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sectoral economic costs and benefits of ghg mitigation - IPCC

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Energy Intensive Industries<br />

SANEA (1998) states that this will be achieved by creating awareness <strong>of</strong> the <strong>benefits</strong> <strong>of</strong>, <strong>and</strong><br />

creating <strong>economic</strong> incentives for, energy efficiency. However, barriers do exist in terms <strong>of</strong> lack<br />

<strong>of</strong> awareness, lack <strong>of</strong> information <strong>and</strong> skills, high <strong>economic</strong> return criteria <strong>and</strong> capital <strong>costs</strong>.<br />

Various industries tend to draw on different sources <strong>of</strong> energy, as shown below:<br />

Table 2 Types <strong>and</strong> Amounts <strong>of</strong> Energy source by South African Industries in 1996<br />

Sector Energy Source Quantity<br />

Chemical <strong>and</strong> Petrochemical Coal 250 PJ<br />

Iron <strong>and</strong> Steel Coal 160 PJ<br />

Mining <strong>and</strong> quarrying Electricity 120 PJ<br />

Non-ferrous metals Electricity 47 PJ<br />

Non-metallic minerals Coal 30 PJ<br />

Transport equipment Natural Gas 0.2 PJ<br />

Machinery Natural Gas 4.5 PJ<br />

Food <strong>and</strong> Tobacco Electricity 1.75 PJ<br />

Pulp, paper <strong>and</strong> print Electricity 3.5 PJ<br />

Wood <strong>and</strong> wood products Electricity 2 PJ<br />

Textile <strong>and</strong> leather Electricity 1.75 PJ<br />

Construction Oil 13 PJ<br />

Source: SANEA, 1998<br />

Table 3 Electricity Sales to Industry in 1990 <strong>and</strong> in 1996<br />

Sector GWh (1990) GWh (1996)<br />

Agriculture 339 1850<br />

Textiles 366 490<br />

Wood <strong>and</strong> wood products, paper <strong>and</strong> paper products 1326 1559<br />

Chemicals 7966 9 358<br />

Non-metallic minerals 1194 1144<br />

Metals <strong>and</strong> machinery 114 125<br />

Iron <strong>and</strong> steel 14298 15613<br />

Precious <strong>and</strong> non-ferrous metals 6040 13244<br />

Other 7295 8241<br />

Source: Eskom Statistical Yearbook, 1996<br />

Table 4 Electricity Sales to Mining in 1990 <strong>and</strong> in 1996<br />

Sector GWh (1990) GWh (1996)<br />

Gold <strong>and</strong> uranium 24034 21 565<br />

Diamond 738 707<br />

Coal 2323 2732<br />

Platinum 4387 5541<br />

Copper 1223 1111<br />

Chrome 151 146<br />

Asbestos 141 53<br />

Iron 325 343<br />

Manganese 140 131<br />

Other 882 742<br />

Source: Eskom Statistical Yearbook, 1996<br />

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