Green Economy Journal Issue 56

G R E E N 

Economy 

journal 

ISSUE 56 | 2023 

Protecting, conserving, improving 

ENVIRONMENTAL 

& NATURAL RESOURCES 

Forestry, Fisheries 

& THE ENVIRONMENT

A QUIET MIRACLE IN THE LITTLE KAROO 

RECONNECT WITH THE MAGIC OF SIMPLY BEING IN NATURE. 

Conserving an ancient heritage while preserving threatened ecosystems 

and sensitive landscapes, Sanbona offers a sustainable eco-tourism safari 

to explore 58 000 hectares of unbroken Little Karoo country just 

3 hours outside of Cape Town, along Route 62. 

Sharing the regions unique and rich biodiversity, the reserve takes 

a holistic approach to offer a complete nature and wildlife experience. 

Malaria-free and more than just a Big Five wilderness reserve, 

disconnect at one of three intimate Lodges where time stands 

still and nature takes centre stage. 

T +27 (0) 21 010 0028 E reservations@sanbona.com www.sanbona.com

12 

G R E E N 


journal 

ESG | MINING 

WATER | ENERGY 

INFRASTRUCTURE 

38 

52 

CONTENTS 

7 NEWS AND SNIPPETS 

BIODIVERSITY 

12 The Department of Forestry, Fisheries and the Environment 

(DFFE) explains how climate change weakens economic and 

social systems 

ECONOMY 

14 Southern Africa’s abundant resources can fuel a successful 

green economy says the DFFE 

MINING 

16 Could the metals shortage derail the energy transition? 

20 Climate change and tailings management 

24 The role of the Council for Geoscience in the just energy 

transition to low-carbon economy 

27 Consequences of the Eskom tariff increases 

28 Project funders looking at human rights in due diligence 

30 Mining for a green economy 

32 Responsible mining demands multidisciplinary teams 

36 Lithium’s next big risk is grand supply plans falling short 

MOBILITY 

38 Electric cars on the 2023 highway 

ENERGY 

42 Long-duration energy storage 

45 Lithium iron phosphate batteries: the solution to securing 

connectivity during loadshedding 

47 Superior technology: stationary energy storage 

48 Green hydrogen: how SA can capitalise on it, and why we need 

to do it now 

52 Power to the people 

WASTE 

54 Waste management is key to a healthy environment 

57 Hazardous waste: the 11-million elephants in the room 

YOUTH 

59 Youth play an important role in developing a green economy 

61 DQS Academy 

SKILLS 

62 Clean energy work shift 

66 Green growth: FP&M Seta 

68 Wind industry internship programme reflects the country’s 

energy sector growth 

3

PUBLISHER’S NOTE 

Dear Reader, 

The economy generally and the mining sector in particular, continues to 

be hamstrung due to generation shortfalls leading to loadshedding and 

curtailments. And of course, we all know power will increase in cost by 18% 

in April, and in addition Eskom is seeking a structural billing change that will 

allow them to charge an expanded grid use fee. 

The imperative to move to self-generation has never been stronger, and 

many large energy users are already procuring solar PV and wind-generated 

power from IPPs or establishing such projects at their sites. But uptake of 

battery energy storage at the large scale remains muted due to cost. 

Batteries are expensive, but so is being curtailed, and leading IPPs are 

working on models to offer large-scale battery energy storage systems along 

with renewable generation. We expect offers to emerge in the near future 

where these hybrid systems can be made available at a cost/kWh that will 

match Eskom tariffs. This represents a massive leap forward for autonomous 

energy for mining and industry. 

Watch this space! 

Publisher 

EDITOR’S NOTE 

In the shift to more sustainable industries, be they in mining, manufacturing 

or electricity generation, South Africa needs to ensure that it, and the region, 

is not left behind. Southern Africa is uniquely positioned to benefit from the 

opportunities in the green economy. 

The Department of Forestry, Fisheries and the Environment says on page 14 

that this will require a paradigm shift in the approach to development and 

government priorities so that the contribution to greenhouse gas emissions 

can be mitigated and the region can begin the long road to adapting to the 

impacts that lie ahead. 

Shocks in the oil and natural gas markets, followed by those in agricultural 

commodities, have dominated the headlines since sanctions were imposed 

on Russia. But the preoccupation with these shocks has obscured how 

sanctions are affecting the metal markets. 

Sanctions could have longer-term consequences for everything from the 

sustainability of mining operations to the functioning of the manufacturing 

base. These supply chain disruptions are compounding the price pressures 

associated with the global shift to an electric economy (page 16). 

There’s broad agreement that lithium supply is heading for a major increase 

in 2023 as a wave of expansions or new projects get up and running. The 

divisive issue is whether less-established producers will be able to deliver 

in full, defying a range of regulatory, technical and commercial challenges. 

Read about the unreal pace of lithium’s expansions on page 36. 

Taking a step back, it is easy to dismiss the hurdles the supply chain faces 

when looking at exponential sales data. While it is expected that the capacity 

of current and future giga factories will be enough to support 36-million 

battery-electric cars per year by 2030, looking further upstream, particularly 

at lithium, there is uncertainty. What is becoming clear is the downsizing of 

battery capacities per vehicle while maintaining vehicle ranges will be key. 

Read more in Electric cars on the 2023 highway on page 38. 

Lithium-ion technology does not offer long-duration energy storage 

capabilities, however. Our article on page 42 categorises the options for longduration 

energy storage excluding pumped hydro and hydrogen. Hydrogen 

is explored on page 48. 

Enjoy this issue! 

Alexis Knipe 

Editor 

4 

G R E E N 


journal 

EDITOR: 

CO-PUBLISHERS: 

LAYOUT AND DESIGN: 

OFFICE ADMINISTRATOR: 

WEB, DIGITAL AND SOCIAL MEDIA: 

SALES: 

PRINTERS: 

GENERAL ENQUIRIES: 

ADVERTISING ENQUIRIES: 

Alexis Knipe 

alexis@greeneconomy.media 

Gordon Brown 

gordon@greeneconomy.media 

Alexis Knipe 


Danielle Solomons 

danielle@greeneconomy.media 

CDC Design 

Melanie Taylor 

Steven Mokopane 

Gerard Jeffcote 

Glenda Kulp 

Nadia Maritz 

Tanya Duthie 

Vania Reyneke 

FA Print 

info@greeneconomy.media 


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VAT NUMBER: 4750243448 

PUBLICATION DATE: February 2023 

www.greeneconomy.media 

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or 

in any form without the prior written permission of the Publisher. The opinions expressed herein 

are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions 

are accepted on the understanding that the contributor either owns or has obtained all necessary 

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by or on behalf of any organisations or products. Please address any concerns in this regard to 

the Publisher. 

WHEN WE INVEST IN 

INFRASTRUCTURE PROJECTS 

THAT ADDRESS 

CLIMATE CHANGE, 

WE BEND THE ARC OF HISTORY 

TOWARDS SHARED PROSPERITY 

The DBSA’s Climate Finance Facility (CFF) is dedicated to increasing climate related investment in Southern 

Africa by playing a catalytic role using a blended finance approach. The CFF will use its debt capital, co-funded 

by the Green Climate Fund, to fill market gaps and target green infrastructure projects in the mining and private 

sector. This is part of our commitment towards the mitigation and adaptation to climate change, promoting a 

greener economy and driving sustainability in the mining sector. 

We are DBSA. Building Africa’s Prosperity 

www.dbsa.org • +27 11 313 3911

NEWS & SNIPPETS 

At Pele Energy Group, we are in the business of sustainability. 

Building and enabling the communities in the locations in 

which we operate. Not only do we build, own and operate 

renewable energy operations, but we develop the surrounding 

communities as well. Touws Rivier Commercial Hydroponic 

Farm (TCHF) is our inaugural hydroponic agri development in 

Touws Rivier, surrounding our CPV1 solar plant. 

Understand more about our sustainability offering on: 

www.peleenergygroup.com 

info@peleenergygroup.com 

BALANCE OF POWER 

South Africa has renewed its interest in securing electricity 

supply from Turkey’s Karpowership as it faces its worst-ever 

power outages. Karpowership could deploy its plants, which 

produce electricity from ship-mounted generators, to supply 

between 700MW and 800MW by the second quarter of 2023. 

While it’s unclear what legal mechanism the government could use 

to secure energy from Karpowership, the power-crisis committee set 

up by Ramaphosa says “emergency legislation" is being considered 

to fast-track electricity supply. 

The earlier agreement Karpowership secured as part of a 2021 

emergency tender for 2 000MW of electricity has been hindered 

by lawsuits and environmental activists. A major objection has 

been that the emergency contract has a 20-year duration and also 

that Karpowership would supply its energy from ship-mounted 

gas-fired power plants that would emit carbon and disrupt ocean 

life. The Department of Minerals and Energy supports the project. 

Karpowership recently refiled an appeal and will get a decision on 

its application to proceed with the projects from the Department of 

Forestry, Fisheries and the Environment by March this year. 

[Bloomberg, January 2023] 

CORRUPTION, SABOTAGE AND DEBT 

The South Africa Electricity Generation Industry 2022 report 

on the generation of electricity in South Africa includes 

comprehensive information on the extent of the crisis, 

actions and projects aimed at relieving it and the sources of 

generation that are planned. There is information on the state 

of the sector, the role of Eskom and the effect of its financial 

and operational crisis and renewable energy and embedded 

generation developments. 

Electricity generation in South Africa 

South Africa’s electricity crisis has worsened as power cuts, which 

began in 2007, escalated in 2022. The percentage availability 

of South Africa’s total installed capacity of 53.7GW at the end 

of 2021 fell to below 60% in October 2022 as Eskom’s coal-fired 

power stations continue to break down, resulting in power cuts 

to prevent the electricity grid from collapsing. The crisis has been 

compounded by Eskom’s debt of about R400-billion and the 

need for the country to transition from coal to renewable energy. 

Corruption, sabotage, increasing unpaid debt of municipalities 

and a loss of skills threaten Eskom’s viability. 

AIR LIQUIDE AND SASOL GO LARGE 

The two companies have signed two Power Purchase 

Agreements (PPA) with Enel Green Power for the long-term 

supply of a total capacity of 220MW of renewable power to 

Sasol’s Secunda site, where Air Liquide operates the biggest 

oxygen production site in the world. These PPAs are the first 

results of the Request for Proposal (RFP) process launched 

jointly by Air Liquide and Sasol in 2021, for the procurement 

of a total capacity of 900MW of renewable energy. They will 

significantly contribute to the decarbonisation of the Secunda 

site, and to the targeted reduction by 30% to 40% of the CO2 

emissions associated with the oxygen production by 2031. 

Within the framework of these agreements with Air Liquide 

and Sasol, two local majority owned wind projects will be created 

by Enel Green Power, the Enel Group subsidiary dedicated to 

the development and management of power generated from 

renewable resources worldwide. The 220MW wind-powered 

renewable electricity production capacity is scheduled to be 

operational in 2025. 

“Sasol and Air Liquide’s efforts to procure a total of 900MW of 

renewable energy to decarbonise our respective operations at 

Secunda is another step towards Sasol’s aim to procure 1 200MW 

of renewable energy capacity from IPPs by 2030, representing 

one of the largest renewable energy procurement programmes 

from the private sector in South Africa”, says Priscillah Mabelane, 

executive vice president of Sasol’s energy business. “Our work in 

the renewable energy space to secure PPA partners demonstrates 

the real progress Sasol is making towards its decarbonisation and 

ultimately, the development of a green economy.” 

Sasol South Africa and Msenge Emoyeni Wind Farm signed a 

long-term contract for the supply of 69MW of renewable energy to 

the company’s Sasolburg site. The PPA between Sasol and Msenge 

is the first of several agreements Sasol intends to finalise soon as 

it secures the renewable energy supply required to produce 

green hydrogen. 

Sasol is leading South Africa’s just energy transition and the 

development of a hydrogen economy. The production of green 

hydrogen, using renewable energy, is key to unlocking this 

opportunity. The renewable energy generated by Msenge will 

enable Sasol to produce green hydrogen that can be supplied to 

customers to enable them to decarbonise their operations or will 

be utilised within Sasol’s own operations to produce sustainable 

products such as ammonia or methanol. 

Sasol will progressively shift away from coal and towards gas 

as a transitionary feedstock, and then to green hydrogen and 

sustainable carbon over the longer term. 

7


The National Energy Regulator of South Africa 

(NERSA) ensures the orderly development of the 

energy sector, mainly through licensing, setting and 

approving of prices and tariffs, compliance 

monitoring and enforcement, and dispute resolution 

in the electricity, piped-gas and petroleum pipelines 

industries. 

NERSA endeavours to be more innovative and agile 

in ensuring that we continue to make a valuable 

contribution to the socio-economic development 

and prosperity of the people of South Africa, by 

regulating the energy industry in accordance with 

government laws, policies, standards and 

international best practices in support of sustainable 

development. 

NERSA is a regulatory authority established as a 

juristic person in terms of section 3 of the National 

Energy Regulator Act, 2004 (Act No. 40 of 2004). 

NERSA’s mandate is to regulate the electricity, 

piped-gas and petroleum pipelines industries in 

terms of the Electricity Regulation Act, 2006 (Act No. 

4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and 

Petroleum Pipelines Act, 2003 (Act No. 60 of 2003). 

NERSA’s mandate is further derived from written 

government policies and regulations issued by the 

Minister of Mineral Resources and Energy. NERSA is 

expected to perform the necessary regulatory 

actions in anticipation of and/or in response to the 

changing circumstances in the energy industry. 

The Minister of Mineral Resources and Energy 

appoints Members of the Energy Regulator, 

comprising Part-Time (Non-Executive) and Full-Time 

(Executive) Regulator Members, including the Chief 

Executive Officer (CEO). The Energy Regulator is 

supported by staff under the direction of the CEO. 

@NERSAZA 

@NERSAZA 

Kulawula House, 526 Madiba Street, Arcadia, 0083 

PO Box 40343, Arcadia, 0007 

Tel: 012 401 4600 | Fax: 012 401 4700 

Email: info@nersa.org.za 

Website: www.nersa.org.za 

Thembani Bukula 

Chariperson 

Adv Nomalanga Sithole 

Chief Executive Officer 

and Full-Time Regulator 

Member 

Nomfundo Maseti 

Full-Time Regulator 

Member : Piped-Gas 

Thembeka Semane, 

Part-Time Regulator 

Member 

Precious Sibiya, 


Member 

Zandile Mpungose 

Deputy Chairperson 

Nhlanhla Gumede 


Member : Electricity 

Muzi Mkhize 


Member : Petroleum 

Pipelines 

Fungai Sibanda, 


Member 

ESKOM ON LOADSHEDDING 

Eskom substantiates that the high levels of loadshedding is 

being implemented to ensure the appropriate reserve margins 

are maintained to manage the risk of a blackout, and that the 

outages do not indicate an approaching blackout. 

Eskom is grappling with deep structural and maintenance 

problems in its current and ageing fleet of generators, which 

are on average 45 years old (they have a 50-year operating life). 

Adding capacity is the only possible solution to the blackouts. 

The shortfall is currently estimated at 4 000MW to 6 000MW of 

generation capacity. This supply deficit can only increase as the 

current fleet’s performance continues to deteriorate. 

Eskom states that it is struggling to execute maintenance of 

the power station fleet to improve reliability of the generating 

units and to improve the energy availability factor. Planned 

maintenance, currently at 6 022MW (approximately 11% of 

installed capacity), is optimised during summer and tapers off 

towards the high-demand winter period. 

The plan is to return 6 000MW of generating capacity onto the 

grid during the next 24 months. Six power stations have been 

targeted with a detailed recovery plan for each one. 

Medupi Power Station, which suffered a generator explosion 

during August 2021, is anticipated to return to service during 

September 2024. Eskom continues to explore options to reduce 

the time to repair the unit. 

The Kusile Unit 1 flue duct (chimney) failed in October 2022 This 

incident compromised the adjacent units’ flue duct bends, making 

all inoperable. This removed a total of 2 160MW from the power 

system. Temporary flues for the units will be constructed to help 

return the units to service while repairing the common chimney. 

The construction of the temporary stack will take up to 12 months. 

Together, the Kusile units, combined with Medupi 4, are 

responsible for the shortfall of approximately 2 900MW in 

generation capacity – equivalent to three stages of loadshedding. 

Koeberg Nuclear Power Station will continue operating at half 

of its 1 800MW generating capacity for the next 15 months. Unit 

1 is currently on a regular refuelling and maintenance outage that 

will include the replacement of the three steam generators as 

part of the requirement and preparation of the unit for long-term 

operation. It is anticipated the unit will return to service during 

June 2023. 

Koeberg Unit 2 will undergo a similar outage starting in 

September 2023. It is anticipated this will take approximately six 

months to execute. Upon successful execution, the combined 

investment in both Koeberg units will secure 1 800MW of 

generation capacity for a further period of 20 years. 

The gas air heater fire of Unit 5 of Kusile removed a possible 

720MW from the grid. Efforts are being made to expedite the 

repairs and to bring the unit online within the shortest space of 

time. It is anticipated the unit will be synchronised to the grid 

during July 2023. 

Together, these long-term projects and breakdowns have set 

Eskom back 4 500MW of generation capacity, equivalent to five 

stages of loadshedding. 

ENERGY ACTION PLAN UPDATE 

The Energy Action Plan was developed through extensive 

consultation and endorsed by energy experts as providing 

the best and fastest path towards energy security. National 

Energy Crisis Committee (NECOM) has since been established 

to coordinate government’s response and ensure swift 

implementation of the plan. 

Steps taken include: 

- Schedule 2 of the Electricity Regulation Act has been amended 

to remove the licensing requirement for generation projects, 

which will significantly accelerate private investment. 

- Since the licensing threshold was first raised to 10MW, the 

pipeline of private sector projects has grown to more than 100 

projects with over 9 000MW of capacity. The first of these largescale 

projects is expected to connect to the grid by the end of 

this year. 

- NECOM has instructed departments to cut red tape and 

streamline regulatory processes for energy projects, including 

reducing the timeframe for environmental authorisations to 57 

days from over 100 days previously; reducing the registration 

process from four months to three weeks; and ensuring that 

grid connection approvals are provided within six months. 

- Project agreements for 19 projects from Bid Window 5 and 

six projects from Bid Window 6 of the renewable energy 

programme, representing 2 800MW of new capacity. These 

projects will soon proceed to construction. 

- A new Ministerial determination has been published for 1 4771MW 

of new generation capacity from wind, solar and battery storage to 

accelerate further bid windows. 

- An additional 300MW has been imported through the Southern 

African Power Pool, and negotiations are underway to secure a 

potential 1 000MW from neighbouring countries starting this year. 

- Eskom has developed and launched a programme to purchase 

power from companies with available generation capacity 

through a standard offer. The first contracts are expected to be 

signed in the coming weeks. 

- A team of independent experts has been established to 

work closely with Eskom to diagnose the problems at poorly 

performing power stations and take action to improve plant 

performance. 

Six power stations have been identified for particular focus 

over the coming months through a comprehensive Generation 

Recovery Plan, with oversight from the new Eskom board. While 

the power system remains constrained in the short term, these 

measures will reduce the frequency and severity of loadshedding 

as new capacity is brought online. 

Further updates will be provided on a regular basis regarding 

progress in implementing the Energy Action Plan. 

9



SOUTHPAN SOLAR PLANT 

Globeleq, the leading independent power company in 

Africa, has completed a $71-million (ZAR1.2-billion) senior 

debt restructuring of its 31MW Soutpan Solar Power plant in 

Limpopo Province, one of the first solar power plants built 

under South Africa’s Renewable Energy Independent Power 

Producer Procurement programme. By lowering the cost of 

debt for the project, the refinancing allows for a significant 

reduction in wholesale electricity prices from the plant, 

creates a more efficient capital structure enabling release of 

funds for shareholders to reinvest in the power sector and 

accelerates equity distributions to Soutpan’s community and 

BEE shareholders. 

Standard Bank Limited led the restructuring of the debt, 

alongside the project’s original lender, Vantage Green X Fund. 

Soutpan started operations in 2014 and Globeleq acquired a 

majority interest in the plant in 2019. Since then, Globeleq has 

managed the full scope of operations and maintenance and has 

implemented a plan to enhance performance, efficiency, and 

safety at the plant. 

Globeleq’s CEO, Mike Scholey says, “The successful Soutpan 

restructuring is an important transaction which will save Eskom 

more than ZAR160-million over the remaining ten years of the 

agreement. This is the fourth renewable project that Globeleq 

has restructured under the Department of Mineral Resources and 

Energy’s IPP Office Refinancing Protocol and further demonstrates 

our commitment to supporting initiatives that benefit energy 

users and encourage investment while loadshedding continues.” 

“Standard Bank is delighted to support Globeleq and underwrite 

Soutpan in the restructure of its debt which has allowed for a 

tariff saving to Eskom and ultimately the South African consumer. 

