28.09.2023 Views

Green Economy Journal Issue 60

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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 />

greeneconomy/report recycle<br />

To access the full report in our Thought [ECO]nomy report boxes:<br />

Click on the READ REPORT wording or image in the box and you will<br />

gain access to the original report. Turn to the page numbers (example<br />

below) for key takeouts of the report.<br />

01 02 03<br />

key takeouts<br />

of the report<br />

key takeouts<br />

of the report<br />

19<br />

36<br />

key takeouts<br />

of the report<br />

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 />

LAYOUT AND DESIGN:<br />

OFFICE ADMINISTRATOR:<br />

WEB, DIGITAL AND SOCIAL MEDIA:<br />

SALES:<br />

PRINTERS:<br />

GENERAL ENQUIRIES:<br />

ADVERTISING ENQUIRIES:<br />

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 />

not endorse any claims made in the publication by or on behalf of any organisations or<br />

products. Please address any concerns in this regard to the Publisher.<br />

From unwanted to wanted<br />

With close to 45 years of experience in the waste management industry,<br />

collaboration with customers is how we drive the circular<br />

economy. We implement agile and innovative waste<br />

solutions, proudly ensuring environmental peace of mind<br />

through our commitment to industry standards.<br />

FIND OUT MORE<br />

www.enviroserv.co.za | 0800 192 783


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 />

greeneconomy/report recycle<br />

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 />

CELEBRATE<br />

YEA RS O F<br />

PROGRES S<br />

IN A FRIC A N<br />

30MINING<br />

Join us to celebrate the 30 th anniversary of Investing in<br />

African Mining Indaba next year.<br />

Register now to be part of the landmark event.<br />

REGISTER NOW<br />

16<br />

@miningindaba | #MI24 | miningindaba.com


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 />

AA1000 Online Training with DQS Academy<br />

Becoming a Certified Sustainability Practitioner!<br />

The AA1000 Online Training consists of just three modules, each designed to empower you<br />

with the knowledge and skills needed to advance sustainability initiatives. This is an exclusive<br />

and comprehensive e-learning program offered by DQS Academy, one of the few accredited<br />

training bodies in the world with the capacity to provide AA1000 Online Training.<br />

Module A - Building the Foundation<br />

Module A serves as the essential introduction to the AA1000 Online Training program. This module<br />

focuses on the AA1000AP (2018) and AA1000SES (2015) standards, which are fundamental to<br />

the practice of sustainability assurance.<br />

Learning Outcomes:<br />

• Gain a deep understanding of the AA1000 standards, which are globally recognised in the<br />

sustainability field.<br />

• 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 />

you will achieve the Associate<br />

Certified Sustainability Assurance<br />

Practitioner (ACSAP) qualification. This<br />

achievement represents a substantial<br />

milestone on your path toward acquiring<br />

more advanced certifications, including<br />

the prestigious Practicing Certified<br />

Sustainability Assurance Practitioner<br />

(PCSAP) and the esteemed Lead CSAP<br />

Practitioner (LCSAP) qualifications.<br />

These higher-level certifications open<br />

doors to rewarding career opportunities<br />

and leadership roles in the field of<br />

sustainability, equipping you to make<br />

a meaningful impact on organisations,<br />

communities, and the environment in<br />

South Africa, and abroad.<br />

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


Strive for Net Zero<br />

while saving money at the same time!<br />

Rooftop, solar carports, ground-mounted solar, and agrivoltaics represent the best-value energy<br />

available to the energy customer in South Africa.<br />

Blue Sky Energy is an expert in the design, procurement and construction of such plants.<br />

Battery energy storage installations provide access to solar energy daily during peak hours when the<br />

sun is not shining and enable users to bridge their primary energy needs through grid interruptions.<br />

While the levelised cost of hybrid solar and battery storage installations is significantly greater than<br />

solar PV only, appropriately sized solutions can be commercially feasible.<br />

Would you like to know if your property or business can achieve energy security at the same cost<br />

or less than what you are paying currently?<br />

Did you know that Section<br />

12B of the Tax Act allows for<br />

the accelerated depreciation<br />

of your power generation capex,<br />

resulting in a 27.5% saving on<br />

your project installation?<br />

Agrivoltaics and<br />

Solar Carports<br />

Blue Sky Energy works<br />

with leading light steel<br />

frame construction<br />

suppliers to offer a range<br />

of innovative solutions<br />

such as agrivoltaics and<br />

solar carports.<br />

Have you considered<br />

putting your spare space<br />

to work? Whether you<br />

have low-value land or<br />

large parking spaces,<br />

bring them to life through<br />

solar PV installations that<br />

create energy and highvalue<br />

spaces such as<br />

shade for parking or<br />

tunnels for agriculture.<br />

123RF<br />

123RF<br />

Website: www.blue-sky.energy Email: enquiries@blue-sky.energy<br />

CONTACT THE EXPERTS AT BLUE SKY ENERGY RIGHT NOW!


ENQUIRIES<br />

Contact Alexis Knipe: alexis@greeneconomy.media<br />

www.greeneconomy.media

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!