equatorial Guinea has pursued increases in the government’s stake in new PSCs.

In early 2008 it announced a $2,2-billion purchase of US-based Devon Energy’s stake in the country’s oil fields, increasing its participation to 20% in the Zafiro field operation. In October 2004, the government capped oil production at 350 000 barrels per day (bbl/d) to extend the life of the country’s petroleum reserves, but lifted the cap the next year to allow for expansion. With the addition of LNG production that came on line in 2007, total hydrocarbon production peaked in 2008. It is now in decline. Three fields, namely Zafiro, Ceiba and Alba, account for the majority of the country’s oil output. The Zafiro field is Equatorial Guinea’s largest oil producer, with its output rising from an initial level of 7 000 bbl/d in August 1996 to approximately 280 000 bbl/d by 2004. Ceiba, Equatorial Guinea’s second major producing oil field, is located just offshore of Rio Muni and is estimated to contain 300-million barrels of oil. Production at Ceiba rose dramatically during the 2-3 year period following improvements and upgrades to the facility. Alba, Equatorial Guinea’s third significant field, was discovered in 1991. Original estimates of reserves at Alba were around 68-million barrels of oil equivalent (BOE), but later exploration increased estimates significantly to almost 1 billion BOE. Unlike the Zafiro or Ceiba fields, exploration and production at Alba has focused on natural gas, including condensates. Ceiba’s discovery significantly increased interest in petroleum exploration of the surrounding areas, with many new companies acquiring licenses in exploration blocks further offshore in the Rio Muni basin. International companies with interests in one or more exploration blocks include Chevron (US), Vanco Energy (US), Atlas Petroleum International (US), Roc Oil (Australia), Petronas (Malaysia), Sasol Petroleum (South Africa) and Glencore (Switzerland). In October 2004, Noble Energy Equatorial Guinea, an Equatoguinean subsidiary of American Noble Energy Inc., signed a contract to exploit a new oil field off the island of Bioko. Recently, Equatorial Guinea gave the Chinese National Offshore Oil Company (CNOOC) the rights to its newest oil field, but the Chinese exploration have to date been unsuccessful. Equatorial Guinea’s natural gas reserves are located offshore Bioko Island, primarily in the Alba and Zafiro oil and gas fields. Natural gas and condensate production in Equatorial Guinea expanded rapidly in the five-year period following new investments by major stakeholders in the Alba natural gas field. Alba, the country’s largest natural gas field, contains 1,3-trillion cubic feet (Tcf) of proven reserves, with probable reserves estimated at 4,4 Tcf or more. Marathon Oil, other investors and the state-owned gas company SONOGAS joined forces in a $1,5-billion deal to construct a liquefied natural gas (LNG) facility on Bioko Island. The world-class facility shipped its first products in May 2007. In early 2008 Marathon and the government announced tentative plans to construct and operate LNG trains two and three, pending confirmation of feedstock gas from national and neighbouring gas fields. Information supplied with courtesy of www.cia.gov and www.state.gov, to which full acknowledgement and thanks are given.

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climate change

The Schneider Electric head office in France. (Picture: www.urenio.org)

First building in the world to earn ISO 50001 certification Schneider Electric’s head office, known as the Hive, is the first in the world to comply with the new ISO 50001 standard for energy management systems. By this the company lives up to their policy to continually strive to improve energy-efficiency in their buildings, reduce their carbon footprint and enhance user comfort. “Getting the certification proves that we are experts in the field,” says Jean-Pascal Tricoire, president and chief executive officer of Schneider Electric. “We aim for the highest standards in energy management for both customers’ and our own buildings. The Hive provides valuable feedback that we can use to develop efficient operational energy performance solutions.”

The new ISO 50001 standard defines the requirements for the development, implementation, maintenance and improvement of energy management systems. The new ISO 50001 standard defines the requirements for the development, implementation, maintenance and improvement of energy management systems. It is designed to help organisations to continuously improve the energy performance of commercial and industrial buildings, optimise their use and reduce their operating costs. The regulations were officially released in June. To meet the new standard’s requirements, Schneider Electric began adapting its energy management system in late 2010, based on the various drafts. Their compliance with ISO 50001 has also been recognised by AFNOR Certification. AFNOR Certification is France’s leading certification body and one of the top-ranking certification organisations worldwide.

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Other Schneider Electric sites are following in the Hive’s footsteps. Tricoire says that last year the Hive was the first building in France to be certified to HQE Exploitation, ISO 14001 and NF EN 16001 standards. “Getting certified officially confirmed the assertive efforts we have made since we moved to the site in January 2009.” Other Schneider Electric sites are following in the Hive’s footsteps. The commercial and research and development buildings in the Grenoble area have already obtained NF EN 16001 certification and are now preparing to meet the new ISO 50001 standard. Schneider Electric Jacqui Gradwell Tel: +27 11 254 6400 Fax: +27 11 254 6708 E-mail: jacqui.gradwell@schneider-electric.com Website: www.schneider-electric.co.za


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climate change

The role of

redd+

in supporting mitigation and adaptation in Africa As a result of climate change, developing countries are exposed to an increase in the extent and frequency of extreme weather events, with negative impacts on agriculture, physical infrastructure, tourism, fisheries and other sectors of the economy. These cumulative impacts have the potential to stagnate or even reverse progress being made towards sustainable development. Developing countries therefore have an interest in not only adapting to climate change but also limiting additional future emissions. Deforestation and other forms of land use change or degradation are responsible for approximately 17% of global greenhouse gas (GHG) emissions, more than the entire world’s transport sector, making land cover change the second largest contributor to global warming. Forests therefore play a pivotal role in any initiative to combat climate change. The REDD+ solution Forestry was placed on the global climate agenda at the UNFCCCs Conference of the Parties (COP-13) held in Bali in December 2007. Since then, the importance of forestry as a climate change mitigation tool has risen on the international stage, along with discussions on how to incorporate it into an international climate agreement. REDD is an acronym that stands for Reducing Emissions from Deforestation and Forest Degradation, while REDD+ goes beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks. REDD(+) is a mechanism to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands. In order to prevent deforestation it is necessary to compensate for the revenue lost by not deforesting and to establish alternative livelihood options and forms of land use. There are four different land transitions which are covered by REDD+: • The prevention of future deforestation. • The prevention of future forest degradation. • The enhancement of existing forest areas. • Afforestation and reforestation. African countries have relatively high forest cover that is increasingly threatened by deforestation. As a result, REDD+ mechanisms to mitigate climate change can be of great use. The programme can assist in increasing the adaptive capacity of local communities, promote the preservation of forest carbon stocks and enhance biodiversity on the continent. Three African countries, including the Democratic Republic of the Congo (DRC), the United Republic of Tanzania and Zambia are part of the United

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c li m ate c h ang e

Nations Collaborative Programme on REDD in Developing Countries (the UN-REDD Programme), which was created in 2008 to assist developing countries to build their capacity to reduce emissions and participate in a future REDD+ mechanism. Advancing REDD+ in the Kolo Hills Forest is an example of such a project, currently underway in the Kondoa District in Tanzania. The project has been developed by the Africa Wildlife Foundation (AWF) with technical assistance provided by Camco. This pilot project is designed to link sustainable forest management and carbon financing through REDD+. The sale of carbon credits will provide a sustainable source of financial support for the project, while also helping Tanzania to meet its obligations of managing sustainable forests and woodlands, and at the same time respond to conservation and poverty-reduction initiatives. Energy-related climate change mitigation is central to a holistic response to climate change, however, the role of REDD+ as an essential climate change response tool cannot be underestimated. REDD+ has a grass-roots impact on communities as these communities are often heavily dependent on forest resources for ecosystem services such as fuel, food, medicines and shelter. Over 1.2-billion people worldwide have some level of dependence on forests for their livelihoods and are highly exposed to direct climate change impacts. Unaddressed, increasing deforestation and forest degradation exacerbates vulnerability to increasingly intense and frequent natural disasters such as floods and landslides, but also reduces access to key ecosystem services.

Although REDD+ is primarily a climate change mitigation tool, it also serves as a mechanism to enhance the adaptive capacity of communities that rely on surrounding ecosystems to meet various basic needs. It enables the combination of climate change mitigation activities and adaptation in a single project. Climate change adaptation is a priority in developing countries that have little or no capacity to respond effectively to climate change impacts. REDD+ and other land-use based emission reduction and carbon uptake mechanisms offer relatively inexpensive options for achieving real, measurable and verifiable greenhouse gas emission reductions. Wider benefits of the REDD+ programme include the enhancement of community-adaptive capacity, the protection of biodiversity and a contribution to poverty alleviation. Camco South Africa Tel: +27 11 253 3400 E-mail: jonathan.curren@camcoglobal.com Website: www.camcoglobal.com

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

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

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

regulatory frameworks on energy, climate change and carbon markets

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

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

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

For further information: t +27 (0)11 253 3400 • f +27 (0)11 804 1038 • camcoafrica@camcoglobal.com Building 18, Woodlands Office Park, Western Service Road, Woodmead, Johannesburg, South Africa, 2080 www.camcoglobal.com


O IL AND GAS

Libya’s sweet & sour

Although Libya produces less than 2% of the world’s oil, the high quality of its reserves is rocking the boat in world markets, because Libya’s “sweet” crude oil cannot be easily replaced in the production of gasoline, diesel and jet fuel, particularly by the many European and Asian refineries that are not equipped to refine “sour” crude, which is higher in sulphur content. Saudi Arabia has more than four-million barrels of spare capacity and has promised to tap it if necessary, but that capacity is mostly for sour grades of oil. Should the turmoil in Libya last for more than a few weeks, oil experts predict that European refiners will be forced to buy sweet crude from Algeria and Nigeria, two principal sources of sweet crude for the United States, almost inevitably resulting in even higher petrol prices. With many countries clamouring to release tens of billions of dollars of frozen assets, which may be key to the country’s short-term reconstruction, without oil it cannot build a stable economy upon which democracy can flourish. Therefore, Libya’s oil industry holds the key to the success of the fledgling regime and the wealth of its people. It previously accounted for a quarter of the country’s total economic output and 95% of its export earnings, but the bloody civil war has reduced Libya’s oil fields to production running at little more than 50 000 barrels a day, compared to 1,6-million before hostilities erupted. However, the country is trying to restore its oil production after more than six months of fighting between rebels and forces loyal to Muammar Gaddafi – an event that has caused foreign oil companies to flee and led to infrastructure damage to oilfields and export terminals.

“On upstream, we could focus on new technology with joint ventures for secondary recovery and giving more concessions such as offshore Benghazi or in the Kufra basin. This is a virgin basin and has lots of potential,” El-Huni said.

Libya’s new leaders are preparing a draft proposal to give more power to the oil ministry and carving up the National Oil Company’s (NOC) responsibilities, according to Mustafa el-Huni, member of the National Transitional Council (NTC) with the responsibility for oil.

Downstream, he said, the NTC would look to upgrade its largest refinery, Ras Lanuf, to increase its yield of gasoline and to build a sixth refinery of about 200 000 barrels per day, as Libya has long been reliant on imports of refined products to meet domestic use because of insufficient refining capacity.

“The ministry should make a policy. The NOC is a commercial entity, while the ministry is political and should be involved in international participation and putting policies in place,” El-Huni stated.

Meanwhile, Russia is taking a keen interest, with Russian Foreign Minister Sergei Lavrov inviting members of Libya’s interim government to Moscow to discuss the future of Russian energy contracts in the nation.

This would be a change from the system under Gaddafi, where the NOC handled both the daily operations of the oil sector and represented Libya at OPEC meetings. El-Huni said more freedom would be given to subsidiaries such as the Arabian Gulf Oil Company (Agoco) under the new plan.

Russia’s top oil and gas producers, Gazprom, Gazprom Neft and Tatneft, had invested hundreds of millions of dollars on exploration in Libya before suspending operations when the uprising broke out earlier this year, but the director-general of the Russia-Libya Business Council, Aram Shegunts, has stated that Russian energy companies are likely to be barred from resuming work in Libya after NATO-backed rebels ousted Gaddafi, who has been in power since 1969.

Agoco spokesman Abdeljalil Mauf, who worked in the company’s exploration department before the revolt, says: “I don’t want an NOC. It is the biggest error that they control everything. They should leave more flexibility for national companies to compete with international companies.”

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Currently the oil ministry is run by the NTC and Tripoli-based Ali Tarhouni, at least until the “liberation” of the country is declared, and there are plans to split the NOC into three parts to separate upstream and downstream activities in order to follow the pattern of other Gulf countries. The NTC’s top upstream priorities would be to prepare for a new exploration round and to eke out more production from existing fields in a move that would hike output significantly from the pre-war level of 1,6-million barrels per day.

