Green Economy Journal Issue 60
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G R E E N<br />
<strong>Economy</strong><br />
journal<br />
ISSUE <strong>60</strong> | 2023<br />
The winds of<br />
CHANGE<br />
14<br />
SUPPLY<br />
AGRICULTURE<br />
22 30<br />
CHAIN<br />
MANUFACTURING
Battery energy<br />
storage powered<br />
by renewable energy<br />
is the future, and it<br />
is feasible in South<br />
Africa right now!<br />
Sodium-sulphur batteries (NAS ® Batteries),<br />
produced by NGK Insulators Ltd., and<br />
distributed by BASF, with almost 5 GWh<br />
of installed capacity worldwide, is the<br />
perfect choice for large-capacity stationary<br />
energy storage.<br />
A key characteristic of NAS ® Batteries is the<br />
long discharge duration (+6 hours), which<br />
makes the technology ideal for daily cycling<br />
to convert intermittent power from renewable<br />
energy into stable on-demand electricity.<br />
G R E E N<br />
<strong>Economy</strong><br />
journal<br />
CONTENTS<br />
4 NEWS AND SNIPPETS<br />
ENERGY<br />
6 The winds of fortune: interview with SAWEA CEO<br />
9 Wind grabs more provinces as demand grows<br />
22 Supply chain resilience can propel the power sector<br />
through the energy transition – and please investors in<br />
the process<br />
AGRICULTURE<br />
12 Food crisis in Africa<br />
14 Automation and precision farming are crucial<br />
for food security<br />
BLUE ECONOMY<br />
18 Connecting the blue to the earth<br />
14<br />
NAS ® Battery is a containerised solution,<br />
with a design life of 7.300 equivalent cycles<br />
or 20 years, backed with an operations and<br />
maintenance contract, factory warranties, and<br />
performance guarantees.<br />
Superior safety, function and performance are<br />
made possible by decades of data monitoring<br />
from multiple operational installations across<br />
the world. NAS ® Battery track record is<br />
unmatched by any other manufacturer.<br />
Provide for your energy needs from renewable<br />
energy coupled with a NAS ® Battery.<br />
Contact us right away for a complimentary<br />
pre-feasibility modelling exercise to find<br />
out how a NAS ® Battery solution can<br />
address your energy challenges!<br />
info@altum.energy<br />
www.altum.energy<br />
Altum Energy:<br />
BASF NAS ® Battery Storage Business<br />
Development Partner – Southern Africa<br />
READ REPORT<br />
PRODUCTION<br />
27 Eco-innovation for textile companies<br />
by NCPC-SA<br />
MANUFACTURING<br />
28 The road to sustainability: case studies by Triveni<br />
Turbines<br />
30 Smart Manufacturing Great Convergence: Industry 4.0<br />
INFRASTRUCTURE<br />
36 The city/state infrastructure nexus. Part 2<br />
AIR<br />
40 Many upsides to better managing air quality<br />
in South Africa<br />
WASTE<br />
42 Creating a culture of responsible consumption<br />
THOUGHT [ECO]NOMY<br />
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1
PUBLISHER’S NOTE<br />
Dear Reader,<br />
Despite taking up their commitment to help customers, the banks are actually<br />
making financing solar PV installations more difficult for customers and EPCs.<br />
How so?<br />
1. Miss-matching payment terms<br />
EPCs on commercial and industrial projects are fortunate to earn a 15% margin,<br />
and the bulk of their costs are capital in nature. As such, typical industry payment<br />
terms are 50% deposit, 30% on delivery of equipment to site, 15% on completion<br />
and 5% on handover. Some banks want to pay 40% deposit, 40% once under<br />
construction (whatever that means) and 20% final payment. Under these terms,<br />
EPCs will have to co-fund the project.<br />
2. Linking final tranche payments to Eskom “approval” on SSEG “applications”<br />
But that’s reasonable, right? Wrong!<br />
Eskom can take years to approve SSEG applications, and the amount withheld<br />
of 20% to the contractor typically exceeds their margin in the project. The<br />
practice in the industry is to file the SSEG and then switch it on with no export of<br />
power to the grid. This is the customer’s decision and should not affect payment<br />
to the EPC. By getting involved and being pedantic about such matters the<br />
banks are being obstructive, not constructive.<br />
But are these systems illegal and therefore uninsurable?<br />
Not in my opinion. But this should be clarified and is something the industry<br />
and the banks should get to the bottom of. The law, as I understand it, is that<br />
it is a requirement that Eskom and the municipalities “register” SSEGs, but in<br />
typical fashion this registration process has been turned into an “application<br />
for approval” process. This is an administrative over-reach in my view and<br />
the industry should challenge it in the courts.<br />
The fact remains, despite all the verbiage, that implementing for-own-use<br />
energy projects in South Africa is like boxing Mike Tyson with one hand tied<br />
behind your back.<br />
Complaint ends here. For now.<br />
Regards,<br />
G R E E N<br />
<strong>Economy</strong><br />
journal<br />
EDITOR:<br />
CO-PUBLISHERS:<br />
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Alexis Knipe<br />
alexis@greeneconomy.media<br />
Gordon Brown<br />
gordon@greeneconomy.media<br />
Alexis Knipe<br />
alexis@greeneconomy.media<br />
Danielle Solomons<br />
danielle@greeneconomy.media<br />
CDC Design<br />
Melanie Taylor<br />
Steven Mokopane<br />
Gerard Jeffcote<br />
Glenda Kulp<br />
Mark Geyer<br />
Michali Evlambiou<br />
Nadia Maritz<br />
Tanya Duthie<br />
Vania Reyneke<br />
FA Print<br />
info@greeneconomy.media<br />
alexis@greeneconomy.media<br />
REG NUMBER: 2005/003854/07<br />
VAT NUMBER: 4750243448<br />
PUBLICATION DATE: October 2023<br />
Publisher<br />
EDITOR’S NOTE<br />
The South African wind sector is following a natural evolution, indicating the<br />
same trajectory as its global market counterparts, with a shift from resourcerich<br />
areas to regions attractive for their ideal transmission connections. This<br />
is further underpinned by a downward pricing curve for the cost of energy,<br />
more powerful and bigger turbine generators as well as increased market<br />
competitiveness. Don’t miss our interview with SAWEA CEO on page 6.<br />
In the US, the rise of the tractor between 1910 and 19<strong>60</strong> replaced an<br />
estimated 24-million draught animals. Now, more than a century after the<br />
tractor first gained traction, automation and digitisation threaten to put<br />
many agricultural workers out to pasture. Commercial agriculture in SA<br />
remains labour-intensive and would employ more people were it not for the<br />
technological trends already in play, but these have boosted production,<br />
profits and food security (page 14).<br />
Professor Fabio Fava says that more than half of all oxygen is produced by<br />
the hydrosphere (oceans, seas and inland waters). We obtain much of what<br />
we need for our sustenance from the hydrosphere, starting with food.<br />
Therefore, an overall vision of taking care of the land must also include the<br />
blue economy (page 18).<br />
The power sector is on the verge of an existential transformation as it works<br />
to achieve an inclusive energy transition. However, it must do so while<br />
resuscitating ageing infrastructure, battling more frequent weather events<br />
and defending against security threats (both cyber and physical). Externally,<br />
critical materials and skilled workers are in short supply, and their costs are<br />
rising. Internally, utilities’ traditionally rigid processes run counter to the<br />
agility they will need to build a resilient and reliable grid while being nimble<br />
enough to withstand supply chain shocks cost-effectively (page 22).<br />
There is a long road ahead, but the winds of change are blowing!<br />
Enjoy!<br />
Alexis Knipe<br />
Editor<br />
2<br />
www.greeneconomy.media<br />
All Rights Reserved. No part of this publication may be reproduced or transmitted in any<br />
way or in any form without the prior written permission of the Publisher. The opinions<br />
expressed herein are not necessarily those of the Publisher or the Editor. All editorial<br />
and advertising contributions are accepted on the understanding that the contributor<br />
either owns or has obtained all necessary copyrights and permissions. The Publisher does<br />
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products. Please address any concerns in this regard to the Publisher.<br />
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NEWS & SNIPPETS<br />
NEWS & SNIPPETS<br />
TECH INTELLIGENCE IN ONSHORE WIND SECTOR<br />
With years of operation in the Asia markets and currently ranked<br />
among the top 10 global wind turbine suppliers, SANY Renewable<br />
Energy (SANY RE) remains resolute in offering top-tier wind power<br />
solutions to the African market.<br />
SANY RE who makes its debut Windaba appearance this year,<br />
recently unveiled the latest 919 wind turbine platform. The 919<br />
platform adopts a more integrated design with shared structural<br />
components such as hub, main shaft and front bedplate. Blades,<br />
gearboxes and electrical systems are designed as modular systems<br />
to cover 8.5MW to 11MW products with rotor diameters ranging<br />
from 214m to 230m through different combinations, significantly<br />
enhancing the reliability of R&D.<br />
Looking ahead, SANY RE will remain focused on its technological<br />
vision to develop industry-leading wind turbines with stronger<br />
intelligent capabilities and providing cost-effective wind energy<br />
solutions to lower the costs of wind farms.<br />
LOCALISATION IS LEKKER<br />
By Mamiki Matlawa, ACTOM<br />
SA has been involved in the green economy space since 2011<br />
when the government introduced the REIPPPP. Thus, local<br />
organisations have a wealth of experience in manufacturing the<br />
balance of plant for renewable energy products, including in the<br />
areas of EPC, financing, operation and maintenance.<br />
These homegrown skills could be harnessed to overcome our lag<br />
in the space and be exported to the rest of the continent. However,<br />
to successfully develop SA’s domestic manufacturing capabilities<br />
and reduce dependence on foreign suppliers, a comprehensive<br />
approach is vital for companies providing end-to-end services.<br />
Key to this are mechanisms such as the African Continental Free<br />
Trade Agreement (AfCFTA), which aims to achieve the free movement<br />
of physical goods throughout the African Union. Recently, the five<br />
member states of the Southern African Customs Union (SACU)<br />
ratified the AfCFTA agreement. SACU has also submitted its joint<br />
offer of tariff concessions, which is currently being verified by AfCFTA.<br />
The AfCFTA agreement is expected to open trade opportunities<br />
between African manufacturers, increasing regional demand for<br />
equipment and services and driving access to new markets. This<br />
will enable African manufacturers to develop economies of scale,<br />
which will position them to effectively compete with foreign<br />
companies in the renewables space.<br />
According to Trade and Industrial Policy Strategies senior<br />
economist, Gaylor Montmasson-Clair, SA has imported R35-billion<br />
worth of solar panels since 2010. Montmasson-Clair says that SA<br />
has imported R12-billion worth of solar panels so far in 2023 –<br />
equivalent to 2 200MW of generation capacity. It is estimated that<br />
South African households and businesses have installed 4 400MW<br />
of rooftop solar to date.<br />
The scope for African manufacturers in the green economy<br />
is vast, but the continent needs to expand the supply chain<br />
in this space by effectively harnessing initiatives such as the<br />
AfCFTA agreement to build economies of scale. It is only through<br />
the localisation of the renewable energy industry that local<br />
manufacturers can hope to compete with large-scale and wellestablished<br />
foreign suppliers.<br />
BELIEVE IN BETTER<br />
WWF South Africa is proud to announce its latest Believe in<br />
Better campaign, an inspiring call to action designed to ignite<br />
hope for a brighter, more sustainable future in our cherished<br />
nation. As South Africa approaches the 2024 elections, this<br />
campaign serves as a powerful reminder of our shared national<br />
vision – to heal the wounds of the past and pave the way for a<br />
brighter, more promising future for our country.<br />
WWF South Africa wishes to inspire its compatriots to be<br />
heartened by its stories of success and embrace hope rather than<br />
despair. It wants everyone to Believe in Better, three words that serve<br />
as a balm against the constant barrage of negativity we face from<br />
all directions and an uplifting reminder of the value of believing in<br />
something good.<br />
At the heart of WWF’s mission lies the protection of our invaluable<br />
natural heritage and the ambition to build a future in which we all live<br />
in harmony with nature. The multimedia campaign, #BelieveInBetter,<br />
not only celebrates some of WWF’s major conservation milestones<br />
but also illustrates the positive leaps that are possible when people<br />
from different walks of life come together.<br />
Restoring Springs, Reviving Communities<br />
WWF’s partnerships have yielded a wide range of accomplishments<br />
to safeguard the natural systems vital for clean drinking water, food<br />
production, fisheries, and ecosystem health. Despite challenges<br />
such as a growing population, ageing infrastructure, and increasing<br />
industrial demands that threaten our ecosystems, WWF tirelessly<br />
works to protect our land, wildlife and vital water sources.<br />
One noteworthy initiative is the focus on natural springs in the<br />
Drakensberg areas of the Eastern Cape and KwaZulu-Natal, where<br />
communities struggle to access clean water due to inadequate<br />
municipal infrastructure and the impact of invasive alien trees. By<br />
bringing together a range of donors and working with communities<br />
and partners, WWF has helped secure 44 natural springs in the<br />
grasslands of the Eastern Cape and has expanded this work to the<br />
Enkangala Drakensberg Water Source Area.<br />
On the wildlife front, WWF’s Black Rhino Range Expansion<br />
Project is celebrating its 20th anniversary this year, having worked<br />
tirelessly over the last two decades to grow the populations of this<br />
critically endangered species in partnership with landowners and<br />
communities. WWF’s Land and Biodiversity programme has also<br />
added extensively to the country’s network of national parks and<br />
other protected areas.<br />
Dr Morné du Plessis, CEO of WWF South Africa, comments:<br />
“Environmentalists are, by their very nature, agents of hope. In our<br />
work, we have plenty of evidence that hope, supported by action,<br />
is far more powerful than the strangely seductive slide into despair.<br />
Just as we need to remember how far we’ve come as a society; we<br />
need reminding of just how exceptional South Africa’s natural and<br />
social endowments are. We need to keep faith in each other and<br />
appreciate that together we can transform our vision of a more<br />
sustainable future into a reality.”<br />
SAPVIA ANNOUNCES PARTNERSHIP<br />
As SA’s solar industry gains unprecedented momentum, concerns over the quality of solar<br />
PV installations have also become more common. Addressing this pressing issue head-on, SAPVIA is<br />
redoubling its efforts to instil public confidence.<br />
SAPVIA has recently announced its strategic partnership with Bravo Scan, an Approved Inspection<br />
Authority (AIA) endorsed by the Department of Employment and Labour, thereby reinforcing<br />
its commitment to quality assurance and compliance monitoring in the bourgeoning solar<br />
PV installation sector.<br />
The Association’s PV <strong>Green</strong> Card Programme stands as an industry hallmark for quality assurance,<br />
states Dr Rethabile Melamu, CEO of SAPVIA. “The SA public has come to trust our PVGC-accredited<br />
members for solar PV installations that adhere to the highest quality standards.<br />
“Collaborating closely with our new quality assurance partner, Bravo Scan, we aim to further<br />
intensify the objectivity and rigour with which we oversee the activities of our certified PV <strong>Green</strong><br />
Card installation companies,” Melamu says.<br />
She explains that Bravo Scan will be integral to skills development within the PV <strong>Green</strong> Card<br />
ecosystem and will also assist with inspections of installations.<br />
“This will allow us to further improve quality and compliance, making sure that we’re making the<br />
most of our abundant solar energy resources at every installation site. Bravo Scan’s endorsement by<br />
both the Department of Labour and SANAS gives an additional layer of credibility and authority to<br />
the PV <strong>Green</strong> Card,” Dr Melamu adds. This partnership also aspires to enlighten end-users about their<br />
responsibilities in selecting credible solar power installation companies.<br />
Dr Rethabile<br />
Melamu, CEO<br />
of SAPVIA.<br />
NEW CLOUD CARBON CALCULATOR<br />
IBM has launched a new tool to help enterprises track<br />
GHG emissions across cloud services and advance their<br />
sustainability performance throughout their hybrid, multicloud<br />
journeys. The IBM Cloud Carbon Calculator – an<br />
AI-informed dashboard – can help clients access emissions<br />
data across a variety of IBM Cloud workloads such as AI,<br />
high-performance computing and financial services.<br />
Based on technology from IBM Research and through a<br />
collaboration with Intel, the tool uses machine learning and<br />
advanced algorithms to help organisations uncover emissions hot<br />
spots in their IT workload and provides them with the insights to<br />
inform their emissions mitigation strategy.<br />
4<br />
5
6<br />
ENERGY<br />
The<br />
WINDS<br />
The South African Wind Energy Association’s focus is to enable a thriving commercial<br />
wind power industry in South Africa that is recognised as a major contributor to social,<br />
environmental and economic security. <strong>Green</strong> <strong>Economy</strong> <strong>Journal</strong> speaks to the Association’s<br />
CEO, Niveshen Govender.<br />
Please talk to us about SAWEA’s position regarding the interim<br />
grid allocation rules and the development thereof.<br />
We have supported the development of the interim grid capacity<br />
allocation (IGCAR) rules as an effective mechanism for integrating<br />
additional renewable energy to address the ongoing energy crisis.<br />
While the industry found some challenges within the first iteration,<br />
we’ve worked well with Eskom to resolve those matters to ensure<br />
that the rules are conducive to industry requirements.<br />
We applaud Eskom for their efforts, continuously striving for<br />
equitability and transparency in the allocation of the limited available<br />
grid capacity in a structured and coordinated approach, as well as<br />
allowing us to engage them on our concerns and making the necessary<br />
adjustments. This will no doubt enable the country to better realise<br />
a balanced and reliable energy mix. As reported, concessions to the<br />
IGCAR include:<br />
• Applicants no longer need to have a water-use licence, but<br />
must be able to show that they have already applied for it.<br />
• They also no longer need permission from the Civil Aviation<br />
Authority. Proof of an application for this is enough.<br />
• An option on the lease or purchase of land for the generation<br />
