CIAB Market & Policy developments 2005/06 - IEA

years. Interdepartmental co-operation on CCS is also receiving the attention of the
Department of Environmental Affairs and Tourism (DEAT), the Department of Science
and Technology (DST), the Department of Trade and Industry (DTI) and the Central
Energy Fund (CEF) through the South African Energy Research Institute (SANERI).
There is potential for CCS in South Africa and follow up on the location and
characterisation of such potential sites is underway.
331. Eskom has successfully commissioned an underground coal gasification pilot plant next
to Majuba power station, following extensive studies and test work that started in 2001.
The underground coal gasification process uses a matrix of wells drilled into the coal
bed. Air is injected and the coal is ignited underground, producing a synthetic gas, which
is harvested and then used as a fuel for either boilers or turbines. Gas from the pilot
plant was successfully flared in January 2007, demonstrating that the process works.
332. As a continued contribution to the South African Government Department of Minerals
and Energy's Energy Efficiency Strategy, industry has continued with the Energy
Efficiency Accord.
333. Eskom is undertaking an aggressive national demand-side management (DSM)
programme intended to effect permanent reductions in demand of approximately
3,000MW by 2012 and a further 5,000MW in the subsequent 13 years to 2025. The
programme’s objective is to alleviate imminent supply constraints and obviate the need
for more costly supply options that are currently under consideration.
Germany
334. In August 2007 a new information centre IZ Klima (Informationszentrum
klimafreundliches Kohlekraftwerk www.iz-klima.de) was set up in Germany to establish a
platform for the exchange of information on the development of CO 2 -free power plants as
well as to research the technological and economic potential of this technology. IZ Klima
was founded by seven companies: Alstom Power, EnBW, E.ON, Hitachi Power Europe,
RWE Power, Siemens Power Generation, and Vattenfall Europe. Several ministries, and
research institutes from Potsdam and Hamburg, are also represented on the advisory
board.
335. The early 2007 EU Commission Energy Strategy paper requires 12 large scale
demonstration power plants with CCS technology to be in place by 2020. To reach this
goal, several German energy companies are already working on pilot projects and
demonstration power plants - some including the whole CO 2 chain from combustion to
storage.
336. Estimates made by energy institutes as preparation for energy programme talks in
Germany suggest that a market driven breakthrough of CCS could happen at CO 2
emission permit prices above €36/tonne CO 2 . RWE Power is taking a lead role in
building a 450 MW IGCC CCS demonstration plant which will go on stream in 2014 and
includes storage. A second project has been launched by Vattenfall, and E.ON is also
planning to invest heavily in clean coal technology.
Spain
337. A CCS research platform involving the electricity and oil industries and several research
institutions has been created in Spain. It is intended to develop a CO 2 capture and
storage project at a 320MW ELCOGAS IGCC plant currently in commercial operation.
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