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Info from Reuters and Upstreamonline.com


OIL AND GAS

Puma Energy

buys5

BP businesses BP has announced that it has completed the sale to Puma Energy of its fuel-marketing businesses in Namibia, Botswana, Zambia, Malawi and Tanzania, with the latter being concluded on 1 September 2011. Puma Energy paid BP a total of US$296-million in cash (before working capital and netto debt adjustments) for its interests in BP Namibia (Proprietary) Limited (100% share), BP Botswana (Proprietary) Limited (100%), BP Zambia Plc (75%), BP Malawi Limited (50%) and BP Tanzania Limited (50%). The sale of the assets, which does not include the refining and marketing businesses in South Africa and Mozambique, follows BP’s strategic review of its southern African refining and marketing businesses last year.

Iain Conn, BP’s chief executive for refining and marketing, said: “BP is pleased that the sale in Tanzania has now been completed successfully. We believe Puma Energy will be able to build on these good assets and develop them further. “We are committed to developing and pursuing the significant growth potential of our businesses in South Africa and Mozambique.” Puma Energy, which is one of the largest independent midstream and downstream oil companies, is a subsidiary of Trafigura Beheer B.V., the Swiss-based international commodities-trading giant.

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renewab les

Is a renewable power revolution on the way?

Ross Bruton, Frost and Sullivan’s Energy and Power Systems Industry Analyst

Although Africa is endowed with fossil and renewable energy resources, which could more than adequately cover its energy needs, it remains the most poorly electrified continent in the world. The proportion of people without electricity in Africa is higher than anywhere else on the planet, with as little as 5% of the population having direct access to electricity in some countries. However, this significant challenge does has a massive potential upside. The need to provide electrification to remote communities is one of the key drivers of renewable energy development on the continent. The above statement is one of the findings in Frost and Sullivan’s analysis entitled Mega trends in Africa: A bright vision for the growing continent, which was released at GIL 2011: Africa that took place in Cape Town on 25 August 2011. The Global Community of Growth, Innovation and Leadership (GIL) enables GIL members to share best practises, engage with one another to inspire new and innovative ideas, accelerate growth and address global challenges.

“The total investment in renewable power in Africa was US$3,6-billion by 2010 and it is expected to grow to US$57,72-billion by 2020,” asserts Frost and Sullivan’s energy and power systems industry analyst, Ross Bruton. At the event, delegates had the opportunity to interact with Frost and Sullivan analysts, and their industry peers, to discuss the opportunities for growth and innovation within Africa’s developing renewable power industry. “The total investment in renewable power in Africa was US$3,6-billion by 2010 and it is expected to grow to US$57,72-billion by 2020,” asserts Frost and Sullivan’s energy and power systems industry analyst, Ross Bruton. “The key growth sectors will be wind power, solar power, geothermal power and foreign direct investment (FDI) into energy and power infrastructure.” Development of the renewable energy sector in Africa will lead to a diversification of the generation mix, a decreased dependency on a singular feedstock and greater security of supply.

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New investments into the continent’s electricity infrastructure are also likely to incorporate new technologies and standards. This requirement for smart technologies will mean that information communication technology (ICT) development will also need to take place alongside electrification efforts.

Over the next ten years, renewable energy initiatives will be dominated by wind-power projects, such as the Ashegoda Wind Farm in Ethiopia and Tanzania’s Singida Wind Farm. “Smart electricity development in Africa will be driven through grid incorporation of renewable power, and technological leapfrogging through investments into Greenfield technology and development infrastructure projects,” Bruton believes. “Smart grids are, however, only expected to play a significant role in key high-growth African economies.” Over the next ten years, renewable energy initiatives will be dominated by wind-power projects, such as the Ashegoda Wind Farm in Ethiopia and Tanzania’s Singida Wind Farm. Solar power will also show good growth; although this will most likely be through South Africa’s Upington solar project and renewed interest in Desertec in North Africa. Mega trends in Africa: A bright vision for the growing continent is an extensive study that highlights the most pertinent macro-economic forces that will shape Africa’s development over the next ten to thirty years. The eight megatrends covered by the study, and discussed at GIL 2011: Africa, are: connecting the unconnected, urbanisation, regional integration, innovation to zero, renewable power, new business models, the responsible revolution and future infrastructure. For more information, visit http://www.gil-global.com/africa. Frost and Sullivan Samantha James Corporate Communications – Africa Tel: +27 21 680 3566 Fax: +27 21 680 3296 E-mail: samantha.james@frost.com Website: www.frost.com


renewa b les

SESSA member will go to Germany for renewables course Thea Holm, a director at SESSA member Omnibus Engineering, has been chosen as one of seven South Africans who will attend a six-month leadership training course in Germany later this year. The Education for Sustainable Development course, which will commence in September and end in March 2012, was initiated by Germany’s Ministry for Economic Co-operation and Development. It was developed in response to the United Nations declaration of 2005 to 2014 for a “UN Decade of Education for Sustainable Development”. The course is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), an organisation promoting international co-operation. Delegates from Germany, South Africa, India and Mexico will attend it. Holm presented various energy and lifestyle awareness programmes that boost the public’s awareness of renewable technologies for the past four years. She was commended by the South African National Energy Association (SANEA) in 2009 for her role in energy education in the country. In 2010 she was a runner-up in Eskom’s eta Awards in the “Women in the Community” category. She’s starting recycle centres at eight different schools around Hartebeespoort Dam, and worked with JoJo Tanks to get ten schools started with rainwater harvesting as well as educating them about the importance of caring for the country’s water resources. Holm also gave presentations at selected schools that were invited to the Solar World Congress in 2009, hosted by SESSA. A highlight of Holm’s year to date was celebrating International Environmental Day in June with Alliance Française Johannesburg at a Soweto school, where she was running a workshop on building solar cookers out of very common materials.

“We are delighted that Thea has been honoured in this way. She truly is a deserving recipient. We know that South Africa as a whole, and the renewable energy sector specifically, will benefit from what she has learnt when she returns,” says Irvan Damon, SESSA ambassador. Commenting on her upcoming trip, Holm said: “With this training behind me, not only will I be able to build further on a stronger foundation for sustainable development through showcasing an alternative lifestyle with renewable energy sources, but assist with the design of innovative and sustainable policy solutions based on worldwide and interdisciplinary knowledge.” Full acknowledgement and thanks are given to SESSA for the information used in this article. SESSA Tel: +27 11 789 1384 Fax: +27 11 789 1385 Website: www.sessa.org.za

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Feat ure : so l ar water heaters

The spotlight on

solar water heaters The South African government sees solar water heaters (SWH) as the ideal way of providing hot water to communities without the burden of water-heating monthly bills. The large-scale introduction of SWH’s is a means to reduce the demand for energy on the national grid. The solar water heater (SWH) rebate programme has been in existence since 2008, and is funded from the NERSA-approved demand-side management (DSM) budget. This is in support of the Department of Energy’s drive to install one-million solar water heaters in five years.

To date, 72 257 low-pressure solar water heaters (LP SWH’s) have been installed since 2008, adding up to a total of R344.7-million. A total of 29 449 high-pressure solar water heaters (HP SWH’s) have been installed in this time, adding up to a total of R172.8-million. Currently, solar water heaters are a hotly-debated subject. Therefore 25° in Africa puts the spotlight on the SWH market and spoke to some key players, regarding this matter. How has the solar water heating market changed since 1997? James Shirley, general manager of Kayema Energy Solutions: South Africans paid only 12c per kWh and Eskom had a 25% reserve margin. Solar water heating in South Africa was reserved for areas with no power supply or those who purchased for purely environmental reasons. Solar water heaters are a critical investment for every household, and reduce the peak load on Eskom significantly. The benefit of reduced peak demand is that Eskom would not need to load-shed as often, and stations and network transmission/distribution components can be powered down to allow for more regular maintenance, increasing their lifespan.

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The increased demand has led to hundreds of solar water heating companies springing up all around the country, creating many new jobs, and existing plumbers learning the new skills required to install SWH systems. Tudor-Jones: The load-shedding in 2008 and the Eskom Solar Rebate Programme have been the catalysts to the rapid growth of the SWH industry. However, with the growth have come additional challenges. Consumers are now spoilt for choice with 250 products (high- and low pressure) as well as 600 suppliers. Apart from too many options, consumers experienced a lack of education surrounding the various technologies available. To add to this, the current rapidly growing supplier base also needs to be educated to prevent making the same mistakes of the past. The mass product failures, regarding the 2010 frosts has definitely caused some negative public sentiment towards the technology. How long will Eskom’s rebate programme last? Shirley: It is unclear exactly how long the rebate programme will last. However, it was confirmed by Mr. Andrew Etzinger of Eskom on 30 June 2011, that additional funding was made available for the SWH programme and that it would continue for the moment. The rebate values have already been reduced this year, and the numbers of systems that each supplier may submit for rebate each month have been limited in order to increase the amount of time the programme can run for.

Eskom’s DSM programme has also put rebates in place to assist end-users and commercial clients to make the investment even more financially viable and the decision to go solar even easier. Barry Bredenkamp, operations manager at the National Energy Efficiency Agency: The solar water heater market has changed radically, and due to various factors such as increasing electricity prices, a more general awareness on “green” issues, various incentive programmes on offer and obviously, the rolling black-outs South Africa experienced in 2008. Improved quality of SWH-technologies has also assisted in overcoming consumer resistance and/or fear of the technology. Lea Smith from Institute of plumbers South Africa (IOPSA): The market has changed drastically, and for obvious reasons. The problem is the fact that a growth spurt resulted in opportunists who did not care for the solar plumbing industry. These people only came to pillage the industry and weren’t interested in adding value to this market. Dylan Tudor-Jones, the Managing Director of Solar Heat Exchangers: In 1997, the ROI for a solar water heater was much longer due to cheap and abundant electricity. It was therefore much harder to convince people to do the right thing by investing in SWH and sales volumes were lower. How has load-shedding in 2008 influenced the SWH market? Shirley: Load-shedding has highlighted the importance of energy-efficiency to average South Africans. While highly annoying and inconvenient, it has forced companies and homeowners to take action to reduce both their consumption and monthly electricity bills, and led to increased sales of solar water heating systems since the electric geyser is a major consumer of household electricity.

For those still sitting on the fence about whether or not to convert to solar water heating, I would recommend that they do so sooner rather than later in order to ensure their rebate. Smith: I really can’t say, but what I can say is that the solar rebate budget is completed for the year. However, they are running a special reduced rebate. Bredenkamp: According to my knowledge, the rebate in its current form will not last beyond 2011 unless a significant amount of additional funding is secured for this purpose. Tudor-Jones: When the money runs out? How will Eskom replenish the money spent on the rebate programme? Shirley: Unfortunately I can’t speak for Eskom (or NERSA). However, it is my opinion that should the programme continues any additional funds would be taken from the ever-increasing electricity prices. Rewarding those who switch and penalizing those who choose not to switch to solar (or at least a heat pump) seems to me like the best way to go while our country is experiencing an energy shortage. Bredenkamp: As consumers of electricity, the onus currently will rests on us to pay back the money for this rebate program. Even if the funding model changes from a tariff-based levy, we (as tax payers), will end up paying through a treasury/fiscal allocation. Smith: The idea is simple, subsidise solar systems which reduces load on the electrical grid. With a reduced load there is no need for power stations. Subsidising solar is cheaper than building a power station. According to Frost and Sullivan, the SWH market experienced volatile growth between 2007 – 2010 that Vol 6 NR 5 2011

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was plagued by malfunctioning products, fly-by-night companies and incorrect installations. Do you agree? If so why? Do you disagree? If so why? Shirley: I agree strongly that the SWH market has experienced volatile growth. Unfortunately, many South Africans have paid good money for bad systems on terrible advice from people trying to make a quick buck on solar water heating. A solar water heater should be selected based on reliability, service and applicability to your needs (much like any other investment), rather than on price. Many of the systems that were brought into South Africa, while perhaps being applicable to another country’s environmental conditions, were not relevant to our local temperatures, weather patterns and water quality. These factors have led to overheating in summer, freezing in winter, bursting due to pressure or rapid component deterioration due to chlorinated water – all of which have done damage to the name of the industry as a whole. Even worse than this, though, is the poor quality of installation and total lack of understanding of how the systems work by unqualified (and many supposedly “qualified”) installers. Regulations and industry bodies are in place to deal with this. However, it is very difficult to police those operating outside of the rules unless something catastrophic happens and the matter comes to the attention of the ombudsman. The good news is that we are now seeing fewer and fewer different manufacturers in the market – those who are surviving and doing well seem to be coming from “real” companies who have a long-term plan and will be around long enough to honour their warranties. Bredenkamp: Probably before 2007, when there were no Standards in place and/or a test facility at the SABS.