facility will do, instead of a concluded lease or purchase contract<br />
and permission from the Minister of Agriculture, Forestry and<br />
Fisheries for its subdivision.<br />
• One year’s data on the wind conditions on the premises is<br />
enough and for solar farms satellite data will be accepted.<br />
• If there are more projects ready for construction than can<br />
be connected to the network, priority will be given to those<br />
who applied first.<br />
What are some of the industry’s challenges when it comes<br />
to increasing localisation?<br />
Some of the key challenges include policy uncertainty, consistency<br />
of procurement and local skills required for manufacturing<br />
capabilities. Collectively, these are key drivers of investment<br />
into localisation in the renewable energy sector. And, through the<br />
South African Renewable Energy Masterplan (SAREM), we believe<br />
An industrialised agenda in<br />
South Africa’s wind energy sector can<br />
bring numerous benefits.<br />
of<br />
FORTUNE<br />
Niveshen Govender, CEO of SAWEA.<br />
that government is on the right path to create an attractive investment<br />
destination by working with industry to realise possibilities within<br />
local manufacturing.<br />
As is widely known, our Association together with sector stakeholders<br />
strongly advocate for the industrialisation of the renewable energy<br />
sector to extrapolate the enormous potential across the value chain,<br />
thereby unlocking both the economic power of the renewable energy<br />
industry and delivering broader benefits to the people of this country.<br />
Transformation goes hand-in-hand with the industrialisation<br />
of the wind power sector. And market certainty is the most important<br />
aspect of building a local manufacturing industry.<br />
The country’s power sector procurement model started evolving<br />
over a decade ago, with major policy shifts. This has accelerated<br />
over the last two years, with the lifting of the cap on the new<br />
generation capacity requirement for a generation licence and<br />
government’s continued commitment to rolling procurement.<br />
This is in line with the global uptake of renewable energy to increase<br />
energy security and achieve climate goals.<br />
Transformation goes hand-in-hand<br />
with the industrialisation of the<br />
wind power sector.<br />
South Africa’s energy roadmap, IRP2019, requires 3 <strong>60</strong>0 wind<br />
turbines, underpinning the industrialisation plan and demonstrating<br />
a noteworthy opportunity for local employment and GDP contribution<br />
through annual production across the value chain. By maximising<br />
the use of the current industrial capacity to supply materials and<br />
components into the sector’s demand areas, additional investments<br />
in capacity and capability will be stimulated.<br />
SAWEA supports the various government stakeholders, labour,<br />
civil society, researchers, industry contributors and various advisory<br />
groups, which are currently drafting the SAREM that addresses<br />
exactly how we can industrialise the renewable energy value chain<br />
in our electricity sector to enable inclusive participation in the<br />
energy transition, serving the needs of society and contributing to<br />
economic revival.<br />
The draft SAREM – which is expected to be finalised in the next<br />
two months by the Department of Trade, Industry and Competition<br />
is a result of a rigorous process, including input from SAWEA’s<br />
Manufacturing and Local Content Working Group. Stakeholders<br />
have been invited to review and provide comments on the draft<br />
masterplan document.<br />
This framework aligns with SAWEA’s advocacy for sector<br />
industrialisation, through increased local manufacturing. As such,<br />
the Association reviews this framework’s key pillars as effective<br />
interventions to create a better environment for local manufacturing,<br />
which will no doubt result in increased employment opportunities,<br />
READ REPORT<br />
THOUGHT [ECO]NOMY<br />
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CAREER BIOGRAPHY<br />
2022 to present: Chief Executive Officer | SAWEA<br />
2019-2021: Chief Operating Officer | South<br />
African Photovoltaic Industry Association (SAPVIA)<br />
2016-2019: Programme manager | SAPVIA<br />
2015-2016: Project manager | Department<br />
of Energy<br />
2012-2015: Specialist: green economy |<br />
The Innovation Hub<br />
ENERGY<br />
investment, social inclusion and acceleration of our industry’s<br />
participation in a global wind supply chain.<br />
It is designed to stimulate the industrial and inclusive development<br />
of renewable energy and battery storage value chains and contribute<br />
to the broader development needs of the country.<br />
Along with setting clear local content targets for future private<br />
and public procurement, the SAREM’s focus on driving industrial<br />
development outlines existing public sector programmes and<br />
policy support with localisation objectives.<br />
Despite initial localisation targets reflected in the 2022 draft,<br />
the most recent draft includes revisions to exclude specific<br />
targets, which is to be obtained through an inclusive negotiation<br />
process, between the social partners.<br />
How will an industrialisation agenda benefit the wind sector?<br />
An industrialised agenda in South Africa’s wind energy sector<br />
can bring numerous benefits. We believe that an industrialisation<br />
agenda, which is rooted in robust local manufacturing capabilities,<br />
will allow the wind power sector to deliver the necessary new<br />
generation power needed for the country to thrive. By establishing<br />
localised value chains and capitalising on economies of scale, cost<br />
reductions can be achieved. This will ultimately result in decreased<br />
dependence on global economies and mitigate potential impacts<br />
stemming from uncertain political climates on local production.<br />
To this end, the SAREM will provide a clear framework, necessary<br />
for both local and global investors, seeking an investment destination<br />
to manufacture renewable and new-generation technology<br />
components, as part of the global supply chain.<br />
Furthermore, local manufacturing has the potential to create<br />
increased employment opportunities, investment, social inclusion<br />
and acceleration of our industry’s participation in a global wind<br />
supply chain.<br />
These positive outcomes contribute to sustainable development<br />
and enhance the country’s energy security.<br />
Government’s public procurement vehicle, REIPPPP, is expected<br />
to continue to provide a stable and consistent pipeline with foreseeable<br />
and predictable timelines between procurement rounds remains<br />
necessary to attract significant investments in order to rebuild<br />
the manufacturing sector and create a local market based on its<br />
competitiveness and value-add.<br />
SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN | Draft version for review<br />
7 July 2023 | Department of Mineral Resources and Energy | Department of Science and Innovation |<br />
Department of Trade, Industry and Competition | [July 2023]<br />
An industrial and inclusive development plan for the renewable energy and storage value chains<br />
by 2030. The South African Renewable Energy Masterplan (SAREM) articulates a vision, objectives and<br />
an action plan for South Africa to tap into current opportunities.<br />
It aims to leverage the rising demand for renewable energy and storage technologies with a focus<br />
on solar energy, wind energy, lithium-ion battery and vanadium-based battery technologies to<br />
unlock the industrial and inclusive development of associated value chains in the country. This initial<br />
technological focus is aligned with global and domestic demand dynamics as well as South Africa’s<br />
supply-side capabilities. In time, other technologies (such as offshore wind or rechargeable alkaline<br />
batteries) will receive increased focus, as they mature and industrial capabilities are developed. The<br />
Masterplan builds on the Draft SAREM document released in March 2022.<br />
Visit www.greeneconomy.media to download the full report in the digital version of <strong>Green</strong> <strong>Economy</strong><br />
<strong>Journal</strong> <strong>Issue</strong> <strong>60</strong>.<br />
7
STRAPHEAD<br />
ENERGY<br />
WIND grabs more provinces as<br />
DEMAND GROWS<br />
The South African wind sector is following a natural evolution, demonstrating the same<br />
trajectory and adjustments as its global market counterparts, with a shift from resource-rich<br />
areas to regions attractive for their ideal transmission connections.<br />
BY NORDEX ENERGY SOUTH AFRICA<br />
The natural evolution is further underpinned by a downward<br />
pricing curve for the cost of energy, more powerful and bigger<br />
turbine generators as well as increased market competitiveness.<br />
In South Africa, this geographic shift outside of the Cape provinces is<br />
driven by the region’s constrained grid capacity, clearly demonstrated<br />
by the government’s last procurement round, REIPPPP’s Bid Window<br />
6, which failed to secure a single wind project.<br />
However, areas such as the Mpumalanga province have available<br />
grid capacity and with more coal generation facilities reaching the<br />
end of their lifetime resulting in their decommissioning, additional<br />
grid capacity in this thermal-power region will open.<br />
The market intelligence clearly indicates that by 2027 new wind<br />
power generation projects will become concentrated in grid-rich<br />
areas, with KwaZulu-Natal and Mpumalanga emerging as important<br />
wind jurisdictions, within the next five years. The South African<br />
Renewable Energy Grid Survey, released in June 2023, shows stable<br />
and constant growth in wind projects being developed in these new<br />
zones, which is vital for the industry – especially if the country is to<br />
be successful in its plan to industrialise the renewable energy sector.<br />
“Original equipment manufacturers (OEMs) such as ourselves, as<br />
well as both local and global investors, prefer a consistent pipeline<br />
of projects for long-term investment decision-making. While we are<br />
able to meet the technology needs of lower wind-resourced areas,<br />
it is challenging to operate within a market that isn’t reinforced by<br />
clear supportive policy and consistent closure of projects without<br />
delays,” says Compton Saunders, managing director of Nordex<br />
Energy South Africa.<br />
In preparation to meet market needs, Nordex Energy South Africa<br />
introduced technology offering an increase in unitary power, which<br />
means improved cost of energy, as well as a reduction in land usage<br />
and visual impact.<br />
In addition to more powerful generating platforms, taller towers<br />
are necessary to capture better wind conditions at higher altitudes,<br />
in areas such as Mpumalanga. To date, most wind turbine towers<br />
in South Africa have been 80 to 120 metres tall, but as we shift into<br />
new regions, this will need to increase.<br />
Looking at the global market, OEMs such as Nordex are working on<br />
projects with hybrid towers of 168m hub height with this technology<br />
available to the local South African market. There are also various<br />
tower technologies between 120m to 200m that are either available<br />
or under development.<br />
These 168m hybrid towers that could be offered in this market<br />
comprise around 100m concrete sections that would be locally<br />
manufactured, and the balance of (68m) steel sections that can be<br />
manufactured locally or imported.<br />
“Our industry is going to require large volumes of wind turbine<br />
components in a relatively short space of time and the potential<br />
overlapping construction programmes could result in greater<br />
logistical considerations. The majority of the components will arrive<br />
on a vessel before being offloaded and then stored close to the<br />
port before road transportation to the final installation destination<br />
commences. We already know that the availability of land in ports<br />
or close to ports could be a challenge and that the ability to handle<br />
large volumes through single entry and exit gates will be hindered<br />
by congestion,” says Saunders.<br />
He continues, “Another consideration is that the longer blade<br />
lengths that we’ll need to bring into the country require specialised<br />
trailer sets, which will need to be sourced abroad and will then<br />
require licensing locally. And, with the uncertainty and continuous<br />
delays in our country’s renewables market, the timing of investment<br />
decisions is very tricky.”<br />
Members of the Nordex Energy South Africa Services team on top of one of<br />
the wind turbines at Dorper Wind Farm in Molteno, Eastern Cape.<br />
South Africa can also begin to see the pairing of wind and solar<br />
power plants, meaning that a single transmission connection point<br />
may be used to provide Eskom with the increased uptake of power<br />
at a particular point.<br />
It has been proven in global energy markets that the co-location<br />
of wind, solar PV and energy storage technologies offers more<br />
stable, predictable and dispatchable power output, and the option<br />
of shared grid connections makes sense in the efforts to optimise<br />
the current grid infrastructure.<br />
“Hybridisation of facilities brings extra value in terms of grid<br />
utilisation. It is especially remarkable when the generation of both<br />
wind and solar PV technologies are complementary, and the combined<br />
curve matches the power demand. Our global counterparts have<br />
experience for us to draw on, and we will do so in new South African<br />
regions if this brings value to our customers,” Saunders concludes.<br />
Case studies in the country show that the generation peak hours<br />
of wind facilities are early in the morning and late evening time,<br />
which combined with the generation curve of solar facilities, bring<br />
an overall curve matching quite well with the demand.<br />
8<br />
9
ENERGY<br />
ENERGY<br />
WINDS OF CHANGE<br />
Empowering South Africa’s renewable<br />
energy workforce<br />
South Africa’s wind energy sector has rapidly expanded, cementing its place on the global<br />
renewable energy stage. However, this growth has unveiled a significant challenge: a widening<br />
skills gap within the industry.<br />
Energy and Water Sector Education and Training Authority<br />
(EWSETA) and the South African Wind Energy Association<br />
(SAWEA) have collaborated to explore how addressing the<br />
operational skills and qualification gap will advance wind energy<br />
in South Africa and contribute to the nation’s climate goals.<br />
The skills gap challenge<br />
The surge in wind energy projects across South Africa has created an<br />
increased demand for skilled professionals. This demand encompasses<br />
a wide array of expertise, ranging from engineers and technicians<br />
to project developers and environmental specialists. Unfortunately,<br />
there are insufficient skills to meet the demand in the South African<br />
context. Currently, the actual challenge is that there are not enough<br />
skilled and experienced workforce.<br />
Several factors contribute to this skills gap, including the historical focus on<br />
coal in the energy sector, insufficient wind energy qualifications and skills<br />
development providers as well as a shortage of experienced professionals<br />
in the field. These factors have led to a shortage of skilled workers capable<br />
of supporting the growth of renewable energy in South Africa.<br />
Opportunities abound<br />
Despite the challenges posed by the skills gap, it presents a unique<br />
opportunity for South Africa to cultivate a workforce capable of driving<br />
the wind energy sector forward. Initiatives aimed at closing this gap<br />
have the potential to offer substantial benefits to the nation’s economy<br />
and its transition to a sustainable energy future.<br />
A promising avenue to address this challenge is the collaboration<br />
between EWSETA and SAWEA. EWSETA, which is responsible for skills<br />
development in the energy and water sectors, has partnered with<br />
SAWEA to create tailored training programs and apprenticeships<br />
designed to meet the specific needs of the wind energy industry.<br />
These programs encompass a wide range of skills, spanning installation<br />
and maintenance to project development and management.<br />
Empowering women and youth<br />
South Africa must empower women and youth by actively involving<br />
them in the wind energy sector. Encouraging their participation<br />
addresses gender and youth unemployment disparities and fosters<br />
diversity and innovation within the industry.<br />
SAWEA and EWSETA have already taken significant steps in this<br />
direction by launching the Renewable Energy Management<br />
Advancement Programme aimed at advancing women to middle –<br />
senior management positions in the sector through Wits Business<br />
School. The intervention seeks to transform the sector and address<br />
gender disparity. In addition, the partnership in the Wind Industry<br />
Internship Programme which is currently in its second year provides<br />
work experience to young graduates who are interested in pursuing<br />
careers in wind energy. This initiative was successful through the<br />
participation of the employers who have opened their workplaces<br />
to enable this mentorship initiative. These initiatives provide access<br />
to education and hands-on experience, paving the way for a more<br />
inclusive and dynamic workforce.<br />
To advance wind energy in South<br />
Africa, it is imperative to invest in training<br />
and development programmes that<br />
produce highly skilled operational<br />
technicians and engineers.<br />
Companies operating in the wind energy sector must play a pivotal<br />
role by actively promoting diversity and inclusion, dismantling barriers<br />
and fostering a welcoming environment for all.<br />
“A collaborative approach is essential, bringing together government,<br />
industry and training providers to establish effective training capacity<br />
for renewable energy. Traditional market-driven strategies may not<br />
be suitable for this context. It’s also crucial to construct pathways for<br />
training and employment that cater to a diverse labour force, including<br />
marginalised groups outside the workforce. Furthermore, a holistic<br />
perspective should be adopted, treating renewable energy as part<br />
of an interconnected workforce “ecosystem” that enables seamless<br />
transitions between renewable energy and adjacent sectors like<br />
resources, infrastructure and manufacturing, says Khetsiwe Mtiyane,<br />
EWSETA’s Energy Specialist.<br />
Value-chain skills gap: advancing wind energy<br />
While the skills gap mentioned earlier relates to the development<br />
and construction phases of wind energy projects, addressing the<br />
operational skills gap is equally crucial. Skilled workers are needed to<br />
ensure the efficient and reliable operation of wind farms.<br />
operational technicians and engineers. These professionals play<br />
a pivotal role in maximising the energy output of wind farms and<br />
ensuring their long-term sustainability.<br />
As South Africa’s wind energy sector continues to expand, the skills gap<br />
poses a multifaceted challenge that must be addressed strategically.<br />
Collaboration between EWSETA and SAWEA is a promising step in<br />