Standard Bank has been involved with Soutpan as Mandated Lead 

Arranger and Hedge Provider since 2012 when Soutpan started 

construction. Our longstanding partnership and journey together 

demonstrates Standard Bank’s commitment to the renewable 

sector and our client relationships,” says Sherrill Byrne, Executive 

Energy, and Infrastructure Finance. 

LOADSHEDDING AFFECTS WATER 

Loadshedding is not just about the inconvenience of being without 

lights or television and the means to cook a meal, it negatively 

impacts our ability to earn a living, seek reliable healthcare, have 

confidence in the cold chain through which most of our food is 

moved, and – as recent news reports highlight – trust the quality of 

the water in our taps. 

The City of Cape Town has warned of water supply shortages related 

to loadshedding while the Breede Valley Municipality urged residents 

to boil water as electricity outages hit its water and waste-water 

treatment plants hard. 

Johannesburg Water has said that many of its customers in higherlying 

areas experienced low pressure to no water during load shedding 

and asked those in lower-lying areas to use water sparingly to assist 

with the recovery of the affected infrastructure. 

Similarly, the City of Tshwane and uMgungundlovu District 

Municipality in the KwaZulu-Natal Midlands have explained that their 

reservoirs rely on a continuous flow to maintain levels and be prepared 

for outages. That continuous flow relies on the pump stations running 

10 

to move the water and the pump stations rely on Eskom’s grid to 

provide the power. 

Exacerbating water quality challenges in KwaZulu-Natal are the 

floods in April 2022. These damaged eight sewerage treatment plants 

and resulted in millions of litres of untreated sewage spilling into the 

beaches, rivers, harbours and ocean in and around Durban. Only some 

of the infrastructure has been repaired, and Durban’s waters are still 

contaminated. 

“The lack of water in our taps and questionable quality of what water 

there is will see more and more South Africans turning to bottled water 

for drinking and cooking,” said South African National Bottled Water 

Association (SANBWA) CEO, Charlotte Metcalf. 

“While this is good news for the industry as a whole, for an 

organisation like SANBWA whose members comply with a stringent 

standard that benchmarks favourably against others found globally, it 

also rings alarm bells. 

“This is because the growth will likely attract many new entrants into 

the market, but not all of these will comply with the strict standards 

required the FC&D Act, the legislation that regulates all enterprises in 

South Africa packaging water for sale to the public. 

“In addition, fly-by-night operators think nothing of bottling 

waters from unsuitable sources under unsanitary conditions and into 

packaging that might not even be sterile.” 

Charlotte Metcalf South African National Bottled Water Association 

(SANBWA) CEO. 

“One way consumers can protect themselves is to look for the 

SANBWA logo on a bottle of water. This guarantees that the product 

is genuine natural mineral or spring water, and that the source is 

sustainable, she said. 

Metcalf suggested you take the following measures if you suspect 

load shedding is negatively impacting your water supply: 

• Boil the water from your tap and allow it to cool before using it to 

drink and wash salad ingredients. 

• If you opt to make use of a home filtration system make certain 

that you select one that delivers what the brochure or website 

promises as recent research has highlighted that not all systems 

are created equal nor live up to their marketing messages. 

• Only purchase bottled water featuring the SANBWA logo on 

the bottle because that logo guarantees that the water in that 

bottle comes from uncontaminated sources and that the bottling 

facility is hygienic and operated according to legislation and good 

manufacturing practices. 

• Avoid buying water from retailers who fill new containers in-store 

– this is an illegal practise as the legal requirements to bottle 

a food product cannot be adhered to. They are mostly filling 

from a municipal source thus using the limited available water 

during loadshedding. 

• Refuse the restaurant’s offer of water in a jug or its own ‘bottled 

water’. These bottles are usually filled using a countertop filling 

system connected to the municipal source, which may or may not 

be contaminated. Further, there is no guarantee the bottles and 

the ‘Grolsch’ cap they are typically closed with have been properly 

cleaned and sanitised before being filled. The moment water is 

pre-filled it needs to conform with packaged water legislation. In 

the restaurant filling set-up this is not possible. 

SECURITY 

INSPECTION 

AGRICULTURE 

MICROSOFT BUILDS ENERGY SUPPLY CHAIN 

Qcells, a global solar leader investing in building a US solar 

supply chain, and Microsoft, a global technology company with 

a commitment to be carbon negative by 2030, are partnering 

to enable a strong supply chain for new renewable electricity 

capacity projected to require at least 2.5GW of solar panels and 

related services — equivalent to powering over 400 000 homes. 

Qcells, owned by Hanwha Solutions headquartered in Seoul, will 

work with Microsoft to develop solar projects as well as provide 

panels and engineering, procurement and construction (EPC) 

services to selected solar projects Microsoft has contracted for 

through power purchase agreements (PPAs). 

Microsoft has committed to purchasing renewable energy with 

a goal of achieving 100% coverage of electricity consumption 

with renewable energy by 2025. Microsoft is extending its 

sustainability activities to support domestic production of green 

energy equipment in the regions it operates globally. Microsoft is 

supporting Qcells’ solar products, including those manufactured 

domestically, to bring more renewable energy to the grid. Qcells is 

the only company in the US that will have a complete solar supply 

chain and provides one-stop clean energy solutions. This alliance is 

the first time a company that procures energy is working directly 

with a solar supplier to adopt clean energy on a big scale. 

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BIODIVERSITY 

BIODIVERSITY 

CLIMATE CHANGE 

weakens ECONOMIC 

and SOCIAL SYSTEMS 

Climate change, biodiversity loss and pollution threaten the environment on which we depend, 

and they weaken our economic and social systems. Concern for the environmental crisis is no 

longer confined to multilateral institutions or the non-governmental sector. 

BY THE DEPARTMENT OF FORESTRY, FISHERIES AND THE ENVIRONMENT 

Partnerships are key to 

unlocking the full potential 

of the biodiversity sector. 

country’s natural heritage to enable and facilitate transformative 

socioeconomic development while ensuring that biodiversity is 

conserved for present and future generations. The overriding message 

is that the actions taken today must not only secure ecological 

sustainability into the future but must also promote justifiable 

economic and social development to reduce poverty, inequality and 

unemployment, especially for our rural communities. 

The White Paper, which is expected to be adopted for implementation 

this year following a public participation process, focuses on a future 

in which all South Africans live in harmony with nature, a future in 

which our biodiversity sector is transformed, and a future in 

which rural communities benefit from access to our rich natural 

environment as the country’s biodiversity is conserved. It also aims 

to maintain and restore ecological integrity alongside setting out 

important principles to guide future policy, legislation and decisionmaking 

across the sector. 

Partnerships are key to unlocking the full potential of the biodiversity 

sector. By doing this, the Department can support training and capacity 

building programmes alongside the development of infrastructure, 

the donation of wildlife to emerging game farmers, ensuring that 

indigenous knowledge holders benefit from the use of natural products, 

and securing a means to attract investment to the sector. 

At present, seven of the eight financial solutions to catalyse 

investment in the biodiversity sector and retain revenue in protected 

areas are being supported by the BIOFIN programme in South Africa. 

These solutions were initiated in the 2021/22 financial year and 

include activating institutional governance and support mechanisms, 

such as the Finance Solution Project Management Committee and 

task teams for each finance solution. 

An international decision that affects the growth of the biodiversity 

economy and the conservation estate was the adoption of the 

Kunming-Montreal Declaration at the 15th Conference of Parties to 

the Convention on Biological Diversity at the end of 2022. This 

Conference had also adopted the Global Biodiversity Framework, a 

landmark agreement for nature which sets goals aimed at halting 

biodiversity loss, the extinction of species and protecting the rights 

of local and indigenous communities through fair access and benefitsharing 

of genetic resources. 

In 2022, the World Economic Forum’s annual Global Risks Perception 

Survey identified climate action failure, extreme weather events, 

biodiversity loss and ecosystem collapse as the top three of the top 

10 global risks by severity over the next 10 years. 

In the context of these interlinked global risks, the role of scientific 

research in promoting evidence-based decision-making becomes 

more important than ever before. Equally important is the role of 

scientific research in finding innovative solutions to the existential 

challenges facing mankind. 

It is through cutting-edge scientific research that the agenda can 

be set for future action to mitigate and adapt to climate change and 

protect our environment. The year 2022 was an important year for the 

Department of Forestry, Fisheries and the Environment, as progress 

was made in developing a White Paper on the Conservation and 

Sustainable Use of South Africa’s Biodiversity. 

This measure and the Game Meat Strategy that was published 

for implementation present a clear understanding of government’s 

intentions and aspirations as it promotes the sustainable use of the 

Through the Game Meat Strategy, there is acknowledgement of 

the significant contribution made by the diversity of South Africa’s 

wildlife models, and the potential for wildlife businesses to drive 

critical elements of the value chain. It supports the move from an 

informal industry, towards larger commercial ventures that provide for 

economies of scale. 

In the last quarter of 2022, the Department launched the 

Biodiversity Sector Investment Portal to link investors with 

bankable projects as a means of growing the biodiversity economy. 

Development of the Investment Portal by the Department was 

supported the United Nations Development Programme (UNDP) and 

the Biodiversity Finance Initiative (BIOFIN) and promotes investment 

opportunities in the sector while encouraging the development of 

connections between communities and investor-ready and bankable 

intermediaries that will ensure the sector is able to contribute to the 

growth of the economy, as well as the wellbeing of society while 

conserving our country’s rich biodiversity. 

By encouraging investment into businesses that fall within the 

broader biodiversity economy, much-needed economic and social 

development can be promoted. It can also secure the country’s critical 

natural capital. 

A key decision of the Kunming-Montreal declaration was, 

however, a proposal to increase finance to developing countries to 

drive sustainable investment in reversing the loss of biodiversity 

as well as prevention of future loss for the planet through 

implementation of the framework. 

While ambitious in its expression of goals and targets, the decision 

falls short in respect of ambition on means of implementation, including 

resource mobilisation to close the financing gap of $700-billion, 

capacity building, technology and technology transfer. This 

commitment will go some way in assisting developing countries 

address the burden climate change mitigation and adaptation will 

place on already vulnerable economies. 

12 

13

ECONOMY 

ECONOMY 

Southern Africa’s 

ABUNDANT RESOURCES 

can fuel a successful 

GREEN ECONOMY 

with climate change are: mitigation which contributes to the reduction 

of greenhouse gases; adaptation to the realities of climate change 

and means of implementation which translates to allocating financial 

and technical resources to execute climate change responses. 

Thus the importance of the decisions taken at the international 

climate talks in Egypt at the end of 2022, especially the historic decision 

to establish a fund to assist developing countries to respond to loss 

and damage caused by climate change. South Africa had emphasised 

the importance of the need for the fundamental transformation and 

modernisation of the global financial architecture and reform of the 

multilateral development banks to make them fit-for-purpose in 

supporting sustainable development and just transitions. 

The final COP27 outcome frames the climate crisis and its solutions 

in terms of the sustainable development goals and just transitions, 

leaving no-one behind, and the need for broader financial sector 

reform to achieve these. 

The latest climate science documented in the Sixth International Panel on Climate Change 

Report released in April 2022 documents the physical risk that climate change poses to 

southern African countries and cautions that its impact is already denting economic growth. 


The report explains the Earth’s average surface temperature 

has already warmed by over one degree centigrade since preindustrial 

times. Furthermore, southern Africa is warming at 

twice the average global rate and the report estimates temperature 

increases of over two degrees centigrade. 

What is known with certainty is that climate change is already 

part of the lived reality of millions: floods, severe storms, drought, 

heatwaves and uncontrolled fire impact in the South African region and 

has already threatened lives, agricultural production, water security, 

tourism, health, infrastructure, ecosystems and biodiversity. 

In addition to the physical risk, southern African economies also 

face a transition risk associated with climate change. As the major 

economies transition to new green technologies they will seek to 

protect their investments by introducing trade barriers to goods 

and services produced in economies with a higher carbon footprint. 

The South African economy, with its reliance on coal-fired energy 

generation, is most at risk. 

In the shift to more sustainable industries, be they in mining, 

manufacturing or electricity generation, South Africa needs to ensure 

that it, and the region, is not left behind. Southern Africa is uniquely 

positioned to benefit from the opportunities in the green economy. 

This will require a paradigm shift in the approach to development 

and government priorities so that the contribution to greenhouse gas 

emissions can be mitigated and the region can begin the long road to 

adapting to the impacts that lie ahead. 

Because government is aware that climate change affects all sectors 

of society, business and government, ways are being found to develop 

a whole-of-society response that will allow all interested parties and 

stakeholders to participate. 

In this regard, the Presidential Climate Commission, representing 

government, business, organised labour and civil society can now 

boast its role in developing South Africa’s revised Nationally 

Determined Contributions, concluding the Just Transition Framework 

and researching pathways for transitioning several sectors of South 

Africa’s economy severely impacted upon by climate change. 

Besides the Commission, overarching framework legislation will 

be important for SADC countries to guide all levels of government, 

multiple departments and different stakeholders within a common 

climate change response strategy. 

South Africa’s experience has shown that one can only achieve so 

much on a voluntary basis. In developing countries with limited budgets 

and infinite need, and without a regulatory environment, climate 

priorities always fall lower down the agenda. Thus the importance 

of the Climate Change Bill presently before Parliament. 

The Paris Agreement to which the SADC countries are signatories 

requires participating governments to take three measures to deal 

Southern Africa 

is uniquely 

positioned to 

benefit from the 

opportunities in 

the green economy. 

The call for multilateral consensus on making financial flows 

consistent with pathways towards low emissions and climate resilient 

development could open new investment opportunities in Africa for 

clean energy investments, critical for addressing energy poverty on 

the continent. The climate talks have also seen agreement amongst 

parties to accelerate work on reducing vulnerability of societies due to 

climate change impacts. 

Within SADC, the adoption of the regional Climate Change Strategy 

and Action Plan (2020-2030) in 2021 in identifying key sectors that 

can contribute to the transition to a low-carbon, climate-resilient 

future, acknowledges that the region’s forestry resources have the 

potential to act as significant carbon sinks. This is but one of the 

sectors being considered in SADC’s planning towards the greening of 

the regional economy in the hope of meeting development objectives 

and mainstreaming climate change adaptation. 

Southern Africa has abundant resources that must be employed 

in our transition to a low-carbon future and the development of a 

successful green economy. 

14 

15

MINING 

MINING 

Spasms in the oil and natural gas markets, followed by those 

in agricultural commodities, have dominated the headlines 

since sanctions were imposed on Russia in 2022. But the 

preoccupation with these shocks has obscured how sanctions are 

affecting the metal markets – in particular, base and precious metals. 

Whether they involve spare parts or new technologies, sanctions could 

have longer-term consequences for everything from the sustainability 

of mining operations to the functioning of the manufacturing base. 

Apart from exacerbating Covid-related disruptions, these supply chain 

disruptions are compounding the price pressures associated with the 

global shift to an electric economy. 

THE LONG REACH OF SANCTIONS 

Earlier in 2022, just as the world economy was rebounding from Covid 

and production operations were resuming, commodity prices spiked 

but soon began to stabilise. Then the Ukraine-Russia conflict erupted, 

triggering sanctions unprecedented in scale and speed on one of the 

world’s biggest exporters of raw materials. By early November 2022, 

Russia had been hit with more than 12 000 sanctions – four times the 

number imposed on the next most penalised country, Iran. 

Russia’s biggest commodity players may be the most prominent 

of the sanctioned entities, but the sanctions affect far more than the 

sale of their commodities. Consumers, primarily those in Europe – the 

region that accounts for about half of the sanctions – have also felt the 

effects as many European and US companies in multiple industries 

suspended their Russia operations. Among those companies are the 

leading logistics companies – the likes of Maersk, MSC, and CMA CGM 

– which transport solid commodities throughout the globe, from raw 

materials to semi-finished products (such as rolled steel and copper 

rods) to finished products (such as wire). 

Supply bans pinch the supply of spare parts for aircraft and heavy 

machinery, including hauling and loading equipment, tractors, 

assembly line machinery and drilling equipment. The resulting 

crunch in equipment availability is already dampening activity 

across many sectors, from manufacturing and construction to 

agriculture (itself at risk, with the farming disruptions in Ukraine and 

global fertiliser shortages). 

Demand for the commodities that 

are essential for an electrificationand 

renewable-energy-based 

economy is growing. 

REROUTING WOES 

Direct export bans on steel imports (into the European Union) and 

crude oil (into the US) have sparked price increases and forced a partial 

redirection of exports. But other, less direct sanctions have equally deep 

and often longer-lasting impacts. For example, the export restrictions 

that have prompted companies such as Maersk to suspend operations 

have forced shippers to rely on inland channels – that is, where such 

channels exist. 

The EU and US bans on Russian non-carbon commodities have made 

China and other Asian markets the default main importers of Russian 

raw materials (see figure 1). But that works only as far as infrastructure 

allows. In fact, the existing infrastructure is insufficient for handling the 

redirection of raw materials in their full volumes. 

Rail channels have historically lacked spare capacity, and that’s unlikely 

to change anytime soon. Moreover, the capacity at marine ports seems 

to be inadequate for current volumes. In addition, ports need to be 

situated in a reasonably direct path to those alternative destinations. But 

infrastructure isn’t the only obstacle: the suspension of foreign shipping 

operations has triggered a worldwide container shortage. 

Could the METALS SHORTAGE 

derail the ENERGY TRANSITION? 

As disruption in energy supplies continues to reverberate throughout the world’s economies, 

another equally insidious, if less conspicuous, disruption is unfolding: shortages of key basic and 

precious metals. 

BY KEARNEY CONSULTING* 

Morport, Rosmorport, FESCO, Russian Railways; Kearney Analysis 

Export channels (estimated capacity) 1.2 

Figure 1. Amid EU and US bans, Russia’s non-carbon commodities will be redirected to Asia as much as the infrastructure will allow. 

16 

17

MINING 

MINING 

IMPLICATIONS FOR IMPORTS 

Beyond affecting the export of commodities, imposed sanctions have 

also complicated the importation of goods along with providing some 

professional services, related to commodity manufacturing (such as 

exploration, deposit modelling and many others), which in turn can 

jeopardise the very production of those exports. For example, most 

of the mining equipment used in Russia is made in the US or Europe 

– equipment that includes not only spare parts needed to maintain 

current operations, but also new technologies that deliver efficiency 

and safety improvements. While a complete discussion of applicable 

sanctions rules is beyond the scope of this article (and has many 

complexities), it appears that at least some companies have responded 

to the new rules by importing equipment by a more circuitous route, 

crossing at least two additional borders, to reach mine sites in Russia. 

As a result, the reliability of current operations is put at risk, and 

new projects are either difficult to launch or else put on hold. Aging 

infrastructure poses environmental risks, as we saw with the 2020 diesel 

spill at Norilsk Nickel, Russia’s worst-ever Arctic environmental disaster. 

China may have been able to fill the gap, but ongoing Covid-related 

shutdowns and supply chain interruptions have made that difficult, if 

not impossible. 

Meanwhile, the financial sanctions recently imposed by the UK 

have even prompted merger talks between Norilsk and Rusal – two 

otherwise unlikely partners – to bolster their stability. 

COMEX, NYMEX, Bloomberg, US Geological Survey; Kearney Analysis 

Figure 3. For precious metals, the effect on prices has been similar to that on base metals but at a lower attitude. 

NYMEX, LME, Bloomberg, US Geological Survey; Kearney Analysis 

THE METALS CRUNCH 

So, what do these sanction-induced shocks mean for metals? 

Base metals. Since early 2022, the five base metals that Russia 

produces have experienced sharp price increases (see figure 2). 

Continued supply disruptions are likely to keep prices climbing for 

some of them. Nickel (for which Russia accounts for roughly 10% of 

world output) is likely to see significant long-term increases, thanks 

to the growing demand for electric vehicles (EVs) and non-fossilbased 

energy and the metal’s importance in electronics and steel 

production. Ironically, EV demand is being fuelled by the commodity 

disruption that the sanctions sparked, leading to a sharp increase 

in fuel prices worldwide. Aluminium and copper (for which Russia 

produces 5% and 4%, respectively, of global output) are expected 

to experience moderate price increases. Apart from their many 

industrial applications, they too figure largely in EV production and 

eco-friendly materials applications. The price of iron and zinc (for 

which Russia accounts for 4% and 2%, respectively, of global share) 

will likely stabilise, as the EU and US economies slow-down. 

Because Russia produces a relatively minor share of these base 

metals, markets will rebalance or at least will be affected mostly 

by other factors rather than limitation on imports. The output 

that cannot be rerouted because of the logistics limitations will 

create some market deficit, but it is not expected to cause serious 

long-term consequences. 

Article courtesy Kearney Consulting 

Precious metals. The longer-term picture for precious metals, however, 

is a different story. So far, the effect on precious metal prices has been 

modest, and price volatility has been much lower than that of base 

metals but most likely not for much longer (see figure 3). Given the 

overall significant portion that Russia accounts for and the role these 

commodities play in the evolving modern economy, increases are 

highly likely. 