Smith: I fully agree. The problem is the fact that a growth spurt resulted in opportunists who did not care for the solar plumbing industry. These people only came to pillage our industry and weren’t interested in adding value to this market. Tudor-Jones: I do agree. The Solar Water Heating Division of SESSA reported at the March 2011 AGM that membership grew from 272 to 510 in 12 months. They also reported that 168 members had resigned in the previous 8 months. I know of a reported +/- 1000 collectors which failed during the June 16th 2010 black frost. This is one incident which caused many casualties within the industry and does not include other issues of overheating and the like that has also occurred since the influx of vac-tubes into the market. How are building codes and regulations influencing the SWH market? Shirley: SANS 10400X has now been promulgated, which means that within a few months it could become law for any new building that at least 50% of the water heating must be done by non-electric resistance means. Since SWH is not applicable to every home or business, the client also has the option to achieve this by, amongst others, using heat pumps or installing a heat-recovery system. It is becoming more important for developers, architects, specifiers, QS’s and consulting professionals to develop an understanding of the functioning, and advantages and disadvantages of each, and of which systems are available in the market that they would recommend to their clients. Bredenkamp: The regulations have only just been published and once properly up-and-running, will have a positive effect, i.e. the requirement that where hot water is provided, a maximum of 50% by volume can be supplied by the traditional electrical-resistance water heater and 50% must be from a renewable resource. Smith: The building codes and regulations impacted the SWH market drastically. Tudor-Jones: We haven’t seen any impact as of yet, but we will see a positive influence once the new SANS10400 PartXA2 becomes mandatory in Feb 2012. Karel Deist, Head of Laboratory Solar – SABS: These standards are there to support the market in a positive way. The standards and regulations protect the end user against possible abuse and claims about the functionality of these systems. You have various standards and regulations that govern the installation of SWH’s like the Occupational Health and Safety act (OSH), the National Building Regulations and Installation codes. There are two important clauses dealing with this matter in the said Occupational, Health and Safety Act. The first one is clause 10 which states the following: General duties of manufacturers and others regarding articles and substances for use at work (1) Any person who designs, manufactures, imports, sells or supplies any article for use at work shall ensure, as far as is reasonably practicable, that

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the article is safe and without risks to health when properly used and that it complies with all prescribed requirements.

they invest with a reputable company, that they will certainly see a great return on investment.

(2) Any person who erects or installs any article for use at work on or in any premises shall ensure, as far as is reasonably practicable, that nothing about the manner in which it is erected or installed makes it unsafe or creates a risk to health when properly used.

They save money. It is not often that people get the chance to do something that is good for the environment, good for society AND saves money every month – a real triple threat.

(3) Any person who manufactures, imports, sells or supplies any substance for use at work shall. (a) Ensure, as far as is reasonably practicable, that the substance is safe and without risks to health when properly used. (b) Take such steps as may be necessary to ensure that information is available with regard to the use of the substance at work, the risks to health and safety associated with such substance, the conditions necessary to ensure that the substance will be safe and without risks to health when properly used and the procedures to be followed in the case of an accident involving such substance. (4) Where a person designs, manufactures, imports, sells or supplies an article or substance for or to another person and that other person undertakes in writing to take specified steps sufficient to ensure, as far as is reasonably practicable, that the article or substance will comply with all prescribed requirements and will be safe and without risks to health when properly used, the undertaking shall have the effect of relieving the firstmentioned person from the duty imposed upon him by this section to such an extent as may be reasonable having regard to the terms of the undertaking.” The second very important regulation that one should keep in mind is as per the SA Government Gazette no. 22355, Notice No. 509 and Regulation no 7079 dated 8 June 2001. Every consumer must comply withSABS/0252: Water supply and drainage for buildings and SABS/0254: The installation of fixed electric storage water heating systems, or similar substituting re-enactment or amendment thereof if the consumer installation is of a type regulated by either standard. This legislation requires that all new geyser installations and replacement geyser installations performed after the 8th June 2001 must be in accordance with the specification, which requires the installation to have a geyser drip tray with overflow pipe piped to the exterior of the building. Vacuum breakers must be installed on the hot and cold water supply and the overflow from the safety valve and expansion relief valve must be piped to the exterior of the building.” What are the advantages of SWHs? Shirley: The three main advantages of solar water heating are: They are reliable, especially thermosiphon systems which have no moving parts. Incorrect installation or a total lack of maintenance is the most common source of systems failing to produce hot water. Electric controllers ensure that during periods of extended rainfall, or the very cold winter days, the system reaches the desired temperatures. They are durable. Many systems offer 10 year guarantees, and flat-plate collector technology has been proven over the past 30 years to operate very well in conditions similar to South Africa. Clients can be certain, as long as

Bredenkamp: The biggest advantage is the fact that we get to harness free energy from the sun and generally would have accessible hot water during times of extended power outages. Smith: Renewable energy and lower energy costs are major advantages to SWH. Tudor-Jones: The purchase of a quality solar water heater is a proven means to save electricity, therefore money and our environment. They are built to last and therefore have an excellent life cycle savings compared to that of an electrical geyser. When comparing prices, the difference in cost between the lower end, five year warranty models and the proven, ten year warranty models is about R5000. This may seem like allot, but when you consider that this is only one extra year of savings on your ROI in four years time, compared to doubling your warranty, then the investment in quality is absolutely worth it. What are the disadvantages of SWH? Shirley: High capital costs for a good system have been a major disadvantage and slowed the sales of SWHs in South Africa. Finally there are attractive financing options available for selected systems, and the monthly installments can be offset by the savings. Instead of asking “how much does the system cost?” can clients now ask “how much can I put back into my own pocket every month?”. Aesthetic reasons have also been a bump in the SWH rollout process. Two years ago, we used to hear the term ugly almost every day. Now, however, many homes display their systems proudly and most of our clients are actually glad to show their neighbours that they are smart enough to install a system. Bredenkamp: SWH’s don’t always achieve the expected savings, i.e. very dependent on the elements and human behavior. Another disadvantage is that if something does go wrong, the consequential damage to property can be quite significant. Smith: The disadvantages of SWH’s are the fact that it is complicated to install. There is a need for a higher plumber skill base, and for the last 15-years our plumbing skills base has been eroded due to the lack of training. One can also say that another disadvantage is the fact that the technology is complicated and the consumer does not always understand the lifestyle shift. Another disadvantage is the fact that there were too many fly-by-night companies selling one thing and the consumer not getting the product that was promised to them. Thus the SWH market got a bad name. Tudor-Jones: They are not always suitable for all applications due to shadowing, roof type, orientation, inclination and often aesthetics. They also have a higher capital cost than conventional geysers. Where are the trends heading for SWH? Shirley: The take-up on SWH has been slower than expected around the country. However, the general public is now far more aware of the options available to them. While many people want a SWH and understand all of the benefits, there has been no need to switch. More than half of our clients Vol 6 NR 5 2011

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are people who have been quoted previously, and only made the decision to switch when their electric geyser had burst and a replacement system was necessary. Every time the electricity price increases, sales volumes also spike – and so long as it remains “cheaper” to install a solar water heater than to use an electric geyser, the local market will continue to grow. A couple of years ago it was very difficult to install an on-roof system in South Africa, since home owners were concerned with the aesthetics of systems. Recently, however, this has not been an issue and more and more clients are opting for thermo-siphon systems because of better cost and reliability over the split options. Bredenkamp: Personally, I believe we will ultimately see more of a move towards heat pumps in the middle-to-high income market sectors. They are more reliable, predictable and ultimately more energy-efficient. Smith: It is my opinion that the SWH trend is moving downwards. I strongly feel that heat pumps will become the new solar solution. Tudor-Jones: More up-market and environmentally-conscious homes will install SWH whereas more middle-income, money-conscious homeowners will go for heat pumps. How long does a SWH last? Shirley: A good SWH has a design lifespan of 20 years or longer, and should have a warranty on physical components of 10 years – this ensures that every owner will benefit financially over an electrical geyser, even if financed. Flat-plate collector systems have been installed in many countries around the world since the early 1980’s, many of which are still in existence today. A poorly designed or installed system, however, may only last two years. It is critically important that suppliers, installers and clients understand exactly what each system does and the impact that various environmental, water and time-of-use conditions have on each, so that they can offer the best advice and make. Bredenkamp: Depending on the specific quality of the system, but generally the panels should last between 15 to 20 years and the reservoir tank five to ten years. Tudor-Jones: Some better quality, proven brands can last up to 20 years. Cheaper models have been known to last between five to ten years. If ones return on capital is only in year four for instance and there is a risk of having to replace the unit or a major component of the unit in year five, then the investment in a higher priced, better quality and longer lasting unit becomes favorable. Are we seeing more SWH products imported or locally manufactured? Why? Shirley: While there are still more imported systems available than

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local products, we are now seeing more and more locally manufactured components and complete systems in South Africa. There are several reasons for this: In order to stimulate local employment and keep South African funds in SA, Eskom’s rebate structure is changing to allow for greater rebates for systems with a higher local content. The Department Of Trade and Industry is offering assistance for setting up local factories in order to stimulate local employment. There are now sufficient skills in South Africa to ensure that quality standards are met (and exceeded in many cases). Bredenkamp: Definitely imported, and this has got to change if we really want SWH’s to make a significant impact to the South African economy through local job creation, etc. However, price and quality will always be the key determinant and it remains a challenge to compete with China in this regard. Smith: Most of our SWH’s are imported, and this is simply because no South African manufacturer in their right mind will invest in such a market. What surety does South African manufacturers have, if they put capital in for factories and manufacturing lines etc, when their own government and parastatals do not support South African products. Tudor-Jones: There are still more imports. Local content specifications may change this in future. Until there is less choice and a strong single supplier emerges, local producers will continue to struggle. How do insurance companies play a role in the SWH market, if any? Bredenkamp: Some of them are coming to the party, but the challenge remains that when a conventional geyser fails, the home owner basically wants the general situation relating to access to hot water resolved, without delay. If one first has to “think” about the pros and cons of SWH vs a conventional heater (cost, electrical back-up, aesthetic impact on the roof, etc.), the majority of customers opt to go for what they originally had installed. Smith: Insurance companies play a massive role in the SWH market. They have a capture market, however the problem is that SWH’s do not fit into their models, i.e. the client wants hot water and they want it now, not later – SWH on average has a lead time of three to five days. Tudor-Jones: Most major insurers have chosen reputable suppliers and proven brands as optional replacements when geysers fail but the uptake by the insured is still very low. I feel the insurance industry holds the key to turning around our solar industry as it makes the most sense to convert to solar when a big chunk of your capital cost is covered by your insurance company. 25° in Africa would like to thank James Shirley, General Manager of Kayema Energy Solutions, Barry Bredenkamp, Operations Manager at the National Energy Efficiency Agency, Lea Smith from the Institute Of Plumbers South Africa, Dylan Tudor-Jones, Managing Director of Solar Heat Exchangers, and Karel Deist Head of Laboratory, Water Meters and Solar – SABS, for their contribution to this article.


n u c lear energ y

The case for nuclear power The Fukushima nuclear power-station disaster caused by the tsunami in March this year, coupled with the 25th anniversary of the Chernobyl collapse at virtually the same time, put the spotlight firmly on nuclear power once again.

The demand for electricity in South Africa is expected to increase to about 454 TWh in 2030 as compared to 260 TWh last year, according to the integrated resource plan (IRP) 2010. South Africa needs all the energy they can get, and nuclear is one of the viable energy sources for the country. The policy-adjusted IRP, in addition to all the existing and committed power plants, includes a nuclear fleet of 9,6 GW – 6,3 GW of coal, 17,8 GW of renewables and 8,9 GW of other generation sources. Whatever people’s personal views are on the reasons for global warming, it is a challenge that they must continually strive to address.

Nuclear power is always a hot property, with almost as many people and organisations for it as against it, but it must be said that it would be unreasonable to assume that any power station should be designed to withstand a natural phenomenon such as that experienced at Fukushima. Nuclear energy (and its technology) is evolving and successive generations of reactors are becoming ever safer. So where does South Africa stand in respect of nuclear power? The following is an edited extract of an article by Ayanda Myoli, chief executive officer of the Nuclear Industry Association of South Africa (NIASA), which appeared in the NECSA publication Energize e-News, Issue 46, July 2011. According to a September 2010 IAEA report entitled International status and prospects of nuclear power, there are 21 countries in Africa that have “expressed interest in, and are considering, or are actively planning for nuclear power”. These include Egypt, Nigeria, Kenya, Algeria and Morocco. The strong support for nuclear by the African Union also means that the implementation of the economic objectives of the AU, in terms of free trade area, will put South Africa in an excellent position to exploit that market. With the inclusion of 9,6 GW of nuclear in the country’s electricity plan in terms of the IRP2010, the South African government has given its support and commitment to nuclear power as a viable option for low-carbon, baseload electricity generation. The South African nuclear programme will be one of the largest ever undertaken in this country, and the government has clearly indicated the importance of industrialisation and localisation of certain nuclear capabilities. Localisation of the nuclear programme will have spin-off effects which will include economic development, scientific and industrial development, cost-reduction especially for a fleet approach, job creation, research and development, and so on. The local industry is gearing itself up for the challenge.