the right direction. By developing tailored training programmes and<br />
apprenticeships, the nation can equip its workforce with the skills<br />
needed to support the growth of renewable energy.<br />
It is essential for the efficient and reliable operation of wind farms,<br />
which contributes to South Africa’s climate goals and the long-term<br />
success of its wind energy sector. By seizing the opportunities presented<br />
by these skills gaps, the nation can unlock its wind energy potential<br />
and contribute to a sustainable and prosperous future. The rewards<br />
for achieving these goals extend far beyond emissions reduction,<br />
encompassing economic growth, energy security and a cleaner, more<br />
sustainable future.<br />
Operational skills encompass areas such as maintenance, troubleshooting<br />
and performance optimisation. Without a well-trained operational<br />
workforce, wind farms can suffer from downtime, reduced efficiency<br />
and increased operational costs.<br />
To advance wind energy in South Africa, it is imperative to invest in<br />
training and development programmes that produce highly skilled<br />
10 11
AGRICULTURE<br />
AGRICULTURE<br />
FOOD CRISIS<br />
in AFRICA<br />
Global fertiliser suppliers have made incredibly high profits in 2022/23 on the back of price<br />
spikes attributed to the Russia-Ukraine war. The profits of the world’s top nine producers<br />
trebled in 2022 from two years previously. The margins and impacts have been even greater<br />
on fertiliser supplies to African farmers.<br />
BY SIMON ROBERTS AND NTOMBIFUTHI TSHABALALA*<br />
Moreover, the super-high profit margins are being sustained<br />
in 2023 in many African countries even while international<br />
prices have come down (see figure 1). The harvest season has<br />
recently come to an end in most countries in southern Africa with<br />
farmer margins and production being squeezed by high input costs.<br />
The wide gaps between fertiliser prices in the region and international<br />
fertiliser prices point to major issues within the supply chain with<br />
excess margins of some 30% to 80% being earned on sales to many<br />
African countries.<br />
South Africa has the benefit of robust competition enforcement<br />
meaning prices in this country have come down. This only serves to<br />
highlight the disadvantages being faced by farmers in other countries<br />
such as Malawi and Zambia.<br />
High fertiliser prices undermine production, contribute to high<br />
food prices and exacerbate food insecurity.<br />
Our work on fertiliser and agri-food markets in the African Market<br />
Observatory points to major problems with how international<br />
and regional markets work, including the market power of large<br />
international suppliers. High prices for fertiliser inputs are squeezing<br />
African farmers who are cutting back on fertiliser use meaning low<br />
yields and supply, and high food prices.<br />
International action is therefore urgently required on fertiliser<br />
prices to improve food security in Africa.<br />
Figure 1. [Next page] The graph on the opposite page shows urea prices<br />
in East and Southern Africa. World price is from the World Bank; South<br />
African price is inland, from Grain SA. East Africa is the average of Kenya,<br />
Rwanda, Tanzania and Uganda. Prices are given before any government<br />
subsidies. Source: Compiled from different sources by the African<br />
Market Observatory.<br />
Article courtesy of The Conversation<br />
IMPACT ON IMPORT AND INPUT<br />
African countries are dependent on imported fertiliser and usage is<br />
relatively low. For example, Kenya and Zambia use around 70kg/ha,<br />
compared with 365kg/ha in Brazil.<br />
There’s evidence that high input costs are squeezing farmer margins<br />
and production. High costs and low application are a factor in maize<br />
yields in Zambia being less than half of those in South Africa and a<br />
third of Argentina (according to the FAO).<br />
In 2022, Kenya imported almost 30% less fertiliser and production<br />
fell. Maize output in 2022/23 was 18% lower than the average for the<br />
previous five years, with yields and area planted both being lower,<br />
compounding the effect of poor rains. This has meant a substantial<br />
deficit relative to local demand and very high prices.<br />
Continued high fertiliser prices will constrain production, even<br />
while there is a great need to expand agriculture output to meet<br />
regional demand.<br />
For example, Zambia has abundant arable land and water for<br />
agriculture to increase production. Of the country’s 42-million hectares<br />
of arable land, only 15% (or around 6-million) is under cultivation,<br />
including for pasture, with only 1.5-million of this cultivated for crop<br />
production. Zambia has around 40% of the water resources available<br />
for agriculture in the entire SADC region.<br />
If farmers earned better returns with cheaper input costs then<br />
production could be a multiple of the current levels.<br />
Approximately 73-million people in the East and Southern Africa<br />
region are experiencing acute food insecurity. People in low- and<br />
middle-income countries bear the harshest burden – both in terms<br />
of the importance of small-holder farmers and in the vulnerability<br />
of low-income urban households to high food prices.<br />
Most countries on the continent rely on food imports. Countries<br />
such as Kenya which have been affected by drought are struggling<br />
to source imports which has worsened food security in the country.<br />
South Africa has<br />
the benefit of<br />
robust competition<br />
enforcement.<br />
Most countries on<br />
the continent rely<br />
on food imports.<br />
This has been exacerbated by export restrictions on maize imposed<br />
by Zambia and Tanzania, which have suppressed prices to farmers<br />
in those countries, even while input costs, notably fertiliser,<br />
have increased.<br />
UNEVEN PLAYING FIELD<br />
International fertiliser prices more than doubled in two months –<br />
from September to November 2021. The peak continued into early<br />
2022, reaching an average price of US$915/t for the benchmark urea<br />
fertiliser between March and April 2022. This compares with around<br />
US$226 in the previous five years. This was driven by the world’s<br />
largest fertiliser companies taking advantage of the rise in the price<br />
of natural gas, an important input for nitrogen-based fertiliser, as<br />
well as supply disruptions associated with the Russia-Ukraine war.<br />
The fertiliser companies exploited the shocks and raised prices by<br />
more than the increase in costs.<br />
By March 2023, the international price of urea had fallen back to<br />
close to $300/t. With additional costs to import to coastal countries<br />
which should be no more than $150/t and to inland regions no more<br />
than $250/t including a trader margin, South Africa’s inland prices<br />
now reflect fair prices but in other African countries super profits<br />
are continuing.<br />
WHAT NEEDS TO BE DONE<br />
To ease the adverse impacts of high fertiliser prices, governments in<br />
the region have tried to implement fertiliser subsidy programmes.<br />
For example, prices in Tanzania with the government subsidy have<br />
been reduced from around $1100/t to US$<strong>60</strong>0-700/t.<br />
But the subsidies have huge costs for governments which many<br />
African countries have not been able to incur, while the programmes<br />
have generally not been working well. In Malawi, for example, a<br />
large portion of the Affordable Inputs Programme (AIP) targeted<br />
beneficiaries did not receive fertiliser under the 2022/2023 programme.<br />
International action is therefore urgently required on fertiliser prices<br />
to improve food security in Africa. First, competition authorities in<br />
Africa should investigate signs of anti-competitive conduct. Second,<br />
investments are required in logistics, storage and advice on optimal<br />
usage. Third, a fertiliser market observatory as the EU is currently<br />
setting up would provide ongoing data about fertiliser markets,<br />
factors affecting them, and exchange experiences and good practices<br />
for optimal usage.<br />
*Simon Roberts is professor of economics and lead researcher, and Ntombifuthi Tshabalala is economist at Centre for Competition, Regulation and Economic Development, University of Johannesburg.<br />
12 13
AGRICULTURE<br />
AGRICULTURE<br />
Automation and<br />
PRECISION FARMING<br />
are CRUCIAL<br />
for<br />
FOOD SECURITY<br />
In the US, the rise of the tractor between 1910 and 19<strong>60</strong> replaced an estimated 24-million<br />
draught animals, according to the UN’s Food and Agriculture Organization. Now, more than<br />
a century after the tractor first gained traction, automation and digitisation threaten to put<br />
many agricultural workers out to pasture.<br />
BY ED STODDARD<br />
Aaron Smith, a professor of agricultural economics at the<br />
University of California, phrases it this way: “The relevant<br />
question is not whether we will have mass unemployment,<br />
but what will happen to the specific workers who are replaced. Can<br />
they retrain and find new jobs? And what of their communities?” His<br />
focus is on the US, where commercial farmers are having a tough<br />
time filling vacancies.<br />
“Most people don’t like doing agricultural labour. It’s hard work<br />
and often bad for your health. For this reason, and due to increasing<br />
employment opportunities elsewhere in the economy, fewer<br />
workers are available for farmers to hire. They are choosing jobs in<br />
other sectors,” Smith writes, citing a 2020 survey that found 45% of<br />
California farmers had problems finding enough employees.<br />
The US unemployment rate surged that year to – wait for it – over<br />
8% because of the economic disruptions triggered by the Covid-19<br />
pandemic. It now stands at a 50-year low of 3.4%, so one imagines<br />
that California farmers are finding field hands are even more scarce.<br />
But the need for such hands is increasingly being reduced and some<br />
of the technology behind this trend is being developed in California.<br />
Article courtesy Daily Maverick<br />
This technological furrow is<br />
only going to get ploughed<br />
further and jobs will get<br />
mulched up in the process.<br />
Meet Guss<br />
Guss, which stands for Global Unmanned Spraying System, looks like<br />
something out of a sci-fi movie. Shaped like a horizontal cylinder on<br />
four wheels, as the name suggests it is an autonomous system for<br />
herbicide and other kinds of crop spraying. Guss is also the name of<br />
the privately-held company behind the system. Its application is for<br />
vineyards, macadamia nuts, citrus and stone fruit such as peaches.<br />
“It has GPS but we have quite a few other sensors because GPS<br />
becomes pretty degraded among large trees such as pecans.<br />
Anywhere you have a canopy of leaves that block the GPS signal from<br />
the satellites,” says Guss chief technology officer Chase Schapansky,<br />
who is the brains behind the system.<br />
Aside from being unmanned, which eliminates the need for a<br />
driver, Guss sprays in a targeted or precise manner, which eliminates<br />
wastage. It is among the latest tools in the precision farming revolution<br />
which uses GPS and other technologies to precisely apply inputs to<br />
boost yields and productivity while cutting costs.<br />
“Herbicide Guss is built with cutting-edge technology to detect,<br />
target and spot spray weeds, reducing chemical usage and drift for<br />
increased safety for the operator, environment and food produced,”<br />
the company says on its website.<br />
“Guss allows ag businesses to reskill workers – training them to<br />
use sophisticated technology that will open up future opportunities<br />
and positioning them for success in the economy of tomorrow.”<br />
14 15
AGRICULTURE<br />
5-8 February 2024 CTICC, Cape Town, South Africa<br />
This is certainly one of the upshots of technological advancement.<br />
But South Africa is not the US, and while any advance in farm<br />
technology is welcome – especially given mounting concerns about<br />
food security – it will be viewed with trepidation by some, given the<br />
precarious social context that obtains here.<br />
South Africa’s unemployment rate is almost 33%, and more than<br />
42% under the expanded definition which includes discouraged<br />
jobseekers, according to the latest Quarterly Labour Force Survey.<br />
The survey also found that South Africa’s agricultural sector employed<br />
888 000 people. And unlike in the US, South Africa’s mostly lowskilled<br />
and poorly educated farmworkers will be hard-pressed to<br />
find jobs in other sectors.<br />
Commercial agriculture in South Africa remains labour-intensive.<br />
Simultaneously, it is highly capital-intensive and hi-tech. It would<br />
employ more people were it not for the technological trends already<br />
in play, but these have boosted production, profits and food security.<br />
South Africa is currently reaping its third-highest maize harvest<br />
on record, which is testimony to technology and the rains of La Niña<br />
that have now ended. If it were not for this abundant harvest, food<br />
inflation would be running at an even faster pace than the 14-year<br />
high of 14% it reached in March.<br />
READ REPORT<br />
THOUGHT [ECO]NOMY<br />
greeneconomy/report recycle<br />
The future of the Western Cape agricultural sector<br />
in the context of the Fourth Industrial Revolution<br />
Drivers and<br />
megatrends set<br />
to disrupt farming<br />
Synthesis report<br />
Jobs will be mulched up<br />
This technological furrow is only going to get ploughed further and<br />
jobs will get mulched up in the process. But the alternative would<br />
be falling behind the rest of the world, rendering an agricultural<br />
sector that accounts for about 11% of South Africa’s exports. And<br />
with the rand on the ropes, South Africa needs all the forex it can<br />
get its hands on.<br />
There are many legitimate concerns and criticisms regarding<br />
big agriculture, ranging from environmental impacts to wealth<br />
concentration to price manipulation by traders in sometimes opaque<br />
supply chains.<br />
Technology is also raising the threshold for entry into the commercial<br />
farming space, blocking the path for aspirant emerging farmers who<br />
lack the capital and know-how to enter this fast-changing field.<br />
But precision farming can also mitigate ecological consequences<br />
by growing more on less land and with fewer inputs used with<br />
increased efficiency. There are various initiatives in play to adapt such<br />
technologies for smaller-scale farmers. The costs of new technologies<br />
tend to fall as they ripen in the market.<br />
At the end of the day, you don’t want to be stuck with a horse<br />
when your neighbour has a tractor.<br />
THE FUTURE OF THE WESTERN CAPE AGRICULTURAL SECTOR IN THE CONTEXT OF<br />
THE FOURTH INDUSTRIAL REVOLUTION | The Western Cape Department of Agriculture |<br />
University of Stellenbosch Business School | [2018]<br />
Despite significant growth in food production over the past half-century, one of the most critical<br />
challenges facing society today is how to feed an expected population of some nine billion by the<br />
middle of the 21st century. It is estimated that 70% to 100% more food needs to be produced to meet<br />
the growing demand for food without significant price hikes. This must happen within the context of<br />
climate change and take into account concerns over energy security and regional dietary changes.<br />
With the dramatic advancements in technology, a tipping point is fast approaching for the dawn of a<br />
new era in agriculture. In agriculture, information and communication technologies (ICTs) have grown<br />
significantly in recent times in both scale and scope. The use of the Internet of Things, cloud computing,<br />
enhanced analytics, precision agriculture in convergence with other advancements such as AI, robotic<br />
technologies, and “big data” analysis have revolutionised agriculture.<br />
Today, the use of digital technologies – including smartphones, tablets, infield sensors, drones<br />
and satellites – are widespread in agriculture, providing a range of farming solutions such as remote<br />
measurement of soil conditions, better water management and livestock and crop monitoring.<br />
Enhanced analytics, affordable devices and innovative applications are further contributing to<br />
the digitalisation of farming.<br />
Visit www.greeneconomy.media to download the full report in the digital version of <strong>Green</strong> <strong>Economy</strong><br />
<strong>Journal</strong> <strong>Issue</strong> <strong>60</strong>.<br />
13 32 40 43<br />
Change accelerators<br />
that drive agriculture<br />
innovation<br />
The path ahead:<br />
shaping the future<br />
of farming<br />
Change management<br />
to support 4IR<br />
possibilities<br />
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BLUE ECONOMY<br />
CONNECTING the<br />
BLUE<br />
Professor Fabio Fava,<br />
President of Ecomondo’s<br />
Scientific Technical<br />
Committee.<br />
TO THE EARTH<br />
More than half of the oxygen we breathe comes<br />
from the oceans. It is time to take care of marine<br />
biodiversity, we have the means. <strong>Green</strong> <strong>Economy</strong><br />
<strong>Journal</strong> speaks to Professor Fabio Fava, president<br />
of Ecomondo’s Scientific Technical Committee.<br />
Look at a “Spilhaus projection” map and it might be easier to<br />
understand their central role in life on the planet that we call<br />
Earth, even though 70% of its surface is covered by water.<br />
The map drawn by the South African oceanographer in 1942, puts<br />
Antarctica at the centre so that the “seven seas”, enclosed by the<br />
coastline of the continents, are instantly seen as one huge blue mass.<br />
The year 2023 could be remembered as the year when we really<br />
started to take care of the oceans thanks to the agreement reached<br />
on 4 March at the United Nations to create marine protected areas<br />
in the high seas, in other words, in international waters 200 miles<br />
from the coast. Ecomondo, the Italian Exhibition Group event due<br />
to open its 26th edition in Rimini from 7th to 10th November, sees<br />
more and more blue in the green economy.<br />
attention to the hydrosphere, its economy and regenerative potential<br />
with activities on land. Ecomondo 2023 will connect the blue to<br />
the earth.<br />
How?<br />
Let’s start from the end. Information without engagement is not enough.<br />
Institutions, as well as research and innovation representatives – I am<br />
mainly thinking of the European ones – must inform citizens about<br />
environmental risks, about the reasons for setting highly ambitious<br />
goals in terms of environmental protection and regeneration, and about<br />
future innovation. But then the time must come for involvement and<br />
participation in activating policy development and innovation.<br />
Especially among the younger generations. We have a strong<br />
European presence at Ecomondo, which should also be seen as a<br />
window of opportunity for companies that want to play an increasingly<br />
important role in the circular economy and, in this case, in the blue<br />
and green circular economy.<br />
Information<br />
without<br />
engagement<br />
is not enough.<br />
BLUE ECONOMY<br />
When we see the<br />