Silver is the least worry, mainly because of the lack of direct sanctions 

and Russia’s minor share of global production (6%). Gold is likely to 

see moderate price increases; as a haven investment, it is subject to 

big swings, particularly in periods of uncertainty. Russia produces a 

substantial portion of the world’s supply (10%), and it’s possible the 

country will sell national reserves as the cost of the Ukraine-Russia 

conflict and the sanctions take a deeper economic toll. 

The biggest increases are expected in the platinum group. Russia 

accounts for 37% of the world’s supply of palladium and 11% of supply 

of platinum, which is essential for hydrogen-based energy technologies 

as well as for alloys, autocatalytic converters, circuit components and 

ceramic capacitors. For now, market and pricing drivers are pointing 

toward long-term price increases in these metals. 

Russia’s biggest commodity 

players may be the most prominent 

of the sanctioned entities. 

Will metal shortages undermine the energy transition? 

Widespread disruption in the commodity markets is now a fact of life 

and a protracted military conflict raises the risk of new sanctions every 

day. Industries such as defense, electronics and heavy equipment are 

particularly vulnerable and some companies (and some projects) may 

be unable to withstand the strain and maintain operations. 

Demand for the commodities that are essential for an electrificationand 

renewable-energy-based economy is growing – and with it, their 

prices. It’s worth noting that EVs use more than six times more minerals 

than internal combustion-powered vehicles and that an offshore wind 

plant requires more than seven times the copper that a gas-fired 

plant takes. The price increases are already affecting industry. In June 

2022, Ford’s CFO announced that surging materials costs for batteries 

have wiped out the profit the company was expecting to make on its 

EV Mustang model Mach-E. Already, more than a dozen renewable 

energy developers are postponing, cancelling or renegotiating battery 

projects for power storage, in part because of soaring material costs. 

For most of the base metals that Russia produces, the balance in 

global supply will not change significantly. Soon, prices will most likely 

revert to global consensus-forecast levels. But for those metals for 

which Russia is a critical supplier and for which maintaining operations 

has always been a challenge – namely, nickel and precious metals – 

the price increase is here to stay. Supply disruptions are likely to affect 

global markets. 

Beyond their financial consequences, these developments pose an 

enormous challenge to the global energy transition. On one hand, 

disruption in the carbon-based energy supply from one of the largest 

players in that market will provide a strong impulse for the energy 

transition, which many analysts have already acknowledged. On 

the other hand, Russia, an essential player in the metals and minerals 

markets, will play its role in supporting or postponing that transition. 

At this pivotal moment, it’s not the public’s resistance that threatens 

the shift; it’s whether the market can find enough critical raw materials 

needed to support it. 

Figure 2. Base metals show similar pricing patterns since the start of 2022: a sharp rise, followed by a market correction amid fears of a global recession. 

*Article written by Igor Hulak, Anton Bazanin and José Antonio Alberich (partners). 

18 

19

MINING 

MINING 

GISTM REQUIREMENTS TO ADDRESS CLIMATE CHANGE 

Climate change mitigation has traditionally focused on the 

reduction of greenhouse gases. However, it is now accepted 

that a change in climate is inevitable and that mitigation will 

be insufficient. Now, the focus has shifted to include climate change 

adaptation: measures required to adjust to the changing climate to 

avoid significant risks. 

as monitoring and adaptation. The first two relate to planning 

and operation; monitoring and adaptation requirements include 

operation but extend for the life of the tailings facility through to 

closure and post-closure. 

The sixth assessment report released by the United Nations 

Intergovernmental Panel on Climate Change provides global models 

REQUIREMENT 

CLIMATE CHANGE 

RISK IDENTIFICATION 

MODELLING OF 

CLIMATE CHANGES 

MONITORING 

AND ADAPTATION 

TOPIC I – Resource rights and risks to public safety 

X 

TOPIC II – Site climate and breach analysis X X 

TOPIC II – Enhance resilience to climate change X X X 

TOPIC II – Include climate change uncertainties in design X X 

TOPIC II – Updates required for changing conditions X X 

CLIMATE CHANGE and 

TAILINGS MANAGEMENT 

CLIMATE STRIPES 

A snapshot of vertical bars showing the escalation of 

global temperatures across the planet. Each coloured 

stripe represents the average temperature for a year. 

(Created by Professor Ed Hawkins in 2018.) 

TOPIC III – Water management including CC impacts X X 

TOPIC V – Requirement 6.5: Change Management System 

Table 1: GISTM climate change requirements. 

These risks may include increased or decreased rainfall and increased 

temperatures with resulting increased prevalence in disasters such 

as floods, drought, heat waves and fires, competition for resources, 

changes in disease vectors, greater demands on infrastructure and 

associated social impacts. The risks and associated impacts of climate 

change are far-reaching and cross sector. 

The GISTM has included requirements for addressing climate 

change risks as they apply to tailings. These include several topics 

and are detailed in Table 1. The requirements include three main 

responses: identifying the risks, modelling the changes, as well 

* By Ashleigh Maritz, Philippa Burmeister 

that can inform the identification of risks. The GISTM, however, 

requires site-specific modelling to inform tailings design. It is further 

recommended that site-specific models be used to inform the water 

balance, assessment of impacts and enhancement of resilience. 

The GISTM does not provide a standard for site-specific modelling, 

but there are some best-practice guidelines that can inform the 

approach. Because these models have limitations, monitoring and 

ongoing adaptation are essential to ensure that risks are addressed. It 

is critical that monitored information is analysed to ensure trends are 

highlighted to inform required adaptation. 

X 

Environmental considerations have always been an integral aspect of how tailings storage facilities 

are designed and operated. However, the growing impact of climate change demands innovative 

thinking to understand and address the additional risks imposed on these structures. 

BY SRK CONSULTING* 

Repeated spills at dams servicing tailings storage facilities 

have occurred at several mining operations in the southern 

African region during the rainy season. Even though there 

was no single rainfall event greater than the 1:2-year return 

interval 24-hour event, two to three of these rainfall events occurred 

every few days, with low but continuous rainfall in between. 

Some mines have implemented daily inspections of tailings storage 

facilities (TSFs) to detect early warning signs of dam spills such as sloughing 

or potential instability. Such inspections also detect damage of 

revegetated areas or signs of seepage and ponding of surface water. 

Even though many of the early warning systems, monitoring and 

response plans in place today pre-date the Global Industry Standard on 

Tailings Management (GISTM), many of the elements being monitored 

have climate-related triggers. 

Higher rainfall events have also been addressed with redundancy, 

such as allowing for double the required decanting capacity of the 

penstock towers and outfall pipelines. Pools can therefore still be 

responsibly decanted in the event of heavy rainfall. The application of 

* By Grant Macfarlane, Ashleigh Maritz, Chloe Bolton 

Climate change has become an 

important variable, and new approaches 

must be implemented to account for 

these unprecedented changes. 

probabilistic analysis presents an opportunity to incorporate climate 

change models into various dam breach scenarios. 

Water management has always been central to the responsible 

design and operation of TSFs. Rainfall variability is leading mine 

operations to consider reducing and optimising water consumption 

in plants and tailings production. Climate change has become an 

important consideration, and new approaches must be implemented 

to account for these unprecedented changes. Climate change-related 

interventions enhance the adaptive capacity of mines and improve the 

overall resilience of TSFs. 

20 

21

MINING 

ENABLING CLIMATE RESILIENCE WITH RISK ASSESSMENTS 

The mining industry is facing a shift in reporting requirements, 

including a stronger need to identify and evaluate climaterelated 

risks and adaptation actions. The GISTM lists climate 

change projections and their associated uncertainty as an integral 

requirement of the tailings infrastructure knowledge base. 

The Climate Disclosure Standard from the International Sustainability 

Standards Board was modelled on recommendations made by the 

Task Force on Climate-related Financial Disclosures; these standards 

require companies to disclose significant and material sustainability 

risks and opportunities related to climate. The increasing need to 

understand and improve climate resilience across the industry is clear. 

The first step in building this understanding is to compile and 

evaluate the potential changes in conditions caused by climate change. 

SRK Consulting has developed climate forecasts internationally for 

over a decade and continues to improve its approach using the latest 

model projections. These results are translated into workable statistics 

and indicators that operators and decision-makers can integrate to 

infrastructure and systems. This leads to the next important step in 

enabling climate resilience: a climate change risk assessment. 

SRK recently developed a climate change risk assessment framework 

* By Samantha Barnes 

The risks and associated impacts 

of climate change are far-reaching 

and cross sector. 

for an international mining company. The framework, which follows 

ISO climate change standards along with jurisdictional guidance, is 

being applied across the company’s operations in South America, 

Australia and Africa. This work includes a detailed climate 

characterisation for each site and the development of indicators 

that relate climate change projections to the occurrence of potential 

physical hazards such as droughts, fires and floods. 

The risk assessment framework provides an understanding of 

the range in conditions that may be expected in the near- to longterm 

future. Results inform miners of the effect of these projected 

changes on operations. Projections are developed in a consistent 

and transparent process that can be shared with all stakeholders. 

Climate risks to infrastructure and processes are identified using 

standard consequence and likelihood tables; risks consider potential 

losses to the environment, human safety, reputation and costs. The 

risks are then ranked according to the owner’s risk tolerance and 

priorities. This risk assessment matrix enables mine operators to 

plan the future by making informed decisions that enhance their 

resilience to climate change and that meet international standards 

and requirements. 

PARALLELS BETWEEN TAILINGS RISK AND FLOOD RISK ASSESSMENTS 

The principles and knowledge gained from flood risk reduction 

research were adapted for disaster risk assessment as well 

as the development of disaster risk reduction measures. 

The question now is if the methodologies developed for flood 

risk assessment and reduction measures can be applied to the 

management of the risk related to tailings. 

The Disaster Management Act 57 of 2002 focuses on the prevention 

of disaster risk, including mitigation and preparedness. Disaster risk is 

the expected loss when a hazardous event occurs, including lost lives, 

people injured, property damaged and community livelihoods are 

disrupted. Flood risk can be classified as the probability of occurrence, 

the extent of a possible incident, and the vulnerability of people, 

environment, infrastructure and economy. 

A flood plain management plan includes a flood study and a flood 

plain management study that form the basis of flood risk reduction 

measures. Activities for flood plain management studies include costbenefit 

analysis or multi-criteria decision assessments to determine 

the most cost-effective and appropriate combination of flood risk 

reduction measures. 

The similarities in assessing TSF failure and flood risk include 

* By Herman Booysen 

determining areas of inundation, assessing probabilities of various levels 

of inundation, identifying vulnerabilities, developing risk reduction 

measures and implementing measures with limited resources. 

To prepare for an emergency response to TSF failures described in 

Principle 13 of GISTM include the principles of flood and disaster risk 

management. These principles include prevention and mitigation 

strategies that must form part of the Emergency Preparedness and 

Response Plan (EPRP). A similar methodology is used to develop these 

strategies as for flood risk reduction. SRK Consulting suggests the 

following steps for tailings risk reduction: 

• Determine an inundation area. 

• Identify communities, environment, infrastructure and economies 

at risk in the tailings inundation area. 

• Establish hazard zones created by velocity, depth of inundation 

and duration for each probability of inundation. 

• Link these hazard zones with vulnerability and capacity to cope to 

identify tailings risk zones. 

• Develop risk reduction plans for each identified risk zone. 

• Use multi-criteria decision methods to select the appropriate 

combination of risk reduction measures. 

22

ENERGY 

ENERGY 

The role of the Council for Geoscience in the 

JUST ENERGY TRANSITION 

to a LOW-CARBON ECONOMY 

The reality of climate change requires that nations around the world think differently about 

their role with respect to the environment. As the world moves towards a just transition to a 

low-carbon economy, we have come to realise that the mineral resources sector is central to 

attaining this objective. 

BY THE COUNCIL FOR GEOSCIENCE 

Pegmatite is a rock type known to host lithium, a mineral that is 

in high demand for the development of batteries needed for electric 

vehicles and energy storage from renewable sources such as wind 

and solar. The pegmatite density map provides, for the first time, a 

tool for mineral explorers to conduct detailed studies to quantify 

lithium potential and to assess extraction and utilisation possibilities. 

The role of carbon capture utilisation and storage 

Even though Africa’s contribution to global carbon emissions is the 

lowest worldwide, the continent is nevertheless one of the worst 

affected by global climate change. Moreover, carbon mitigation has 

become a priority worldwide. Several global commitments have been 

made by the South African government in this regard. 

To contribute to carbon abatement efforts, the CGS has been 

implementing a CCUS project, with the specific intent of capturing 

the carbon at a major emitting source and injecting it into a suitable 

geological storage site. The selected site is located in Mpumalanga 

province, near the town of Leandra, where there are a number of coalfired 

power stations. Indeed, the Sasol plant in Secunda is undisputedly 

the world’s largest point-source emitter of carbon dioxide. The rocks 

being targeted for injection are the porphyritic lavas of the Ventersdorp 

Supergroup (Figure 2). Through this project, the CGS hopes to capture and 

inject into the ground up to 50 000 tonnes of carbon dioxide which, over 

time, will reduce South Africa’s carbon footprint, thereby contributing to 

global climate change initiatives and facilitating the country’s transition 

to a low-carbon economy. 

A 

number of so-called “green” technologies, such as batteries, 

wind turbines and solar panels require raw materials which 

must be located, extracted and processed. To this end, it is 

important that geoscience research and technologies are aligned 

with the just energy transition initiative. Therefore, the South 

African government, through the Council for Geoscience (CGS), has 

been tasked to look for scientific interventions that will contribute 

to the just transition trajectory. 

The CGS, an entity within the Department of Mineral Resources 

and Energy, is the custodian of geoscientific information in South 

Africa. As such, the organisation aims use geoscientific information to 

address issues ranging from mineral and energy security, groundwater 

mapping, geotechnical assessments and mapping of geohazards 

such as landslides, subsidence and earthquakes. 

Over the last few years, the CGS has implemented several innovative 

projects aimed at climate-change mitigation. These projects include 

exploration into geothermal energy, carbon capture, utilisation and 

storage (CCUS) and understanding the spatial distribution of the 

minerals needed to achieve a just transition. 

The exploration of minerals needed for an energy transition 

There is no doubt that South Africa’s geology is endowed with a high 

potential of mineral resources needed for the development of just 

transition technologies. Specifically, these are copper, cobalt, zinc, nickel, 

lithium and rare earth elements. The Northern Cape Province is thought 

to be well-endowed with these minerals. As a result, the CGS has, over 

the last few years, been conducting geological mapping resulting in the 

development of a detailed pegmatite density map (refer to figure 1). 

Figure 2. Geological cross-section showing the rock units (in green) targeted for carbon storage. The depth of the selected injection site is around 1 200 metres. 

There is no doubt that South Africa’s geology is endowed with a high potential of 

mineral resources needed for the development of just transition technologies. 

Figure 1. Extent of the pegmatite belt in the Northern Cape Province of South Africa, highlighting the potential of the region for lithium-bearing rocks. 

Figure 3. Geothermal gradient showing the spatial distribution of relatively 

“hot” rocks targeted for exploitation. 

GEOTHERMAL ENERGY 

The International Energy Agency’s net-zero pathway recognises that, 

by 2050, renewables must provide two‐thirds of the world’s energy 

use, split between bioenergy, wind, solar, hydro-electricity and 

geothermal energy. Geothermal energy is a type of renewable energy 

sourced from hot source rocks deep underground. 

The current gaps of energy supply in South Africa, manifested by 

constant electricity cuts, can be closed by providing several energy 

sources, including geothermal energy. In South Africa, the CGS has 

been conducting multidisciplinary research that aims to locate 

suitable host rocks (Figure 3). To date, scientists have identified five 

areas that appear to be most prospective for the exploitation of 

geothermal energy. 

The research work started in Limpopo and KwaZulu-Natal 

provinces. Exploratory drilling at these sites is intended to clarify 

and quantify the depth of the hot rocks and, most importantly, to 

assess the economic feasibility of geothermal energy generation. 

This work is also meant to contribute to South Africa’s stated intent 

of introducing renewable sources into the country’s energy mix, as 

envisaged in the Integrated Resource Plan (IRP2019). 

24 

25

MINING 

CONSEQUENCES of the 

ESKOM TARIFF INCREASES 

The Minerals Council South Africa is dismayed that the above-inflation electricity price increases 

granted to Eskom, which is struggling to adequately supply the country with power, and notes 

the negative impact that the hikes will have for the economy and employment. 

Latest 18.65% and 12.74% tariff increases mean the mining 

industry’s electricity costs will rise by R13.5-billion or 33.7%, to 

R53.5-billion by the end of 2024. Over the four years between 

2021 and 2024 electricity tariffs would have increased by 46%. 

Since 2008, the price of electricity for the mining industry has 

increased eightfold while consumer prices, as measured using the 

consumer price index (CPI), have only doubled. Electricity will make 

up about 12.5% of South African mining costs by the end of 2024 

from 9% now. “These increases the National Energy Regulator of South 

Africa NERSA granted Eskom fundamentally shift the intermediary 

cost structures in mining. Due to the different electricity consumption 

densities of various mining commodities, the impact is not the same 

across the sector. This is deeply concerning,” says Henk Langenhoven, 

Minerals Council chief economist. 

For mining, the deepening electricity crisis will be felt at processing, 

smelting and refining plants, while mines need absolute energy certainty 

when sending employees underground to ensure they can safely return 

to the surface. Smelters require sufficient time to ramp down as sudden 

loss of power will result in catastrophic damages. With the current levels 

(Stage three or four, before the recent Stage six announcement) of 

loadshedding, smelters were already experiencing uncharacteristic trips 

as they were not designed to operate under these conditions. 

Over the medium to longer term, 

these uncertainties bode ill for starting 

new mines and extending the lives 

of older, marginal assets. 

Anglo American Plc 

Kumba Iron Ore’s Kolomela Mine. 

The higher cost of electricity means the share of energy in 

intermediary inputs will increase from 24% to 38% in gold mining, 

from 22% to 37% in iron ore mining, and from 13% to 19% in the 

platinum group metals sector. 

The increasing difficulties Eskom has in keeping the economy 

supplied with electricity coupled with the tariff increases adds to 

the negative economic sentiment in South Africa at a time when 

unemployment is at a record high, and the country desperately needs 

urgent fundamental structural and regulatory reforms to stimulate 

the economy. 

The government’s reforms in the electricity arena announced in 

2022 have probably been the most fundamental of all. The Minerals 

Council welcomed the removal of the cap on the size of private sector 

electricity generation projects. This must be emulated in other statecontrolled 

areas of the economy like water and transport logistics 

where meaningful private sector participation and partnerships should 

be encouraged and facilitated. 

The cost to the economy of “unserved energy” or loadshedding is 

about R87/kWh while the cost of diesel generation is about R7.50/ 

kWh, according to the CSIR. It makes sense, therefore, to allow diesel 

purchases due to the damaging opportunity cost of loadshedding. 

The consequences of the latest tariffs increase must be seen in the 

wider mining sector context. Average input costs were running 

at above 15% at the end of 2022. These new tariffs could add four 

percentage points to costs, materially squeezing profit margins. 

The Minerals Council estimates mining production declined by 6% 

during 2022. “The adverse operating environment of unreliable and 

expensive electricity, and a crisis in transport logistics for bulk mineral 

exports erode the mining sector’s global competitiveness and may 

very well culminate in job losses in mining,” says Langenhoven. Over 

the medium to longer term, these uncertainties bode ill for starting 

new mines and extending the lives of older, marginal assets. 

For mining companies building mines that have lives of decades, 

the ability to accurately estimate long-term electricity prices and 

supply as well as confidence in securing reliable and cost-efficient 

transport and export channels are critical factors in deciding whether 

to start new projects. 

The private sector in South Africa has a total pipeline of 9GW 

(gigawatts) of energy projects in solar, wind and gas as well as in battery 

storage. By expediting these projects and reducing industry’s reliance 

on Eskom, the power utility will secure the time and space it needs to 

undertake critical maintenance and refurbishment of its power plants. 

The mining industry alone accounts for about 7.5GW of these projects 

at a cost of more than R150-billion. 

The Minerals Council estimates 3GW of the 9GW of private sector 

electricity generation will be completed by the end of 2024. The mining 

sector consumes about 14% of Eskom’s electricity. Adding smelters and 

refineries, the mineral sector consumes about 30% of Eskom’s output. 

Eskom will remain a source of baseload electricity supply for the mining 

industry because solar and wind energy are intermittent. 

27

MINING 

MINING 

Project funders looking at 

HUMAN RIGHTS in due diligence 

In this context, lenders are much more aware of human rights-related 

risks that project developers must carefully analyse and mitigate. 