According to the IPR2010, South Africa willl be emitting about 269-million tonnes of CO2 in 2030 compared to 237-million tonnes last year, which is still a cause for concern. In the diversity of the energy mix as outlined in the IRP2010, security of supply is a major factor, as people have seen recently what the effect of blackouts can be to the economy. Nuclear is a viable baseload generation option for South Africa, especially for the coastal and southern parts of the country where there is no major source of baseload power. All low-carbon generation technologies, which include renewables and nuclear, will form part of the generation sources of the future. The drivers for nuclear energy still remain the same, such as climate change mitigation, energy security, improved nuclear economics, and for South Africa in particular the need for a diversified energy mix, uranium beneficiation, and so forth. Nuclear generation is no mere stopgap. The world has readilyrecoverable uranium for the lifetimes of about a thousand more of today’s “thermal” reactors. Considering breeder-reactor technology to create plutonium and the proven transmutation of relatively abundant thorium to fissile uranium 233, it is very probable that nuclear fission will take us forward for thousands of years. And then there’s nuclear fusion. In the parlous world-energy situation, nuclear technology cannot be ignored. There are currently 55 nuclear power reactors under construction in the world, and the growth in the nuclear industry is set to continue. The demand from nuclear will not be just from new build, but from replacement components (such as from steam generators, reactor vessel heads and other large components), as well as from turbine upgrades and other refurbishments. NECSA Tel: +27 12 305 5450 Fax: +27 12 305 5761 E-mail: chantal.janneker@necsa.co.za Website: www.necsa.co.za Vol 6 NR 5 2011

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How accurate is our new baseline for

global shale-gas resources?

This is the second article in a three-part series on shale gas in 25º in Africa, based on a report by PFC Energy. The first article (which appeared in Journal 4) focused on the hype around global shale-gas resources versus prospects for achieving US-scale production volumes in the future. Industry knowledge about the size of global shale-gas resources has been limited, with only one publicly available study, conducted by HH Rogner in 1997. “The Rogner estimates provided eye-opening numbers for potential resources-in-place, but did not provide an assessment of how much of these resources could be technically recoverable, let alone economic to produce. And so much has changed technologically since 1997 that any numbers given would now be obsolete,” says PFC Energy, authors of a report entitled Global Shale Gas: Huge Potential, Huge Hype, But Expect Limited Success, released on 11 June 2011. Thus, when the US Energy Information Agency (EIA) released a new study in April 2011 conducted by technical consultants Advanced Resources

Proved reserves and shale gas resources in select countries

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International, it constituted a very significant addition to the state of global knowledge about shale gas resources. The top 15 countries in the study all have technically-recoverable shalegas resources of over 60 tcf. In each of these 15 countries, the estimate of technically-recoverable shale-gas resources is greater than the country’s currently proved gas reserves, and in many cases a great deal larger. On the lower end, Norway’s estimated 83 tcf of shale-gas resources are 115% as large as its proven conventional reserves of 72 tcf. In smaller, importdependent countries such as Chile, France, Poland, and South Africa, as well as countries with small and/or declining exports such as Mexico and Argentina, the addition of major shale gas resources could transform the countries’ energy outlook.


b io -energ y

Risked gas in place versus technicallyrecoverable resources The EIA study mentioned in the article defines two levels of shale-gas resources – “risked gas in place” and “technicallyrecoverable resources”, which are determined as follows:

“Over the next decade, we expect to see production on a scale that is significant to the portfolios of companies with the timing and capacity to push developments forward. However, in this time frame, we do not expect production from international shale-gas plays at a scale that will impact trade patterns.”

• “Risked gas in place” is determined by first estimating a value for total gas in place based on the depositional environment, the depth, thickness and geographic extent of the target shale horizons, the geologic structure including faults, and measures of total organic content and thermal maturity (which help to estimate the concentration and type of hydrocarbons likely to be present). This is then risked according to factors such as the current state of knowledge (or lack thereof) about the play, data quality and the current state of technology. • “Technically-recoverable resources” are calculated by applying a recovery factor to the risked gas in place. Recovery factors range from 15% to 35%, with most plays in the 20%-30% range, based on further geological inputs and analogues to developed plays (economic recovery factors would be considerably lower). According to PFC Energy, even if only a relatively small proportion of the technically-recoverable resources can be turned into proven reserves, the impact on the country’s energy outlook would be significant. “Expressed in terms of a country level reserves-to-production ratio (R/P), even 20% of the estimated technically-recoverable shale gas identified in the EIA study would add anywhere from nine years of reserves – in India’s case for example – to over 250 years [Chile and Poland] at the 2010 production levels. For countries with little or no current gas production, such as France and South Africa, the effect is literally off the chart,” says PFC Energy.

The challenges PFC Energy explains that many of the impediments to shale-gas development are common to all or nearly all of the countries identified in the EIA study. “Over the next decade, we expect to see production on a scale that is significant to the portfolios of companies with the timing and capacity to push developments forward. However, in this time frame, we do not expect production from international shale-gas plays at a scale that will impact trade patterns.” According to PFC Energy, this would require a level of activity that is difficult in most countries due to a number of reasons: • Acreage leasing and fiscal terms. • Structure of the competitive landscape and experience level of active players.

• • • •

Service sector capacity. Water resources and environmental risks. Geographic challenges. Transport infrastructure and marketing.

“The bottom line is that while there are a number of basins with the geologic potential to replicate the success of shale-gas development in the United States and Canada, there is nowhere that it can happen with anywhere near the speed seen in North America,” says PFC Energy. In Journal 6, we will be focusing on the increasing shale-gas activity around the world. For more information, visit www.pfcenergy.com, to which acknowledgement and thanks are given.

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Growing fuel: biomass plantations

Biomass-generation plants primarily burn waste wood, but as their role in clean energy is expanding, more wood will be needed. Where will it come from? Xcel Energy has developed a demonstration project to test which tree species, soils and climates will be most conducive to “biomass plantations” – trees grown to be used as fuel. In partnership with the Wisconsin Department of Natural Resources and the University of Wisconsin Cooperative Extension, the project includes two newly-planted, 10-acre test plots. Each has been planted with a variety of

Until the trees are large enough to form a canopy, the pilot partners are planting grains in the rows between the trees, providing yet another source of income. This is not your uncle’s ethanol When ethanol was hailed as a replacement for gasoline, farmers around the world switched their crops to corn to capitalize on the ethanol boom. The unintended consequences became apparent when rice, beans and other nutritional staples were short in supply.

When used as a power-generation fuel, trees are considered to be carbon-neutral because they absorb carbon while they grow. trees, including poplar, larch, aspen, willow and red pine – all genetically crossed to be fast-growing. When used as a power-generation fuel, trees are considered to be carbon-neutral because they absorb carbon while they grow. Then they release what they absorbed when they become biomass fuel. Agro-forestry: New revenue opportunities for farmers The partners in the pilot project are tracking the development costs (ground preparation, weed control, etc.) because they’ll provide budget estimates to farmers who are interested in creating their own plantations. Many farmers in the area are not using their low-yield land, and the trees would provide incremental revenue. Most of the trees in the pilot project will be harvested in about 10 to 15 years, when they reach six to eight inches in diameter. Willows, which grow more like shrubs, could be ready in as little as three years.

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The biomass-plantation test plots are located on vacant, “marginal” agriculture land that’s not conducive to growing high-yield food crops. Another aspect of the test is to see how well the trees grow without irrigation. The plots are located in different climates and planted in different soil types, which will add more helpful data points to the test.

All the wood from the plots will be chipped and delivered as fuel for Xcel Energy’s Bay Front plant. All the wood from the plots will be chipped and delivered as fuel for Xcel Energy’s Bay Front plant. For more information, visit http://blog.cleantechies.com/2011/02/18/ growing-fuel-biomass-plantations/.


b io -energ y

Traditional waste management

innovative waste treatment utilities, the robustness and provenness of technology, financial/affordability constraints, composition of the waste feedstock and potential outlets for process products and residues. Golder experts from Europe, where pioneering waste-to-energy projects are being developed, provide insight into these factors, as well as a practical track record in the implementation of business intelligence for ‘green’ waste management solutions. Together with our global consultants, the South African team has worked on a number of significant local projects,” she adds.

Waste management in South Africa, as in most countries, was historically heavily reliant on the knowledge of landfilling. Waste treatment, recycling and alternative waste technologies have been limited. A number of landfill sites, predominantly these around Gauteng, have limited airspace and in numerous cases pose significant potential health hazards. The increasing demand for renewable energy sources, energy-efficiency and CO2 reduction is driving the market for innovative waste treatment through technologies such as anaerobic digestion, mechanical biologic treatment, mechanical heat treatment, energyfrom-waste and in-vessel composting. A senior waste management consultant at Golder Associates, Natalie Kohler, says that the company focuses its consulting services on meeting the market demands for alternative waste treatment technologies. “Golder assists its clients in developing additional waste processing and treatment infrastructures, in conjunction with primary waste minimisation and recycling initiatives, to provide a robust and sustainable alternative to landfill,” says Kohler. “Innovative waste treatment processes are influenced by a number of factors, including political and socioeconomic drivers, the availability of services and

Pioneering waste-to-energy projects in South Africa According to Kohler, Golder has recently audited landfill-gas-to-energy (LFGTE) proposals at nine landfills throughout South Africa. “We have seen significant differences in how LFGTE projects should be approached, both from an academic and a practical standpoint.” LFGTE systems are a well-established means of securing renewable energy in Europe and North America, where the market is mature and landfill-gas engineering is well understood and effective.

A senior waste management consultant at Golder Associates, Natalie Kohler, says that the company focuses its consulting services on meeting the market demands for alternative waste treatment technologies.

In another groundbreaking initiative, Golder has been appointed by Blue IQ to assess the municipal and other waste characteristics of Gauteng Province and the potential for recycling and waste-to-energy conversion. As part of its commitment to the Provincial Mandate, Blue IQ is looking at mechanisms to address sustainable development through the efficient use of resources. Golder’s specialist studies included the opportunities that exist in terms of the characteristics of the waste streams in Gauteng and how these could be optimally explored for downstream uses (waste to be gainfully employed in new products) and concurrently hereto identify potential job opportunities. Golder Associates Tel: +27 31 717 2790 E-mail: mail@golder.co.za Website: www.golder.com

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New discovery could improve ethanol production Researchers at the Department of Energy’s (DOE) BioEnergy Science Centre (BESC) in the US have made a discovery that could increase the production of ethanol and lower its costs. They say they have pinpointed the gene that controls the ethanol-production capacity in a micro-organism, which could be the missing link in developing more efficient and cheaper biomass crops. Current methods to make ethanol from a type of biomass found in switchgrass and agricultural waste require the addition of expensive enzymes to break down the plant’s barriers that guard energy-rich sugars. The gene discovered controls ethanol production in a micro-organism known as clostridium thermocellum. With it scientists will be able to experiment with genetically-altering biomass plants to produce more ethanol. “The Department of Energy relies on the scientific discoveries of its labs and research centres to improve the production of clean energy sources,” said energy secretary Steven Chu. “This discovery is an important step in developing biomass crops that could increase yield of ethanol, lower production costs and help to reduce our reliance on imported oil.”

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The clostridium thermocellum has been studied for decades, but scientists so far had been unable to determine the genetic basis for its ability to tolerate higher concentrations of ethanol. The research team used a multi-disciplinary approach thanks to the various types of expertise from those involved. The team’s results were published in the proceedings of the National Academy of Sciences and the invention is available for licensing. Article written by Antonio Pasolini, a Brazilian writer and video-art curator based in London, United Kingdom. He holds a BA degree in journalism and an MA degree in film and television.


CDM

Capitalise on available revenue now The deadline to register clean development mechanism (CDM) projects to qualify for the first Kyoto Protocol’s global CDM fund commitment is in 2012. “South Africa has the industry, infrastructure and intellectual capability to capitalise on this opportunity. However, to date the country has only captured 5% of the available carbon revenue, where countries such as India and China were able to collectively harness about 80% of the global carbon revenue,” said Dr Ram Babu, one of the founders of the award-winning General Carbon, at a recent CDM workshop held in Johannesburg. Dr Babu is internationally renowned for his exceptional knowledge on CDM. He mentioned that the workshop provided feedback from delegates that there are certainly vast possibilities in South Africa for CDM projects. These were discussed and ideas were shared by Dr Babu on how the industry can successfully tap into the available carbon revenue before the deadline in 2012. Opportunities for South Africa to increase its share of the available carbon revenue lie within commercial energy-efficiency, go-generation, renewable energy and methane-recovery projects. Smaller projects can be bundled into a single CDM project to form part of a programme of activities (POA).