results of projects started<br />
years ago and understand<br />
that sharing is the best<br />
way to go green.<br />
More than half of all<br />
oxygen is produced by the<br />
hydrosphere, or rather, all<br />
the oceans, seas and inland<br />
waters put together.<br />
Professor Fabio Fava, some time ago you asked us to look at<br />
the ground in order to reduce CO2 in the atmosphere. Restoring<br />
biodiversity and terrestrial agro-forestry ecosystems means<br />
reducing the effects of climate-changing gas pollution. This<br />
year, the main themes at Ecomondo suggest adding a great deal<br />
of water to this recipe.<br />
More than half of all oxygen is produced by the hydrosphere, or<br />
rather, all the oceans, seas and inland waters put together. There are<br />
other numbers that we need to take into consideration. This large<br />
blue portion of our planet contains 80% of the biodiversity we are<br />
aware of today, even though we only know about 230 000 species of<br />
marine life. That’s about 11%, according to an estimate by the World<br />
Register of Marine Species. The hydrosphere traps 25% of carbon<br />
dioxide emissions. Not only that, by dissipation, it reduces 90% of<br />
the heat we produce with our activities on land.<br />
We obtain much of what we need for our sustenance from the<br />
hydrosphere, starting with food. Therefore, an overall vision of taking<br />
care of the land must also include the blue economy.<br />
The hydrosphere produces food of prime nutritional value, contains<br />
critical rare materials such as copper, manganese and cobalt, and<br />
energy sources like gas and hydrocarbons as well as renewables.<br />
Merchant and passenger ships cross the seas. The Mediterranean<br />
alone has 450 ports/terminals, hosting 30% of global maritime<br />
transport and half of the European fishing fleet.<br />
Then there is tourism: 150-million people arrive on the Mediterranean<br />
coasts during the summer, also attracted by the 400 UNESCO sites and<br />
265 protected areas in the macro-region. In Europe, all this that we<br />
call the blue economy is worth 650-billion euros in annual turnover<br />
and 4.5-million jobs. In Italy: 50-billion euros in annual turnover and<br />
900 000 jobs. So, it certainly is an issue that needs our close attention.<br />
Let’s extend the idea of looking down at the ground and integrate<br />
Speaking of engagement, how does a European project tie in<br />
with efforts to protect biodiversity?<br />
Take the EUSAIR project, for example, which made a stop in Rimini on<br />
7 July. This macro-regional initiative covers the Adriatic and Ionian seas<br />
with nine countries involved, including Serbia, which has no coastline. We<br />
sometimes think of EU activities as vertical, but in initiatives like EUSAIR<br />
or WestMed, it is the horizontal sharing of best practices among local<br />
administrations that really makes the difference. Moreover, we should<br />
bear in mind that these projects move geographical areas that often<br />
involve non-EU countries. I mentioned Serbia, but I am also thinking<br />
of Albania and Bosnia Herzegovina.<br />
We need uniformity in practices and therefore in choices, and to<br />
go deep into the territories, to co-design actions. I believe that this<br />
common language creates engagement. When we see the results of<br />
projects started years ago and understand that sharing is the best way<br />
to go green. Then, of course, these visions, best practices and their<br />
results need to be divulged. Ecomondo is certainly an extraordinary<br />
communication platform for achieving this aim.<br />
en.ecomondo.com<br />
18<br />
19
AA1000 Online Training with DQS Academy<br />
Your Path to Purpose: Choosing a Sustainability<br />
Career to Reshape South Africa’s Future<br />
Choosing a career in sustainability is not merely a job; it’s a commitment to addressing social issues,<br />
fostering equitable growth, and securing a sustainable future. When individuals choose to embark on<br />
sustainability careers in South Africa, they embark on a transformative journey, wherein their actions<br />
become part of a global movement with a singular purpose: preserving and safeguarding our precious<br />
planet for present and future generations.<br />
Sustainability is an urgent and global imperative, touching every facet of South<br />
African society, from businesses to government agencies and nonprofits. Beyond<br />
addressing local concerns, it is a worldwide priority with far-reaching benefits.<br />
Opting for sustainability careers in South Africa is to be part of a global movement<br />
committed to preserving our planet.<br />
Ten Key Reasons Why Sustainability Professionals Are Vital:<br />
• Meeting Stakeholder Expectations: Investors, customers, and regulators<br />
now demand transparency and a firm commitment to sustainability. Sustainability<br />
practitioners align companies with these expectations and effectively<br />
communicate sustainability efforts.<br />
• Mitigating Risks: Sustainability experts identify and mitigate environmental, social, and governance (ESG) risks, safeguarding a company’s reputation<br />
and ensuring long-term resilience.<br />
• Cost Savings: Sustainability professionals identify cost-saving opportunities through energy efficiency, waste reduction, and sustainable supply<br />
chain management, enhancing a company’s sustainability profile.<br />
• Navigating Regulations: Sustainability regulations are constantly evolving and complex. Businesses need experts who can navigate this landscape<br />
and ensure compliance.<br />
• Driving Innovation and Competitive Edge: Sustainability practitioners drive innovation through sustainable product development, eco-friendly<br />
processes, and green market opportunities, giving companies a competitive edge.<br />
• Attracting and Retaining Talent: Modern workers value sustainability, and businesses committed to it are more appealing to potential employees.<br />
Sustainability professionals help companies become employers of choice.<br />
• Meeting Market Demand: Consumer preferences favor sustainable products and services. Hiring sustainability practitioners helps businesses<br />
meet these demands and access the growing market for eco-conscious products.<br />
• Future-Proofing: Companies recognise the need to adapt to a changing world, including environmental challenges. Sustainability practitioners<br />
help businesses future-proof their operations and supply chains.<br />
• Enhancing Investor Relations: Sustainable companies often attract socially responsible investors. Sustainability professionals assist in creating<br />
reports and strategies appealing to these investors, potentially increasing access to capital.<br />
• Ethical and Moral Commitment: For many businesses, sustainability reflects a moral and ethical obligation. Hiring sustainability practitioners<br />
demonstrates a commitment to making a positive impact on the environment and society<br />
The Historical Development of Sustainability Challenges in South Africa:<br />
In the aftermath of South Africa’s transition to democracy in 1994, the nation embarked on a transformative journey marked by significant progress in<br />
addressing social inequalities and improving access to education, healthcare, and basic amenities for its citizens. However, these positive changes also<br />
revealed vulnerabilities within the country’s natural environment, posing substantial sustainability challenges. South Africa’s abundant natural resources,<br />
unparalleled biodiversity, vast solar energy potential, and stunning landscapes coexisted with a range of pressing sustainability issues.<br />
These challenges include:<br />
• Rapid Urban Expansion: The burgeoning urban areas, driven by population growth, strain resources and spawn informal settlements, exacerbating<br />
the housing crisis. Government-led urban development projects aim to create sustainable cities, but achieving equilibrium between development,<br />
environmental preservation, and resource equity remains intricate.<br />
• Wealth Disparity: Widening income inequality influences environmental matters. Affluent segments access cleaner energy and better living conditions,<br />
while marginalised communities grapple with disproportionate pollution and limited adaptation resources.<br />
• Biodiversity Decline: Biodiversity loss persists due to habitat destruction, poaching, and invasive species. Ongoing conservation efforts seek to<br />
balance economic growth with biodiversity preservation.<br />
• Water Pollution: Water pollution, largely stemming from industrial and agricultural activities, poses a substantial threat. Despite government initiatives<br />
to enhance water quality, enforcing regulations remains a challenge.<br />
• Inefficient Land Use: Inefficient land use practices, particularly in agriculture, impede land productivity and sustainability.<br />
• Air Quality Deterioration: Declining air quality, notably in urban centers, raises health concerns. Stricter emissions standards and cleaner energy<br />
are being promoted, albeit with gradual progress.<br />
In light of these severe challenges facing South Africa’s future, the significance of choosing a career dedicated to sustainability cannot be overstated. Addressing<br />
these sustainability challenges hinges on the implementation of policies, regulations, and the expertise and oversight of professionals. Striking<br />
a harmonious balance between economic development and environmental preservation is crucial for South Africa’s future and the global ecosystem.<br />
Sustainability professionals play pivotal roles in advancing sustainable development and safeguarding the environment, ultimately contributing to South<br />
Africa’s well-being and future prosperity.<br />
Such careers not only offer individuals an opportunity for personal and professional growth but also empower<br />
them to actively participate in addressing South Africa’s pressing environmental and societal issues. By opting for<br />
a sustainability career, individuals become catalysts for positive change, contributing their expertise and passion<br />
to create a more sustainable and equitable future. Their collective efforts, alongside government initiatives and<br />
global collaboration, will be instrumental in ensuring that South Africa and the world move towards a future that<br />
is not only prosperous but also environmentally and socially responsible.<br />
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Module A serves as the essential introduction to the AA1000 Online Training program. This module<br />
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Learning Outcomes:<br />
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• Explore the principles of accountability and stakeholder engagement, which form the core of<br />
sustainability practices.<br />
Module B - Becoming a Sustainability Practitioner<br />
This module is known as the Sustainability Practitioner Certificate, and focuses on the application<br />
and reporting of each AccountAbility Principle. Completing this course, in conjunction with Module<br />
A, earns participants the title of Sustainability Practitioner.<br />
Learning Outcomes:<br />
• Develop practical skills in applying sustainability principles to real-world scenarios.<br />
• Learn how to assess, report on, and enhance sustainability performance within organisations.<br />
• Gain insights into sustainability best practices and how they can drive positive change.<br />
Module C - The ACSAP Certification<br />
This module is designed to equip you with the hands-on expertise needed to make a tangible<br />
impact on sustainability practices and is the practitioner-level training in sustainability assurance.<br />
This module focuses on foundational sustainability assurance knowledge using the AA1000AS v3<br />
standard.<br />
Learning Outcomes:<br />
• Deepen your understanding of sustainability assurance practices and principles.<br />
• Gain expertise in assessing and reporting on sustainability performance in a comprehensive<br />
and credible manner.<br />
• Learn how to provide valuable insights and recommendations to organisations seeking to<br />
improve their sustainability practices.<br />
Upon successful completion of this program,<br />
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Certified Sustainability Assurance<br />
Practitioner (ACSAP) qualification. This<br />
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more advanced certifications, including<br />
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These higher-level certifications open<br />
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and leadership roles in the field of<br />
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www.dqsglobal.com<br />
Scan Here to Enrol in Module A<br />
Scan Here to Enrol in Module B<br />
Scan Here to Enrol in Module C
ENERGY<br />
ENERGY<br />
Supply chain<br />
resilience can<br />
PROPEL THE<br />
POWER SECTOR<br />
through the energy transition<br />
– and please investors in the process<br />
The power sector is on the verge of an existential transformation as it works to achieve a<br />
comprehensive energy transition. But it must do so while resuscitating ageing infrastructure,<br />
battling more severe and more frequent weather events, and defending against security threats<br />
(both cyber and physical).<br />
BY KEARNEY CONSULTING*<br />
Huge barriers could thwart progress if left unaddressed.<br />
Externally, critical materials and skilled workers are in<br />
short supply, and their costs are rising. Internally, utilities’<br />
traditionally rigid processes run counter to the agility they will<br />
need to build a resilient and reliable grid while being nimble<br />
enough to withstand supply chain shocks cost-effectively.<br />
Power companies that stick to the status quo won’t survive easily.<br />
The successful ones will fundamentally shift how their supply chain<br />
and procurement functions work to reserve more money to spend<br />
on transformation goals. Sourcing strategy will supersede pricing<br />
tactics. Targeted savings will replace rigid budgets. And both<br />
leadership and procurement will adopt what will seem like radical<br />
new sourcing and supplier options, even though, yes, we realise<br />
they have stringent technical qualifications.<br />
In short, to meet the expectations of investors, society and<br />
customers, power utilities will reimagine capital efficiency and make<br />
their supply chains truly resilient, reliable and agile. Several outside<br />
forces have led us to this point.<br />
persistent lack of transformers, many of which are manufactured<br />
overseas. Delivery times stretch to a year-plus and could be even<br />
longer if geopolitical tensions rise.<br />
Suppliers recognise the gap between demand and their supply<br />
of transformers, but even if they can increase production or bring<br />
it onshore, new facilities take time to build. Many shortages show<br />
no sign of letting up, with manufacturers struggling to fill orders<br />
during emergencies or cancelling them altogether (see figure 1).<br />
Lead times: transformers<br />
Lead times: electric cables<br />
FRED economic data; Kearney analysis<br />
Power transformer PPI (January 2019 through March 2023) 1<br />
Figure 2. Lead times only paint part of the picture. We also see equipment prices trending up significantly.<br />
1<br />
Similar overall trend for electric wires and cable costs (in other words, steady and sharp increase in prices<br />
that have remained elevated) since 2021.<br />
Increased demand has prices rising, too. Where a transformer’s<br />
price sat unchanged through 2020, it has risen 134% since then<br />
(see figure 2).<br />
Ageing infrastructure is another factor, as historical underinvestment<br />
in maintenance and modernisation catches up with current needs.<br />
Weak cables run short distances and transformers currently in place<br />
are, on average, five to 15 years older than their intended lifespan.<br />
And there are the ESG pressures that impact utilities. The growing<br />
demand for EVs and an interconnected grid to charge them means<br />
utilities will need even more infrastructure, including transformers,<br />
whose production capacity lags projected growth of the EV market<br />
(at a compound annual growth rate of 25%). ESG issues keep arising<br />
in the minds of the public and governments as well, with increasingly<br />
frequent natural disasters, from wildfires to heat waves straining<br />
the power system.<br />
These factors might have meant utilities could raise their rates to<br />
cover escalating costs to build the required infrastructure. But large<br />
rate increases during the past three years, ranging from 8% to 11% or<br />
more across residential, commercial and industrial customers don’t<br />
leave much room to gain revenue in this way now. 1<br />
THE RISKS OF TRADITION<br />
A recent Kearney survey revealed that just 27% of utilities have<br />
standard processes to identify and prioritise risks consistently across<br />
capital projects. 2<br />
When another natural disaster hits or an extensive replacement<br />
or upgrade project is urgently needed, does the utility have enough<br />
detailed insight into its supply and demand to prioritise projects? Can<br />
it shift quickly from one project to another as circumstances change?<br />
And during this process, does it know the impact on operations and<br />
earnings from spending rands in one place versus another, spending<br />
rands in the wrong place or not at all?<br />
The bottom line here<br />
is that utilities now<br />
require supply chains<br />
that are responsive,<br />
reliable and agile.<br />
We see utilities’ related risks falling into three categories:<br />
Demand planning. Without a clear understanding of supply and<br />
demand across a utility’s business areas, it is challenging to manage<br />
increasing or varied lead times for supply materials and equipment.<br />
Longer term, more precise demand planning can help determine<br />
time horizons. There’s also the shift to consider from reactionary<br />
to precautionary planning that takes a longer-term view beyond<br />
solely the next rate case.<br />
Supplier reliability. An optimal and reliable selection of suppliers<br />
can help overcome shortages and ensure a resilient supply chain. The<br />
transformer production process, for example, is highly dependent<br />
on raw materials, including copper, electric steel and aluminium.<br />
Even as commodity prices fluctuate, having suppliers that can lock in<br />
timely acquisition is crucial. Still, the current environment indicates<br />
that equipment availability and resource scarcity are significant<br />
challenges, and utilities have not yet fully fleshed out the solutions.<br />
Agile governance. With a complete picture of the supply and demand<br />
fields, a utility can shift from one area to another, anticipating required<br />
lead times. For instance, if there is a major delay in transformer<br />
replacement, an agile utility has enough data and resources to be<br />
able to shift investments to another upgrade project.<br />
Longer forecast periods (beyond the next rate increase) help<br />
utilities and their suppliers plan more effectively. The bottom line<br />
here is that utilities now require supply chains that are responsive,<br />
reliable and agile.<br />
THINK IN TERMS OF REINVENTION<br />
We believe supply will become even more challenging. The supplier<br />
base has shrunk, and the suppliers that remain are in the driver’s<br />
seat, able to pick and choose which utility they will prioritise.<br />