A key aspect of identifying and addressing these risks is stakeholder 

engagement. This is seen, for instance, in the Global Industry Standards 

on Tailings Management (GISTM), which was fast-tracked in response 

to the catastrophic tailings dam failure in Brumadinho, Brazil in 2019. 

ENGAGEMENT 

The GISTM prioritises that mining companies respect the rights of 

project-affected people by meaningfully engaging them at all phases 

of the tailing facility life cycle. Engagement with communities and other 

stakeholders is now a vital element of the human rights agenda. 

Preparation for mine closure is another area that demands 

extensive engagement with stakeholders. The mining sector has built 

considerable capacity in the environmental field, to deal with closure. 

This is not matched on the social front – with many projects struggling 

with more abstract social impacts and focusing on purely technical 

considerations.Communities are often dependent on mining activities 

for employment, services and a market for local businesses. With mines 

historically falling into the trap of industrial paternalism, they tend to 

provide mine employees with services such as housing and health care 

but are still wrestling with how best to create sustainable communities 

beyond the life-of-mine. 

VULNERABILITY 

Aspects like gender equality are gaining importance in the 

sustainability space. These concerns relate, for instance, to the reality 

of women often having less secure land rights. This makes them 

particularly vulnerable to land grabs, eviction and dispossession 

that are still associated with some large-scale developments in the 

extractives and agricultural sectors. 

Any injustices in the treatment of project-affected people can raise 

warning flags about the project’s lack of sustainability – or at least 

certain strategic weaknesses. These are, of course, of great concern to 

everyone who wants the project to succeed, including funders – for 

whom there are considerable financial interests at stake. 

This focus on human rights 

extends beyond the operational realm. 

context. Not only should this include a policy commitment to meet 

their responsibility to respect human rights; it should also contain a 

due diligence process to identify, prevent, mitigate and account for 

how they address their impacts on human rights. Further, there should 

be processes in place to remediate adverse human rights impacts. 

This focus on human rights extends beyond the operational realm 

into the project’s entire upstream and downstream supply chain – and 

into aspects such as responsible sourcing. In Europe, the RE-SOURCING 

initiative is already paving the way for a common understanding about 

responsible sourcing between mineral producers and their Europebased 

customers. 

SRK is integrally involved in this project, which arises from decades 

of global concern about issues like child labour, slavery and unethical 

behaviour in the mineral supply chain. The RE-SOURCING project works 

to promote both strategic agenda setting and a coherent application of 

practices for responsible sourcing. 

Minerals like cobalt, for instance, are increasingly important to the 

future of battery and renewable technology. At the same time, there 

are concerns about human rights in the artisanal mining sectors of 

countries like the Democratic Republic of Congo – where much of the 

world’s cobalt is mined. 

With the eyes of the public and authorities focused intensely on 

mining for many reasons, the industry will need to develop systematic 

and credible strategies to address human rights risks. The most effective 

approaches will begin early in the project life cycle and be carried 

forward to post-closure phases. 

The question of human rights has become a risk increasingly under scrutiny by financial institutions 

when they conduct their due diligence on prospective project investments. 

BY SRK CONSULTING* 

Any injustices in the treatment 

of project-affected people can raise 

warning flags about the project’s 

lack of sustainability. 

This is hardly surprising, given that over a decade has already 

passed since the UN Guiding Principles on Business and 

Human Rights was ratified. However, for many companies 

seeking finance for their mining and other industrial projects, this 

focus presents a new set of potentially complex requirements. 

The issue has moved beyond a general concern with how the private 

sector upholds human rights as part of its environmental, social 

and governance (ESG) commitment. Today, many financiers want 

applicants to pinpoint the detailed risks associated with human rights. 

They will expect a much more concerted focus on these issues in due 

diligence studies and impact assessments – alongside the potential 

consequences and mitigating responses. As SRK, the studies we 

conduct often require a “deep dive” into the question of human rights. 

BASIC NEEDS 

A human rights focus is not new to environmental and social impact 

assessments (ESIAs), and people’s rights have in many ways always 

been embedded in our work as ESIA practitioners. Our investigations 

of environmental impacts such as water quality, air emissions or noise 

pollution consider how these will impact people’s health and basic 

needs – essentially their rights. 

More recently, financial institutions will often require SRK to include 

an in-depth assessment of human rights impacts within a due diligence 

or other study or review. A growing concern is the reputational risk 

related to borrowers’ non-compliance with key industry benchmarks 

like the UN’s Guiding Principles and the International Finance 

Corporation (IFC) performance standards. 

MOBILISED 

Society has mobilised increasingly around human rights, environmental 

compliance, labour practice and anti-corruption measures. This has 

raised the potential for stakeholder concerns to boil over into the 

serious disruption and delays, and even collapse of projects. 

Vassie Maharaj, a director, partner and principal consultant and Vidette 

Bester, senior social scientist at SRK Consulting. 

SUITABLE POLICIES 

The UN’s Guiding Principles demand that business enterprises should 

have the right policies and processes in place, to suit their size and 

* Article written by Vassie Maharaj and Dr Vidette Bester, SRK Consulting. 

28 

29

MINING 

MINING 

The strategy deals with inactive prospecting rights, which are said 

to be sterilising mineral potential and proposes to reintroduce the “use 

it or lose it” principle and address issues such as lack of funding and 

technical skill by establishing a R200-million IDC fund, on which we 

await more detail. While many prospecting rights have lapsed in law, 

those areas remain unavailable to new applicants on the DMRE’s system 

requiring the DMRE to implement an up-to-date mining cadastre 

system that is updated in real-time in relation to lapsing rights, etc. 

MINING for a 

GREEN ECONOMY 

Mining companies need to be on the alert as the legal and regulatory framework in which they 

operate is constantly changing and evolving around issues such as decarbonisation, exploration, 

resettlement and employment equity. These all fall into ESG-related considerations. 

BY WEBBER WENTZEL* 

New policy documents and draft legislation relevant to the 

mining industry have been introduced, including initiatives to 

improve the process of resettlement and increase exploration 

investment, transitioning to a greener economy, and more stringent 

employment equity targets. Some proposals are controversial and 

will require the industry to give input to the government. 

NEW EXPLORATION STRATEGY 

South Africa’s exploration strategy published in April 2022, outlines an 

economic recovery plan to unlock the country’s full mineral potential. 

The priorities identified in the strategy are to improve the availability 

of geoscientific data, revise the licensing regime and attract exploration 

investment. It identifies certain barriers, which will require changes to 

regulation and policy. 

Importantly, it states that the “first-come, first-served” principle in 

the allocation of rights has promoted mediocrity. The intention is to 

replace this with a meritocratic system that aptly considers national 

development initiatives, which will entail an amendment to the Mineral 

and Petroleum Resources Development Act, 2002 (MPRDA). We believe 

the proposed amendments, which have previously been tabled, would 

increase legislative uncertainty and the potential for corruption. 

Sections of the MPRDA are also expected to be revised in relation 

to transformation, following the ruling on the dispute between the 

government and the industry over aspects of the Mining Charter that 

left it open for the legislature to amend the MPRDA to achieve the 

objects of transformation. 

The strategy proposes to use Sections 54 and 55 of the MPRDA more 

extensively to deal with the practical issues of gaining landowner 

consent to access privately-owned land and provide for dispute 

resolution when landowners refuse access. S55 allows the minister to 

expropriate land for prospecting or mining. 

RESETTLEMENT GUIDELINES 

The mine resettlement guidelines, published in March 2022, outline the 

process for applicants and holders of mining rights to physically displace 

or resettle landowners, lawful occupiers, mine communities and host 

communities, where necessary. Illegal squatters would not be subject 

to these processes. Given the nature of mining – ie that it is site-specific 

as the minerals are where they are, operations may sometimes result in 

persons having to be resettled. 

It is important to note that although these are guidelines, and 

therefore not law, stakeholders and the regulator expect these 

processes to be followed. The guidelines set out fundamental principles 

for resettlement including: (i) meaningful consultation and conditions 

relating to meetings (and we would advise clients to keep documentary 

proof of the process followed); (ii) equality; (iii) the protection of 

existing rights; (v) minimising or avoiding resettlement; and (vi) using 

Historically Disadvantaged South African (HDSA) service providers. 

The golden threads found throughout the guidelines are to ensure 

proper engagement with a sufficient flow of clear and necessary 

information to protect the rights of those being resettled. 

While the advice includes include many features throughout the 

resettlement process, which starts at the planning stages and ends 

even after resettlement with continued support, one of the most 

contentious parts of the guide is that it provides that mining cannot 

commence without a resettlement agreement in place. 

We welcome these guidelines, which reflect some of the global 

principles surrounding resettlement laid out by bodies such as the 

International Council on Mining and Minerals, and contextualises 

them within the South African framework, however certain issues 

remain. We will await to see how the DMRE deals with resettlement 

especially resettlement agreements in the wake of these guidelines. 

DECARBONISING THE ECONOMY 

In September 2022, a just transition framework was approved by 

Cabinet. It sets out a climate-resilient development pathway for South 

Africa, which affects every sector, with a focus on improving lives, 

preserving jobs, being people-centric and ensuring resilience. The 

concept of a just transition requires a contextual look at the needs of a 

country and this framework provides a South African-specific definition 

of the just transition. 

READ REPORT 

THOUGHT [ECO]NOMY 

Excavation site with steep rock walls that was mapped from a drone. 

* Article written by Nirvasha Singh, Carryn Alexander, Giada Masina, Garyn Rapson, Lizle Louw (partners) and Jaqui Pinto, senior associate at Webber Wentzel. 

The recently established Carbon Tax Act is intended to incentivise 

businesses to decarbonise their operations. The tax has been 

introduced in three phases, with the first phase being extended to 

31 December 2025. The proposal by National Treasury is to increase 

the rate of carbon tax in dollars which will inevitably lead to businesses 

being hard hit. 

While government recognises that not every business is in a position 

to reduce its carbon footprint completely, it is vital for government 

to be in alignment with the commitment to the Paris Agreement. It 

is therefore imperative for a business to invest in projects which will 

enable it to reduce its carbon tax liability in the most sustainable way 

possible. A business is therefore encouraged to invest in carbon-offset 

projects that will allow it to reach its net-zero goal. 

THE EMPLOYMENT EQUITY AMENDMENT BILL 

The Employment Equity Amendment Bill, which we expect will become 

law in September 2023, provides for the Minister of Labour to identify 

national sectors and, after consultation (not necessarily agreement) 

with those sectors, impose numerical sector targets to ensure equitable 

representation of suitably qualified people from designated groups. 

These sector targets are hard-coded, with punitive measures for noncompliance, 

and it could be argued that they amount to quotas, which 

could open them to Constitutional challenge. 

Employers that are declared non-compliant can raise justifiable 

grounds for non-compliance, but this is cold comfort. Firstly, there will 

still be a finding of non-compliance and the director-general or minister 

has the discretion to rule on it. Secondly, non-compliance is absolute. 

An employer that is 99% compliant will be treated in the same way as 

one that is only 5% compliant. The penalty for non-compliance will be 

a fine, as laid out in the Employment Equity Act. 

GOVERNMENT NOTICE NO. 46246 | EXPLORATION STRATEGY FOR THE MINING INDUSTRY OF 

SOUTH AFRICA | Gazette Notice No. 2026 | Department of Mineral Resources and Energy | [April 2022] 

South Africa has historically been home to exceptional mega-deposits and exploitation of gold (Witwatersrand 

gold), platinum group metals (PGMs), base metals (Bushveld Igneous Complex), and diamonds (numerous 

kimberlite mines and west-coast placers) over the past 150 years of mining. Essentially, exploration is the 

greeneconomy/report recycle lifeblood of sustainable mining development in that it replenishes currently exploited commodities and 

secures minerals of the future. 

Activity in South Africa has systematically declined from its peak of 5% of the global exploration expenditure share in 2003 to the lowest ebb of below 

1%. A critical assessment of the South African context illuminates several factors that have sustained an uninspired performance. This has accentuated 

the need for government, in partnership with protagonists in the mining industry, to develop apposite interventions intended to resuscitate activities. 

To this end, it was fitting to develop a practical time-bound, measurable implementation plan that identifies the critical barriers and proposes corrective 

measure to gain a minimum of 5% share of global outlay within three to five years. 

Visit www.greeneconomy.media for the full report in the digital version of Green Economy Journal issue 56. 

30 

31

MINING 

MINING 

“As the Global Industry Standards on Tailings Management (GISTM) 

have further raised the bar for mine safety, the mining sector is 

working hard towards GISTM compliance,” says Engelsman. “The 

GISTM emphasises the integration of disciplines, such as specialised 

tailings, water and civil engineers, as well as practitioners in fields such 

as geochemistry and environmental and social impact assessment.” 

RESPONSIBLE MINING 

demands multidisciplinary teams 

Global trends toward decarbonisation are raising demand expectations for battery minerals, and 

geopolitical tensions suggest that Africa may become more of a focus for sourcing these critical 

commodities. At the same time, the changing landscape of regulations, best practice and public 

perception makes for a complex environment to navigate. 

BY SRK CONSULTING 

EXPLORATION TOOLS 

As part of its innovation strategies, SRK Consulting’s sister company SRK 

Exploration Services (SRK ES) has also developed a new tool to assist 

companies in valuing, managing and forecasting their exploration. 

John Paul Hunt, principal exploration geologist at SRK ES, explains 

the significance of Management and Valuation through Absolute 

Prospectivity (M-VAP), “M-VAP replaces traditional relative prospectivity 

with a quantified absolute prospectivity that estimates the probabilities 

of making a discovery of deposits of different magnitude within an area 

of interest.” He adds, “These probabilities can then be used within a 

decision tree model to assess if the estimated future value of potential 

discoveries warrants exploration activity.” 

ANGLO AMERICAN ACCELERATES 

ZERO EMISSIONS HAULAGE SOLUTION 

Early gains in decarbonisation 

include the move by many 

South African mines toward 

developing their own solar or 

wind generating capacity. 

Anglo American launched the prototype of its nuGen ZEHS hydrogen-powered mine haul truck 

at its Mogalakwena platinum group metals mine in South Africa in May 2022 – the world’s largest 

of its kind designed to operate in everyday mining conditions. 

in Africa will want to harness the potential of 

commodity demand,” says Andrew van Zyl, incoming 

“Investors 

managing director of SRK Consulting (SA), “but there are 

growing expectations from host countries and end-customers alike 

on how mining is conducted and benefits are shared.” 

INDUSTRY INTEGRATION 

The mining industry’s journey is increasingly demanding the integration 

of disciplines in planning, operating and closing mines, emphasises 

Van Zyl. Project teams need to pursue their engineering solutions with 

early-stage input on pressing issues like ESG risks, water stewardship, 

climate action and energy efficiency. 

“Mining companies must not only pay more attention to mitigating 

their own impacts by decarbonising their operations but must also 

be adapting to the inevitable effects of climate change,” he says. Early 

gains in decarbonisation include the move by many South African 

mines towards developing their own solar or wind generating capacity. 

Alternatively, they are partnering with energy providers or broadening 

their corporate mandates to acquire businesses specialised in 

renewable energy. 

The replacement of on-mine technologies that run on fossil fuels, 

however, could take longer. This is in part due to the complex supply 

chain alterations that would be demanded by new technology – from 

battery electric vehicles to hydrogen powered trucks. An acceptable 

level of confidence is required in any innovation, as this affects the 

cost and rate at which the ore can be extracted – and therefore 

underpins the ore reserve declaration. 

WATER STEWARDSHIP 

Management of water is posing several growing risks for the stability 

of mining, not just in water-scarce countries. Sufficient supply of water 

is just one aspect of a broader challenge, says Peter Shepherd, partner 

and principal hydrologist at SRK. Some mining areas will become more 

drought-prone due to climate change, and there is a general trend to 

use less water and recycle as much as possible. 

“It should be remembered, though, that mines are part of a natural 

and social ecosystem, where they will increasingly compete with other 

users who share their water catchment,” says Shepherd. “Engagement 

and collaboration therefore become as important as good engineering 

to the future sustainability of a mining operation.” 

This has led to the gradual embrace by the mining sector of water 

stewardship principles, which emphasise that mines need to look 

beyond their on-site water management strategies to a consideration 

of all stakeholders in the respective catchment area. 

HUMAN RIGHTS 

Similarly, ESG concerns have broadened to include the impact of 

mining and other industrial projects on human rights – with financial 

institutions requiring more detailed from borrowers regarding their 

impacts in this respect. 

“Many segments of society have become increasingly mobilised 

around human rights, labour practice and anti-corruption measures,” 

says Dr Vidette Bester, SRK senior social scientist. “This has raised 

the potential for stakeholder concerns to boil over into the serious 

disruption and delays, and even collapse of projects.” 

TAILINGS MANAGEMENT 

This greater social involvement has also been witnessed in the field 

of tailings management, especially following recent fatal tailings 

dam failures. Bruce Engelsman, principal engineer at SRK, highlights 

that responsible tailings management is about people – particularly 

the protection of vulnerable communities. 

ANGLO AMERICAN 

Conceived as part of Anglo American’s FutureSmart Mining programme, 

nuGen ZEHS is an end-to-end solution to decarbonise heavy duty 

transport and includes hydrogen production, on-site storage, refuelling 

and hydrogen-battery hybrid powertrains to replace incumbent fossil fuel 

technology. With diesel emissions from its mine haul truck fleets accounting 

for 10% to 15% of Anglo American’s total Scope 1 emissions, and haulage 

trucks accounting for up to 80% of diesel emissions at open-pit mines, nuGen 

ZEHS will play an important role in delivering not only Anglo American’s target 

of carbon neutral operations by 2040, but also supporting the decarbonisation 

of the mining industry, with potential across other industries. 

32 

33

MINING 

MINING 

Mining is how the world 

obtains the materials 

needed for the clean 

energy transition. 

First Mode, a global carbon reduction company focused on heavy 

industry, and Anglo American signed a binding agreement to combine 

their nuGen zero emission haulage solution to accelerate the 

transition of mining and other heavy industries to diesel-free futures. 

The transaction, which is expected to close in January 2023, values the 

newly-combined business in the order of US$1.5-billion and includes a 

$200-million equity injection from Anglo American. 

Upon closing of the transaction, First Mode will enter into a global 

supply agreement to supply several nuGen systems to Anglo 

American which includes the retrofit of about 400 ultra-class haul trucks 

with First Mode’s proprietary hybrid fuel cell battery powerplant and 

related infrastructure. The roll-out of nuGen across Anglo American’s 

haul truck fleet over the next 15 years is subject to certain conditions 

and required approvals. 

Previously announced in June 2022, the transaction is a unique 

combination of creative engineering excellence and mining expertise 

which brings together the existing First Mode business with Anglo 

American’s nuGen related intellectual property, management and 

operational teams. First Mode is now well-positioned to commercialise 

the nuGen haulage solution which intelligently incorporates new 

technology into mine site operations and consists of a powerplant 

with appropriate hybridisation of hydrogen-powered fuel cells and 

battery (depending on customer and site requirements), refuelling 

and recharging technology, clean energy production and storage, 

modification of diesel electric vehicles, digital integration with mine 

site systems as well as ongoing services. 

“The First Mode mission is much bigger than a single haul truck,” 

says First Mode CEO, Julian Soles. “Mining is how the world obtains the 

materials needed for the clean energy transition, and it is where the 

carbon footprint starts. This is where the First Mode solution begins; 

starting at the source, in mining, to replace diesel and accelerate the 

clean energy transition.” 

The world’s first proof-of-concept ultra-class haul truck recently 

reached a significant milestone when it completed initial commissioning 

and was introduced into the mine’s commercial fleet operations, 

including pit and crusher activities. 

34 

35

MINING 

MINING 

Article courtesy Daily Maverick 

At stake is the 

pace at which the 

world’s vehicle 

fleet adopts 

battery power. 

LITHIUM’S next big risk is 

GRAND SUPPLY PLANS 

falling short 

Electric vehicle makers are hoping that an imminent wave of lithium supply will bring relief for 

their expansion plans after a two-year squeeze, but the battery metal’s die-hard bulls warn of more 

pain to come if producers fail to deliver. 

Rampant lithium demand has caught forecasters by surprise, 

with booming global EV sales causing consumption to double 

over the past two years. With suppliers unable to keep pace, a 

blistering price rally sent the total spot value of lithium consumption 

rocketing to about $35-billion in 2022, up from $3-billion in 2020, 

according to Bloomberg calculations. 

Some bearish lithium-watchers say fast-growing supply, rather 

than dizzying demand, will be the decisive factor in 2023. Five analyst 

forecasts reviewed by Bloomberg point to a much more balanced 

global market after clear shortages in 2022, while BYD, China’s top EV 

seller, is counting on a lithium surplus. 

But there are many sceptics who warn of fresh tightness if miners 

from Chile to China and Australia hit hurdles in launching daunting 

volumes of new supply. The reviewed forecasts peg production increases 

of between 22% and 42% in 2023: a breakneck pace for any complex 

extractive industry. 