The CDM workshop, which was held earlier this year, was presented by Energy Cybernetics in association with General Carbon. It was an initiative to inform the local market of the opportunities that CDM offers to increase the local industry’s efficiency and international competitiveness. General Carbon is a leader in the CDM field and has a portfolio of over 100 carbon-offset projects across Southeast Asia and Africa, with a potential of 200-million tonnes of carbon offsets. Energy Cybernetics and General Carbon hope to catalyse investment in low carbon technologies in the rural and urban centres in South Africa and Africa through promoting carbonemission reduction project developments. Such projects assist greatly with alleviating poverty in a region and has the added benefit to the organisations involved of reduced carbon emissions and tax incentives, besides being credited with doing the right thing by going green and taking on a social responsibility. Energy Cybernetics Tel: +27 12 369 9880 Fax: +27 12 348 9175 E-mail: info@energycybernetics.com Website: www.energycybernetics.com

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Climate change finance is a hot topic on the lips of various international leaders, experts on climate and finance gurus alike. Investors are eager to get a slice of the cake as the emerging green economy will play a prominent role in the financial market, fuelled by attempts to mitigate the global impact of climate change by the global community. COP17 discussions The jury will be out on various key issues regarding climate change finance after the UNFCCC COP17 discussions in November. The carbon-

The jury will be out on various key issues regarding climate change finance after the UNFCCC COP17 discussions in November. trade market, as well as the Climate Change Fund, is listed as hot topics to be discussed during the event. “Decisions made at the event, like the signing of the Kyoto Protocol, will have an impact on the future of the carbon-trade market,” says Dr Yannick Glemarec, the United Nations Development Programme’s (UNDP) director of environmental finance. He recently talked about climate change finance at the University of Pretoria to introduce the UNDP book, Catalysing Climate Finance. He says if countries do not commit to the extension of the protocol, the trade in carbon emissions will decline. “If this happens, stakeholders will probably look to invest in the development of green technologies, rather than investing money in carbon credits, but new investment vehicles will be necessary.”

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The Africa group negotiations (AGN) also took place recently to discuss the continent’s position at COP17. The AGN again emphasised the need for leadership to drive all counties in committing to an extension of the protocol. Tosi Mpanu-Mpanu, chairperson of the AGN, says finance discussions at COP17 offer the opportunity for an enhanced common reporting framework for short-term finance, clarity about the long-term sources as well as the scale of finance available for developing countries, and the operationalisation of the Green Climate Fund and Finance Committee, as agreed in Cancun. “Africa is looking forward to a significant enhancement of funds pledged by the developed countries to assist developing countries in overcoming climate change challenges.” The eighth Brazil, China, India and South Africa (BASIC) ministerial meeting on climate change took place in Inhotim, Minas Gerais, recently.


CDM

The BASIC group’s ministers stressed the importance of ensuring an appropriate overview of the Green Climate Fund by the Conference of the Parties at COP17 in order to ensure its adequate management and timely disbursements to developing countries. They also considered work by BASIC experts on a common reporting format for rigorous, robust and transparent accounting of finances by Annex I parties. According to the ministers, a common reporting format for finances is a priority for COP17 to enable accounting of performance against the delivery of the quantified finance target of US$100-billion per year by 2020. The ministers also underlined the importance of ensuring the scaling up of finance up to and beyond 2020. They reiterated the need to ensure that the accounting of finances by all developed countries should be consistent, complete, comparable, transparent and accurate. According to the group of ministers, it is to get detailed and comprehensive information on fast-start financial flows provided by developed countries, which should be made available officially. They said the UNFCCC Secretariat should publish information on funding already disbursed under fast-start financing, as this relates to a multilateral commitment. An African perspective on green finance According to Glemarec, South Africa needs to get its ducks in a row if it wants to get its hands on Green Climate Fund money. “Developing countries such as South Africa need to create an attractive investment portfolio if they want to benefit from climate finance and technology transfers,” he says. “Not enough money that is available to mitigate climate change is invested in developing countries.”

He believes investments in clean energy and energy-efficiency could be a profitable endeavour for private companies. Yvo de Boer, executive secretary of the UNFCCC, also visited South Africa ahead of the COP17 negotiations. He pointed out that discussions at the conference will be critical, especially on topics relevant to the private sector, where dealing with climate change can have major cost-saving opportunities. He believes South Africa can utilize opportunities to develop renewable energy sources like solar water heating because the country has various natural resources at its disposal. He adds that South Africa has a naturalresource based economy and needn’t apologise for that. “However, the country does need to use these resources responsibly and must be held accountable for its practices.” Trading in carbon credits According to CDM Africa Climate Solutions, an advisory firm in climate change finance, the Clean Development Mechanism (CDM) programme is part of article 12 of the Kyoto Protocol. This is a mechanism through which a developed country can outsource part of its obligation to limit emissions to a developing country. It can also happen on industry level where, for instance, an installation in the European Union that is unable to comply with its emissions cap effectively pays a project developer in a developing country to undertake a project that will lead to a decrease in emissions. A Somali news website says the purchase and sale of carbon credits are relatively new concepts in Africa, accounting for less than three percent of the $144-billion global carbon-credit trade. The system is designed to

South Africa pledged to lower its greenhouse gas emissions by 34% before 2020 and by 42% by 2025, subject to financial and other help. South Africa pledged to lower its greenhouse gas emissions by 34% before 2020 and by 42% by 2025, subject to financial and other help. The country’s pledge, however, is hampered by the lack of financial aid and technology transfer, and is not alone as most developing countries are challenged in achieving their goals to reduce emissions.

reduce carbon emissions worldwide by allowing projects that produce low carbon emissions to sell credits to projects that want to reduce their carbon emissions under the Kyoto Protocol. This carbon trade is starting to pick up in African countries such as Kenya, where a Swiss company is one of many participants.

“Developing counties face three major challenges. One of them is access to international public finance, then using this finance to catalyze much larger private financial flows, and aligning climate change finance with development finance to ensure that efforts to address climate change support national development goals,” Glemarec says. “It will be difficult for developing countries to get access to finance if their national policies are not in line with global trends.”

De Boer has high hopes for reformation within the structure to make the CDM process more cost-efficient and effective. “Stakeholders should guard against piling up too much bureaucracy on bureaucracy.”

He urges governments to not only rely on the Climate Change Fund, but also to explore various other funding options to facilitate in making themselves investment-friendly. “Climate change finance is public-policy based, private finance.” According to him, governments should first try to use private money, and then use taxpayers’ money only when there are projects that private money cannot finance. Public policy costs money, to design and enforce the legislation, and that money has to be found from somewhere.

The Johannesburg Stock Exchange (JSE) is in the early stages of developing a concept framework for the voluntary trade of carbon credits, based on a research project about climate change and carbon markets conducted by the stock exchange. The framework includes the identification of prospective market participants and gaining their support, particularly on the demand side, for such credits. Once the framework is completed, the JSE will share its recommendations with all the relevant parties. Full acknowledgement and thanks are given to Dr Yannick Glemarec and Yvo de Boer for the information used in this article.

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The eyes of the world will be on Durban in November and December, when more than 20 000 delegates from the global community, representing 190 nations, will come to the city for COP17. Durban plays host to the largest gathering of an international community that will discuss climate change. This is also the biggest conference ever to be held on the African continent. The discussions will take place at the International Convention Centre (ICC). It is only the second time that COP will be held on African soil. Over the two-week period from 28 November to 9 December, Durban will have the opportunity to profile its own climate work and to demonstrate an African response to the specific impacts that climate change is likely to have on African cities. Carbon footprint of COP17 One of the requirements of the host country agreement with the United Nations Framework Convention on Climate Change (UNFCCC) is the calculation of the event’s carbon footprint.

on the event, the municipality is responsible for the calculation of the local carbon footprint of the event, and then finding ways to minimise the footprint. “The city appointed an experienced team to calculate the footprint. The team will be required to develop an estimate ahead of COP17, and then a full disclosure report based on actual data collected during the event.” He says the city will be looking to reduce energy consumption at major venues and in accommodation establishments to minimise the carbon footprint. “We will also ensure that other sources of carbon emissions, such as from transport, are reduced as far as possible.” Mofokeng says the carbon footprint of an event does not take into consideration the consumption of other natural resources such as water, food and energy. “Neither does it consider the ecosystem services that are needed to provide these resources. Such ecosystem services include water supply, energy production, food production and waste assimilation and dilution.” As part of the COP17 greening programme, the eThekwini Municipality will therefore aim to develop and test a methodology for calculating the ecological footprint of the event. “We hope the communication of this footprint will help to raise awareness of the full environmental impact of

Durban to showcase

According to Thabo Mofokeng, spokesperson for the eThekwini Municipality

Written by Nichelle Lemmer

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P ER S P EC TI VE S

COP17, and will also be pioneered as a new tool within the context of the COP17 greening programme to use in future events,” he says. Mofokeng says, the municipality will ‘engage the private sector with the provision of green accommodation and meeting facilities’. “At present, there are approximately 26 019 accommodation bedrooms in the greater Durban area, of which only 11 facilities are certified at one of the three prominent green tourism certification companies.” He explains that the city will pilot a Responsible Tourism Campaign that will actively promote the adoption of green tourism approaches by the accommodation sector.

Julie-May Ellingson, acting chief executive officer of the ICC, says the UNFCCC is positive about the ICC and the preparations for COP17. “We have more than met their space, technical and logistics requirements, reaffirming the ICC’s world-class status and our ability to host one of the biggest conferences in the world.” The ICC and Durban Exhibition Centre (DEC) will be the official UNFCCC precinct and will be declared an official United Nations site. Only UNFCCCaccredited delegates will have access to this precinct in order to participate in official negotiations. A number of pre-meetings and sessions will take place around Durban prior to the event.

Preparations on track As the host city, Durban will need to provide accommodation and sufficient transport to the city and between selected accommoda­tion establishments and key conference venues for up to 30 000 guests, and secure top quality ICT and broadcasting equipment. “We also have to arrange security for delegates and heads of states, while minimising security risks for citizens and arrange a number of side-events and activities,” says Mofokeng. “In all this, the city must also ensure that the conference is run in a low-carbon and environmentally-sustainable manner.”

Colin Benjamin, the information and communication technology (ICT) project manager of the eThekwini Municipality, says his department, which is working closely with the Department of International Relations and Co-operation (DIRCO), will be more than ready to host the event. “The city has the skill set and expertise, as well as a good understanding of what is required from an IT perspective.”

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and capacity-building process for local governments in order to focus on understanding and improving the profile of adaptation as a critical tool in achieving local developmental and sustainability objectives. Support from the regional office Discussions between Edna Molewa, Minister of Environmental Affairs and Zweli Mkhize, premier of Kwazulu Natal in September ended with the need to scale-up greening and legacy projects being mooted for the COP17. Blessing Manale, Deputy Director General for the COP17 Outreach and Communication programme says the impact of the conference on residents in the province should be maintained and sustained, beyond the conference. “This should include benefits for small players industries like tourism, arts, culture and more.” DIRCO is currently undertaking the procurement of service providers for the supply of technical equipment and resources that are required to complement the existing infrastructure. “At a city level, we are starting to mobilise the teams who will work on the implementation phase,” Benjamin says. He says the management of the entire project, including service providers and IT, once set up, will be the responsibility of the eThekwini Municipality, the United Nations and DIRCO. Site visits during COP17 Mofokeng says COP17 provides an opportunity for Durban to demonstrate its environmental approach through showcasing the city’s climate projects Site visits will be one of the tools used to provide an opportunity for delegates to see climate projects in action. According to Mofokeng, the city will be organising a number of site visits to showcase both mitigation and adaptation responses to climate change. Projects that are likely to be included in these site visits are the Buffelsdraai Community Reforestation Project, the Bisasar Gas-to-Electricity Project and the Durban Green Hub.

The province hosted the Provincial Climate Change Summit on 27 September to consolidate its contributions to the national negotiating position which are in final draft, ready for presentation to the national cabinet for approval. The Summit is one in a series planned across the country in collaboration with various provincial governments, to educate, inform, engage and raise awareness about climate change. The minister also had the benefit of receiving a briefing from C17 Civil Society Secretariat on preparations for non profit organizations (NGO) activities taking place in the lead-up to COP 17. The department committed to establish a Participation Fund to contribute to the costs of South African youth, women, rural communities, media and NGO participation, in global NGO preparations alongside the remaining pre-COP negotiations meeting, taking place in September and October. “With three months remaining ahead of COP 17, we believe that the interest of South Africa and those of the developing countries should not be compromised in Durban, and should endeavour to bring every stakeholder’s voice to the ears of our negotiators in securing a balanced outcome,” says Manale. Another perspective

“The Buffelsdraai Community Reforestation Project, for instance, combines social upliftment with the development of the green economy successfully,” Mofokeng says. He explains that the project relies on local communities to grow and then plant trees in order to restore important forest ecosystems in an area where such ecosystems have been lost, providing opportunities for both socio-economic and bio-diversity development and growth. Greener pastures In order to showcase its green colours, the city aims to take on green projects that will have a long-term legacy value. To achieve this, various municipal adaptation plans have been developed for the water, disaster management and health sectors. “Work is also being done in community adaptation, focusing on issues such as food and water security,” says Mofokeng. According to him, ecosystem-based adaptation is underutilised and a critical component of any response to climate change. “The municipality is currently developing projects that demonstrate how improving ecological integrity improves a city’s ability to deal with climate change.” He says that in addition, the municipality partnered with a number of local and international government organisations to undertake a global advocacy

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The Green Building Council of South Africa (GBCSA) will have a visual and active presence at COP17. They urge South African industries, businesses and the government to work together to achieve the mitigation potential offered by greening the built environment to set an example for the rest of the world. “On a global scale, buildings are responsible for about a third of all carbon emissions,” says Bruce Kerswill, executive chairperson of the GBCSA. “This means that one in every three tons of carbon released into the atmosphere is from buildings.” He says that at the previous climate talks in Cancun, Mexico (COP16) in 2010, South Africa committed to reducing its carbon emissions by 34% by 2020 and 42% by 2025. “Given that we are heavily reliant on coal for our electricity, one of the fastest and easiest ways to reduce our emissions is through the greening of our built environment.” Kerswill says that with the world on the country’s doorstep, watching to see what South Africa is doing in preparation for COP17, the GBCSA is working hard to develop and provide the tools to facilitate necessary change in the


P ER S P EC TI VE S

built environment in South Africa. The GBCSA is also developing rating tools for the many types of government-owned buildings. “The Construction Industry Development Board (CIDB), an agency of the Department of Public works (DPW), is contributing towards funding our latest rating tool, the Green Star SA Public Building Rating Tool, which is due for pilot release in October 2011.” Kerswill also notes that the GBCSA is currently working on an Energy and Water Benchmarking Tool and Certification Scheme, which will assist with and guide the industry on the essential energy and water retrofitting of existing buildings in South Africa. “The GBCSA is changing the way South Africa is built and we are calling on others to join us in showing the world that South Africa can and is being changed,” Kerswill says.