Without intervening in some way, utilities will simply not be able<br />
to secure enough supplies, such as transformers, for years to come.<br />
What pressures utility supply chains now<br />
Various factors make it difficult for utilities’ supply chains to operate<br />
efficiently and at full value. First, there’s the material shortage. A<br />
scarcity of crucial items, such as electric steel, electronic components<br />
and cable are disrupting supply. Utilities have acutely felt the<br />
Figure 1. Worringly, shortages of critical equipment and materials do not<br />
show signs of abatement.<br />
1 US Energy Information Administration and Kearney analysis<br />
2 Kearney ExCap III survey of utility companies<br />
22 23
ENERGY<br />
ENERGY<br />
A utility’s geographic<br />
footprint is one final<br />
major element that<br />
impacts resilience.<br />
A dependable supply<br />
chain, in other words,<br />
will be about trade-offs.<br />
Manufacturers are trying to fill the void by expanding onshore capacity<br />
and developing more advanced equipment, but new facilities and<br />
innovations take time.<br />
Suppliers have told us, in fact, that utilities will need to work with<br />
them more closely than ever to expand production. But how to<br />
do this? Suppliers will have to continue raising prices to cover the<br />
expense of additional manufacturing lines, which means the rands<br />
utilities have won’t go as far. If some utilities don’t meet the higher<br />
prices or other terms that suppliers can set, then they won’t get<br />
contracts, whereas more cooperative utilities will.<br />
Utilities, then, are in a new and unaccustomed position of having<br />
to rethink supplier relationships: from tactical buys to strategic<br />
partnerships. Either find ways to invest in suppliers to ensure future<br />
needs or roll the dice and hope that supplies will be there when<br />
you need them.<br />
A dependable supply chain, in other words, will be about trade-offs.<br />
It will be flexible while maintaining an optimal balance between cost<br />
and performance. Where it has focused on cost to preserve capital,<br />
it will now depend as much on drivers, including time-to-market,<br />
ESG impact and service levels. It will mitigate risks by adjusting for<br />
them, quantifying financial impacts and changing course as priorities<br />
shift (see figure 3).<br />
This dynamic of trade-off and exchange – where utilities will have<br />
to understand demand in operations, match it with supply, and go<br />
to external sources – effectively calls for a procurement and supply<br />
chain clearinghouse.<br />
The clearinghouse approach brings structure to unknowns. Utilities<br />
progress from reactive event management to business continuity<br />
planning, where they gain a much clearer understanding of weak<br />
links in the supply chain. Redundancies are implemented to manage<br />
gaps and responses to unexpected events are planned.<br />
Once those steps are taken, a utility can prepare its supply chain<br />
for the future using forward-looking models to forecast potential<br />
events, prioritise risk and likelihood with sensing systems, and use<br />
manual intervention and decision-making for recovery when adverse<br />
events occur.<br />
Article courtesy of Kearney Consulting<br />
Maximise capital. The third aspect is financial: how a utility will get<br />
the most value for the rands it has to spend. From rands tied up in<br />
inventory of raw materials and finished goods to capital in reserve,<br />
the utility will be able to quickly assess financials for urgent, ongoing<br />
and investment projects.<br />
KEY TO THE ENERGY TRANSITION<br />
A utility’s geographic footprint is one final major element that impacts<br />
resilience. How diverse and available suppliers are to the utility’s<br />
operations is key because it affects how quickly it can activate alternate<br />
routes and locations of focus if something goes awry. If plan A fails, it’s<br />
ready for plan B or C.<br />
Specifically, finding alternatives to reliance on single-sourced<br />
suppliers is what’s pressing (see figure 4). By pre-qualifying alternate<br />
suppliers, a utility can significantly reduce risk and ensure consistent,<br />
cost-effective product flows across the supply chain. The more<br />
suppliers and less variation in products, the lower the supply risk.<br />
As the number of suppliers dwindles and the number of product<br />
stock-keeping units grows or becomes exclusive due to patents<br />
or status as an OEM, the supply risk grows exponentially. These<br />
suppliers require a different level of engagement that elevates them<br />
to strategic partners to utilities.<br />
Pre-qualify where potential future alternatives exist. Dual or<br />
multi-source where there are viable options and fewer suppliers,<br />
and potentially vertically integrate or co-invest in those that are<br />
of the highest value or pose the greatest dependency. Taking<br />
the time to identify and approve alternates will pay dividends<br />
in the long term.<br />
First-mover utilities will proactively identify their supply risks and<br />
develop cooperative relationships with suppliers to lock them in.<br />
When a utility commits to a supplier – especially one that produces<br />
some of the most essential equipment, such as transformers – that<br />
supplier has the confidence to invest in new technology or put<br />
in another production line. By moving beyond an attachment to<br />
slow-moving inventory and committing to a certain volume over<br />
a longer period, a utility can guarantee supply more cost-effectively.<br />
Reclaiming and reigniting supplier relationships is new to the power<br />
sector. However, this approach, along with the dynamic trade-offs<br />
afforded by a clearinghouse-style supply chain, can limit economic risk<br />
and bring utilities the freedom to grow and transition to a new era.<br />
Kearney analysis<br />
Supply chain is about trade-offs – delivering resillience while maintaining an<br />
optimal balance between cost and performance<br />
Figure 3. Leading utilities require supply chains that are reliable,<br />
nimble and agile.<br />
CONTROL TO MITIGATE CHALLENGES<br />
The constant reevaluation of a clearinghouse structure offers distinct<br />
advantages by allowing a utility to see what it needs and spends at a<br />
granular level.<br />
Determine demand. The utility determines demand by honing<br />
its planning capabilities – turning what it needs to do into units<br />
of labour and materials. This leads to decisions on accomplishing<br />
tasks internally or externally and what the product platforms will<br />
be (the groups of products, such as transformers, and their classes<br />
based on solution). It also helps determine which platforms will<br />
be interchangeable for use at one plant or facility or another. The<br />
operational footprint becomes clear.<br />
Evaluate supply and logistics. On the supply side, there will be<br />
regular evaluation of supplier landscape, logistics and the external<br />
workforce. The utility will have a clear view into and control over the<br />
inbound transportation of supplies and rapid, accurate distribution of<br />
them into the field through its own or a dedicated, contracted fleet.<br />
Kearney analysis<br />
Figure 4. Diversification of single-source suppliers, by pre-qualifying and dual-sourcing, can also help mitigate the risk from geographic concentration.<br />
*Authors: Andre Begosso, Rajeev Prabhakar; partners. Natasha Villacorta, James Guba; principals. The authors would like to thank Kish Khemani for his valuable contributions to this paper.<br />
24 25
PRODUCTION<br />
ECO-INNOVATION<br />
Invest in<br />
for textile companies<br />
Industrial Efficiency<br />
• Long term sustainability through resource savings<br />
The textile industry is a significant global commodity that generates<br />
job opportunities and contributes to the economy. However, its low<br />
reuse and recycling rates raise concerns about resource waste and<br />
carbon emissions.<br />
BY LESEGO HLALETHWA, NCPC-SA<br />
Lee-Hendor Ruiters,<br />
Innovation and Strategy<br />
Manager, NCPC-SA.<br />
THA 23-2023<br />
• Economic growth<br />
• Environmental compliance<br />
• Contributes to social development<br />
Services include:<br />
<strong>Green</strong> skills development<br />
Industry and sector knowledge sharing<br />
Company technical support<br />
National Cleaner<br />
Production Centre<br />
South Africa<br />
A national industrial<br />
support programme that<br />
partners with industry to<br />
drive the transition towards<br />
a green economy and<br />
save money.<br />
Contact us for a free assessment<br />
www.ncpc.co.za<br />
ncpc@csir.co.za<br />
Funded by the dtic, hosted by the CSIR<br />
To strengthen the South African textile sector, promote<br />
circularity, sustainability and enhance competitiveness, the<br />
United Nations Environment Programme (UNEP), the National<br />
Cleaner Production Centre South Africa (NCPC-SA) and the Centre<br />
for African Resource Efficiency and Sustainability (CARES) have<br />
collaborated on the implementation of a three-year project funded<br />
by the European Union – the Innovative Business Practices and<br />
Economic Models in the Textile Value Chain or InTex.<br />
In July 2023, the InTex Project implementing partners, the NCPC-SA<br />
and CARES, hosted roadshows across two provinces to facilitate a<br />
dialogue between the project steering committee including the<br />
Department of Science and Innovation, Department of Forestry,<br />
Fisheries and Environment, provincial and local government as<br />
well as government stakeholders and participating small and<br />
medium enterprises (SMEs). The roadshows resulted in numerous<br />
resolutions based on the challenges shared by SMEs. While the list<br />
is not exhaustive, the SMEs raised the following:<br />
• A need for third-party verification systems or a form of certification<br />
to verify the implementation of processes in sustainable innovation.<br />
• Municipalities’ availability to offer support to the textile and<br />
clothing industry as well as access to a contact person to provide<br />
such support.<br />
Eco-innovation can help<br />
companies access new<br />
and expanding markets.<br />
• Solutions to dispose of synthetic fibre waste in an environmentally<br />
friendly manner.<br />
• A need to address prevalent job losses in the sector due to factors<br />
such as the energy crisis and natural disasters.<br />
• Prioritising skills development for the sector.<br />
• Prioritising access to finance for circular economy and other<br />
green projects, as well as incentives for their implementation.<br />
In the resolutions, access to funding proved the most eminent. The<br />
NCPC-SA and CARES have already started to roll out interventions to<br />
address this. They recently co-hosted a green finance workshop. The<br />
NCPC-SA manager for strategy and innovation, Lee-Hendor Ruiters,<br />
says: “Having previously organised green finance workshops for<br />
various industries, we recognised the need to tailor our approach to<br />
cater specifically to the textile sector.”<br />
The green finance workshop was presented by financiers from<br />
renowned commercial banks, development institutions and the<br />
Department of Trade, Industry and Competition. The primary objective<br />
was to unpack the various finance mechanisms that support the<br />
implementation of green projects and explain the different government<br />
incentives available to support the sector.<br />
“One of the things that makes the green finance workshops a success<br />
is that they offer valuable insights and solutions to overcome the<br />
financing challenges that hinder the textile sector’s progress towards<br />
a green economy. Furthermore, the inclusion of a presenter from<br />
the Global Reporting Initiative enhanced the workshop by helping<br />
companies to better understand their contribution to a sustainable<br />
global economy and facilitating the reporting of their environmental<br />
impact,” Ruiters adds.<br />
Through this intervention, the duo (NCPC-SA and CARES) hopes to help<br />
SMEs accelerate their access to finance journeys while strengthening<br />
participation in eco-innovation. Eco-innovation can help companies<br />
access new and expanding markets, increase productivity, attract<br />
new investment, increase profitability and stay ahead of regulations<br />
and standards.<br />
To unlock similar opportunities for your business, contact the<br />
NCPC-SA at ncpc@csir.co.za or visit www.ncpc.co.za to learn more<br />
about free business interventions.<br />
27
MANUFACTURING<br />
The<br />
With over five decades of experience in the industrial steam turbine sector, Triveni Turbines has<br />
recognised the imperative for technology that can reduce carbon emissions in manufacturing<br />
facilities and has played a pivotal role in assisting clients in generating power on their own.<br />
BY TRIVENI TURBINES<br />
ROAD to<br />
SUSTAINABILITY<br />
The thermal treatment of waste is an environmentally acceptable<br />
alternative method, also known as incineration with energy<br />
recovery. The Refuse Derived Fuel (RDF) production involves<br />
separating, sorting, drying and compressing the combustible<br />
portion of the waste, resulting in a product which can be used as<br />
a feedstock for thermal processes.<br />
The case study outlines the capabilities and the solution offered<br />
by Triveni Turbines to customers through a waste-heat-recoverybased<br />
power generation system to help boost the bottom line and<br />
promote sustainable manufacturing.<br />
CASE STUDY 1<br />
Waste-heat-recovery-based power plant installed in Poland<br />
Zarmen Group is a prominent manufacturer of blast furnaces and<br />
industrial-heating coke. The company specialises in crafting a<br />
variety of forged products using hydraulic presses. These products<br />
are designed to meet the requirements of both the European and<br />
American markets and encompass products such as bars, forged<br />
rings, discs, metallurgical rolls, flanged shafts and other customshaped<br />
forgings.<br />
Challenges. The fluctuating steel production levels and capacities<br />
mandate the need for designing and operating steam turbines<br />
with a power range of 3MW to 30MW. This variability arises from<br />
a range of load demands and the availability of steam supply.<br />
Furthermore, adherence to European standards and the Polish grid<br />
code is imperative to meet the required specifications.<br />
Solution. Triveni Turbines has successfully engineered an extraction<br />
condensing steam turbine along with a control system. The alternator<br />
and electrical systems were specifically tailored to suit the conditions<br />
of the Polish grid. The implementation of SIL-rated PLC and SCADA<br />
systems, including redundancy measures, was utilised to ensure safe<br />
operations and to meet the demands for steam. Consequently, the<br />
customer can now operate within a range of power outputs, from<br />
lower levels to full load, with ease.<br />
Advantages of combined heat and power plant or cogeneration<br />
In a traditional power plant setup, fossil fuels are combusted<br />
within a boiler to create high-pressure steam, which is subsequently<br />
employed to propel a turbine that, in turn, drives an alternator to<br />
produce electricity. In contrast, within a combined heat and power<br />
(CHP) or cogeneration plant, biofuels are incinerated in a boiler to<br />
generate low-pressure steam through an extraction turbine, primarily<br />
for heating applications. This approach results in the simultaneous<br />
production of CHP. The cost of power generated using this method<br />
is approximately 14% to 15% lower compared to the cost of power<br />
produced by independent power plants, where the customer benefits<br />
from generating solely electrical power.<br />
The case study outlines the capabilities and the solution offered<br />
by Triveni Turbines to customers through a biomass-based power<br />
generation system to help boost the bottom line and promote<br />
sustainable manufacturing.<br />
BIOENERGY SOLUTIONS<br />
The bio-power sector processes numerous potential feedstock<br />
into various forms, including solid fuels like biomass or wood<br />
pellets, sugarcane residues and palm oil residues, as well as liquid<br />
biofuels such as ethanol and gaseous fuels like biogas and landfill<br />
gas. These are utilised for generating electricity, providing heat<br />
and serving as transportation fuels. Residues derived from the<br />
sugar industry, in the form of biomass, are effectively utilised as a<br />
sustainable fuel source for power generation. Similarly, the pulp<br />
and paper industry places continuous emphasis on enhancing<br />
energy efficiency. This goal is achieved by increasingly employing<br />
biomass-based fuels, such as wood waste, for power generation<br />
as well as by optimising steam usage. The push to harness locally<br />
available agricultural and forest residues has enabled power<br />
generation near the point of consumption, thus facilitating the<br />
establishment of biomass-based power generation facilities.<br />
CASE STUDY 2<br />
Biomass-based power plant in Turkey<br />
Challenge. Fluctuations in the accessibility of biomass fuel including<br />
forest and paddy waste as well as canola, sunflower and sweet corn<br />
stalks can disrupt daily operations. These variations in fuel supply<br />
can impact the boiler’s load, subsequently affecting the operation<br />
of the steam turbine.<br />
Solution. The turbine’s internal components, including the rotor<br />
and blades, as well as the turbine controls, have been specifically<br />
engineered for optimal efficiency and reduced maintenance when<br />
operating at lower loads. Despite the challenging circumstances<br />
of the pandemic, the steam turbine generator (STG) was delivered<br />
within a remarkable seven-month timeframe, and its assembly and<br />
commissioning were successfully completed within 35 days.<br />
Benefits. The customer is now able to run the power plant in varied<br />
fuel conditions by overloading the STG set wherever possible.<br />
To complement the above Triveni’s refurbishment arm, Triveni<br />
REFURB provides an after-market solution for the complete range<br />
of rotating equipment across the globe. From steam turbines and<br />
compressors to the gas turbine range, we have adapted ourselves<br />
to ensure that customers find a one-stop solution.<br />
With rising costs, operating turbines efficiently is a necessity for<br />
cost-saving and creating a positive carbon footprint. With age, the<br />
turbine becomes inefficient and increases the cost of producing<br />
power. Our team works with the customer to understand the current<br />
needs and redesign the existing turbine across all brands to meet<br />
the new parameters.<br />
Our efficient improvement programme is aimed at existing turbines<br />
across all brands by retaining the existing housing and civil works.<br />
The internals such as the rotor, stator, bearings, etc are replaced with<br />
our highly effective design and upgraded steam flow path offering<br />
MANUFACTURING<br />
customers the following benefits:<br />
• Up to 15% improvement in efficiency<br />
• Re-use existing turbine housing and auxiliaries<br />
• No modification on civil foundation and structures<br />
• Life extension to over 100 000 hours<br />
• ROI in under two years resulting in increased profitability<br />
of operations<br />
Our track record includes projects that are successfully commissioned<br />