“I really don’t think there’s any reason to believe that so many tons 

can magically appear this year to return the market to balance,” Claire 

Blanchelande, a lithium trader at Trafigura Group said by phone from 

Geneva. “The pain is not over yet.” 

At stake is the pace at which the world’s vehicle fleet adopts 

battery power. Lithium-ion battery costs rose last year for the first 

time in the EV era, according to BloombergNEF. Elon Musk bemoaned 

lithium’s “insane” rally and said high raw material costs were among 

Tesla’s biggest headwinds. 

NOT MATCHED 

There’s broad agreement that lithium supply is heading for a major 

increase in 2023 as a wave of expansions or new projects get up and 

running. The more bearish voices say that the supply wave will hit the 

market just as China’s withdrawal of generous EV subsidies causes 

demand to cool, creating a mismatch that could trigger a sharper fall 

in prices. 

Average prices this year are likely to fall about 8% from average 2022 

levels, according to the mean of five forecasts reviewed by Bloomberg. 

The divisive issue is whether less-established producers will be 

able to deliver in full, defying a range of regulatory, technical and 

commercial challenges. The extraordinary pace of lithium’s expansions 

– across both demand and supply – has made forecasting the market a 

contentious pursuit. 

“2023 is when lithium becomes what I call a volume game,” says 

Chris Berry, president of House Mountain Partners, a consultant to the 

battery-materials sector. “We need to see a supply response from both 

existing producers and near-term producers who will need to execute 

flawlessly in the face of sustained lithium demand.” 

SOFTER MARKET 

Lithium prices have already come down about 20% from an eyepopping 

record in November, in an early sign of respite for buyers. 

Lithium carbonate in China fell to 480 500 yuan a ton ($71 500) on 

13 January, the lowest since August 2022. 

“I think you’re going to see a short dip in spot prices in 2023 but I 

don’t see that as a problem,” says Joe Lowry, founder of advisory firm 

Global Lithium. “If we were talking five years ago today, the biggest 

issue that the lithium industry had was lack of investment. Now the 

most significant problems are permitting and project execution.” 

Petalite or castorite is an important mineral for obtaining lithium. 

A cause for optimism on supply is that the largest increases will be 

coming from veteran top producers like Albemarle Corp. and Chile’s 

SQM that are considered more likely to succeed. But they only account 

for about a third of anticipated increases in 2023, according to data 

from BMO Capital Markets. 

The next tier down is a small army of nascent lithium producers 

who will need to prove they can get up and running. And beyond 

those, there’s unconventional new sources like lepidolite — a lithiumbearing 

mineral that’s emerging in China as a serious option. JP 

Morgan Chase & Co called it “one of the largest threats” to prices. 

But it’s also a controversial topic, with some specialists saying it’s 

costly and environmentally harmful to convert in large volumes for 

battery use. 

“We will see more lepidolite be brought online in China in 2023,” 

Cameron Perks, analyst at Benchmark Mineral Intelligence says. “But 

we won’t see as much as predicted by others. Give it five or 10 years, 

and it will increasingly become an important part of the market.” 

All of this means the path to supply and cost relief for carmakers is 

fraught, even before considering the demand side of the ledger. 

NO COLLAPSE 

For now, China’s withdrawal of EV credits, as well as uncertainties over 

the pandemic and global economy, are weighing on the outlook. But 

a faster-than-expected reopening of China’s economy, and the rest of 

the world escaping a deep slump, could yet deliver an upside surprise. 

“The market consensus and the consensus that I would agree with 

is that in 2023 pricing is likely to plateau, with perhaps some potential 

for downside but by no means do I see any sort of a pricing collapse,” 

says Berry of House Mountain Partners. 

36 

37

MOBILITY 

MOBILITY 

ELECTRIC CARS on the 

It has been another momentous year for electric vehicle markets and technologies, with 

major policy developments, sales growth, and landmark models set to enter the sector. 

BY IDTechEx 

2023 HIGHWAY 

further cements battery-EVs as the lynchpin of future road transport 

markets. The ban represents approximately nine-million to 10-million 

electric car sales annually by 2035 using current vehicle sales data. 

Given EU countries sold around 1.8-million electric cars in 2021, the 

targets, which are over a decade away, look achievable. 

On the other side of the pond, the US market gained momentum 

with the modernisation of its federal tax credit for EVs, which is part 

of the broader Inflation Reduction Act. The incentive is designed to 

build a more localised supply chain. This is good for the long term, but 

it may mean it will be several years before the policy has an impact 

on market growth. 

The emerging passenger truck market is the key US trend to watch 

for in 2023. Ford’s electric F150 was launched with overwhelming 

success, GM’s similarly priced Silverado is poised to enter the market 

in 2023, and GM’s luxury Hummer EV is sold out for two years. While 

Tesla currently has around 50% of the US EV car market, its share has 

declined slightly in recent years. As Tesla prioritises battery supply for 

the Model 3 and Model Y, IDTechEx expects incumbents’ passenger 

truck models to become significant drivers for US sales. 

Taking a step back, it is easy to dismiss the hurdles the supply chain 

faces when looking at exponential sales data. While IDTechEx’s report 

expects that the capacity of current and future giga factories will be 

enough to support 36-million battery-electric cars per year by 2030, 

looking further upstream, particularly at lithium, there is uncertainty. 

What is becoming clear is the downsizing of battery capacities per 

vehicle while maintaining vehicle ranges will be key. 

THE NEW EV BATTERY 

Improving drive cycle efficiency means less of the precious energy 

stored in the battery is wasted when accelerating the vehicle, leading 

As the largest EV sector, China 

leads the race with over 1.5-million 

public charging points. 

to improved range from the same battery capacity (or the same range 

with reduced battery capacity). Upcoming electric motors and power 

electronics technologies are key avenues for this. 

The emerging trend for 800V platforms and above is in full swing, 

with GM, Hyundai and VW undergoing a transition alongside 

start-ups such as Lucid Motors. 800V platforms improve efficiency 

by reducing joule losses and allowing high-voltage cabling to be 

downsized, saving weight. New technologies and materials are 

enabling the transition, namely silicon carbide MOSFETs using 

silver-sintered, die-attach materials and new cooling methods. 

There are several key performance metrics for electric motors, 

but again, a critical area is efficiency. Due to the many different 

considerations in motor design, the EV market has adopted several 

different solutions, including permanent magnets, induction and 

wound-rotor motors. Key emerging motor technologies are axial 

flux and in-wheel motors. 

Axial flux motors use more magnetic material, making them efficient 

and more power-dense, improving drive-cycle efficiencies via weight 

reduction. Similarly, while in-wheel motors require more motors per 

vehicle (one for each wheel), this can allow for greater optimisation. 

This again leads to improved drive cycle efficiency. Markets today 

are small, but IDTechEx expects increases in demand over the next 

10 years, with first applications in high-performance vehicles, shuttle 

buses and certain hybrid applications. 

China has thrown down the gauntlet once again in the automotive 

sector, with record electric vehicle (EV) sales approaching 

five-million a year. The dual-credit system – two types of credit 

that must be accumulated to avoid penalties – is a primary driver. 

Although impressive, the results are not perfect. Much of this has 

been achieved with sales of small and micro cars, an artificial result 

that reduces pressure for supply chains but is ultimately not the 

consumer preference. A shift towards affordable versions of larger 

vehicles will soon be needed as policy drivers fully phase out in the 

coming years – a more difficult task. 

China’s success is leading to cross-pollination with other parts of the 

world, which could be key for mainstream EV adoption. Indeed, BYD 

and NIO (Chinese EV makers) have announced plans to sell EV models 

in Europe soon. The biggest hurdle to this may be political. The EU has 

a history of banning low-cost (or undercutting) EV imports from China, 

for example, a tariff of up to 83% was applied to e-bikes at the start of 

the craze a few years ago. 

Within Europe, in June 2022, the EU confirmed a landmark internal 

combustion engine (ICE) ban for 2035, later saying that e-fuels will 

be banned for cars and light commercial vehicles (vans). The ruling 

IDTechEx 

Market share of battery, hybrid and fuel cell cars against overall e-transport sectors (based on revenues). 

38 

39

MOBILITY 

IDTechEx 

INNOVATIVE INFRASTRUCTURE 

Like EV markets, EV-charging infrastructure has seen tremendous 

development in 2022. Public AC and DC fast-charging installations 

are the lifeblood of EV markets and installations increased in 2022 

to support the growing popularity of EVs. As the largest EV sector, 

China leads the race with over 1.5-million public charging points. 

However, perhaps the most significant charging news of 2022 

is the EU considering a landmark proposal to set new mandatory 

installation targets – for cars, there must be at least one electric 

charging pool every 60km along main EU roads by 2026. The move 

will help support the nine-million EVs IDTechEx expects to be sold 

annually in Europe by 2030. 

Pioneering alternatives are also gaining momentum in certain 

subsectors. Battery swapping is an emerging alternative to public fast 

charging, wherein depleted batteries are replaced entirely in under 

five minutes. The quickest charge is the one you never have to do – 

this is the premise behind the technology that is seeing significant 

uptake in China and wider APAC nations. However, the capital costs 

associated with setting up a battery-swapping station are still higher 

than DC fast chargers. Whether this technology will be adopted 

elsewhere remains to be seen as market leaders such as NIO expands 

its footprint across Europe and the US. 

While battery swapping is the answer to quick charge times, wireless 

charging is the answer to the most seamless charging experience. 

Buses will charge at bus stops, taxis in taxi ranks and autonomous 

cars in public garages, all without ever having to be plugged in. By 

eliminating the use of cables and connectors, the whole charging 

infrastructure is simplified. A transmitting coil creates a fluctuating 

magnetic field that generates a current as it is intercepted by a 

receiving coil placed underneath a vehicle. This year will be a major 

year for developments within the wireless charging market as pilot 

projects end, and commercial rollout begins. 

It is not only the on-road transport sector that is looking for solutions 

to reduce greenhouse gas emissions. Indeed, operators of nonroad 

mobile machinery in the construction, mining and agricultural 

sectors must also decarbonise if companies and countries are to meet 

their net-zero emissions goals. 

Key to the deployment of electric construction machines is 

understanding the daily duty-cycle energy demand requirement. 

To see widespread uptake, battery electric machines must be able 

to demonstrate to operators that they can deliver a full day of 

work. Short operational runtime and excessive downtime needed 

for battery recharging can greatly hinder the usefulness of electric 

China’s success is leading to 

cross-pollination with other 

parts of the world, which 

could be key for mainstream 

EV adoption. 

machines versus existing diesel models. Manufacturers must deliver 

the performance their customers expect while ensuring that the 

total cost of ownership (TCO) makes the adoption of these cleaner 

machines viable. 

Early development work has been focused on compact construction 

machines. This is because their small size and relatively light-duty 

cycle requirements mean a typical eight-hour workday can be 

delivered with a practical size of Li-ion battery. 

Fuel cells 

Fuel cell (FCEV) vehicle deployments face considerable challenges, 

including decreasing the cost of fuel cell system components 

and rolling out sufficient hydrogen refuelling infrastructure. 

Also essential will be the availability of cheap “green” hydrogen, 

produced by the electrolysis of water using renewable electricity, 

which will be vital to FCEVs delivering the environmental 

credentials on which they are being sold. 

Advanced Li-ion battery cells 

Lithium-ion (Li-ion) batteries based on graphite anodes and 

layered oxide cathodes (NMC, NCA) have come to dominate 

large parts of EV markets. However, as they start to reach their 

performance limits and as environmental and supply risks are 

highlighted, improvements and alternatives to Li-ion batteries 

become increasingly important. 

Advanced Li-ion refers to silicon and Li-metal anodes, solidelectrolytes, 

high-nickel (high-Ni) cathodes as well as various cell 

design factors. Given the importance of the EV market, specifically 

battery electric cars, on determining battery demand, Li-ion is 

forecast to maintain its dominant position. 

Heavy-duty electrification: constructive developments. 

This article is based on IDTechEx’s broad research portfolio into electric vehicles and energy storage. The adoption of electric vehicles, battery 

trends and demand across land, sea and air are tracked – helping navigate whatever may be ahead. Find out more. 

* By Luke Gear, principal technology analyst at IDTechEx. Other contributors are Dr James Edmondson, Dr James Jeffs, Shazan Siddiqi and Dr Alex Holland. 

40

ENERGY 

ENERGY 

Lux Research 

Long-duration 

As we endeavour to reach a carbon-neutral economy, electricity will become the core of the 

energy system. To ensure security of electricity supply, the resilience of networks needs to be 

strengthened with the implementation of long-duration, utility-scale storage technologies for 

discharge durations of four hours and beyond. 

BY LUX RESEARCH* 

According to the International Energy Agency, China and the 

US had the largest utility-scale storage capacity in 2020, 

with 1.9GW and 2.7GW, respectively; of this capacity, Li-ion 

technology accounts for almost 90% but does not offer long-duration 

energy storage capabilities. In this technology landscape insight, we 

will categorise the options for long-duration energy storage (LDES), 

excluding pumped hydro and hydrogen. 

By region 

Long-duration energy storage players. 

ENERGY STORAGE 

Flow batteries are getting more attention among the different 

technologies; emerging interest is concentrated in the development 

of nonvanadium batteries, due to the high cost of vanadium and 

incentives to develop this technology using more sustainable 

materials, particularly in EMEA. In contrast to SMEs, for large and 

midsized corporations, chemical energy storage shows higher activity 

than mechanical energy storage. 

Organisation count by technology and entity type 

Historically, there has been more demand and R&D opportunities 

in electrochemical forms of energy storage. None of the large corporations 

active in this space have energy storage as their core business; 

therefore, most of the developments in this business tier come from 

legacy electrochemical research. Across all organisation types, the 

technology development landscape is fragmented, indicating that 

there is no one-size-fits-all solution for LDES. 

Chemical energy storage, primarily flow batteries, is the most active 

technology in terms of number of developers. A vast majority of the 

active SMEs are concentrating on flow batteries, although the market 

already has big, mature players like Sumitomo Electric Industries, 

Honeywell and Lockheed Martin. Nevertheless, there also is significant 

activity from research institutes, which are currently working on new 

materials, components and stacks to reduce the cost. 

On the other end of the LDES technology spectrum, gravitational 

energy storage shows the lowest activity. Higher capital costs involved 

with the development of this technology and vast spatial requirements 

make it less attractive for SMEs and ultimately corporates. 

There is no one-size-fits-all solution 

for long-duration energy storage. 

CHEMICAL ENERGY STORAGE 

Flow batteries. Flow batteries have efficiencies ranging from 60% to 

75% and an expected cycle life of 20 000 to 30 000 cycles. The technology 

is preferred for applications where it’s beneficial to decouple energy 

and power and is particularly well-suited for microgrid support. 

Vanadium redox flow batteries (VRFB) are the most mature technology, 

but the high cost of vanadium pentoxide and security of supply have 

driven development in other electrolyte chemistries. 

Organic electrolytes are the least mature flow battery chemistry, 

but companies like JenaBatteries are pursuing the technology due to 

its low cost and use of sustainable materials. 

Metal-air batteries. These batteries (MABs) have efficiencies between 

50% and 75% and – depending on the chemistry – have an expected 

cycle life of 100 to 1 000 cycles, but they can discharge for more than 

100 hours. The technology is preferred for applications when renewables 

need a backup for long periods (16 hours or more) and is particularly 

well-suited for microgrid support to replace diesel generators. 

Low efficiencies due to slow reactions at the cathode and to anode 

The NAS battery is a megawatt-level energy storage system that uses 

sodium and sulphur. 

degradation because of dendrite formation are two major issues 

currently bedevilling MABs. The development of low-cost air cathodes 

is a major challenge for MABs, mainly thanks to the high cost of the 

catalyst material (made from precious metals like platinum and gold). 

In the midterm, MABs will find the best market fit in applications that 

require a low-cost battery that can discharge for long durations, as in 

commercial backup. 

MECHANICAL ENERGY STORAGE 

Gravitational energy storage. These technologies offer a round-trip 

efficiency of almost 90%, with cyclability limited mainly by wear-andtear 

on the machinery, which has an expected lifetime of between 30 

and 50 years. Developers of this technology claim continuous power 

discharge for eight to 16 hours. The energy output of the system 

depends on the lifting height and mass of the blocks used. High capital 

costs and vast space requirements that translate into extremely low 

power density hinder the deployment of this technology. 

NGK INSULATORS 

42 

43

ENERGY 

ENERGY 

Of late, interest has revived in rail-based gravity energy storage 

systems, which could find a fit in applications with fewer restrictions 

on energy density. 

Compressed and liquid air energy storage. Compressed air energy 

storage (CAES) and liquid air energy storage (LAES) technologies offer 

round-trip efficiencies between 50% and 90%, with cyclability limited 

mainly by machinery wear and tear. Such systems have an expected 

lifetime between 20 and 60 years and provide continuous power 

discharge for one to 24 hours. Over the past five years, approximately 

$500-million has been invested in CAES/LAES technologies; 63% of 

the investment has been raised by Hydrostor in 2022, which plans 

to develop a 500MW/4 000MW power plant in California, expected 

to be in service by 2026. 

LUX TAKE 

The future power grid will require a combination of these LDES 

technologies, depending on regional energy mixes. There will be no 

dominant long-duration technology, but within each application fit 

there will be clear winners. 

Mechanical energy storage technologies use mature physical 

concepts and integrate system components from other industries. 

However, the implementation of these technologies is targeted at 

large-scale projects that require hefty capital investment in a market 

that isn’t yet equipped to optimise those assets. 

Chemical energy storage technologies have a wide range of 

technology readiness, but among them, flow batteries are an active 

area of development with the most mature chemistry of VRFB. 

The development of chemical energy storage will be driven by the 

implementation of low-cost and sustainable materials. 

Clients interested in LDES integration should consider engaging 

with companies that have a mostly developed technology but 

struggle to find deployment opportunities, like zinc-air developers or 

CAES companies. Clients interested in early-stage innovation should 

first evaluate what strengths they can offer to immature technologies; 

chemical energy storage companies would benefit from materials 

development, while mechanical energy storage companies would 

benefit from engineering optimisation. 

Lithium iron phosphate batteries are 

THE SOLUTION TO securing 

connectivity during LOADSHEDDING 

As the two founders of REVOV, we spent more than a decade in the telecoms industry where a 

lot of work went into designing, planning, implementing and testing various ways to keep telecom 

towers running in various regions of Africa. The challenges were many, but the premise was simple: 

how do we keep towers running when generators aren’t an option and there’s no electricity? 

BASF 

JenaBatteries and BASF are producing an electrolyte for a battery technology 

that is suitable for stationary storage of electricity from renewable energy 

sources and for stabilising conventional transmission grids. 

REPORT 

* Article written by Juan Cortes and Chloe Herrera. 


greeneconomy/report recycle 

BATTERIES FOR STATIONARY ENERGY STORAGE 2023-2033 | IDTechEx | [November 2022] 

Global Cumulative Stationary BESS Capacity to Exceed 2TWh by 2033 

Battery demand for stationary energy storage is set to grow in line with an increasing number of renewable 

energy resources being added to electricity grids globally, alongside pressure from governments and 

states to reach targets pertaining to renewable energy generation and energy storage. 

IDTechEx 

Li-ion batteries have 

become an increasingly 

important stationary 

energy storage 

technology. They now 

account for >90% of 

global installations 

of electrochemical 

energy storage. 

Various factors are driving the Battery Energy Storage System (BESS) market. Firstly, the necessity for higher levels of renewable energy integration 

into electricity grids will require higher volumes of BESS to help stabilise electricity grids while providing energy security and supply. As well as this, 

energy and battery storage targets and clear policy frameworks are helping to expedite BESS deployments in the regions where these drivers have 

been announced. This is apparent in countries such as the US, China and Australia. 

The US and China will be responsible for most of the global cumulative BESS capacity in 2033 while rivalling each other for total deployments. 

Without question, these countries’ storage targets, clear market regulations, and profitable business models play a key role in the volume of successful 

project installations, especially on the front-of-the-meter (FTM) side. 

Annual FTM installations will take a larger share of global annual BESS installations, by GWh, than behind-the-meter (BTM) installations in the 

next decade. Moreover, the means for these large battery systems to produce revenues for their owners are becoming more apparent through 

mechanisms such as revenue stacking. As business models continue to mature, investor confidence in large BESS profitability will grow, thus 

facilitating reduced future project costs and increased installation volumes. Order a copy of the report here. 

BY LANCE DICKERSON* 

This is where our foundational understanding of the power of 

batteries and their application in telecoms specifically, and 

power backup generally, was developed. At this point, it is vital 

to introduce the topic of chemistry. Batteries work through chemistry 

and many of the painful lessons we learnt prior to launching REVOV in 

2015 were down to the limitations of lead acid technology, a lesson no 

doubt still being learnt by many a telecom company on this continent. 