In addition to taking advantage of the limited opportunities to address some of the open sessions at COP – the talks are generally government-togovernment and not open to outside involvement – the National Business Initiative and Busa are also planning to organise a whole raft of events over the next six months. A space has been allocated to the Department of Environmental Affairs (DEA) adjacent to the Durban Exhibition Centre, where they plan to set up the Climate Change Response (CCR) Pavilion. This will be a designated exhibition area where South Africa’s response to initiatives within the country, conducted by SMME’s, NGO’s, corporate companies and government departments, can be displayed. The public will be invited to visit the CCR Pavilion to participate in the event.

Another organisation backing COP17 is the National Business Initiative of South Africa (NBI). They are examining ways for South African businesses to get the greatest mileage out of the event.

NBI and Busa also plan to make use of this to create a place where local businesses will be able to present their climate-change activities and events. The pavilion will provide a space for engagement and discussion on key issues for South Africa, such as water availability, changes to finance models and financial risks.

As the countdown to the event begins in earnest, South African businesses are keenly awaiting the announcement of the government’s plans to use the UN climate change talks in Durban to showcase the country and local business.

“There is an increasing international recognition that business and civil society have a lot to contribute. Climate-change finance will come from the private sector. Business is a key stakeholder,” commented Joanne Yawitch, the chief executive officer of NBI.

Business Unity SA (Busa), NBI and the chief executive officers of some of South Africa’s biggest businesses are working on ways to ensure business makes the most of South Africa’s position as host of the talks, including looking at how business can help Team SA to run a technically competent COP.

Full thanks and acknowledgement are given to the Green Building Council of South Africa and eThekwini Municipality for the information used in this article.

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Companies must budget

for an energy strategy This past winter, when numerous extreme cold fronts were hitting South Africa and office workers around the country were tinkering with their individual heating units, has emphasised the need for implementing a workable energy strategy. News bulletins continuously inform South Africans that energy is in short supply, while rumours of load-shedding just will not subside. There is no doubt that if small to medium-sized businesses have not yet considered a holistic energy strategy, there is no better time to do so than now. “A widespread myth surrounding energy-efficiency strategies is that an organisation’s role starts and ends with exchanging old light bulbs with energy-efficient versions,” says Asanda Makanda, managing director of the energy services company Manoa. “This couldn’t be further from the truth.” “Budgeting for a holistic energy strategy is the natural starting point,” she says. “Ideally, it should be built into an organisation’s building plans from the start in order to entrench the need for energy-efficient behaviour.” “With the introduction of the SANS 204 standards, a building’s energyefficiency has never been as important as it is now, and the time to consider your energy strategy is when you are building the actual structure or moving premises,” advises Makanda. SANS 204 outlines a code for energy-efficiency in order to limit energy consumption and to ensure that the country does not run out of base electricity-generating capacity. According to Makanda, a well-designed, well-budgeted energy-efficiency strategy provides clear and practical guidelines for the implementation of efficient practices, allowing for the immediate implementation of low-cost and no-cost interventions, as well as some higher-cost measures with short periods.

She adds that every business, especially big organisations, would undoubtedly benefit by having an energy policy and strategy for its portfolio of buildings/companies. Where to start Implementing an energy strategy begins with undertaking a feasibility study, which involves a thorough audit of the business’s energy usage and requirements. After that, an accurate budget can be suggested, which is intended to assist the business in beginning to save future losses as a result of energy expenditure and taxes. It is vital that both technical personnel and the leadership of the business agree on the process at this point, ensuring that a holistic solution is ultimately implemented, one that is the best for the concern at hand. “An energy strategy helps to ensure that an organisation is not wasting money, is reducing its carbon footprint and is benefitting from sustained financial savings,” explains Makanda. It involves creating a complete solution when taking into account every instance of energy usage. A holistic energy policy would include audits and suggestions regarding the legal aspects of energy, a cost of supply study covering – wires/ network costing and pricing, risk analysis, electricity market development and positioning in evolving markets, as well as tariff analysis, design and development – to name a few. “The ultimate aim in South Africa is to create energy strategies for sustainable development that are actually able to be implemented immediately, and which will have a noticeable impact on the environment,” concludes Makanda.

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e le c tri c it y

Hydropower industry information now readily available

Keeping track of developments in the hydropower industry is now easy after the launch of a new database detailing all microhydro installations in eastern and southern Africa. The database was recently introduced to visitors at the Hydropower Africa conference in Johannesburg. The web-based programme provides information on current developments and the content will be updated by hydropower-industry professionals on a regular basis. Wim Jonker Klunne, a senior researcher on rural energy and development at the CSIR, is the driving force behind this project. “Information on small hydropower in Africa is very sketchy and incomplete at the moment. It is not known how many installations do exist and where they are situated.” He says the aim of the database is to identify success stories of small hydroplants that have been in operation for a long time. “The success stories of these hydroplants can be used to develop implementation models for small hydropower that ensure sustainable operation.” He is surprised that such a robust, mature technology is mostly ignored. “There are many systems that operate with success without public knowledge. I regularly stumble upon existing plants when interacting with players in the field.” He defines small and microhydro as “run-of-river” installations that normally do not have storage reservoirs and are well suited to serve isolated rural communities, who are normally not connected to the national electricity grid. Microhydro ideal for rural development According to Jonker Klunne, most of the challenges in implementing small hydropower in Africa are related to regulations, financing, human and technical capacity. A lack of resource data just adds to the list. “The technology itself is not a problem as hydropower is a mature-proven technology.” Jonker Klunne is of the opinion that only a fraction of the potential that lies in this technology is utilised. “In China more than 100 000 microhydro stations are in operation.” He says success stories pertaining to microhydro installations can mostly be found in rural areas. “The installations found in Tanzania provide remote areas with electricity for productive uses, like lighting and entertainment.” According to him, microhydro is able to provide grid-quality electricity to rural communities to make a difference in their living conditions. “The utilisation of small hydropower potential lies in Mpumalanga, most of KwaZulu-Natal and the Eastern Cape regions,” says Jonker Klunne. “Water-conveyance systems, like the Lesotho Highlands Water System, also offer excellent opportunities for the development of the industry.” He says that although some successful examples of small hydro do exist in South Africa, the traditionally low electricity prices did not encourage people to develop potential sites. “The current shift in the country, with electricity prices rising, which creates an interest in renewable energy, that has certainly changed the situation.” Full acknowledgement and thanks are given to Hydropower Africa for the information used in this article. Vol 6 NR 5 2011

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SANEA Energy Awards:

Winners announced In the photo l/r: Mike Rycroft, Editor of Energize – SANEA Energy Journalism Award 2011; Dr Duncan Clarke, Chairman and CEO of Global Pacific & Partners – SANEA Energy Award 2011; Brian A Statham, Chairman of SANEA; Dr Tony Surridge of SANERI for the Atlas for Geological Storage of Carbon Dioxide in South Africa – SANEA Energy Project Award 2011; Dr Andrew Marquard of The Energy Research Centre of the University of Cape Town – SANEA Energy Education Award 2011.

According to Brian Statham, Chairman of SANEA, “The event itself was superb. Everything played out according to plan.” He further adds that: “There was a constant buzz of conversation going on between the people who had attended the event. This was excellent seeing that our motto is energy people working together.” Statham feels that the quality of nominations gets much higher every year. “Because you have such diversity it is important that you recognise the people who contribute to the energy environment. I am hoping to see more people being nominated each and every year.”

SANEA has announced the winners of its 2011 Energy Awards in each category. These are: SANEA Energy Award Category Award Dr Duncan Clarke of Global Pacific & Partners With 30 years’ experience in global energy and as founder of Global Pacific & Partners, a leading private advisory practice in worldwide petroleum, Duncan Clarke has been an advisor to numerous companies and governments on six continents. As an author of foundation research on world oil from the early 1980s, covering strategy, competitors, national oil companies and exploration in Africa, Asia, Latin America and the Mid East, he conducts annual strategy briefings on private/state oil companies worldwide, notably the landmark Scramble for Africa held in South Africa. SANEA Energy Journalism Category Award Mike Rycroft, the editor of Energize Journal, EE Publishers. A retired professional electrical engineer, Mike Rycroft joined EE Publishers in 2008 as the editor of Energize Journal.

“It’s amazing to see how much good work is being done around South Africa regarding energy. It is time that we start celebrating it.” – Brian Statham, Chairman of SANEA

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SANEA Energy Education Category Award Andrew Marquard of the Energy Research Centre at the University of Cape Town. The Energy Research Centre at the University of Cape Town undertakes a wide range of work, much of it with a focus on delivering public benefits. SANEA Energy Project Category Award Dr Toni Surridge The Atlas for Geological Storage of Carbon Dioxide in South Africa was launched by the Minister on 10 September 2010. This was the culmination of two years of work initiated by SANERI and undertaken by the Council for Geosciences with the assistance of the Petroleum Agency of South Africa and financially supported by PetroSA, Anglocoal, Eskom, Sasol and SANERI.

SANEA Tel: +27 31 368 8000 Website: www.sanea.org.za


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Big electricity and energy tradeshow on the calendar Africa Electricity, a big tradeshow on electricity and energy, is scheduled to take place on 15 to 17 November at the Gallagher Convention Centre. The Middle East Electricity Committee, a portfolio within Informa Group, is set to host the event. Global manufacturers and solution providers will get an opportunity to meet and network with senior government agencies, contractors, decision-makers as well as the private sector. The event will focus on providing the continent with alternative energy sources such as power, water, lighting, renewable energy and nuclear energy from countries including Germany, Turkey, France, India, the United Arab Emirates, Saudi Arabia and China. This will be one of the most comprehensive energy tradeshows in the region. “We believe it is an ideal time to bring the show to Africa as it coincides with the South African government’s plan to achieve universal access to electricity by 2012,” says Anita Matthews, an exhibition director of the show. “Over the past few years, South Africa has been battling with electricity shortages that led to regular power cuts,” she says. “This problem is shared by many other African countries. With exposure to alternative power sources from across the world, we believe the show will create hype in the African energy sector.”

With nearly one billion people, Africa accounts for over a sixth of the world’s population, but generates only 4% of the global electricity. The complex nature of today’s African electricity business will be one of the main subjects in the spotlight as some of the world’s leading upstream industry professionals will gather at this event. The Department of Minerals and Energy and Eskom have a policy called the national response to South Africa’s electricity shortage, which includes initiatives to work on the country’s electricity-distribution structure and fast-track electricity projects by independent power producers (IPPs). Exhibitors at Africa Electricity can use the opportunity to demonstrate their products and services to a high-quality audience, support local partners and network with key buyers. They can also launch new products and services, and source new suppliers or partners. Visitor registration is open to those within the industry at www.africaelectricity.com/register. The show is free to attend and by registering in advance a free show catalogue can be availed onsite at the event.