by assisting the customer through lower OPEX costs.<br />
CASE STUDY 3<br />
Improving the overall performance of a geothermal power plant<br />
Our client, a prominent player in the geothermal energy industry, was<br />
using an American-made turbine. They faced ongoing issues related<br />
to erosion and corrosion, along with a considerable reduction in the<br />
lifespan of the rotor material. These challenges had a substantial<br />
negative impact on the performance of their 16MW turbine.<br />
Challenges. The client encountered a trio of significant challenges,<br />
which included recurrent erosion in blade tenons, the formation of<br />
cavity in high-pressure gland areas and the need for improvements<br />
in rotor material.<br />
Solution. Following a thorough assessment of possible solutions<br />
and partners to tackle these issues, our client strategically chose to<br />
collaborate with Triveni Turbines. This decision was influenced by<br />
Triveni Turbines’ significant proficiency in rotor remanufacturing<br />
and its position as an OEM.<br />
Triveni REFURB initiated a cooperative effort with the client,<br />
conducting comprehensive analyses and providing the following<br />
innovative solutions that encompass the design of an integral<br />
shroud, enhancement of rotor material, application of coatings and<br />
precision-shot peening.<br />
Benefits. The adoption of these advanced solutions resulted in a wide<br />
range of concrete advantages for our client, including extended<br />
turbine lifespan, increased reliability, improved plant efficiency and<br />
enhanced availability.<br />
Triveni Turbines’ expertise in rotor reengineering combined with<br />
innovative design adjustments addressed the erosion, corrosion and<br />
material challenges encountered by the client. This collaborative<br />
effort not only prolonged the turbine’s operational lifespan but<br />
also considerably improved the overall efficiency and reliability of<br />
the geothermal power plant.<br />
Over the years, the company has remained dedicated to delivering<br />
steam turbine solutions that are both economically feasible<br />
and environmentally sustainable across various manufacturing<br />
industries. It has played a pivotal role in helping carbon-intensive<br />
industries reduce their emissions. The lesson learnt by both<br />
Triveni Turbines and the wider manufacturing industries pertains<br />
to the significance of policies, technological advancements and<br />
investment aimed at mitigating greenhouse gas emissions.<br />
Driven by a 30MW extraction condensing steam turbine with an inlet steam parameter of 65 bar and 490°C.<br />
Driven by a 16MW condensing steam turbine with an inlet steam parameter of 42 bar and 450°C with 0.1 bar exhaust.<br />
28<br />
29
MANUFACTURING<br />
Smart<br />
Manufacturing’s<br />
Great<br />
Convergence:<br />
Most manufacturers’ concerns revolve around figuring out how to improve the supply of raw<br />
materials and meet demand while controlling both costs and quality. For many manufacturers,<br />
the solutions to these issues have emerged in the application of the technologies known<br />
collectively as Industry 4.0.<br />
BY KEARNEY CONSULTING*<br />
INDUSTRY 4.0<br />
The costs associated with adopting robots continue to decline,<br />
making them more accessible even for small and medium-size<br />
businesses due to rising labour costs. The unit cost is expected to<br />
drop 50% to <strong>60</strong>% by 2025. A decrease in material and technology<br />
costs, improvements in IIoT and cloud infrastructure, as well as the<br />
ease of connecting robots to existing systems all allow for easier<br />
and cheaper transitions for manufacturers.<br />
The introduction of co-bots has made advanced robotics more<br />
accessible to enterprises of all sizes and significantly reduced the<br />
required upfront investment, making it the perfect choice for mass<br />
adoption in the manufacturing sector.<br />
Advanced robots, especially for material handling, are undergoing<br />
a revolution along with advances in autonomous driving and battery<br />
life with automatic guided vehicles. This trend is coupled with pickand-place<br />
robots for simple operations on assembly lines.<br />
Wearables<br />
Wide adoption of wearable technologies across industries has<br />
intensified competition and driven innovation and investments<br />
across the ecosystem. The global industrial wearables market is<br />
expected to reach $8.4-billion by 2027, up from $3.8-billion in 2019.<br />
Cost-effective and more sophisticated AR/VR headsets from<br />
original equipment manufacturers such as Sony, Google, Microsoft,<br />
Apple, Facebook and HTC have emerged in both the consumer and<br />
industrial spaces. AR and VR software developers now implement ML<br />
and AI in apps for wearables, allowing systems to see and analyse<br />
anything in their fields of vision.<br />
The Industrial Internet of Things<br />
The IIoT uses connected assets to provide visibility and transparency<br />
in factory operations. A typical smart factory IIoT ecosystem includes<br />
sensors, connected devices, networking and connectivity solutions,<br />
edge and cloud infrastructures, IIoT platforms and gateways and<br />
analytics applications. This ecosystem is rapidly advancing and<br />
becoming more sophisticated, resulting in the rapid deployment of<br />
MANUFACTURING<br />
new IIoT applications and services to improve quality and productivity.<br />
According to Gartner, 50% of industrial enterprises will use IIoT<br />
platforms by 2025 to improve factory operations, up from 10% in<br />
2020. The global IIoT market stood at $216.1-billion in 2020 and is<br />
expected to reach $1.1-trillion by 2028.<br />
The emergence of 5G-enhanced IoT applications is helping<br />
manufacturers realise their vision of Industry 4.0 more than any<br />
other development.<br />
Artificial intelligence<br />
AI is still a nascent technology in manufacturing, but recent<br />
breakthroughs in ML techniques (deep learning) have sparked<br />
high expectations for future applications. Cognitive modes such as<br />
natural language processing, computer vision, pattern recognition<br />
and reasoning with ML techniques are widening the array of potential<br />
applications for manufacturers.<br />
This growth is being driven by the digitisation of data, rapid<br />
growth in IIoT data sources, hardware developments and the<br />
democratisation of AI and data, among others. Relative to other<br />
Industry 4.0 technologies, the hardware cost for AI is small, and<br />
most of the investment is spent on developing and rolling out the<br />
software solution. Consulting, maintenance and training services<br />
do incur additional costs.<br />
Advanced analytics and ML create tremendous value in applications<br />
where yield and process waste is a big issue, especially in process<br />
industries where even a percentage point of improvement is in the<br />
millions. While the technology continues to advance, many firms<br />
struggle to extract the full value.<br />
THREE CHALLENGES<br />
The shortage economy<br />
Many global manufacturers and distributors have been unable to<br />
achieve their desired outputs because of a shortage of raw materials<br />
or other components, a lack of resources to run their operations or<br />
limitations to internal capacity due to asset or space constraints.<br />
These challenges must be addressed through better planning,<br />
installing more long-term capacity and improving the allocation of<br />
resources. However, when manufacturers look at what they can do<br />
immediately, they should seek to answer one key question: How do we<br />
make better use of the resources we do have? This requires enabling<br />
DEVELOPMENTS IN INDUSTRY 4.0<br />
3D printing<br />
3D printing (3DP) is getting faster and stock material prices are falling.<br />
Even though 3DP’s contribution to manufacturing is minuscule (about<br />
0.1%) compared with traditional manufacturing methods, the growing<br />
number of applications and demand for custom manufacturing will<br />
continue to expand the market. One major driver of the increasing<br />
speeds for prototyping in a production environment is lasers, which<br />
enable faster sintering or bonding of the build.<br />
The emergence of 5G-enhanced IoT<br />
applications is helping manufacturers<br />
realise their vision of Industry 4.0.<br />
3D printers will continue to evolve, using artificial intelligence<br />
(AI) and machine learning (ML) to improve build rates and quality<br />
while continuing to push the break-even point with traditional<br />
processes. The focus will be on producing cost-effective metal<br />
powders to become even more cost-competitive.<br />
Advanced robotics<br />
The adoption of advanced robotics in manufacturing has steadily<br />
accelerated, with the pandemic’s unique challenges adding a catalyst<br />
for the transformation. The global average industrial robot density<br />
in manufacturing reached an all-time high of 126 robots per 10 000<br />
employees in 2021, compared with 66 robots per 10 000 workers in<br />
2015. Advancements in technology platforms such as the Industrial<br />
Internet of Things (IIoT) and connected systems are upgrading<br />
the functionality of robots and paving the way for collaborative<br />
robots (co-bots).<br />
30<br />
31
MANUFACTURING<br />
MANUFACTURING<br />
asset uptimes, empowering operators to be more productive and<br />
reducing process waste. By design, I4.0 technologies tackle each of<br />
these issues.<br />
3D printing<br />
3DP uses less energy than conventional methods but requires more<br />
material input for an equivalent final product. However, when 3DP is<br />
achieved at scale, it creates less waste, and the final products contain<br />
less material and weight. In fact, according to a Michigan Technological<br />
University study, it takes 41% to 64% less energy to 3D print an item<br />
than to manufacture ship it, which results in using fewer materials and<br />
having a shorter lead time. Even though 3D printers use different, more<br />
expensive counterparts to raw aluminium rods or plastic pellets, such<br />
as photopolymers, polymer powders, filaments and metal powders,<br />
the cost of these materials has been coming down. The prices for 3DP<br />
materials are expected to continue to drop by about 6% until 2027,<br />
further lowering the costs of printing.<br />
3DP expands a site’s capacity by reducing unplanned downtime<br />
thanks to the rapid production of maintenance parts. A maintenance<br />
team aims to hold many replacement parts on-site with the ability<br />
to make repairs rapidly, all at low inventory cost. By introducing<br />
3DP to a maintenance team’s repair shop, technicians can create<br />
parts customised to their site’s machinery and complete work orders<br />
quickly to prevent a loss of production capacity. Nuclear plants<br />
and space/space exploration are two places where instant and<br />
on-site replacement parts are most critical and will help drive<br />
3DP innovation.<br />
Advanced robotics<br />
Robotics has been a key lever for improving productivity in the<br />
manufacturing industry since its introduction by increasing the time<br />
available for production and reducing the cycle time of operations.<br />
According to a Vanson Bourne survey, 23% of unplanned downtime<br />
was caused by human errors. These errors can be avoided with the<br />
use of automated robots.<br />
Robots and automation are now seen as ways to fill in for roles<br />
that are ergonomically challenging or pose a safety hazard for<br />
workers. For example, modern automatic guided vehicles move<br />
both large and small loads and reliably lift them up multiple levels,<br />
which requires more effort and time from humans. Manufacturers<br />
are adopting ever-more automated robotics solutions to cater to<br />
surging demands and mitigating labour shortages.<br />
Wearables<br />
Manufacturers have begun equipping operators with AR-VR-enabled<br />
wearable devices to facilitate remote assistance from experts and<br />
engineers and improve 3D visualisation of shop-floor processes.<br />
The Internet of Things<br />
Through IIoT, predictive maintenance is enhanced to reduce machine<br />
downtown and prevent accidents and other factory disruptions.<br />
This improves labour working conditions and assists leadership in<br />
tackling the changing requirements of employee needs.<br />
Remote work is made possible by equipping tools and machines<br />
with IIoT sensors, which are connected to cloud platforms that<br />
remotely and in real-time report the condition, usage, pressure and<br />
temperature attributes of machines. Systems are built to proactively<br />
alert remote technicians if an event requires their attention.<br />
Predictive maintenance<br />
AI/ML-based analysis of the large amounts of data that sensors<br />
collect help identify potential issues with machines and recommend early<br />
maintenance to prevent failure and machine downtime significantly.<br />
Mass customisation today is a<br />
competitive advantage in the<br />
manufacturing process.<br />
IIoT sensors automatically shut down machines, preventing potentially<br />
life-threatening safety incidents.<br />
Precision manufacturing capability<br />
With the growing complexity of processes such as moulding,<br />
machining and milling, data from the more complex micro-molded<br />
and machined components can be captured with the help of sensors.<br />
Controls help execute actions and ensure more streamlined repeatable<br />
processes. This establishes consistent output quality, decreases defects<br />
and reduces raw material consumption, increasing the yield.<br />
A fully automated machine can communicate with servers in real-time,<br />
enabling operators to modify machine functioning to reduce waste.<br />
Through these gains in production, efficiencies and reduced scrap, the<br />
time to market for products can be significantly reduced.<br />
Asset tracking<br />
Asset tracking is one of the most exciting Industry 4.0 applications for<br />
manufacturers, allowing them to track not only their own machines<br />
and productivity but also their suppliers’ assets to foresee any supply<br />
challenges that might arise. With the IIoT, manufacturers know where<br />
and how their goods from suppliers are stored and when they can<br />
expect them. This is made possible by having sensors transmit the<br />
items’ locations, which GPS satellites pick up, giving manufacturers<br />
more visibility into their raw materials and enabling them to make<br />
their supply chain more resilient to disruptions.<br />
Artificial intelligence<br />
Many manufacturers face capacity shortages driven by factors such<br />
as demand changes, labour shortages, and supply chain constraints.<br />
Where demand increases are beyond capacity, structural changes<br />
to the manufacturing network are required with significant capex<br />
investments and long lead times or outsourcing to a third party.<br />
Many firms look for rapid solutions to address the immediate need,<br />
capturing immediate revenue, maintaining customer relationships<br />
and reducing costs. Delivering this kind of turnaround is among the<br />
key benefits of Industry 4.0.<br />
The heart of any prescriptive maintenance solution is a highaccuracy<br />
and high-frequency assessment of asset health, allowing<br />
for the right balance and timing of interventions. These accurate<br />
assessments reduce preventive maintenance costs and downtime.<br />
23% of unplanned<br />
downtime was caused<br />
by human errors.<br />
Data is at the core of these solutions, as it is vital to capture data<br />
to predict asset health and is necessary for understanding the<br />
business operations. To interpret this vast amount of data, often at<br />
high frequency with multiple sensors per asset, it is important to<br />
use ML, which detects outliers and their correlations to potential<br />
future failures.<br />
A range of analytical solutions can improve cycle time, from more<br />
basic solutions such as data capture and visualisation solutions<br />
providing transparency on the production line to more sophisticated<br />
AI-driven solutions such as production process parameter optimisation.<br />
In the latter case, data and ML algorithms are used to map the<br />
relationship between production process inputs and outputs, such<br />
as cycle time.<br />
An enhanced factory layout informed by AI improves productivity<br />
by 10% to 20%. Factories are often designed and then manufactured<br />
using a computer-simulated factory. In practice, factories evolve<br />
and some components do not operate as planned. A data-driven<br />
retrospective analysis of factory operations often reveals significant<br />
improvements with simple and cheap modifications.<br />
The ESG imperative<br />
ESG has emerged as a crucial focus area for companies around the<br />
world. As it pertains to manufacturing, the focus is on two elements:<br />
Tastes great zero plastic waste<br />
WHO WE ARE<br />
We are an innovative green manufacturing company. Our goal and passion is to find<br />
sustainable solutions to help reduce single-use plastic waste globally by producing eco-friendly,<br />
wholesome, edible products that help users reduce their carbon footprint. Our products are<br />
vegan, chemical and GMO-free making them wholesome thus serving both the consumer and<br />
the environment adding value to food.<br />
We have three sizes in plain and sweet<br />
• 300ml bowl able to hold any food even hot soup for three hours<br />
• 150ml saucer for baking tarts or serving mini mezze platters<br />
• 50ml canapé plate<br />
We are the best alternative to single-use plastic<br />
environmental and social. The environmental task is not new.<br />
Manufacturers must find ways to reduce their emissions of harmful<br />
agents. The key is to use less and to waste less, while maintaining<br />
the same output.<br />
The social task is one that some manufacturers have put on the<br />
backburner for far too long. I4.0 technologies empower companies<br />
to ensure operators can work in fair and safe conditions. They<br />
create opportunities to drive down labour costs without making<br />
harmful tradeoffs.<br />
3D printing<br />
3DP is far more productive since it fabricates the item layer by layer,<br />
resulting in considerably less scrap waste (about 70% to 90% ). Also,<br />
most of the scrap generated from additive manufacturing comes<br />
from failed prints.<br />
Advanced robotics<br />
Robots are now used in a variety of green initiatives in the<br />
manufacturing industry. Robotics has made many complex processes<br />
more economically viable thanks to its flexibility and 24/7 availability.<br />
In the automotive industry, the robots used in production account<br />
for 8% of total energy consumption throughout their lifecycle.<br />
Manufacturers’ focus on sustainability is driving the research<br />
into making robots more energy efficient. Technologies such as<br />
power-saving modes and energy monitoring are gaining prominence.<br />
Fundamental changes around movement, pivots and processes<br />
to reduce power consumption are being pursued for the robots<br />
of tomorrow.<br />
We endeavour to add more edible products to our bowls<br />
32<br />
INOSPACE | Drukkery Road, Goodwood Cape Town | 072 8<strong>60</strong> 6369<br />
www.munchinnovation.com
MANUFACTURING<br />
Using robots to avoid exposing people to toxic environments<br />
has been a practice for a while and with evolving technology the<br />
functionality of robots in such environments is expanding.<br />