Lithium batteries are without any shadow of a doubt the superior 

batteries. Many reading this will have used a volatile type of lithium 

battery called nickel manganese cobalt (NMC) more than they realise 

in their smartphones or laptops. These batteries are known to ignite at 

higher temperatures. 

A newer, superior chemistry called lithium iron phosphate has emerged 

as the safest, most stable and longest-lasting of storage battery 

chemistries. Beyond this, lithium iron phosphate 2nd LiFe batteries, which 

are built from the repurposed but fully functional cells of EV batteries, 

come with the added benefit of engineering built for harsh operating 

conditions – think of the heat and charge-discharge ratio in the usage of 

an EV. LiFe, in the name 2nd LiFe, is a word constructed from the periodic 

table symbols of lithium (Li) and iron (Fe). 

So, as a base understanding, we land on 2nd LiFe batteries as prime 

candidates for backup storage, either for renewable energy installations 

or uninterrupted power supply systems. In this case, 2nd LiFe is primed 

for telecom tower battery backup, and this is why: 

In a properly set up and configured 2nd LiFe lithium iron phosphate 

battery backup system, the time to recharge is identical to the time 

of discharge. The 1:1 ratio means that if the battery has been used 

for four hours, it needs four hours to recharge until its full. If it has 

been used for six hours, it requires six hours to be recharged until 

full. Beyond this, the discharge curve is stable, and unlike lead acid 

*Lance Dickerson is the founder and CEO of REVOV. 

doesn’t plummet after a critical point in time, which makes them 

fundamentally different to lead acid batteries, not just in performance, 

but reliability and lifespan. 

This provides a compelling answer to batteries being rapidly 

recharged in the gaps between bouts of loadshedding in the higher 

stages. However, the transmission infrastructure of some areas leaves a 

lot to be desired, and in some instances there quite literally is not enough 

current. Beyond this, some areas do not return after loadshedding 

because of various technical faults meaning areas are in the dark for 

far longer than anticipated. Another factor is the breaker size used at 

each site, which will determine the performance of the system during 

recharge periods. 

While these are technical discussions, an analogy for a layman’s 

understanding is: presuming the sites already have remote generators 

that are 10KVA, for example, the following could easily be done. We 

must understand that a generator cannot be run under capacity for 

extended periods of time, as much as it cannot be overworked for 

extended periods, lest the life of the machine is severely compromised. 

And so, running a 10KVA generator could split 7KVA to charge 

batteries while 3KVA powers the tower. As a stop-gap measure this 

prepares the site for the next power outage, remembering that the 

superior lithium iron phosphate performance enables a 1:1 discharge 

to charge ratio. 

The point is that we are all in the throes of a devastating crisis that 

threatens our very economy. Working together, bringing expertise from 

various sectors, South Africans really can come up with compelling 

solutions to the crisis. In the absence of this, and certainly in the 

absence of any largescale understanding of battery chemistry, the 

status quo will no doubt continue as we wait for Eskom’s crisis to finally 

be addressed, and this won’t be tomorrow, next month or next year. 

44 45

Battery energy 

storage powered 

by renewable energy 

is the future, and it 

is feasible in South 

Africa right now! 

Sodium-sulphur batteries (NAS ® Batteries), 

produced by NGK Insulators Ltd., and 

distributed by BASF, with almost 5 GWh 

of installed capacity worldwide, is the 

perfect choice for large-capacity stationary 

energy storage. 

A key characteristic of NAS ® Batteries is the 

long discharge duration (+6 hours), which 

makes the technology ideal for daily cycling 

to convert intermittent power from renewable 

energy into stable on-demand electricity. 

NAS ® Battery is a containerised solution, 

with a design life of 7.300 equivalent cycles 

or 20 years, backed with an operations and 

maintenance contract, factory warranties, and 

performance guarantees. 

Superior safety, function and performance are 

made possible by decades of data monitoring 

from multiple operational installations across 

the world. NAS ® Battery track record is 

unmatched by any other manufacturer. 

Provide for your energy needs from renewable 

energy coupled with a NAS ® Battery. 

Contact us right away for a complimentary 

pre-feasibility modelling exercise to find 

out how a NAS ® Battery solution can 

address your energy challenges! 

info@altum.energy 

www.altum.energy 

Altum Energy: 

BASF NAS ® Battery Storage Business 

Development Partner – Southern Africa 

SUPERIOR TECHNOLOGY 

Stationary energy storage 

ENERGY 

The need to store electrical energy from renewable sources for use when a fixed-power connection 

is unavailable has led to technological innovation in the design of batteries over the years. 

Sodium-sulphur (NaS) batteries are used for many large-capacity 

grid applications as the NaS battery system boasts unrivaled 

function and performance, which has been made possible 

from decades of research, design, testing, demonstration, advanced 

manufacturing and over 20 years of proven commercial operation. 

Energy storages for stationary applications provide additional power 

for spinning reserve and energy for peak-shaving. Sophisticated 

technologies are needed to stabilise grids and to elude congestion as 

well as transmission deferral. 

THE BETTER OPTION 

Offering significant advantages over competitive technologies, NaS 

batteries have a high energy density and charge/discharge efficiency, 

as well as a long cycle and service life. These batteries can be used as 

peakers, in place of diesel or gas-fired generators, because they supply 

reliable power for six hours at a time. This application saves money and 

offers the utility carbon tax savings due to the elimination of gas or 

diesel exhaust. The batteries are built from environmentally benign 

materials and are easily and safely disposed of. 

HOW DO THEY WORK? 

NaS batteries operate at high temperatures between 290°C and 340°C. 

They use a solid electrolyte, which is unique among the common 

secondary (ie rechargeable) cells. One electrode is molten sodium 

and the other molten sulphur. The chemical reaction between them 

produces an electric current. 

SPECIFIC BENEFITS 

Stationary NaS batteries meet specific requirements for reliability 

of power supply and voltage stabilisation on power grids. As such, 

they can provide power stored up from off-peak times to meet 

peak demand, effectively adding capacity on the grid (peak-shaving). 

They are useful for back-up in power outages as they offer a steady 

supply of current for an exceptionally long time. When used in a 

microgrid, NaS batteries offer both storage and smoothing of output 

from variable renewable energy sources. 

Typical NaS battery units are housed in a 20ft standard sea freight 

container and are equipped with six large NaS modules, an airconditioned 

control cabinet with the Battery Management System 

(BMS) and are ready for easy installation and DC-voltage connection 

to the Power Conversion System (PCS). The total number of NaS 

containers depends on the power and capacity requirements, lifetime 

and load profile of the application. Typically, the charge/discharge 

efficiency in the 85% range provides efficient use of energy, with slow 

linear degradation over an extended lifespan. 

NaS battery systems have been deployed for over 20 years, at more 

than 200 projects worldwide, with a total installed capacity of more 

than 580MW and 4 000MWh globally. 

A sodium-sulphur battery. 

THE LONGEVITY AND BREVITY OF BATTERIES 

A battery’s value is in its lifespan – the longer it lasts, the higher the 

return on investment will be (as replacement costs are not added 

over the total project period). The battery lifespan should match the 

optimal financial period of a project. Specifying a battery without an 

established lifecycle is a risk, which may have financial implications. 

Battery degradation affects the performance and lifespan of a battery 

and it may need to be replaced. 

ENERGY VS POWER 

Energy batteries are used in applications that require a reliable, longterm 

supply of power at the rated output (eg mobile phones laptops. 

Power batteries provide short bursts of high-power energy and are 

found in automotive, industrial, and rapid-charge applications. 

HIGH-ENERGY OR HIGH-POWER DENSITY? 

Energy storage systems that have a high-energy density store a lot 

of energy in a smaller amount of mass. High-energy density does 

not mean high-power density. A system with a high-energy and 

low-power density operates for a relatively long period (eg a mobile 

phone’s battery power will last for most of the day before it requires 

a recharge.) 

High-power density systems provide large amounts of current based 

on their mass (eg a tiny supercapacitor may have the same power output 

as a large battery but due to its size, it will have a higher-power density. 

High-power density systems recharge faster as their energy release 

is faster (eg a camera flash needs to be small to fit inside a camera but 

requires a higher-power output for the flashtube.) 

PERFORMANCE AND RELIABILITY 

Storage technologies vary, they are not commodities, so their 

application, lifespan, risk factors must be well understood before an 

investment is considered. 

For more information on sodium-sulphur batteries in South Africa, contact Lloyd at Altum Energy (lloyd@altum.energy). 

NGK 

47

ENERGY 

ENERGY 

GREEN HYDROGEN 

How South Africa can capitalise 

on it, and why we need to do it now 

A recent IEA report makes the call for a massive increase of concessional finance to mobilise largescale 

private investment in hydrogen projects in developing countries. But how can hydrogen 

(a gas) be green and why is it necessary in the energy system? 

In what was dubbed a “landmark” report, the International Energy 

Agency (IEA), the International Renewable Energy Agency (Irena) 

and the UN Climate Change High-Level Champions released the 

Breakthrough Agenda Report 2022, which provides an independent 

assessment of the historic commitments made by governments at 

COP26 in 2021, and the recommendations in the run-up to COP27. 

The report delivers a clear call to action for governments along with 

key recommendations that can help to rapidly reduce emissions, 

cut energy costs and boost food security for billions of people 

worldwide, in line with the goal of keeping global warming to a 

maximum of 1.5°C (the tipping point). A large focus of the report 

was ramping up development of low-carbon and renewable hydrogen 

– recommending an increase of less than one-million tons in 2020 to 

about 150-million tons by 2030, which requires doubling each year 

from today. The report looked at how international cooperation can 

increase the availability and affordability of renewable and low-carbon 

48 

Hydrogenation forms a mixture 

of lithium amide and hydride 

(light blue) as an outer shell 

around a lithium nitride particle 

(dark blue) nanoconfined in 

carbon. Nanoconfinement 

prevents interface formation, 

which dramatically improves the 

hydrogen storage performance. 

hydrogen and makes a strong call to increase concessional finance 

by multilateral development banks to mobilise large-scale private 

investment in hydrogen projects in developing countries. 

“What’s different about this report is its focus on international 

collaboration,” Simon Sharpe, director of economics for the UN Climate 

Change High-Level Champions said at the launch of the report. 

“There are many other reports out there saying what countries or 

businesses can do individually. This is about how they can work 

together to achieve more than the sum of their parts. It can do that with 

faster innovation, stronger incentives for investment, larger economies 

of scale and level playing fields where we need them. All those things 

can make transitions faster, less difficult and at a lower cost.” 

Elizabeth Press, director of planning and programme support at 

Irena, says that “hydrogen is everybody’s darling at the moment, there 

is a lot of policy attention to this… on where international cooperation 

can really shift the needle on hydrogen.” 

Sandia National Laboratories 

Hydrogen research in South Africa was motivated in part 

by the potential impact that the transition away from the 

internal combustion engine (ICE) to battery EVs would have 

on the country’s platinum mining industry. Together, South 

Africa and Zimbabwe hold over 90% of the world’s known 

PGM reserves. Since 30% to 40% of the supply goes into the 

production of catalytic converters for ICE vehicles, the initial 

focus of research was on hydrogen-powered fuel cell EVs as an 

alternative market. It is estimated that South Africa has the 

potential to produce six-million to 13-million tons of green 

hydrogen and derivatives a year by 2050. To do so would 

require between 140 and 300GW of renewable energy. 

President Ramaphosa, November 2022 

Doubling every year also requires an accelerated deployment of 

renewable power. To reach these targets, a sharp escalation in financing 

across the hydrogen value chain is required. Out of the hydrogen 

production that exists today, only 1% of it is “climate-proof”. But how 

is hydrogen used to create electricity and why is it necessary for us to 

include it in the energy mix? 

HYDROGEN IN THE ENERGY SYSTEM 

Will Swart, an energy engineer at Meadows Energy, explains that 

there are several ways to produce hydrogen, but the most common 

is through hydrolysis – using electricity to split water molecules into 

hydrogen gas and oxygen atoms – this process is very energy intensive, 

so it’s only “green” hydrogen if this process is fuelled by renewable 

energy (such as wind or solar), not from fossil fuel energy (such as coal) 

called “grey hydrogen”, which is what Sasol does. 

“And then you can convert that hydrogen back into electricity 

through a process where hydrogen reacts with oxygen across an 

electrochemical cell producing electricity and water – so, it’s basically 

the reverse of when you produce it.” 

Tobias Bischof-Niemz, energy expert and CEO of renewable energy 

company ENERTRAG South Africa, agrees and explains that hydrogen 

acts as an energy carrier – you can either store hydrogen or use it 

right away. “If you use the hydrogen in a direct reduction furnace, 

for example in a steel plant, then the hydrogen effectively burns and 

becomes water again.” 

Unless there is a gas leak, there are no emissions that go into the 

atmosphere, just water vapour – making it “green”. While Bischof-Niemz 

acknowledges that we do have to monitor leaks, he said that even 

with an enormous leakage of 10% of hydrogen – which is “actually 

impossible, because a lot of the hydrogen will immediately be 

converted into something else, like ammonia” – the global warming 

potentials of the entire leak would only be less than 1% of today’s 

CO 2 

emissions. 

IS HYDROGEN REALLY NECESSARY? 

Well, hydrogen has three real benefits – long-term storage, economic 

opportunities from exporting it to other countries and decarbonising 

the environment. While long-term storage is not as relevant in a 

country like South Africa with less seasonal variability (we have more 

consistent solar, for example, unlike countries in Europe), hydrogen is 

a technical necessity to decarbonise our environment. Press from Irena 

say that a driving force behind green hydrogen development is that it 

is a “climate imperative”. 

“There are absolutely areas where we know no other solution exists 

today, and that the hydrogen needs to be advanced for that purpose,” 

says Press. Bischof-Niemz explains that green hydrogen is a technical 

necessity in a completely decarbonised, net-zero world because there 

is no other (known) way to decarbonise steel, shipping, aviation fuel, 

fertiliser or chemicals. For example, large container ships cannot run 

on batteries and need a fuel, and a green one at that. “So, naturally we 

need a fuel that is made out of the new primary energy which will be 

electricity from sun and wind,” says Bischof-Niemz. 

The report highlights that there are limited alternative clean energy 

solutions in sectors such as heavy industry, shipping, aviation, seasonal 

electricity storage and potentially segments of heavy-duty trucking. 

Considering that transport has the greatest reliance on fossil fuels 

internationally, the need for hydrogen becomes more obvious. 

ALL-ELECTRIC NOT FEASIBLE 

Ronny Kaufmann, CEO of Swisspower, a strategic alliance of the most 

important city utilities in Switzerland, speaks about the importance of 

leveraging a country’s natural resources when it comes to the energy 

mix and the importance of green hydrogen for storage. Kaufmann says 

he does not believe in an all-electric energy system because it “has its 

systemic failures and is a romantic view for some people”. Using other 

energy sources, such as hydrogen or biomethane, is better than just 

producing electricity in certain cases. “But a world where you substitute 

all energy resources into electricity will not work. It is better to use 

hydrogen than fossil gas – and an all-electric world is not feasible.” 

Energy expert Clyde Mallinson says one criticism of hydrogen 

development is that South Africa doesn’t require long-term storage. 

“This is not currently the case in many higher latitude countries, 

who have massive inter-seasonal variances in solar in particular,” he 

says. Bischof-Niemz agrees that long-term storage is less relevant in 

a country like South Africa, but says it is still needed in sectors that 

cannot decarbonise otherwise. Additionally, hydrogen could become 

more relevant in South Africa as renewable generation increases and 

if we create surpluses. For example, Kaufmann explains that every 

country has its own energy technical environment, and for Switzerland 

it’s a hot summer and a very cold winter, which means in summer there 

is a surplus of electricity. Switzerland produces as much energy in 

summer as possible and uses the surplus (from renewables or nuclear 

sources) to pump water to the mountains where they have dams. Then 

in winter, when electricity demand is higher, they use this water to 

generate power. 

Researchers have developed a sandwich-structured catalyst that can 

generate hydrogen energy by activating water electrolysis. 

49 

Pohang University of Science & Technology (POSTECH)

ENERGY 

Hydrogen is everybody’s 

darling, at the moment. 

Kaufmann explains that like Japan (but unlike South Africa), 

Switzerland doesn’t have a lot of surface but it does have verticals in the 

landscape, which it uses to produce energy. Historically, it was much 

easier to produce water than solar energy, so most of Switzerland’s 

electricity comes from hydropower (pump storage from dams and runof-the-river 

hydroelectricity). 

In South Africa, using our space and wind and solar potential and 

storing surplus energy through green hydrogen could be beneficial. 

“A lot of people think it’s the answer to energy storage,” says Swart, 

referring to hydrogen. “Wind and solar only produce power when the 

sun is shining or the wind is blowing. But if you use that renewable 

energy to produce hydrogen, then you have a means to store that energy.” 

Kaufmann adds: “There are a lot of production possibilities for gas, 

like using electricity surpluses you have from the summer that you can’t 

store with renewable sources.” 

Bischof-Niemz explains that hydrogen is not an alternative storage 

to batteries but can be used in addition. Batteries are “perfectly suited 

to balance the day-to-night-time fluctuations, but hydrogen is better 

suited for the long term, because you can store it away inexpensively 

without losing anything.” 

Swart adds that with its good wind and solar resources, South Africa 

could set up plants to produce green hydrogen, which it could export 

to “anyone across the world to use that to produce green electricity, 

which could be huge for South Africa”. 

The country has abundant natural resources and available land for 

the process and is thus ideally positioned to produce enough green 

hydrogen to both decarbonise many of its own energy-intensive 

industries and tap into the rapidly building global demand for the 

fuel, according to research commissioned by the EU Delegation to 

South Africa. For example, Switzerland, which doesn’t have naturally 

occurring fossil fuels such as gas or coal, doesn’t import coal but does 

import renewable gas. Kaufmann says the country has a target to 

make its gas consumption more renewable. And like many countries in 

Europe, it is highly dependent on Russian gas. “Societies are realising 

that we have to first diversify the origin of our gas suppliers and then 

make our gas consumption more renewable,” says Kaufmann. 

SOUTH AFRICA’S PLANS FOR HYDROGEN 

South Africa already produces hydrogen – but it is “grey” hydrogen 

from fossil fuels (coal), which results in massive carbon emissions. 

Bischof-Niemz’s research found that Sasol’s Secunda site in 

Mpumalanga – which converts large quantities of coal into fuels, 

chemicals and CO 2 – is one of the world’s largest sources of CO 2, 

emitting 57-million tons every year. Secunda has a Fischer-Tropsch 

reactor, into which hydrogen and carbon monoxide is placed to 

create liquid hydrocarbons, such as petrol and aviation fuel. While 

it produces dangerous emissions now, this technology could be 

used to create green hydrogen. “It’s a huge liability, but you can 

turn it into an opportunity as well, because the Fischer-Tropsch 

technology is needed in the long run in a decarbonised world to 

produce aviation fuel,” says Bischof-Niemz, explaining that in a 

completely decarbonised world we will need chemical facilities 

like the Fischer-Tropsch reactor to produce synthetic aviation fuel. 

And South Africa does have plans to make hydrogen production 

green – President Cyril Ramaphosa, in his 2022 State of the Nation 

address, announced R270-billion for the development of a hydrogen 

pipeline. And Minister of Higher Education, Science and Innovation 

Blade Nzimande has launched South Africa’s Hydrogen Society 

Roadmap, which proposes that hydrogen be used throughout the 

economy. There seem to be plans in place, but what the breakthrough 

report indicates is that this needs to happen now. 

“This report is totally right. We need more engagement, more money 

in the system, more courage, more economies of scale,” says Kaufmann, 

adding that the second thing that stood out in the report was that 

“we’ve got to be faster”. 

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Renewable Energy Agency | UN Climate Change High-Level Champions | [2022] 

The world is facing multiple and compounding crises. The effects of climate change are intensifying. The 

availability and affordability of both energy and food are at risk in many countries, contributing to a 

broader cost-of-living crisis. The response must not be to slow down the transition to sustainability but 


to move even faster. 

A massive scaling up of clean energy investment and deployment worldwide is needed to enhance energy 

security, affordability and access, and the transition to sustainable land use is essential to protect our food 

systems against future shocks. This report is a joint product of the IEA, IRENA and the UN Climate Change High- 

Level Champions. Each organisation has brought its own expertise to deliver clear recommendations for the 

actions that governments and companies need to take. Many now see the opportunities of the low-carbon 

transition and are competing to lead the development of new technologies. This is to be welcomed. 

The opportunity is for countries, businesses, communities and citizens to work together to accelerate the growth 

of global markets for clean technologies and sustainable solutions while continuing to compete to supply them. 

54 

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50

ENERGY 

ENERGY 

POWER 

to the 

PEOPLE 

Distributed solar has for a long time been perceived as secondary to the large, utility-scale photovoltaic 

plants. However, in recent years it has grown in importance and now takes the front seat in energy 

transition plans in many countries. How can South Africa benefit from this emerging trend? 