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Affordable telecoms solution

for rural Africa Jaco Coetzee

Mobile telecoms coverage in remote rural areas could be set to explode with the launch of field trials of a new hi-tech power plant that utilises the latest in hydrogen fuel-cell technology. The technology uses ordinary ammonia to extract hydrogen as a fuel source to efficiently power cellphone towers that have no access to main-grid electricity. The science could revolutionise the alternative energy-solutions market in the telecommunications industry worldwide. Currently it is estimated that 130 000 remote area towers are going up each year globally at a growing rate of more than 6%. This US$9,2-billion market is concentrated in Africa, Asia, the Middle East, Eastern Europe and South America. According to the auditing and business advisory firm Ernst & Young, the telecoms market in Africa alone is forecast to grow faster than in any other region. In its recent study, “Africa Connected, A Telecommunications Growth Story”, Ernst & Young said the telecommunications market in Africa is becoming increasingly competitive and that as competition increased, operational efficiency will take on greater importance for telecommunications operators. The latest hydrogen-from-ammonia fuel technology currently undergoing field tests is holding out the promise of 25% savings and total equipment cost recovery within two years. Conducted by UK-based Diverse Energy and the leading South African industrial gas company African Oxygen Limited (Afrox), the first field trials were taking place in a remote area of Namibia in 2010. Jaco Coetzee, head of special products and chemicals at Afrox, said: “Coverage in remote areas is very patchy and not cost-effective at present due to the need to power telecom towers using diesel generators, with all the inherent logistical and environmental emission issues on top. “What we are trialling with Diverse Energy, is their PowerCube® proprietary ammonia-cracker integrated system, which produces hydrogen for fuel cells. This compact energy source will replace polluting diesel generators, delivering higher efficiency and lower fuel and maintenance costs, while offering a 25% reduction in total cost of ownership over its five-year life, with a two-year return on investment.” And with the ammonia readily available from Afrox in most sub-Saharan countries, the “source-to-sink” calculations show an 80% reduction in greenhouse gas emissions compared to diesel generators, together with the elimination of noise and local pollution. “Ammonia is a cheap fuel with high power density,” said Coetzee “Hydrogen from ammonia dissociation would be the preferred option for small plants

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like PowerCube®. Millions of tons of ammonia are produced and distributed worldwide every year and the procedures for safe handling have been longsince developed and proven, making ammonia as a fuel source for use in rural areas perfect for Africa.” Recognition of the PowerCube® technology is growing rapidly, testament to which was it being named as the winner of the prestigious 2009 UK Government Innovation Award for the “Next Big Thing”. This led directly to the current Afrox/Diverse Energy field trials being partfunded by the UK government’s Technology Strategy Board. “The provision of cellphone communications is seen as an important enabler for new business development in rural regions and is capable of providing a boost to poverty-reduction measures. By lowering the total cost of ownership of rural off-grid cellphone towers, such expansion programmes can be accelerated,” said Coetzee. Having completed tests with Motorola in the UK, the current African trial with three telecoms operators in three different climatic zones involves 25 PowerCubes® to prove its capabilities Africa-wide. “These telecoms operators have the chance to trial the system at a cost no higher than our forward-projected sales price, allowing operators to get substantial first-mover advantage and experience the benefits of the PowerCube® without having to fund the full cost of a trial,” said Dr Alastair Livesey, the operations director of Diverse Energy. “Its adoption will bring many benefits when compared with diesel and solarpanel power, which have value on the black market. Potential thieves would have difficulty selling the ammonia tanks and wouldn’t be able to siphon from the tanks as they could with diesel. Between 15% and 22% of the diesel in Africa is lost to theft in this way.” The PowerCube® has by-products of about one litre per hour of highly purified water, which can be used for medical purposes, and 30 kilograms of fertiliser every three months. Livesey said these quantities are too small for operators to sell, so they will be used to help local rural communities instead. “This is a low-cost, environmentally-friendly solution for power in rural areas without access to electricity,” said Coetzee. “It will significantly expand Afrox’s customer base and lower the cost of ammonia in the emerging markets of Africa, where it is traditionally used in fertiliser and refrigeration. This project will revolutionise the telecoms industry in Africa and marks the start of Afrox becoming an alternate fuels company as well as a supplier of specialist gases, chemicals and welding equipment.” Afrox Tel: +27 11 490 0400 E-mail: jaco.coetzee@afrox.linde.com


e N ER GY EFF I C I EN CY

Environmental management laws amendment bill for public comment Edna Molewa, the Minister of Water and Environmental Affairs, published the National Environmental Management Laws Amendment (NEMLA) Bill of 2011 for public comment on 26 August 2011 in Government Gazette No. 34558, General Notice No 586.The NEMLA Bill of 2011 proposes amendments to certain provisions under the National Environmental Management Act (NEMA), National Environmental Management Biodiversity Act (NEMBA) and the National Environmental Management Air Quality Act (NEMAQA). The primary objective of the bill is to close the regulatory gaps identified during the implementation of NEMA, NEMBA and NEMAQA.

to aliens and listed invasive species. • To provide the minister with regulatory powers on biotraders involved in the exploitation of the country’s indigenous natural resources for commercial use. • To allow the DEA to keep all money arising from bioprospecting agreements in a separate fund for the benefit of communities and to provide for heavy penalties against offenders involved in bioprospecting of indigenous natural resources without the necessary permit under the act.

Some of the proposed amendments to NEMA include: • An amendment to provide a mandate for the minister to restrict or prohibit certain developments in certain geographical areas for a certain period of time on certain conditions. • A proposed new section on the preparation and publication of stateof-environment reports every four years by the national Department of Environmental Affairs (DEA), provinces, metropolitan and district municipalities. • An increase of the section 24G administrative fine from R1-million to R5-million..

Under NEMAQA it is proposed that penalties and offences for contravening regulations under the act are in line with other specific environmental management acts. Members of the public are invited to submit written comments to the minister within 30 days of publication of the notice in the Gazette to:

Proposed amendments to NEMBA are amongst others to clarify: • The minister’s regulatory powers pertaining to the sustainable use of threatened or protected species. • To provide for flexibility in the exercise of the minister’s powers relating

By post to: The Director-General: Environmental Affairs Attention: Mr Milton Ntwana, Private Bag X447, Pretoria, 0001 By fax to: +27 12 320 7561 • By e-mail to: mntwana@environment.gov.za Hand delivery: 315 Pretorius Street, corner of Pretorius and Van Der Walt Streets, Fedsure Forum Building, 2nd Floor, North Tower. Any inquiries related to the NEMLA Bill of 2011 can be directed to Sibusiso Shabalala on +27 12 310 3449. Note that comments received later than 16:00 on 26 September 2011 may not be considered. Visit: http://www.environment.gov.za

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CFL street lights win the day The Envirolight street light with its patented reflector system and ultra long-life compact fluorescent lamps (CFLs) has been evaluated as the most cost-effective technology for residential street lighting in a Nelson Mandela Bay energy-efficiency tender.

The following table is indicative of the present value costs of different technologies over a 15-year life cycle and is clear evidence of the failings of the scheme-price methodology, which would by its nature favour lower capital cost to the detriment of the overall long term cost to the municipality.

In an effort to maximise energy-efficiency and reduce operating costs, the Nelson Mandela Bay Municipality (NMBM) appointed consulting engineers SSI (who have extensive experience in environmental and energy resources) to evaluate the residential street-lighting tender.

In fact, had scheme pricing been applied, the 70 Watt HPS lamp would have been selected with more than 30% greater overall lifecycle cost being incurred.

In order to evaluate all technologies on a level playing field, the energyefficiency tender was firstly drawn up to ensure that the lux levels of the luminaires offered by tenderers would meet the road standards. This was followed by an assessment of a present-value full-life cycle costing over a 15-year period based on the capital cost of the luminaire together with the energy and maintenance costs.

The following table gives a fair representation of the lifecycle costing of various luminaires on Category B roads. Patented reflector technology The Envirolight street lights were developed by Lumotech (Pty) Ltd, formerly Hella SA (Pty) Ltd, using the technologies and skills developed in the precise optical design of automotive headlights. By utilising these skills, Envirolight was able to design and patent a reflector which optimises the use of light from the chosen light source. The 4-pin electronically ballasted CFL technology is used to maximise the energyefficiency with the minimal power wastage. The CFLs utilised have a high lumen per watt output (76 l/w), have a lamp life of 42 000 hours and carry manufacturer guarantees of 30 000 hours with no more than 10% lumen depreciation, thus ensuring consistent lighting over the life of the lamp. The luminaire carries an IP66 rating and is designed to only require maintenance at the time of lamp changes, which significantly brings down the ongoing costs.

In order to prove compliance with road specifications, all tenderers were required to supply a luminaire for formal testing under controlled conditions on a road at the Nelson Mandela Bay University. The lux levels at various points, both up, down and across the road in relation to the pole, were measured and verified. Compliant luminaires went through to the secondphase evaluation. SSI, together with the Nelson Mandela Bay Municipality, deviated from the so-called scheme-pricing method of evaluating tenders. Scheme pricing is inappropriate as a means of measurement for energy-efficiency as the methodology is aimed only at the capital cost of the luminaire and disregards luminaires utilising different lamp technologies and wattages, future energy costs, lamp life and future maintenance cost. Instead it bases the evaluation on the distance between poles and hence has no bearing on a retrofit programme where the poles are already in situ at a fixed distance.

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The long-life lamps provide significant maintenance savings via group replacement after seven years, when the lamps will have suffered minimal losses. This single factor not only reduces the logistical nightmare of replacing lamps on a random basis, but will also reduce the maintenance cost to a third of the existing cost. The luminaires have been designed with a dual support system to ensure that even in the highest winds or areas of vibration the lamps will remain in the precise operating position to optimise output. Envirolight Tel: +27 11 803 0637 Fax: +27 86 505 5551 E-mail: johnr@envirolight.co.za Website: www.envirolight.co.za


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New standard on energy usage in buildings to see the light of day Written by Nichelle Lemmer

Energy usage in buildings now takes centre stage, as new regulations on energy-efficiency will be included in the National Building Regulations and Building Standards Act. The regulations will create opportunities for South Africa to reduce the energy usage of buildings. Energy-efficiency in buildings can easily be achieved by introducing sensible and practical measures that save energy when new buildings are both designed and built. It is the responsibility of the National Regulator for Compulsory Specifications (NRCS), a new public entity responsible for the administration and maintenance of compulsory specifications and technical regulations in the interest of public safety, health, environmental protection and fair trade. This regulating body, which has been instrumental in the development of the regulations, reports to the Minister of Trade and Industry, Dr Rob Davies, and is behind the administration of the National Building Regulations and Building Standards Act to make sure that the building industry is on track when it comes to energy-efficiency. The Minister of Trade and Industry promulgated these regulations in the Government Gazette of 9 September 2011, after which the regulations now become mandatory legislation. The requirements set within will have to be satisfied before a building plan application can be approved. This legislation will become effective on 10 November 2011. Building practitioners who cannot meet these requirements due to the fact that they are already busy with the development of a submission, can apply to the local authorities’ building control officer for exemption from such legislation. This exemption period will cease to be available six months after the legislation is being enacted. The regulations cannot stand alone and hence the SABS and their technical committee has developed South African National Standards (SANS) to provide solutions to the legislation. These standards provide one solution that will satisfy the requirements of the law. New standards for energy usage in buildings published The new standard which will be used to regulate the energy usage in new

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buildings has recently been published, along with the revised SANS 204. The first section of the new standard, SANS 10400-X, is devoted to energyefficiency in buildings, and is called SANS 10400-XA. SANS 204 was first introduced to the building industry in 2008 to slowly lead the industry into a period of change, making sure that energy usage is reduced. Rudolf Opperman, a technical advisor for architecture and the national building regulations at the NRCS, gave a lecture on the impact of the new regulations at a recent Pretoria Institute for Architecture workshop. He says the building industry has to move towards using more sustainable methods and designs due to the shortage of resources in South Africa. “A few years ago the building industry had easy access to ample cheap electricity. Builders could depend on adequate clean-water supply and reliable and effective waste removal.” Opperman is of the opinion that this changed drastically as access to electricity, clean water and effective waste removal is not certain anymore. “The country has to overcome various challenges in these sectors. The building industry can be part of the solution as huge amounts of energy can be saved if buildings are designed from the beginning to become more energy-efficient and environmentally-friendly.” According to him, building resources take up to 40% of energy usage and 17% of freshwater usage. “About 25% of the wood harvested and 40% of the material produced are attributed to the building industry.” He is of the opinion that South Africa can learn from the energy-efficiency regulations that Germany implemented in their building industry in 1980. “Germany had a shortage of energy that led to energy-usage regulations. After the regulations were implemented, the mindset of the industry and citizens changed and over time the regulations got stricter. Today houses in Germany produce electricity that is sold back to the national grid and exported to other European countries.” Full acknowledgement and thanks are given to the SABS and NRCS for the information provided to write this article.