The evolution of co-bots is another key development in robotics<br />
that improves productivity, safety and ergonomics in the workplace.<br />
Co-bots alleviate the problem and improve the working conditions<br />
by taking on jobs that require repetitive movements.<br />
Co-bots can also benefit small- and medium-size enterprises since<br />
they occupy less space on the shop floor, are easily customizable and<br />
cost less than traditional industrial robots. The share of industrial<br />
co-bots has doubled in the past three years and continues to grow<br />
along with reducing prices.<br />
Wearables<br />
Wearable devices and AR create new ways of working by using digital<br />
displays to overlay information on physical objects, which makes<br />
training and working easier for new and inexperienced employees.<br />
The technology gives workers step-by-step instructions and guidance,<br />
which reduces the chances of mistakes, rework and waste during<br />
the manufacturing or assembly processes.<br />
Industrial smart wearable devices along with connected worker<br />
solutions provide a viable option to identify, mitigate and control<br />
occupational hazards. Various devices provide capabilities to correct<br />
ergonomics while performing jobs, identify hazardous conditions,<br />
detect and manage operator fatigue and contact trace within a work<br />
site. Connected worker solutions act as a central hub to collect, store<br />
and analyse data from workplace wearables for better tracking of<br />
health, safety and environment conditions.<br />
The Internet of Things<br />
Repairs and fuel expenditures can be reduced by identifying and<br />
monitoring issues early and taking corrective action. With sensors,<br />
companies can monitor vehicle fuel consumption, conduct faulty<br />
parts diagnostics and monitor drivers.<br />
Sensors collect huge amounts of data that can be continuously<br />
analysed, allowing manufacturers to predict the energy demands of<br />
an operating facility and optimise consumption. Large-scale machines,<br />
robots and HVAC systems can be monitored in real time to identify<br />
areas where energy is being overconsumed.<br />
With increased data analysis with the help of AI/ML, systems reduce<br />
the amount of energy used by automatically triggering the controls on<br />
energy-consuming machines. Energy monitoring helps with predictive<br />
maintenance and identifying faulty machines.<br />
Demand and consumption charges are the two cost drivers for<br />
industrial energy consumption. IoT monitors and reduces the load<br />
required by machines, which in turn reduces consumption costs.<br />
IoT allows for real-time tracking using sensors so energy consumption<br />
can be enhanced through smart load-changing devices. These sensors<br />
provide real-time usage alerts and pattern insights that optimise<br />
consumption. With the right computing algorithms, practicable<br />
insights are gathered to reduce future consumption.<br />
According to the World Economic Forum, IIoT, combined with<br />
other digital applications such as 5G and AI, could help cut global<br />
carbon emissions by 15%.<br />
IIoT helps businesses reduce their energy and raw material<br />
consumption through monitoring and limiting waste with quick<br />
decision-making enabled by reduced human intervention. IIoT<br />
improves coordination in various manufacturing support functions.<br />
IIoT contributes to a more sustainable product life cycle, reducing<br />
waste, raw materials and energy consumption and contributing to<br />
freshwater conservation and circularity.<br />
Artificial intelligence<br />
A range of AI solutions can help deliver greener products and<br />
processes. For example, yields can be improved by 2% to 5% for<br />
production processes. Improving yield, and consequently reducing<br />
scrap, has obvious environmental benefits. This is often achieved<br />
*Authors: Azaz Faruki, Doug Mehl, Nick Anderson<br />
through a combination of sensors and ML algorithms that determine<br />
the optimal combination of inputs to maximise yield. The algorithms<br />
learn relationships between a range of controllable and noncontrollable<br />
parameters and the production process, allowing for<br />
a range of input settings to be tested and evaluated to determine<br />
an optimum configuration.<br />
Energy consumption is one of the biggest negative externalities<br />
associated with many manufacturing processes. AI can reduce energy<br />
consumption and ensure that the energy consumed is sourced from<br />
the cheapest and most environmentally friendly places. For instance,<br />
many solutions enhance large-scale batteries to ensure that energy<br />
is exported from the grid at optimal times and that locally generated<br />
energy is used most efficiently.<br />
Advanced robotics<br />
Mass customisation today is a competitive advantage in the<br />
manufacturing process, but this shift in consumer behaviours will soon<br />
force it to become a necessity. Historically, it has been challenging to<br />
widely deploying robotics and automation in flexible manufacturing<br />
because of a lack of communication system infrastructure and<br />
expensive robotic technology to automate the end-to-end process.<br />
Robotic cell manufacturing has emerged as a method to overcome<br />
the challenge of an assembly line’s mass production and to enable<br />
mass customisation. Modular robotic cells are the next generation<br />
of assembly lines.<br />
Wearables<br />
Wearable devices to keep the workforce safe saw tremendous growth<br />
last year, and what we will see moving forward is an augmentation<br />
of these devices. Manufacturers are under mounting pressure amid<br />
rising customer demands for highly customised products. Typically,<br />
this burden is placed on shop-floor operators, who often struggle<br />
to juggle multiple sets of work instructions or standard operating<br />
procedures for each new consumer request. AR-enabled devices are<br />
a viable alternative to paper-based work instructions while producing<br />
build-to-order parts, short production runs and mass-customised orders.<br />
The Internet of Things<br />
Through IIoT-enabled sensors, businesses improve their forecasting<br />
and demand planning initiatives to significantly cut lead times.<br />
Connected devices track information and customer needs from order<br />
placement to post-sale. This data helps manufacturers prepare for<br />
changing customer needs and the growing demand for customisation.<br />
IIoT devices improve production efficiencies and make factories<br />
smarter. This leads to improved productivity, quality, yield and<br />
reduced inventory and scrap. All these enhancements driven by IIoT<br />
enablement expedite service calls and repairs to reduce warranty<br />
costs for products post-sale. Predictive maintenance drives reduced<br />
production downtime, providing additional customisation capacity.<br />
Artificial intelligence<br />
With the growing presence of data and digital through a range of<br />
customer journeys, people expect more personalisation of products<br />
and services. While it is important to satisfy customer demand, many<br />
manufacturers have complex portfolios with many margin-negative<br />
products, and in these cases, AI rationalises the portfolio.<br />
Conclusion<br />
As manufacturers continue to find ways to meet demand and<br />
improve their overall cost structures, one area that is fundamentally<br />
changing is the attitude toward Industry 4.0 challenges. They have<br />
shifted their focus toward gaining market share or looking at missed<br />
opportunity costs. Smart manufacturing Industry 4.0 is poised to<br />
enable manufacturing firms to produce more economically at a<br />
faster pace and with better quality, safety and visibility across the<br />
supply chain.<br />
Article courtesy of Kearney Consulting<br />
THAT’S SUSTAINABILITY, FIRST.<br />
As the first to introduce a CO 2<br />
rating system across all products, AfriSam<br />
became the first cement manufacturer to achieve a 33% reduction in<br />
CO 2<br />
emissions since 1990. It’s just one of the firsts we’re proud to have<br />
laid the foundations for since starting our sustainability journey over<br />
three decades ago. As the industry’s leaders in sustainability, putting<br />
sustainability first has been, and always will be, second nature to us.<br />
1012344<br />
34<br />
www.afrisam.com<br />
Creating Concrete Possibilities
THOUGHT LEADERSHIP<br />
The City-State/<br />
THOUGHT LEADERSHIP<br />
Compactness and strategic<br />
investment decision-making<br />
are key factors in Taiwan<br />
and Singapore’s success.<br />
Infrastructure<br />
Nexus<br />
SINGAPORE, NEW ZEALAND AND TAIWAN AS CASE STUDIES<br />
BY LLEWELLYN VAN WYK, B. ARCH; MSC (APPLIED), URBAN ANALYST<br />
In the previous issue of this journal, I examined the<br />
relationship between Singapore as a City State<br />
and the condition of its infrastructure networks.<br />
Infrastructure networks is a useful way of conceptualising the system<br />
of infrastructure design and development. Infrastructure networks<br />
are systems that provide essential services for people. 1 They include:<br />
• Transport. Public transport, roads, railways, airports, ports, etc.<br />
• Energy. Power generation, transmission, distribution,<br />
storage, etc.<br />
• Water. Water supply, treatment, distribution, storage, etc.<br />
• Waste. Waste collection, recycling, reuse, disposal, etc.<br />
• Sanitation. Wastewater collection, treatment, reuse, recycling,<br />
disposal, etc.<br />
These individual systems are co-dependent on other infrastructure<br />
systems, often with energy being the common denominator. Ultimately,<br />
an infrastructure network is a network of networks. These infrastructure<br />
networks can have significant impacts on the environment, the<br />
economy and the quality of life of communities. 2<br />
I have also previously alluded to the cause-and-effect debate around<br />
infrastructure investment and economic growth. In the past, research has<br />
attempted to estimate the productivity of infrastructure investments.<br />
Studies seeking to link aggregate infrastructure spending to GDP growth<br />
show very high returns in a time-series analysis. Other cross-national<br />
studies of infrastructure spend and economic growth also show that<br />
infrastructure variables are positively and significantly correlated with<br />
growth in developing countries. However, the World Bank notes that in<br />
both types of studies, “whether infrastructure investment causes growth<br />
or growth causes infrastructure investment is not fully established.” 3<br />
36<br />
Llewellyn van Wyk.<br />
That report noted that “there may be other factors driving the growth<br />
of both GDP and infrastructure that are not fully accounted for” and<br />
furthermore “neither the time-series nor the cross-sectional studies<br />
satisfactorily explain the mechanisms through which infrastructure<br />
may affect growth.” More critically from the perspective of this thinkpiece,<br />
the World Bank report notes that “there is a suggestion that<br />
infrastructure has a high potential payoff in terms of economic growth,<br />
yet they do not provide a basis for prescribing appropriate levels, or<br />
sectoral allocations, for infrastructure investment.” It further notes that<br />
“other evidence confirms that investment in infrastructure alone does<br />
not guarantee growth”.<br />
It is also not clear whether these studies have factored in the longterm<br />
maintenance costs associated with the initial capital investment.<br />
CASE STUDY<br />
When discussing infrastructure networks, it is quite useful to<br />
compare Singapore to New Zealand and Taiwan. They are all island<br />
states with both Taiwan and Singapore being small countries, and<br />
they all have highly-developed economies.<br />
Singapore<br />
The land size of Singapore is 728.6 square kilometres with a population<br />
of 5.454-million resulting in a population density of 8.019.<br />
The World Economic Forum’s Global Competitiveness Report 2019<br />
ranked Singapore at 1 overall. Its infrastructure quality was also<br />
rated at 1 overall. Road connectivity was not ranked as data was<br />
not available for the report, but the quality of road infrastructure<br />
was rated at 1, railroad density at 1, efficiency of train services at<br />
5, electricity access at 2, electricity supply quality at 2, exposure<br />
to unsafe drinking water at 25 and reliability of water supply at 7.<br />
New Zealand<br />
The land size of New Zealand is 268 021 square kilometres with a<br />
population in December 2022 of 5.15-million resulting in a population<br />
density of 19.21 per square kilometre. Of the roughly 5.1-million<br />
people, about 1.6-million live in Auckland, 381 500 in Christchurch<br />
and 212 700 in Wellington. This means that almost half of the total<br />
population resides in three major cities in the country, with the<br />
remainder of the population dispersed across South and North Island<br />
in small towns and villages all of which need to be serviced by both<br />
hard and soft infrastructure.<br />
The World Economic Forum’s Global Competitiveness Report<br />
2019 ranked New Zealand at 19th overall. It ranked New Zealand’s<br />
overall infrastructure at 46, road connectivity at 51, its quality of<br />
roads at 52, railroad density at 50, efficiency of train services at 42,<br />
quality of railroad infrastructure at 41, electricity supply quality<br />
at 40, exposure to unsafe drinking water at 29 and reliability of<br />
water supply at 36.<br />
In recent years, New Zealand has invested around 4.5% of gross<br />
domestic product (GDP) in network infrastructure (electricity,<br />
telecommunications, transport and water) and social infrastructure<br />
(education and health). 4 However, New Zealand’s infrastructure hole<br />
has been estimated at $210-billion, requiring an annual spend of<br />
10% of GDP for the next 30 years to build the new networks needed. 5<br />
There is a strong debate in Auckland about its future growth pattern<br />
– compact urban city versus urban sprawl. While the city’s Unitary<br />
Plan seemed to lean toward urban sprawl, the recent flooding, slope<br />
instability and infrastructure damage caused by the cyclonic activity<br />
which impacted on the country over the past two years has caused<br />
a rethink, with consideration now been given to areas previously<br />
earmarked for urban expansion reverting back to rural land zoning. 6 As<br />
Louise Johnston, the Dairy Flat Representative on the Rodney District<br />
Board notes, “The cost of the infrastructure is one thing that cannot<br />
be debated. <strong>Green</strong>field development costs billions and developer<br />
contributions don’t come close to funding even the basic infrastructure<br />
(roading, waste and water). However, when urbanising greenfield areas<br />
on a large scale, we can’t just focus on the infrastructure within the<br />
development – the surrounding road networks and connections need<br />
to be upgraded to cope with the thousands of extra cars on the road.<br />
How this infrastructure is to be funded is an unanswered question.<br />
Council’s financial woes are well documented: the cash-strapped<br />
council doesn’t have the financial means to fund the operating costs<br />
of its current community facilities in the long term, let alone build<br />
new ones to make new urban areas liveable.”<br />
Taiwan<br />
The land area of Taiwan is 31 197 square kilometres with a population<br />
of 23.9-million giving a population density of 676 persons per square<br />
kilometre. In recent years, Taiwan has invested 5.6% of gross domestic<br />
product (GDP) on economic infrastructure. However, Taiwan has a<br />
high per capita GDP of USD32 811 in 2020, and a well-developed and<br />
efficient network infrastructure that sets the country apart from others.<br />
The World Economic Forum’s Global Competitiveness Report 2019<br />
ranked Taiwan at 12th overall. The overall quality of infrastructure was<br />
ranked at 16th. Road connectivity was ranked at 81, quality of road<br />
infrastructure at 12, railroad density at 22, efficiency of train services<br />
at 8, electricity access at 2, electricity supply quality at 8, exposure<br />
to unsafe drinking water at 38, and reliability of water supply at 45.<br />
37
THOUGHT LEADERSHIP<br />
KEY DATA<br />
For purposes of this exercise, data were sought that would be correlated<br />
to compactness, using high population density as a proxy (population,<br />
land area, population density).<br />
Economic data that could be correlated back to infrastructure<br />
is included using GDP per capita and infrastructure investment as a<br />
percentage of GDP. This should indicate whether economic growth<br />
is dependent on infrastructure spend.<br />
Infrastructure data explores the relationship of scale: specifically,<br />
how population density correlates with the extent of the<br />
infrastructure network.<br />
FINDINGS<br />
A number of interesting deductions can be made from the above data.<br />
Singapore’s success can be ascribed to two key factors: a very compact<br />
but efficient infrastructure network and a high GDP per capita. These<br />
two factors are mutually supportive: efficient and compact infrastructure<br />
networks are less complex ie a group or system of different things that<br />
are linked in a close or complicated way and are therefore better able<br />
to support economic and social well-being while requiring less of the<br />
national fiscus to maintain it.<br />
All three countries are spending roughly the same percentage of<br />
GDP on economic infrastructure. Strikingly, Taiwan, with a lower GDP<br />
per capita than New Zealand, ranks much higher than New Zealand<br />
in all the infrastructure-related indices.<br />
Table 1: Key Infrastructure National Statistics Singapore, New Zealand and Taiwan.<br />
Whether infrastructure investment<br />
causes growth or growth causes<br />
infrastructure investment is not<br />
fully established.<br />
THOUGHT LEADERSHIP<br />
Data Singapore New Zealand Taiwan<br />
Population, million 5.454 5.151 23.9<br />
Land Area, sq.km. 728.6 268 021 36 197<br />
Population density p/sq.km. 8 019 19 676<br />
GDP per capita, USD (2021) 72 794 48 781 32 811<br />
Infrastructure investment % GDP 5 4.5 5.6<br />
Length of water pipes, km 5 500 42 559 3 113<br />
No. of wastewater treatment plants 4 329 1 500<br />
Length of public roads, km 3 356 93 895 43 130<br />
Number of private vehicles, million 0.9 4.02 7.27<br />
Length of railway lines, km 230 3 898 2 025<br />
Length of electrified railway, km 230 506 2 025<br />
Transport energy demand % of national demand 3.2 40 26.4<br />
Electric energy use per person kWh 9 002 8 035 10 424<br />
There is a suggestion that<br />
infrastructure has a high<br />
potential payoff in terms<br />
of economic growth.<br />
Both Singapore and Taiwan have a smaller water pipeline network,<br />
less roads, a smaller but fully electrified railway network and<br />
consequently a transport sector using less of the national energy<br />
demand than New Zealand. However, the number of private vehicles<br />
in Taiwan is surprising.<br />
Singapore and Taiwan’s electric energy consumption per person<br />
is equally surprising and without having any explanation readily to<br />
hand, one could surmise that it is related to the dependency of air<br />
conditioning due to the tropical climate. New Zealand data suggests<br />
a problem with poor household energy efficiency due, in large<br />