Now a far cry from a once-niche solution targeted at industry 

aficionados – commercial and industrial and residential PV 

installations account for 50GW of solar power deployed globally 

in 2022. That means about one third of the whole solar capacity 

installed around the world came in the form of distributed solar. 

While residential and C&I installations can be ground-mounted, 

they are most frequently placed on rooftops. In leading solar markets, 

residential solar installations are becoming a rule rather an exception. 

Nowhere is this more apparent than in Australia. According to the 

National Survey of PV Power Applications in Australia, more than 

30% of free-standing households across the nation are fitted with PV 

systems. In Queensland and South Australia, the average is closer to 

40%, and more and more communities record penetration of rooftop 

solar at over 50%. 

The burgeoning importance of residential solar is confirmed by 

Norwegian research company Rystad Energy. As per the company’s 

data, in 2021, for the first time in history, the world installed more PV 

capacity in residential than in C&I systems. 

52 

Distributed solar could make for a 

significant portion of the whole power 

mix for South Africa. 

Bartosz Majewski, CEO, and Heino Louw, general manager of Menlo Electric, 

the fastest-growing distributor of PV modules and inverters in EMEA. 

UNTAPPED POTENTIAL 

Compared to other markets, the fundamentals of distributed solar in 

South Africa are as strong as it gets. 

The technical potential is exceptional, with PV plants in South Africa 

producing 2 500kWh of electricity per year from 1kWp of solar power 

installed, twice as much as in the European Union. 

“The motivation to go solar by businesses and homeowners is already 

very strong, even without additional incentives from the government. 

Daily loadshedding resulting in blackouts for six, eight or more hours 

makes an investment in solar systems less about savings and more 

about securing business continuity,” comments Heino Louw from solar 

equipment distributor Menlo Electric. “That is not to say that savings 

potential is not a strong motivation – and with electricity prices at a 

level seven times higher than in 2007 and still growing, that motivation 

is getting stronger every year,” he adds. 

Based on benchmarks, distributed solar could make for a significant 

portion of the whole power mix for South Africa, both rooftop and 

ground mounted. Presently, Australia has the highest power of 

per-capita rooftop PV installations with about 750 watt-direct current 

(WDC), then Germany at a close to 700WDC per person, and Japan at 

approx. 350WDC per person. If South Africa reached only 100WDC per 

person, rooftop installations would add 6GW of PV capacity, producing 

15TWh of electricity each year. Adding ground-mounted distributed 

solar systems to the calculation could double these numbers. In total, 

the electricity generated this way would equal the expected output of 

Kusile Power Station. 

DISTRIBUTED POWER AND FUNDING – AND RISKS 

The comparison to the troubled development of Kusile station 

highlights other advantages of distributed solar. First off, the funding 

does not have to burden the State budget or that of Eskom. The costs 

are borne by thousands of individual and corporate clients, who are 

commissioning the plants from their local engineering, procurement 

and construction (EPC) contractors. And these are no small sums – 

development of 1GW of distributed solar costs almost $1-billion. 

Additional savings are derived from the fact that the installations are 

located close to sources of demand. This translates into a lower strain 

on electricity distribution networks and reduced capital expenditures 

for the development of the grid. Obviously, at some saturation level 

new investments in the transmission network would still be required. 

On the risk side – since the installations are dispersed among many 

locations, EPCs and clients; delays in an individual project do not spill 

over to other projects. That means that new capacity comes online 

daily, in a gradual, but uninterrupted way. 

HELP ME HELP YOU 

The main challenge with owning a solar system is that it produces most 

of electricity in the middle of the day – when residents are typically 

at work. In contrast, electricity is mostly consumed by households in 

the mornings and evenings, when the installation does not produce as 

much energy. 

One way to work around this mismatch is to add a battery set 

to the system. This, however, can easily double the value of the 

investment, inflating it to a prohibitive level for most homeowners 

and companies. That is why distributed solar is most successful in 

countries where a dedicated incentive scheme is implemented. 

One popular measure is “net metering”, which has been adapted 

in various forms by many countries in Europe and almost 40 states 

in the USA. Under this scheme, surplus electricity generated by the 

solar system is fed into the grid for other users. The electricity meter 

“runs backwards” to record this energy, so that the homeowner only 

ends up paying for the net electricity consumed – hence the name 

of the scheme. 

Other support schemes may involve sales of electricity to the grid at 

pre-agreed price under the Feed-in-Tariff regime, direct subsidies for 

systems or guarantees for bank loans. 

IT’S BEEN DONE BEFORE: IT CAN BE DONE AGAIN 

“Among other countries that have swiftly ramped up capacity through 

distributed solar, Poland is perhaps the most akin to South Africa,” 

comments Bartosz Majewski, CEO of Menlo Electric. “Poland’s power 

generation system has faced many of the same challenges that South 

Africa is experiencing, including a large and aging fleet of coal-fired 

power plants built in the 1960s and 1970s as well as a slow pace of utilityscale 

renewables developments.” 

The introduction of net metering allowed for owners of PV microinstallations 

up to 50kW to feed surplus energy into the grid and 

then receive 70% to 80% of it back at no cost. This spurred a wave 

of deployment of such systems across the country. In the four years 

between 2019 and 2022 more than one-million people and businesses 

installed solar systems on their rooftops and in their backyards. This 

translated into almost 10GW of additional PV solar power connected 

to the grid. From being perceived as one of European Union’s laggards, 

Poland surged ahead to become one of the top three solar markets on 

the continent both in 2021 and 2022. 

The fundamentals of distributed 

solar in South Africa are as 

strong as it gets. 

More than $8-billion of private investments from home and 

business owners were mobilised through this scheme. Of it, Poland’s 

state and municipal administration collected at least USD1-billion in 

VAT and income taxes. Moreover, the industry created an estimated 

120 000 jobs in installations, servicing and sales – of which more than 

50% were located in Poland’s underdeveloped regions. 

“Entrepreneurs and technical specialists that entered the solar industry 

during this photovoltaic boom often branched out to other segments 

or renewable energy, animating the ecosystem and contributing, 

for example, to a recent growth in sales of heat pump installations. So 

apart from the immediate, quantifiable benefits developing distributed 

solar will have a positive impact on the energy industry as a whole,” 

concludes Majewski. 

53

WASTE 

WASTE 

Waste management 

is key to a 

HEALTHY ENVIRONMENT 

Inadequate waste management poses a significant threat to the environment, polluting the 

soil and ground water and undermining ecosystem functions and services. 


Marine plastic waste is a global problem that threatens 

biodiversity and wildlife, and originates mostly on land from 

single-use plastics. When these products and packaging are 

not properly disposed of, they leak into the environment. 

The 2018 State of Waste report estimates that of the 55.6-million 

tons of general waste that was generated in South Africa, 19 247 851 

tons was organic waste and 65.2% was landfilled. To improve waste 

management in South Africa, government is working to progressively 

increase the number of households with access to weekly waste 

collection; improve landfill compliance and is looking to the future 

of waste disposal beyond landfilling. In this regard the reduction and 

recycling of waste plays an important role. 

Government aims to have 40% of waste diverted from landfill within 

five years through reuse, recycling, recovery and alternative waste 

treatment. The aim is to reduce the current amount of waste by about 

25% over the same period and ensure a further 20% of waste is reused 

in the economic value chain. 

The year 2022 was a vital year in the implementation of the 

Extended Producer Responsibility schemes for packaging products, 

eWaste and the lighting sectors, and the Department hopes to 

extend these schemes for batteries, pesticides and lubricant oils in 

the near future. 

Regulations for organic waste treatment, as well as the composting 

of organic waste, were published in 2022 for implementation. This will 

help ensure that organic waste, including food waste, is diverted from 

landfills and used in composting and other sustainable technologies 

South Africa joined member states of the United Nations Environment 

Assembly in affirming its commitment to curb plastic pollution. But 

this means that the Department needs to ensure that the transition 

for plastic packaging is phased, and that the circumstances of the 

domestic plastic industry are addressed. This includes the close 

linkages with the food industry. 

The 2020 National Waste Management Strategy identified food 

waste and loss as a critical area that requires intervention. Thus, 

the development of a Draft Food Loss and Waste Strategy which, 

amongst others, aims to increase awareness on the impact of food 

waste, align with chemicals and waste economy initiatives, strongly 

integrate different disciplinary perspectives and best practices and 

map out the determinants of food waste generation to deepen the 

understanding of household practices and help design food waste 

prevention strategies. 

Food and beverage waste also has a significant impact on the 

environment due to methane gas which contributes to greenhouse 

gas (GHG) emissions produced when food spoils. Food production is 

resource intensive, while resources such as water, labour and energy 

are wasted, and biodiversity is impacted upon negatively. 

Waste management extends beyond industry and civil society. It is 

about individuals, households and those who earn a living through 

waste collection and recycling. There are between 60 000 and 90 000 

informal waste reclaimers working at the heart of South Africa’s 

recycling economy, recovering mostly paper and packaging waste 

from households and businesses. 

Data published by the packaging sector prior to the Extended 

Producer Responsibility regulations came into effect, estimates that 

waste reclaimers collect 80% to 90% of post-consumer paper and 

packaging for recycling. Government, industry and civil society 

recognise the important role waste reclaimers play in the diversion 

of valuable resources away from landfill and they promote the need 

to formalise and protect these livelihoods and the circular economy. 

Waste reclaimers are also a critical link between households and 

recycling enterprises. 

Although South Africa has made significant strides in improving 

waste management since 1994, almost a third of households still do 

not have regular weekly household waste removal services. 

To achieve the goals of the National Waste Management Strategy, 

national and provincial government must support municipalities to 

develop local integrated waste management strategies. 

The investment in yellow fleet (landfill management vehicles) 

to municipalities is an important part of the effort. The Department 

has, therefore, co-operated with National Treasury and the 

Department of Cooperative Governance and Traditional Affairs 

(CoGTA) to change the Municipal Infrastructure Grant Policy so 

that municipalities can access this grant to fund their yellow fleet. 

In addition, the Department spent R42.4-million in the past financial 

year to provide 22 vehicles to 19 municipalities across the country. 

The vehicles include skip loader trucks, front-end loaders, compactor 

trucks and other trucks required to transport waste within these areas. 

Communities must begin to separate their waste at home so that 

waste reclaimers can undertake their work in a dignified manner. 

Households must teach family members not to litter and must work 

with their neighbours to prevent illegal dumpsites. All of us must 

participate in regular clean-up campaigns to beautify our communities 

and protect our environment. 

Government aims to have 40% of 

waste diverted from landfill within five 

years through reuse, recycling, recovery 

and alternative waste treatment. 

54 

55

WASTE 

Rethinking hazardous waste management 

The 11-million elephants in the room 

Research shows that 92.7% of hazardous waste is landfilled in South Africa. That is a staggering 

48-million tons of hazardous waste or the equivalent of 11-million elephants. Eleven-million 

elephants stacked on top of each other would create a tower that is 36 410km high – almost long 

enough to reach around the entire earth. 

According to the South Africa State of Waste Report 2018, 

South Africa generates more than 107.7-million tons of 

waste annually. Of this, 48% or 52-million tons, is classified 

as hazardous waste that may have a detrimental impact on health 

and the environment. A total of 92.7% of this is landfilled every year. 

To compound matters, South Africa’s dumping grounds are filling 

up at an alarming rate with some large sites having less than three 

years of airspace available, says Leon Grobbelaar, the president of 

the Institute of Waste Management of Southern Africa. Engineering 

News has recently reported that Johannesburg, Tshwane and Cape 

Town each have less than 10 years of landfill life left. 

Legislators have identified this as a fundamental issue that needs 

to be resolved, and as such the South Africa Waste Management 

Strategy 2020 states: “Prevent waste, and where waste cannot be 

prevented, ensure 40% of waste is diverted from landfill within five 

years; 55% within 10 years; and at least 70% within 15 years leading 

to zero waste going to landfill”. A tall order, but a crucial one for our 

country and environment. 

Waste that is not taken to landfill poses possible environmental and 

human health risks and disasters – the tragic tailings dam failure in 

Jagersfontein (2022) is an example. In a recent Reuters report, it is noted 

that South Africa has the highest number of high-risk tailings dams (79) 

in the 10 countries that were profiled. Quartz Africa asserts that “there 

are growing calls for the cleaning up of high-risk tailings dams so that 

the waste can be re-processed and used to fill up mined out operations, 

thereby reducing environmental hazards.” Mariette Liefferink from 

Federation for a Sustainable Environment (FSE) warns that in terms of 

ecological risk, the issue of mining waste is widely recognised as second 

only to global warming and stratospheric ozone depletion. 

A high degree of effort is required to mitigate environmental risks 

posed by hazardous waste, no matter where that waste currently 

exists. For this to be achieved requires industry to pursue zero waste 

Johannesburg, Tshwane and 

Cape Town each have less than 10 years 

of landfill life left. 

aggressively with landfill technologies from both sides of the buyersupplier 

relationship. 

TREATMENT OF HAZARDOUS WASTE 

There are various ways of treating different types of hazardous waste 

including but not limited to biological, physical/chemical, thermal or 

disposal. The type of treatment depends highly on the contaminant 

and the desired result, as not all waste streams are susceptible to 

all treatment methods. Other factors that influence the choice of 

treatment method include the conditions of contamination and 

surroundings, type of remediation required (destruction, separation 

or containment), operational intensity, capital requirements, relative 

costs, reliability of outcome and the time window. 

Treating hazardous waste is by no means an easy feat, and much 

more work is needed to develop solutions for waste streams that 

currently have no treatment options. Combining +50-year-old principles 

with innovative product technology, Bemical delivers solutions to 

hazardous waste streams that are based on the most efficient methods 

in biological and physical/chemical treatment. Waste stream examples 

that have been managed via these treatment methods include 

hydrocarbons, volatile organic compounds (VOC), heavy metals such 

as lead, arsenic and chromium, polycyclic aromatic hydrocarbons (PAH), 

manufactured gas plant waste (including cyanide, naphthalene, total 

petroleum hydrocarbons, arsenic), chromium ore process residual, 

asbestos as well as platinum group metal tailings and sewage. 

Bemical’s leadership team includes a head of technical and project 

operations, an expert with over 20 years of global remediation 

experience, as well as a chief science officer serving as an associate 

professor with a distinguished academic track record in chemical 

and environmental engineering. Bemical has partnered with the 

Department of Engineering at the University of Pretoria to conduct 

further research into industry-leading remediation products to better 

serve the variety of waste streams available. 

Contact Jaco Nel at admin@bemical.com or +27 83 363 0315. 

www.bemical.com 

57

ENSURING 

RESPONSIBLY 

SOURCED 

FOREST 

PRODUCTS 

76% 

of consumers believe sustainability 

information on products should be 

certified by a credible independent 

organisation.* 

Youth can play an important role in 

DEVELOPING A GREEN ECONOMY 

Although youth have traditionally led the fight for justice and inequality, the fight in recent 

years has changed to halting climate change, and helping to find fresh, innovative and 

transformative ideas to utilise in the shift to a green economy in which all the actions taken are 

done in a sustainable manner – a manner that will contribute to a better world for all. 


YOUTH 

For peace of mind in meeting consumers' concerns 

regarding deforestation and climate change - 

choose FSC ® Chain-of-Custody Certification. 

FSC ® F000100 

® 

Most people are aware that climate change is no longer 

something that will happen in future. It is a lived reality. For 

South Africans, reality has hit in the form of extreme weather 

events, such as devastating floods, and prolonged droughts resulting 

in untenable water shortages in metropolitan areas such as Cape Town 

and Nelson Mandela Bay. These events are the new norm for millions 

of people. They can be linked directly to climate change, and the only 

way for people to survive is to adapt, which requires technology and 

the development of new skills. 

The Intergovernmental Panel on Climate Change, in its Working 

Group reports released in 2022, made it clear that global development 

pathways must become more climate-resilient – and that the choices 

made by society now are critical. With increasing global warming, 

losses and damages will increase and additional human and natural 

systems will reach adaptation limits. 

It is imperative that South Africa continues its efforts to move 

towards a green economy, which is regarded as an effective way to 

achieve equitable, sustainable prosperity that combines economic 

development and social inclusion within one-planet limits. This 

means reaching beyond environmental care to create prosperity for 

all, as societies value nature, tackle inequality, make their current 

activities green, invest in sustainability and define meaningful ways 

by which to govern. 

In 2021, South Africa made a very ambitious contribution 

to the global effort to address the climate crisis in the form of its 

updated Nationally Determined Contribution affirming the economic 

opportunities offered by a low-carbon development pathway given 

the country’s endowment of natural resources, including wind, 

It is imperative that South Africa 

continues its efforts to move towards 

a green economy. 

sun and minerals key to the global green economy. The National 

Determined Contribution also emphasises the importance of a just 

transition – addressing South Africa’s development challenges, 

ensuring that there is a smooth and prosperous transition for 

workers and communities from our current coal-based economy 

to a future zero-carbon economy, and making maximum use of 

economic opportunities, including green industrialisation. 

Because the youth are such an integral part of the future, the 

Department of Forestry, Fisheries and Environment has in the past two 

years hosted the Driving Force for Change youth initiative through 

which youth entrepreneurs who are committed to implementing 

sustainability principles into their business models can apply for 

financial support. The youth entrepreneurs are also provided with 

much-needed business acumen skills training interventions to support 

them in strengthening their respective business ventures. 

This initiative is a recognition of the fact that young people are aware 

of the role which they want to play in addressing challenges such as 

unemployment, climate change and social inclusion by making a 

meaningful contribution to support our country’s transition efforts. 

The eagerness of the youth to be involved in rebuilding and 

growing the economy and society post-Covid-19 is evident from 

the interactions between young people and government. One of 

these was the 2020 Youth Environment and Sustainability Dialogue 

where more than 100 young South Africans presented a wide range of 

ideas including that a green recovery mechanism needs to be genderand 

youth-responsive and that the renewable energy, transportation 

and waste management industries are prioritised in the country’s 

green recovery strategy. The climate crisis, they said, needs to be 

dealt with greater urgency. 

The young people asked for greater access to the Green Climate 

Fund to enable them to implement ideas they had for a more 

environmentally friendly society. This included promoting access to, 

and projects of, the world’s largest fund created by the United Nations 

Framework Convention on Climate Change to assist developing 

countries adapt to and mitigate climate change. 

*Globescan Consumer Survey 2021 

Timber & forestry visuals courtesy: Merensky Timber 

FOREST STEWARDSHIP COUNCIL ® 

www.africa.fsc.org 

59

DQS 

Academy 

Company 

Profile 

Based on the same customer focused service excellence 

approach that we operate within our certification division, 

DQS Academy is an accredited training provider that 

offers training to suit a variety of needs in a range of ISO 

standards. 

Choose from a range of short courses at varying 

competencies in Safety, Health, Environment and 

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as essentials for a business, SHE and Environmental 

management to other short courses facilitated at a 

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Implementation/ Auditing 

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ISO 14001:2015 Environmental Management 

ISO 45001 Occupational Health And Safety 

ISO 22000:2018 Food Safety Management 

ISO 31000/ ISO 31010 Enterprise Risk Management 

ISO 50001 Energy Management 

ISO 55001 Asset Management 

ISO 22301 Business Continuity Management 

FSSC 22000 Food Safety System Certification 

ISO 39001 Road Traffic Safety Management 

ISO 37001 Anti Bribery Management 

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professional level related to ISO standards in IT Risk, Risk 

Management, Business Continuity Management, Food 

Safety and Energy Management, as well as other key 

business sector standards. 

Our seasoned and experienced trainers will provide 

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In everything we do, we set the highest standards for 

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We consider ourselves important partners of our 

customers, with whom we work at eye level to achieve 

sustainable added value. Our goal is to give organizations 

important value-adding impulses for their entrepreneurial 

success through the simplest processes, as well as the 

utmost adherence to deadlines and reliability. 

Our areas of 

expertise serve your success 

Our audits, we create more security and higher process quality across all industries. Our work ranges from the certification 

of management systems to audits but not limited to to medical devices, information security or sustainability. 

Food & Consumer 

Quality Management 

Sustainabilty 

Information 

Security 

Our focus: 

Certification and assessment 

Our core competencies lie in the performance of 

certification audits and assessments. This makes us one 

of the leading providers worldwide with the claim to set 

new benchmarks in reliability, quality, and customer 

orientation at all times. 

2500+ 

Auditors 

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Various eLearning trainings 

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www.dqsglobal.com

SKILLS 

SKILLS 

CLEAN ENERGY 

WORK SHIFT 

Under a net-zero emissions pathway, the transition could create 14-million new jobs related 

to clean energy technologies, move around five-million workers from fossil fuels, and require 

additional skills and training for an estimated 30-million employees, according to the IEA’s 

landmark report, Skills Development and Inclusivity for Clean Energy Transitions. 

