Dec 15, 2011
© Reuse this
Gwala: The US retail giant Walmart is storming into South Africa waving a big green wand.
Creamer: We don’t think of Walmart being a poster child for the green movement. We think of Walmart cutting prices and giving us the cheapest and the best. We know they certainly didn’t have a great environmental reputation in the United States. They are improving that and they have been doing it for the last five years.
Their first public statements in South Africa, after taking control of Massmart, a rather controversial 51 % of it and having to keep those jobs, has been on greenness and how to make sure that they can use energy far more sparingly and also manage their waste to a point of zero waste from their organisations from 2025. So this is a different sort of Walmart than the one we were used to.
They are putting a green foot forward in Africa and South Africa. These, of course, are 330 South African and African stores, which they now have. But, if you look elsewhere are the world they have now got very involved in the energy situation.
In Mexico, they have got their own wind farms supplying 348 of their stores. They are also saying that they are not averse to getting power here from independent power producers. But just as they cut food costs, they want to have a business case for going green. This is no altruism, this is making sure that you get your energy at a price that is lower that you can get it from the utilities.
Bringing in LED lights, light emitting diodes, and they put doors on the fridges and putting doors on the fridges of the merchandise has cut their electricity use by 70%. They are talking about cutting their carbon emissions by 20% next year, 2012 and recycling 60% of their water by 2015.
Gwala: So there is a business case for being green then. I’m sure those delegates who were down in Durban for the COP 17 are very happy to hear what Walmart is doing in this are.
Creamer: Again, this is around climate-change. Business is taking this seriously and of course, if you are in coal you have got to take it very seriously.
Sasol is very much in coal besides wanting to go for the gas side of the business now as we see with the gas-to-liquids. Their biggest revenue stream is still from coal-to-liquids.
They have taken a moderate percentage of this new project at Mongstad in Norway. This will be the biggest carbon-capture and storage project in the world. It will be a large-scale project to demonstrate that carbon-capture and storage is economically feasible, it does work and they are going to try two different methods of it in one go.
They are taking those emissions from a power station in Norway and they are looking at how they can capture and store those and they are also at the same time taking in the emissions from an oil refinery, because of course, Norway is big in oil. Sasol is partners there and has only got 2,4% of this and Shell also has 2,4%.
The biggest players are the Norwegians with Gassnova with 75% and Stant Oil 20%. The idea is to get access to this carbon capture technology so that you can continue to use coal, but in a clean way.
Gwala: Staying with this theme around carbon emissions, South Africa has a great opportunity to use platinum, which it has in abundance, to lower its high level of carbon emission.
Creamer: We hear from the naysayers that the cost of a low-carbon economy is too high and the climate change costs are to high, but what about the opportunities within this?
South Africa has a massive opportunity, because it has platinum. We have an abundance of platinum and it was good to see our Deputy President Kgalema Motlanthe take the trouble to go into the COP 17 demonstration of the fuel cell.
He went to have a look at it himself, and I hope that is symbolic of the fact that the South African government is serious about using platinum to create stationary fuel cells, which of course, through the hydrogen can produce electricity and water. Also, the mobile fuel cells which will go into our cars.
It is incumbent on South Africa to make a big statement in fuel cells, because even the battery car is getting so much more publicity and a battery car is like a golf cart, you have to recharge the batteries.
You have got a fuel cell situation you don’t have the same range anxiety. With the 4kg of hydrogen in your car, you can take your family car to about 700 km, you don’t have the same range restrictions and the problems of refilling.
So, a massive statement has been made by Anglo American and Anglo American Platinum saying that hydrogen fuel cells using platinum catalysts, and the beautiful part for South Africans is that fuel cells can only use platinum and we have got an abundance of it. The fuel cells are efficient, versatile, you can scale them up on a big level.
You can take them out into the country and instead of having Eskom have this national grid having to spread very expensively into sparsely populated, far-flung areas, you can have a fuel cell there, and you can combine it with wind and you can combine it with solar.
When the wind is blowing and the sun is shining, it can get that hydrogen separated from the water and then when the wind is not blowing and the sun is not shining, you can crack that hydrogen into electricity and again water. That is zero emission so you are going into a low-carbon world. It seems like a no brainer.
Gwala: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly. Martin will be taking his usual season break and will be back with us at the Coalface with his renewed vigour on the 20th of January next year. Martin, we wish you well over the festive season.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...