part, to a history of poorly and/or uninsulated homes. Estimates for<br />
uninsulated or poorly insulated homes in New Zealand vary between<br />
<strong>60</strong>0 000 and 1.4-million.<br />
The number of wastewater treatment plants in Thailand is<br />
noteworthy and may be correlated to industrial demand, especially<br />
for 3. Ibid. the semi-conductor industry. The low ranking of all three<br />
regarding unsafe drinking water is a big surprise and would<br />
suggest<br />
5. NZIC 2023.<br />
that<br />
New Zealand<br />
providing<br />
Infrastructure<br />
safe<br />
Commission.<br />
drinking water is a challenge for<br />
6. Johnston, L. 2023. “To grow, or not to grow.” Hibiscus Matters, August 7, 2023.<br />
all countries.<br />
CONCLUSION<br />
Scale would appear to be the big issue: this requires a compact<br />
infrastructure network coupled to strategic decision-making in<br />
terms of what level of infrastructure goes where.<br />
From the albeit limited evidence shown in the table, a correlation<br />
can be drawn between population density, GDP per capita and<br />
global infrastructure ranking. More research is required to make<br />
a definitive statement on this hypothesis. Compactness and<br />
strategic investment decision-making are key factors in Taiwan<br />
and Singapore’s success. This raises further issues that need to<br />
be investigated to the original proposition. One of these is the<br />
Compact City, and the other is the use of innovative engineering<br />
and integrated management approaches. The latter speaks to<br />
microgrids and distributed grids.<br />
In the next issue these two factors will be further explored.<br />
1. GIZ 2021. “Sustainable infrastructure: water, energy, transport.” Retrieved from: Sustainable infrastructure: water, energy, transport - giz.de Downloaded: August 11, 2023.<br />
2. World Bank 1994. “Infrastructure: achievements, challenges, and opportunities.” World Development Report 1994, p14.<br />
4. NZIC, 2021. “Investment gap or efficiency gap? Benchmarking New Zealand’s investment in infrastructure.” New Zealand Infrastructure Commission, December 2021.<br />
REFERENCES<br />
38 39
AIR<br />
40<br />
Many upsides to<br />
BETTER MANAGING<br />
AIR QUALITY in SA<br />
Active for over a decade within the air quality field, principal scientist Hasheel Tularam at<br />
SRK Consulting highlights the importance of continuous monitoring and management of air<br />
quality across diverse sectors ranging from mining operations and industrial zones to urban<br />
areas and landfill sites.<br />
BY SRK CONSULTING<br />
monitoring, modelling and management of air quality<br />
has been integral for protecting human health from<br />
“The<br />
harmful air pollutants such as nitrogen dioxide, sulfur<br />
dioxide, volatile organic compounds (VOCs) and particulate matter,”<br />
explains Tularam. “It has also become important for companies to<br />
start applying modern techniques to quantify their carbon emissions<br />
as part of their climate change commitments.”<br />
SA’s AIR POLLUTION<br />
Some of South Africa’s cities and towns have poor air quality levels,<br />
according to IQAir’s 2022 World Air Quality report. The industrial hub<br />
of Gauteng recorded numerous periods, especially during winter<br />
when particulate matter (PM10 and PM2.5) concentrations<br />
were between three and seven times higher than World Health<br />
Organization (WHO) guidelines. The ranking placed South Africa as<br />
the 39th most polluted country out of the 116 nations measured.<br />
Tularam, who is also the chairman of the National Association<br />
for Clean Air’s KwaZulu-Natal branch and on the national steering<br />
committee, says that advanced technology has made it possible to<br />
monitor air quality more accurately and effectively, and in real-time.<br />
FORECASTING AIR POLLUTION EVENTS<br />
“Active real-time sampling has proven to be an efficient tool used in<br />
managing air quality, with data from air quality sensors continuously<br />
being transmitted to smart apps on our cellphones providing the latest<br />
air quality levels, as well as helpful context about how poor the air<br />
quality is in a certain region,” Tularam says. The solution usually starts<br />
with an ongoing robust air quality monitoring plan designed for clients<br />
to keep track of their ambient gaseous, dust and particulate matter<br />
emissions into the atmosphere.<br />
By understanding the air pollution concentrations entering<br />
the atmosphere from a specific facility, factory or mine, an<br />
air quality management or mitigation plan can be developed<br />
and implemented. “This introduces practical measures to reduce<br />
emissions where necessary, and to remain compliant with national<br />
air quality regulations,” he explains. Strategies to reduce air pollution<br />
impacts could include dust suppression techniques, gas abatement<br />
technologies (ie scrubbers or filters) and reducing traffic volumes.”<br />
“Apart from these live systems providing us with real-time alerts<br />
of when air pollution levels exceed their specified health-based<br />
criteria, I think air quality forecasting techniques will play an everincreasing<br />
role in managing the impacts of air quality. This will allow<br />
key emitters to take proactive steps towards reducing their emissions<br />
during periods of unfavourable air pollution dispersion conditions<br />
and avert periods of poor air quality or at least try to. Real-time<br />
monitoring will confirm whether these interventions are working<br />
or not. After all, being forewarned is being forearmed,” he adds.<br />
GAS FOR GOOD<br />
Tularam points to one of the most potent greenhouse gases – methane<br />
– as a prime target in climate change strategies. Methane has an<br />
approximate global warming potential (GWP) of over 20 times that<br />
of carbon monoxide. On the plus side, it is also highly flammable<br />
and can be harnessed as an energy source.<br />
“Methane is among the gases that we typically test for around landfill<br />
sites, along with carbon dioxide, ammonia, sulfur dioxide, nitrogen<br />
dioxide and VOCs,” he says. “We also monitor for hydrogen sulfide as<br />
a proxy for odour.”<br />
He notes there is a growing interest in South Africa around<br />
bio-digestors producing biogas (containing methane) from waste<br />
for the purposes of generating energy. The biogas can either be<br />
bottled and supplied to customers or fed into the national energy<br />
grid. This diversion of waste streams from traditional methods of<br />
composting, landfilling and at times even burning, serves as a<br />
sustainable solution contributing towards baseload energy being<br />
produced in the country.<br />
SRK is already involved in such a biogas project, which will<br />
generate energy and reduce greenhouse gas emissions as well as<br />
reduce the pressure on landfill sites while producing fertiliser as<br />
an organic by-product.<br />
DATA DASHBOARDS<br />
“Technology plays a role in helping us understand and respond to air<br />
quality data,” says Tularam. As monitoring becomes more digital and<br />
remote, larger volumes of useful representative data can be generated,<br />
transmitted and analysed – allowing for more efficient methods of<br />
interpreting and presenting data.<br />
“To augment our specialist studies, SRK has used platforms like<br />
PowerBI to design air quality dashboards for clients,” Tularam says.<br />
“These dashboards provide quick insight into the data from their<br />
air quality monitoring equipment, highlighting trends and alerting<br />
them to any gaps in the data sets that need to be addressed.”<br />
As climate change mitigation and adaptation continue to rank<br />
high as a corporate and government concern, he predicts that air<br />
Being forewarned<br />
is being forearmed.<br />
Air in the country’s economic heartland, Gauteng, remains among the<br />
most polluted.<br />
AIR<br />
LOWER EMISSIONS: A COST IMPERATIVE<br />
The enforcement of South Africa’s carbon tax is adding to the<br />
focus by mines and industry on greenhouse gas emissions, raising<br />
interest in the potential for converting methane into energy.<br />
According to Vis Reddy, chairman of SRK Consulting in South<br />
Africa, SRK’s established expertise in air quality management has<br />
broadened to integrate with its climate change focus.<br />
“Traditionally, air quality management was part of environmental<br />
impact assessments – and this remains an important compliance<br />
aspect for our clients,” said Reddy. “The field of air quality and<br />
emissions today, however, links directly to climate change concerns<br />
and even energy security imperatives.”<br />
He pointed to the example of methane emissions, a powerful<br />
greenhouse gas that has 21 times the global warming potential of<br />
carbon dioxide, in trapping heat within the earth’s atmosphere. As<br />
companies look to improve their sustainability ratings, many are<br />
considering generating energy from the methane they produce.<br />
This is now more easily achieved, as they can take advantage of<br />
South Africa’s recently relaxed private power generation regulations.<br />
“Industry can now explore these options without needing to<br />
clear onerous regulatory hurdles that used to prevent private<br />
energy production,” he explained. “It is becoming an exciting<br />
opportunity for companies to reduce their carbon footprints.<br />
The case to be made is not only strategic but makes financial<br />
sense in terms of reducing carbon tax liability and addressing<br />
the rising cost of electricity – and unreliability – of the country’s<br />
grid energy.”<br />
In the context of South Africa’s predominantly coal-fired power<br />
infrastructure, the environmental benefits of substituting grid<br />
power with gas-fired energy are enhanced. Companies making<br />
better use of their own methane emissions will also see their carbon<br />
footprint improve from drawing less from the national utility.<br />
Among the industries where SRK is seeing more interest in these<br />
options are those dealing with biomass waste – which could be<br />
from animals or crops. There could also be potential in sewage<br />
treatment works, as sewage emits considerable quantities of<br />
methane. The waste management industry also has opportunities<br />
to capture methane emissions generated in bio-digestors and this<br />
can be used to generate electricity for in-house consumption or<br />
sale to other users connected to the grid – although there was<br />
little sign of movement in this sector.<br />
Active real-time sampling in an efficient tool used in managing air quality.<br />
quality monitoring and management will continue to be a growing<br />
focus. While there are plenty of challenges in achieving clean air,<br />
the good news is that there is an impetus to move towards cleaner<br />
renewable energy and to reduce or eliminate our reliance on fossil<br />
fuels, which remain one of, if not, the largest contributor to poor<br />
air quality.<br />
41
CIRCULARITY<br />
Established in 1989, Interwaste prides itself on being one of the leading integrated waste<br />
management companies operating in Southern Africa. <strong>Green</strong> <strong>Economy</strong> <strong>Journal</strong> caught up<br />
with Kate Stubbs, marketing director at Interwaste.<br />
Please tell us about Interwaste.<br />
With over 30 years of experience, the foundation of the business<br />
was built on a strong desire to provide our clients with services and<br />
solutions that are compliant, customised to their specific needs,<br />
economically viable, socially conscious and which maximise value<br />
for our stakeholders, create sustainable employment and continually<br />
innovate and play a meaningful role in environmental stewardship.<br />
The Group provides a diversified range of waste management services<br />
to various market sectors throughout South Africa.<br />
We employ over 1800 people, own more than 750 specialised wastehandling<br />
vehicles and equipment, service clients through a national<br />
footprint of operational centres and process waste through a variety of<br />
facilities including our own transfer stations, waste-to-energy, landfill,<br />
H:H solid and liquid treatment plants, recycling, safe destruction and<br />
materials recovery facilities.<br />
Creating a culture of<br />
RESPONSIBLE<br />
CONSUMPTI<br />
42<br />
N<br />
In March 2019, Interwaste was acquired by the Séché Environnement<br />
Group, a leading international specialist in the treatment and recovery<br />
of hazardous and complex waste materials.<br />
Please outline Interwaste’s offerings and services.<br />
Our services range from technical services such as waste classification<br />
through our accredited laboratories, alignment to regulatory compliance<br />
and developing solutions to assist clients in meeting their specific<br />
We urgently need to change our<br />
mindset towards waste, and this requires<br />
a collective shift from every South African.<br />
strategic and sustainability goals to waste treatment and recovery<br />
processes for a wide range of general and hazardous waste types<br />
through our facilities, effluent treatment plants, engineered landfills,<br />
dedicated services on a client’s site as well as licensed and professional<br />
waste logistics and handling expertise.<br />
Interwaste has developed an integrated waste management<br />
model that is linked to the hierarchy that forms the cornerstone<br />
of its service offering. Please tell us more.<br />
The aim of waste management is to protect the planet and its natural<br />
resources through the maximum extraction of the benefits from<br />
materials processed and then to manage waste in the best possible<br />
way so that the minimum amount of waste is produced.<br />
All products and services have environmental impacts, from the<br />
extraction of raw materials for production to manufacturing, distribution,<br />
consumption and final disposal.<br />
This is why an integrated approach to waste management is required<br />
to ensure the most resource-efficient and environmentally conscious<br />
decisions are made and that waste disposal is the last option for<br />
consideration as opposed to the standard linear model where waste<br />
is only considered at the end of the value chain and disposal thereof<br />
becomes the simplest solution.<br />
The global hierarchy of waste management and circular economy<br />
approach are methodologies used to deliver sustainable benefits<br />
as the process not only considers and protects the environment<br />
but incorporates resource and energy consumption from the most<br />
preferred to least favourable actions. It prioritises waste-handling<br />
methodologies to keep materials in use for as long as possible and<br />
reduce waste volumes to landfill disposal.<br />
What has made Interwaste a forerunner in the South African waste<br />
management sector?<br />
Our Group philosophy is to assist clients to transition to a circular<br />
economy model and reduce their impact on the environment. We<br />
do this by continually investing in innovation, new technologies and<br />
developing solutions to convert waste into a secondary resource.<br />
How does Interwaste drive innovation within the bounds of waste<br />
management compliance?<br />
Through our approach to integrated waste management, we have<br />
not only built innovative solutions to tackle some of the industry’s<br />
largest waste challenges, but we contribute to changing the waste<br />
approach in the country as a result.<br />
Kate Stubbs, Marketing Director at Interwaste.<br />
CIRCULARITY<br />
The South African waste sector<br />
has many challenges but therefore,<br />
there are also many opportunities<br />
to make a difference.<br />
With changing legislation and an intrinsic need to preserve our<br />
environment, we have taken the lead in developing solutions that have<br />
longevity for today and the future’s, waste concerns and continually<br />
evaluate our sector to understand how we can diversify the waste<br />
management process to ensure we are leading the way and coming to<br />
the table with solutions that make sense for our clients, the environment<br />
and the communities that we serve.<br />
We have also taken it upon ourselves to make sure that every<br />
operation within the organisation is not only compliant with local<br />
waste management legislation but that we are using best-in-class<br />
facilities to meet global standards and elevate the waste industry in<br />
South Africa.<br />
What about our waste sector keeps you awake at night?<br />
The South African waste sector has many challenges but therefore, there<br />
are also many opportunities to make a difference. We urgently need<br />
to change our mindset towards waste, and this requires a collective<br />
shift from every South African to becoming more responsible and<br />
accountable for the waste we generate in the country. We also need<br />
the education, awareness, systems and infrastructure to support this<br />
shift. This challenge can seem daunting at times and insurmountable<br />
but every bit counts.<br />
A zero-waste future. Is it possible?<br />
A zero-waste-to-landfill future is possible – this goal needs to be<br />
reached by 2030, looking at diverting 90% of waste from landfills using<br />
a “whole system” through recycling, reuse, recovery, beneficiation<br />
technologies, as well as value-adding opportunities which have the<br />
potential to create numerous environmental, social and economic<br />
opportunities for South Africa.<br />
If a zero-waste sustainable country is to be realised, then “at the source<br />
waste” needs to be managed far more effectively to drive successful<br />
waste management, innovative solutions, a working recycling system<br />
and the creation of a culture of responsible consumption.<br />
Companies need to look at their entire value chain to see how they<br />
can avoid creating waste and where waste is created, how it can be<br />
reduced, reused, recycled and repurposed. This is the start of the shift<br />
towards a circular economy.<br />
When applied correctly, this approach can divert a large amount<br />
of our waste from landfill disposal, and potentially create numerous<br />
environmental and social opportunities for South Africans, as well as<br />
economic ones as well.<br />
A circular economy is a model in which the consumption of resources<br />
and materials is circular rather than linear – meaning that we reuse<br />
these resources/materials (instead of merely throwing them away)<br />
and put them back into the economy and that waste is designed out<br />
of the system from the onset.<br />
This, in turn, reduces the need to consume new materials. Typically,<br />
reusing or recycling is also less energy-intensive than manufacturing<br />
from scratch as there is a reduction in the impact and cost of using or<br />
extracting virgin materials. As a result, less fuel is used, and carbon<br />
emissions can be reduced at each stage of the supply chain. These<br />
factors combine to create an incentive to invest in long-term planning,<br />
maintenance, repairs, reuse, remanufacturing, refurbishing, recycling<br />
and upcycling to make our economy more sustainable.<br />
And in South Africa?<br />
Yes, this is possible for South Africa as well if we follow the abovementioned<br />
principle – but only time can tell whether we can meet<br />
the goal by 2030.<br />
43
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ENQUIRIES<br />
Contact Alexis Knipe: alexis@greeneconomy.media<br />
www.greeneconomy.media