BY INTERNATIONAL ENERGY AGENCY* 

Changes already underway are behind a significant shift in 

the global energy labour market, with a little over half of 

the workforce now employed in the clean energy sector. This 

trend will only grow more pronounced as demand for skilled clean 

energy workers accelerates, with opportunities across a wide range 

of industries. 

TRAINING, UPSKILLING AND RESKILLING 

Today’s energy workforce is more skilled than global averages, and 

emerging clean energy industries will require an even higher share 

of skilled employees. Often this will necessitate the development of 

completely new programmes of education, certification and vocational 

training. Equally, targeted upskilling or reskilling training programmes 

for the existing workforce will be critical. 

Many traditional energy sectors – notably coal – are experiencing 

major workforce changes, both through greater degrees of automation 

as well as global fuel mix trends. Though coal is on the front lines of 

changes today, in coming years many other sectors will also undergo 

more significant employment shifts, including oil and gas, heavy 

industry and road transport. During the transition, maintaining 

sufficient capacity of skilled workers in these sectors is of strategic 

importance. Devising the right long-term transition plan can ameliorate 

these risks. Many of these workers also have energy sector-specific 

skills that will be needed in clean energy sectors, and capitalising on 

these skills can help traditional energy firms diversify their portfolio to 

clean energy technologies. 

62 

The IEA’s just-released World Energy Employment report is the 

first comprehensive data assessment and analysis of the global energy 

workforce that provides a baseline for policymakers, companies and 

other stakeholders to help plan for education and training needs. It 

finds that the energy sector in total employs over 65-million people, 

which equates to around 2% of global employment in 2019. 

The overall employment numbers belie an even more complex 

situation on the ground, where the skillsets of individual workers can 

IEA (2022), World Energy Employment 

vary immensely based on industry, job function and region. So even 

though clean energy sectors are set to grow rapidly over the next 

decade, companies may face a lack of skilled workers that match the 

skillsets needed for a project in the region it is located. In some cases, 

this requires the development of completely new programmes of 

education, certification and vocational training, while in other cases, 

it means targeted upskilling or reskilling for the existing workforce. 

NEW SKILLS FOR THE FUTURE 

Emerging technologies currently account for only a fraction of the 

energy workforce but are poised for exponential growth in the coming 

decades. It is equally important to ensure that workers in traditional 

energy sectors facing decline because of energy transitions are 

equipped to find new employment in other sectors. Many of these 

sectors are now experiencing major workforce changes that require 

accelerated efforts to support employees, including through reskilling 

and upskilling initiatives. 

DIVERSITY AND INCLUSION 

For energy transitions to be truly people-centred, the diversity of the 

energy workforce must be a paramount consideration in policy and 

programme design for training and skills development. Women are 

heavily underrepresented in the energy labour force. 

This marks a decisive wake-up call for course-correction to ensure 

that the future energy workforce is more inclusive, gender-balanced, 

and enabling of equal opportunity compared to the energy sector of 

today. Several initiatives are underway around the world to support 

this outcome, which target skills training programmes to specific groups, 

notably women, youth and marginalised communities. 

Beyond government programmes, several non-profit groups and 

industry collaborations have put in place innovative programmes 

designed to ensure that the clean energy workforce is more inclusive 

than the traditional energy sector. 

SKILLS TRAINING 

The overriding concern for government officials, policy makers and 

companies is the lack of a sufficiently skilled workforce to undertake 

the scale of new projects required for a low-carbon economy. Future 

growth in clean energy industries is closely correlated with the 

simultaneous development of a qualified workforce to implement 

projects. Many governments are investigating the development 

Energy employment by economic sector, 2019. Energy employment in fossil fuel and clean energy sectors, 2019-2022. 

IEA (2022), World Energy Employment 

The automotive sector is also 

poised for a major shake-up. 

of training, reskilling and educational programmes in anticipation 

of the upcoming changes. The most advanced programmes align 

energy, industrial, labour and education policies to jointly develop 

a strategy for energy transitions. Countries that are still in the early 

stages of their energy transitions have also benefited from capacity 

building and knowledge exchange with other countries that have 

longer experiences building out clean energy sectors. Moreover, 

clean energy skills training programmes are by no means limited 

to national governments, with subnational initiatives also offering 

useful examples of successful outcomes for workers. 

COAL WORKERS 

Driven by market conditions and emissions reduction policies, many 

countries have seen sharp declines in their coal sectors. Since 2010, 

an average of 25GW of coal plant capacity have retired globally, 

mostly concentrated in Europe and North America. The pathway to 

net-zero emissions will mean even more precipitous declines in coal 

usage. As a large employment and economic sector in many regions, 

retraining and regional revitalisation programmes are essential to 

reduce the social impact of job losses at the local level and to enable 

workers and communities to find alternative livelihoods. 

The coal sector – which is relatively labour-intensive – employs 

around 6.3-million workers, heavily concentrated in the Asia Pacific 

region, where the bulk of today’s coal production takes place. The 

jobs are mostly in mining, but also include the transport, washing 

and processing of coal, as well as the manufacturing of specialised 

mining and conveying equipment. Meanwhile, coal power employs 

two-million people globally, most of whom are informal workers. 

For large emerging markets, such as India and South Africa, 

which still have sizeable coal sectors that employ alot of workers, 

the task is still more challenging. Nonetheless, actions taken today 

can prepare workers for a longer-term transition away from coal, 

including through social dialogue between governments, companies 

and unions, as well as detailed workforce and skills assessments that 

can inform future strategies and policies. Several countries globally 

have begun to undertake these processes and offer good examples 

to ensure a smooth transition pathway for coal workers. 

SOUTH AFRICA 

South Africa has undertaken early national engagement on a just 

transition for its coal industry in a context where coal accounts 

for 73% of the country’s energy supply and about 1.5% of formal 

employment. In 2017, the Department of Forestry, Fisheries and 

the Environment and the Department of Trade, Industry and 

Today’s energy 

workforce is 

more skilled than 

global averages. 

63

SKILLS 

SKILLS 

LOCAL DEVELOPMENT 

South Africa introduced the Renewable Energy Independent Power 

Producer Procurement Programme (REI4P) to stimulate private 

investment through competitive tenders in green technologies. 

From inception (in 2011) to date, it has resulted in over 6GW of 

new renewables generation capacity, mainly wind and solar. It is 

estimated that the REI4P has created 18 000 jobs in manufacturing, 

installation and maintenance. Though construction jobs are 

usually temporary, the programme also includes requirements for 

local content that are designed to promote local manufacturing 

of renewable energy components and support skills development 

for workers over time. Companies have a contractual obligation 

to support local socioeconomic outcomes over the lifetime 

of a project (around 20 years), including for education and 

skills development. 

Projects must demonstrate 40% South African ownership, which 

enables knowledge sharing between local developers and foreign 

operators. Several foreign project developers sent a wide array of 

staff to work in South Africa to cover areas such as negotiations and 

contract agreements, construction, supply chain development, 

financing and legal services. Given the limited presence of these 

specialised skills in South Africa, the implementation of projects 

led to sizeable levels of knowledge sharing with local firms in the 

legal, banking, engineering and advisory fields. 

In 2015, the government launched the South African Renewable 

Energy Technology Centre (SARETEC) to develop local green 

skills in response to the demand created by REI4P. SARETEC was 

established at the Cape Peninsula University of Technolog, in 

Cape Town. The institution offers specialised and accredited 

training for the renewable energy industry. Its courses are designed 

to address the skills needs stemming from the REI4P, especially 

as they relate to the long-term operation and maintenance of 

projects. A slowdown in the REI4P policy implementation has 

impeded some progress in recent years, however. 

Competition, commissioned Trade & Industrial Policy Strategies 

(TIPS) to carry out a National Employment Vulnerability Assessment 

(NEVA) to evaluate the impacts that climate change would have 

on companies, workers and communities along the value chain 

in the following sectors: coal, metals, petroleum-based transport, 

agriculture and tourism. 

The 2019 NEVA found that South Africa’s coal mining sector, which 

is highly concentrated among a few companies, employed around 

89 000 workers in 2018 and accounted for 20% of mining jobs in the 

country. That same year, state-owned utility Eskom employed 50 000 

workers, while petrochemical company Sasol had 26 000 workers 

in South Africa. The NEVA identified four main risk factors for the 

country’s coal value chain, including longer-term risks from abroad 

that importers reduce demand for South African coal; global efforts 

to cut coal consumption mount; domestic risks that consumers lower 

their demand for coal-fired electricity due to an expansion of renewables, 

as well as efficiency and policies for lower carbon intensity from 

electricity generation. 

To complement the NEVA, the country’s National Climate Change 

Response White Paper requires the development of a Sector Jobs 

Resilience Plan (SJRP) for each value chain. The SJRPs aim to assess 

opportunities to transition these sectors to green jobs and industries 

as well as to protect vulnerable groups that will be impacted by 

the changes. 

For coal, the SJRP estimated in 2020 that value chain employment 

is more than 120 000 workers, out of which 80 000 work in coal 

mining, the largest employment sector. The power generation sector 

(Eskom) accounts for 12 000 jobs, the petrochemicals sector (Sasol) 

for 26 000, and small coal truckers for 2 000 jobs. A total of 15% of the 

workers in the coal value chain are women. 

The SJRP framework, in addition to guaging the scale of 

displacement expected in a region, also offers recommendations 

for adjustment. It notes various areas for diversification, including 

in the renewable energy value chain through skills development in 

the maintenance and repair of renewable generation equipment and 

the manufacture of renewables generation components and related 

services. Another area for diversification is beneficiation of coal 

waste products, which would require skills training and education to 

transition workers from coal mining and power plants, preceded by 

a thorough assessment of the potential for ash beneficiation. Lastly, 

the framework also identifies mine rehabilitation and repurposing as 

a diversification option. 

OTHER SECTORS 

The skills of oil and gas workers can be transferable to other 

energy sectors. For instance, petroleum engineering skills are 

pertinent to geothermal activities, while chemical engineering 

skills used in oil refineries are applicable to the production of 

clean fuels and hydrogen. The offshore petroleum sector’s skills 

are relevant for offshore wind, carbon capture and storage, and 

hydrogen. Meanwhile, oil and gas power plant operators, turbine 

manufacturers and construction workers can apply their skills to 

clean energy power plants, as well as upgraded technologies to use 

hydrogen and other innovative clean fuels in the future. 

The automotive sector is also poised for a major shake-up as 

emissions reduction policies increase the uptake of electric vehicles 

over traditional combustion models. The IEA’s World Energy 

Employment report estimates 13.6-million people were employed 

Coal power employs two-million 

people globally, most of whom 

are informal workers. 

in road vehicle manufacturing in 2019, accounting for around 2.5% 

of total global manufacturing jobs. Given that electric vehicles have 

fewer components and simpler assemblies, EV manufacturing could 

have a lower labour intensity compared to internal combustion 

engine (ICE) vehicles. However, when considering the full value chain 

READ REPORT 

Companies may face a lack of skilled 

workers that match the skillsets needed for a 

project in the region it is located. 

This article is an excerpt from the report by the International Energy Agency entitled SKILLS DEVELOPMENT AND INCLUSIVITY FOR 

CLEAN ENERGY TRANSITIONS published in September 2022. 

SOLAR TRAINING + INTERNSHIPS FOR 100 SA YOUTHS 

GREEN Solar Academy has partnered with KP Cares to offer professional solar training paired with on-the-job experience to 

technically inclined youngsters across South Africa. The overall objective of the training programme is to skill up participants 

and expose them to first-job experience so that they can find sustainable employment in the solar photovoltaic (PV) industry. 

KP Cares is piloting the training in three provinces in the first year which commenced in July 2022. A total of 28 young people were 

selected for solar training paired with an internship programme. GREEN will facilitate visits to live solar plants so that the students are 

introduced to typical operation and maintenance (O&M) tasks. Once the work skills programme is complete, possible employment options 

will include PV mounter for commercial and utility-scale PV installations, or O&M technician with the trainees capable of carrying out tasks 

such as installation and cleaning of PV modules, wiring and installation as well as technical checks on PV systems. The trainees will be added 

to the GREEN alumni network where they will have access to other installers and professional exchange to help develop their careers further. 

Through GREEN, KP Cares aims to upskill and give work experience to 100 solar installers during the course of the project. If you wish to 

get involved, please visit www.solar-training.org. 



Global Green 

Skills Report 2022 

of production, including batteries and electric charging infrastructure, 

EVs could have a comparable labour intensity to conventional 

vehicles. Still, automobile workers will require support to shift their 

skillsets from the production of ICE vehicles to EVs, with appropriate 

consideration to wages and worker displacement. 

GLOBAL GREEN SKILLS REPORT 2022 | LinkedIn Economic Graph | [2022] 

We are faced with an urgent need to transition our society to a green economy to address the threat of 

climate change. How do we apply what we’ve learned from this unprecedented moment to power the 

enormous transition that needs to happen to meet the climate crisis? 

Ryan Roslansky, CEO of LinkedIn, says in the foreword of this report: “Achieving our collective global climate 

targets is a monumental task and it is going to take a whole-of-economy effort to make it happen. That means 

we need a transformation in the skills and jobs people have if we’re going to get there. The good news is that 

we are already seeing a shift to green skills and jobs underway on our platform, which has nearly 800-million 

members around the world. 

“Green talent in the workforce worldwide is rising. The share of green talent increased from 9.6% in 2015 to 

13.3% in 2021 (38.5%). Jobs are a critical part of the conversation about achieving this green transition. And 

rightly so. We expect to see millions of new jobs created globally in the next decade driven by new climate 

policies and commitments. 

“It’s more than jobs – we need to zoom in on the skills that power these jobs. Green skills. We believe real change will come through a skills-based 

approach to opportunity. We have seen double-digit growth across dozens of green skills over the last five years. The fastest growing green skills are in 

ecosystem management, environmental policy and pollution prevention. But most green skills are being used in jobs that aren’t traditionally thought 

of as green – such as fleet managers, data scientists or health workers.” 

LinkedIn’s green skills report leverages its unique data and labour market expertise to highlight actionable insights that are crucial to delivering a 

successful green transition and avoiding potential pitfalls. 

64 

65

SKILLS 

SKILLS 

66 67

SKILLS 

By the people, 

FOR THE PEOPLE 

Wind Industry Internship Programme reflects 

THE COUNTRY’S ENERGY SECTOR GROWTH 

The second Wind Industry Internship Programme has announced that it will double its placements 

for 2023 and offer supplementary work-readiness training for the first time. The programme 

supports the development of specialist skills needed to facilitate the exponential growth of the 

industry, to support the country’s growth. 

BY SAWEA 

Direct 2 The People is at the cutting edge of green tech where 

we deliver sustainable, mixed-use, closed-loop, agri-living 

communities to developing countries throughout the world. 

Our housing communities will be net-zero carbon, passive homes 

using zero energy from the grid. Such buildings will be light on the 

land, replacing concrete foundations with composite ground screws. 

Not having to rely on the setting for the concrete, the ground screw can 

immediately be loaded with our fibre glass reinforced pultrusion (FRP) 

composite lightweight, high-strength frame. 

The EEZI frame not only gives the structure the strength to withstand 

hurricanes, earthquakes and tornados but allows the fully complete 

modular floor, wall and roof to be inserted into the frame onsite. This 

eliminates the use of heavy equipment and cranes on site. 

The EEZI hemp floor, wall and roof, all external and internal cladding, 

electrical wiring and conduits for fibre optic, television cables and 

airflow throughout the structure are assembled at the factory. 

The factory-finished structure is inserted into the EEZI lightweight 

composite frame which adds extreme rigidity and strength to it. This 

frame is designed fit-for-purpose for such building for the specific site 

where it is constructed. The hemp walling system is a net-zero carbon 

modular walling system which meets the requirements set by the 

passive building standards. 

Funded primarily by the Energy and Water Sector Education 

Training Authority (EWSETA), in partnership with the South 

Africa Wind Energy Association (SAWEA), the programme is 

expected to place 35 interns, selected from over 90 applications, 

this year. These interns are being placed across approximately 30 

renewable energy companies – illustrating a growth of over 100% 

in just one year. 

“We are encouraged by the uptake of this programme and huge 

increase of placements, knowing that young professionals are being 

absorbed by our sector and are receiving the mentorship and practical 

experience that they need,” says Niveshen Govender, CEO of SAWEA. 

The Wind Industry Internship Programme (WIIP) provides young 

professionals who have recently completed a degree or those 

undertaking graduate programmes, with the opportunity to gain 

practical work experience in line with their studies or interests, while 

exposing them to work related to sustainable energy solutions. 

This year, for the first time, the programme will include a 10-day workreadiness 

training segment facilitated by an external service provider 

that will coach the graduates in the soft skills necessary to enter the 

workplace, for example, email etiquette, communication, working as 

a team, etc. While the WIIP provides capacity building for the students, 

it equally benefits the commercial wind power industry seeking to 

source qualified students specialised in various professional fields. 

Direct jobs can already be seen 

through the employment drives that have 

been undertaken by various companies 

operating in the renewables sector. 

“Equally important, the programme is recognised as a major 

contributor to social, environmental and economic security in the 

country,” explains Govender. 

The demand for qualified and skilled talent is growing and the South 

African industry, like its international counterparts, needs a rising pool 

of qualified candidates to draw from. 

SAWEA anticipates jobs in manufacturing, logistics, finance, 

construction, and operational phases becoming available as Bid 

Window 5 and Bid Window 6 projects come online. These comprise 

of professional services, business services and sales. Requirements 

include engineering, project management and development as well 

as skills in environmental authorisations, amongst others. Direct jobs 

can already be seen through the employment drives that have been 

undertaken by various companies operating in the renewables sector. 

The wind industry has diverse skills requirements; with the focus 

areas of this programme being on the following broad skills areas: 

• Engineering: energy, electrical, mechanical, chemical, 

industrial, civil, etc 

• Natural sciences and mathematics: physics, chemistry, 

mathematics, statistics, environmental 

sciences 

• Administration and management: 

accounting, business administration, 

finance, procurement, human 

resource management 

• Social sciences/humanities: economics, 

gender, international relations, 

communication, population studies, law 

• Information technology: computer 

science, management information 

systems, multimedia web design, 

as well as software engineering. 

Niveshen Govender, 

CEO of SAWEA. 

Due to the factory finished floor, 

wall, roof and pods, a 65m² house can be 

completed in one day on site. 

The EEZI thermal modular alternative building system excels in its 

thermal and acoustic performances as well as fire rating. This walling 

system is alive, breathes and absorbs CO2 gas emissions over the entire 

life of such building. Hemp walling systems have been in existence for 

hundreds of years and have stood the test of time. 

In addition to these achievements, the buildings are 100% airtight, 

thus ensuring that we eliminate any airflow containing water vapour 

which causes rot and mould. 

This unique alternative building system achieves these characteristics 

as the system uses no traditional building elements. These are sand, 

stone, concrete, cement, bricks, blocks, steel, aluminium, wood, glass, 

wooden trusses, cement roof tiles and gypsum ceilings. 

All modular separate toilets, showers, baths and vanity glass are 

delivered to site completed in their predetermined position in the 

PEOPLE NOT POLITICS POLLUTION POLL 

Direct 2 The People believes that the Fourth Industrial Revolution (4IR) will see the uprising of the 

people, where the people’s voices will be heard. 

Companies and shareholders polluting the planet will be judged by people rather than politics. 

Those on the list of polluters will be boycotted and immediately feel the financial losses of polluting. 

We are now able to track all polluters in a real-time basis, making it possible to reveal this information 

to the discerning public so they can decide whether to support and purchase goods from polluters. 

Certification standards will regulate products and goods in terms of pollution. 

For this very reason, Direct 2 The People is launching the EEZI thermal modular composite building 

system in Q1 of 2023. 

building. Due to the factory finished floor, wall, roof and pods, a 65m² 

house can be completed in one day on site. 

This ground-breaking alternative building system is combined 

with our Direct Art of Living model, which includes an economic 

methodology that can contribute to the communities’ wellbeing 

through the Direct 2 The People community way of life, allowing for 

the following savings in capital and living costs: 

• Capital cost of buildings reduced by 30% 

• Energy and electrical cost reduced by 75% 

• Water use reduced by 64% 

The biggest saving will not only be the exclusion of rampant inflation 

but also in lowering the cost of living to between 40% and 60%. 

This community agri-living model is the future of smart living, 

where production takes place at the place of consumption by the 

local community resulting in food being produced “by the people for 

the people”. 

064 753 0041 

info@direct2thepeople.com 

68

02 February is 

Wetlands Day 

It’s time 

for wetland restoration 

More than 35% of natural wetlands have been 

lost in the last 50 years. 

Your choices, your voice and your actions 

can trigger a restoration trend. 

JOIN #GenerationRestoration #ForWetlands #goodgreendeeds 

CALL CENTRE: 086 111 2468 

| WEBSITE: www.dffe.gov.za 

WorldWetlandsDay.org

Green Economy Journal Issue 56

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