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INS INS TANT TANT UPDATE UPDATE

BASF included in the Dow Jones Sustainability Index For the eleventh year in succession, BASF was again included in the Dow Jones Sustainability World Index (DJSI World). The company received special recognition by the analysts for its sustainability engagement in genetically-modified organisms, product stewardship, environmental management system, climate strategy, and risk and crisis management. The DJSI World is the most important sustainability index and represents the top 10 percent of the 2 500 biggest companies in each industry included in the Dow Jones Global Index. “Our overall objective is to align economic success with environmental and social responsibility, which will ensure our long-term business success. This is why sustainability is a firm part of BASF’s strategy. The listing in the DJSI confirms that we are on the right path with putting this strategy into practice,” said Dr Ulrich von Deessen, climate protection officer and head of BASF’s competence centre for environment, health and safety. BASF Holdings South Africa (Pty) Ltd Tel: +27 11 203 2422 • Fax: +27 11 203 2430 E-mail: petra.bezuidenhout@basf.com Website: www.basf.co.za

Progress for UNFCCC Technology Executive Committee The first meeting of the Technology Executive Committee (TEC), the policy arm of the UNFCCC Technology Mechanism, was held in Bonn, Germany, recently. The meeting made important progress, with key deliberations on how the TEC will provide overviews of technology needs, assess policy and technical issues related to technology development and transfer, share information on new and innovative technologies, facilitate and catalyse action on technology, and find ways to engage stakeholders to build the momentum of the Technology Mechanism. “This is very good progress,” said United Nations (UN) climate change chief Christiana Figueres. “The goal of the Technology Mechanism can only be achieved through a wider and deeper collaboration among all countries with the active engagement of relevant stakeholders, including the research community, academia and, importantly, the private sector,” she added. The TEC elaborated on ways for the engagement of a wide range of stakeholders at international, regional and national level, including public institutions, the business community, academia and NGOs in conducting its work. The committee identified options for the engagement of stakeholders, including through participation in the TEC meetings as observers or expert advisers, where applicable.

I N STA N T

Members unanimously elected Gabriel Blanco from Argentina as chairperson and Antonio Pflueger from Germany as vice-chairperson of the TEC for 2012, giving them the mandate to collaborate closely in chairing meetings and in executing the work throughout the year to ensure coherence between the meetings. As the policy arm of the Technology Mechanism, the TEC has a key responsibility in laying the groundwork towards fully operationalising the mechanism in 2012. The Technology Mechanism was established at the UN Climate Change Conference in Cancun in December 2010, which was part of a set of institutions launched 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. It will operate through the Technology Executive Committee – the policy arm – and the Climate Technology Centre and Network, the mechanism’s implementation component. Its overarching goal is to sharpen the focus, step up the pace, and expand the scope of environmentally-sound technology development and transfer to developing countries in a highly qualitative way. For more information on the Technology Executive Committee, visit website http://unfccc.int/ttclear/jsp/TEC.jsp.

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I N S TAN T UPD AT E

Minister creates hype around climate change conference Written by Nichelle Lemmer Edna Molewa, the Minister of Water and Environmental Affairs, shared her excitement in hosting COP 17 with the media and delegates at a press briefing in August. The conference on climate change, which will attract an international audience, is due to take place in Durban from 28 November to 9 December. “I have the responsibility of leading the South African delegation in pursuing the country’s interest at the United Nations Framework Convention on Climate Change, COP 17 negotiations,” Molewa says.

7-Billion and counting The tremendous interest generated by the Day of 5-billion on 11 July 1987 led to the establishment of World Population Day as an annual event. For more than 20 years, 11 July has been an occasion to mark the significance of population trends and related issues. This year, as the world population is expected to surpass 7-billion, the United Nations Population Fund (UNFPA) and partners are launching a campaign called 7-Billion Actions. It aims to engage people, spur commitment and spark actions related to the opportunities and challenges presented by a world of 7-billion people. One of the issues to be discussed is the effect the increasing global population growth has on the availability of natural resources and climate change. The UNFPA says population issues are critical to understanding climate change and its consequences. Recent research and analysis show that the relationship is complex, deepening the understanding of population dynamics and climate change.

She listed three key priorities that the South African delegation has to focus on to gear up for the COP 17 negotiations. “One of our priorities is to look at South Africa’s negotiation position at the conference, which will be taken for approval to the cabinet in October.” According to her, the department will also look at the coordination and implementation of COP17 greening and legacy projects to create a culture of sustainable change in regards to climate change in the country. She says a public climate change outreach and mobilisation programme is also on the cards. “The programme will create a platform to engage South Africans in the upcoming conference and climate change.” Provincial summits will be held to kick-start the programme. Molewa’s call in April for a team effort from all the various departments to take part in the COP 17 preparations inspired various projects currently driven by the government. This ranges from natural resource management, energy, transportation systems, science and technology to agricultural case studies and social mobilisation. “The support we received from the business community and other agencies is encouraging.” According to the minister, the importance of discussions on how to manage climate change is highlighted by the fact that the International Energy Agency cited 2010 as the year with the highest recorded emissions. “This demonstrates the urgency with which the world has to deal with climate change.” She says South Africa is committed to find common grounds on the African continent to showcase a strong position in the COP 17 negotiations. “Africa is the continent most affected by climate change. It is important that the continent continues to speak with one voice.” According to her, this led to a series of preparatory meetings by the African group of negotiators that is on the agenda, one of which was held in Durban in August. The African Ministerial Conference will also be held in September in Bamako, Mali, to further emphasize common ground on the continent’s stand against climate change. The conference will be attended by various ministers from African countries to discuss climate change issues. Molewa is determined to turn the COP 17 conference into a success story. “We want the Durban conference to be a step towards a fair global regime on climate change, rather than to conclude a comprehensive agreement.” To do this, Molewa has to take action on unresolved issues from Bali in 2007, and the progress made in the Cancun discussions last year. The minister is also determined to drive the signing of the second commitment period of the Kyoto Protocol and to maintain a comparable emission reduction regime for non-Kyoto parties. She explains further that finance discussions should be an area of focus within the negotiations, particularly the design of the Green Climate Fund. Molewa takes South Africa’s stand against climate change serious. “We will implement appropriate mitigation plans to reduce carbon emissions by 34% in 2020 and 42% in 2025.”

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INS TANT UPDATE

Vaal University of Technology announces French-South African Schneider electric training centre

Jason Ullbricht, the vice-president of human resources at Schneider Electric Southern Africa. Vincent Baron, deputy counsellor and attaché for science and technology at the Embassy of France in South Africa. Prof Irene Moutlana, vice-chancellor of the VUT. Carl Kleynhans, the country president of Schneider Electric Southern Africa. Prof Alwyn Louw, deputy vice-chancellor of academic and research at the VUT.

Global energy management company, Schneider Electric South Africa, has teamed up with the French Ministry of Education and the Vaal University of Technology (VUT) to launch a centre aimed at training electricians, electrical technicians and electrical engineers. Named the French-South African Schneider Electric Training Centre, the new facility is in line with the Department of Higher Education and Training’s vision of accelerating artisan training across the country. This project has the support of the Embassy of France in South Africa, under the auspices of its partnership programme with the South African government, aimed at addressing the shortage of young, skilled South Africans. According to Prof Deon de Beer, executive director of technology transfer and innovation at the VUT, the purpose of the training centre is to provide a number of programmes in the field of energy, electricity and automation, from basic certification right through to advanced certifications that are equivalent to university graduate and postgraduate level studies. In addition, it is his vision that the centre will act as a hub from which to support and service the community, educational institutions and industry. “Once the centre is completed, we will be able to provide well-equipped facilities as well as intensive guidance and support to the students in order to ensure that they are well skilled and competent upon completion of their studies,” he explains. In terms of involvement in the centre, the French Ministry of Education, in collaboration with VUT, will provide infrastructure, manage the process and supply technical experts to spearhead curriculum development, while Schneider Electric South Africa will kit the centre out with state-of-the-art equipment needed for training and research.

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“Schneider Electric has also agreed to place qualified students into a working environment so that they can be mentored by a qualified artisan within the industry for a period of six months,” explains Carl Kleynhans, Schneider Electric South Africa’s country president. “This is to ensure that they display the necessary competence to operate successfully within this sector. “We truly believe that this initiative will assist in increasing our local skills pool, empowering graduates to start their own businesses and ultimately creating broader employment opportunities.” Furthermore, the Schneider Electric Foundation, an organisation under the auspices of the Foundation de France that is committed to concrete and sustainable training, reconstruction and awareness projects around energy management, has provided additional funding towards the total project from an infrastructure perspective. In line with the overall energy management theme, the VUT Department of Electrical Engineering is currently using solar energy to provide power to the centre of excellence in applied electronics. Solar energy is produced by using a system which includes solar tracking panes linked to fuel cells, which produce hydrogen gas from water and is then used to produce electricity. The French-South African Schneider Electric Training Centre is due to enroll its first intake of students in September this year. Schneider Electric Jacqui Gradwell Tel: +27 11 254 6400 E-mail: jacqui.gradwell@schneider-electric.com Website: www.schneider-electric.co.za


ENERGY EVENTS october

november

The Sustainable Energy Seminar Date: 12 October 2011 Location: Johannesburg, South Africa Tel: +27 21 447 4733 E-mail: info@energy-resource.co.za Website: www.energy-resource.co.za

Advanced Contract Management for Infrastructure, Resources & Energy Projects Date: 3 – 4 November 2011 Location: Johannesburg, South Africa Tel: +65 6293 8355 Fax: +65 6336 1716 E-mail: mingfing.sia@salvoglobal.com Website: www.salvoglobal.com/advconmngt.asp

Viridis Africa 2011 Date: 17 – 18 October 2011 Location: Johannesburg, South Africa. Contact: Suza Adam, Spindle Communications cc Tel: +27 11 880 0364 Fax: +27 11 788 3697 E-mail: suza.adam@spindlecommunications.com Website: www.viridisafrica.com

Africa Electricity Date: 15 – 17 November 2011 Location: Johannesburg, South Africa Tel: + 971 4 336 5161 Fax: + 971 4 335 3526 E-mail: africaelectricity@informa.com Website: www.africaelectricity.com

China Sourcing Fair: Solar & Energy Saving Products Date: 30 December – 2 December 2011 Location: Johannesburg, South Africa Website: http://tradeshow.globalsources.com 17th Conference of the Parties to the UNFCCC & 7th meeting of the parties to the Kyoto protocol Date: 28 November – 9 December 2011 Location: Durban, South Africa Contact: UNFCCC E-mail: cop17cmp7@durnan.gov.za Website: http://www.cop17durban.com/Pages/ default.aspx 2012 Energy Indaba 2012 Date: 21 – 23 February 2012 Location: Johannesburg, South Africa Contact: Mabel Modipa E-mail: mabel@siyenza.za.com Website: www.siyenza.za.com

Treatment Plant Hydraulics Masterclass Date: 17 – 18 October 2011 Location: Johannesburg, South Africa Contact: Global Prospectus Training Tel: +27 33 391 4229 E-mail: michaelj@globalprospectus.co.za Website: www.globalprospectus.co.za

Rural Electrification Forum Date: 15 – 17 November 2011, Location: Maputo, Mozambique Contact: José Monteiro Tel: (+34) 91 373 0264 E-mail: jose.monteiro@spintelligent.com Website: www.ruralelectrificationforum.com

Africa Green Energy & Environment Summit & Exhibition 2011 Date: 17 – 20 October 2011 Location: Lagos, Nigeria Contact: Secretariat Tel: +234 1 291 2860 E-mail: info@africagreenenergysummit.com Website: www.africagreenenergysummit.com

South African Energy Efficiency Convention 2011 Date: 16 – 17 November 2011 Location: Johannesburg, South Africa Contact: Erika Kruger Tel: +27 18 290 5130 E-mail: convention@saee.org.za Website: www.saeec2011.org.za

Water Investment World Africa 2011 Date: 25 – 28 October 2011 Location: Johannesburg, South Africa Contact: Brian Shabangu Tel: +27 11 463 6001 E-mail: enquiry.za@terrapinn.com Website: www.terrapinn.com/2011/waterza /index.stm

Powering Africa – The Strategy Summit Date: 22 – 24 November 2011 Location: Cape Town, South Africa Tel: +44 1179 737758 E-mail: andrew.bell@estratevents.com Website: www.esepoweringafrica.com

Power & Electricity World 2012 Date: 26 – 29 March 2012 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

9th Maghreb Mediterranean oil & gas week Date: 28 – 30 November 2011 Location: Marrakech, Morocco Contact: Rue Limekhaya Tel: +27 21 700 3500 Fax: +27 86 551 8811 E-mail: rue.limekhaya@spintelligent.com Website: www.glopac-partners.com/welcome

13th Southern Africa Oil, Gas & Energy Week 2012 Date: 28 – 30 May 2012 Location: Johannesburg, South Africa Contact: Amanda Wellbeloved Tel: +27 11 880 7052 E-mail: amanda@glopac-partners.com Website: www.petro21.com/events/?eventid=724

18th Africa Oil Week Date: 31 October – 4 November 2011 Location: Cape Town, South Africa Contact: Rue Limekhaya Tel: +27 21 700 3500 Fax: +27 86 551 8811 E-mail: rue.limekhaya@spintelligent.com Website: www.glopac-partners.com/welcome

3rd Eastern African Oil, Gas & Energy Week 2012 Date: 26 – 28 March 2012 Location: Nairobi, Kenya Contact: Tanya Beddall Tel: +31 70 324 6154 E-mail: tanya@globac-partners.com Website: www.petro21.com/events/?eventid=746

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