Sep 25, 2009
Port Elizabeth|Engineering News|Eskom|Mining Weekly|Renewable Energy|Africa|Belgium|Ghana|Kenya|Mozambique|South Africa|Uganda|Zambia|USD|MW Wind Farm|Electricity|Food|Transport|Eastern Cape|Dipuo Peters|Martin Creamer|Eastern Cape|Engineering News|The Eagle|FIFA World Cup
© Reuse this
Makwetla: South African breweries enlisting 44 000 African farmers to produce crops for beer making.
Creamer: More clear beer drinking in Africa is what they are looking to do. It is the aspirational beer in Africa but it is not affordable. So, what South African Breweries is planning to do, is to go in and have the crops grown, like the sorghum, cassava and the barley.
They let the local people grow those crop not that there aren't people doing that already, but they don't want to take those crops which should go into food and then put them into beer.
So, they want new crop growing going and then they partner with these people, guarantee purchases and then they make beer out of it because they see a $3-billion market waiting for them. There is not enough clear beer drunk there and a lot of people are drinking their own home brews.
We saw what happened in Kenya recently were 128 people died from a home brew and others were blinded. They are looking for a much higher level of clear beer. They see the market there but they know that it has got to be affordable.
Coming in with different branding like they did in Uganda with the Eagle, very successful migrating the sorghum clear beer into other African countries and then doing trials in Ghana with cassava and barley in Mozambique and Zambia. They already buy from that 15 000 farmers there but now they want to really push this to a high level.
Makwetla: Gosh Martin, I didn't realise beer drinking could be so scientific. Lets look at this wind farm in South Africa's Eastern Cape Province. A Belgium company planning to build that.
Creamer: Yes, a Belgium company coming in with R1,2-billion to build a wind farm at the Coega Industrial Development Zone in the Eastern Cape at Port Elizabeth.
The idea is that they will build their first 2,3 MW module before the FIFA World Cup in 2010 and the go on towards 2011 with a total of about 25 of these particular turbines.
They don't want to invest only in turbines, but they also want to invest in people, so they are going to select people and put them through the local universities, because we don't have enough intellectual capacity in renewable energy.
Those top students from the South African universities will get a chance to go to a European university, as well, so that they build up this pool of expertise. Of course, our ambitions with regards to wind energy in the country have been stated by the new Minister Dipuo Peters who said she wants 400 MW before 2012.
That is a fairly moderate ambition, which is about 1% of our capacity at the moment. We know that the National Energy Regulator is giving R1,25 per kilowatt hour now, so that has actually been decided how much they will pay these people who provide the wind energy.
We see some activity in Darling in the Cape where they are looking at expanding into a 70 MW wind farm and the also at Hopelands in the Cape to 100 MW. But, still fairly moderate in view of what people are doing elsewhere in the world.
Makwetla: Sasol will itself be producing half of the electricity it needs by 2012.
Creamer: They are going to 50 % energy independence. There is a lot of uncertainty with Eskom, they still haven't got their funding plan in place.
They hope to do that soon. People are aware that the cost of electricity is going to rise, so they are investing themselves. We see that with Sasol who is also an energy producer and produces transport energy like petrol and diesel, but it is saying from an energy security point of view, from electricity, they are going to produce half of the electricity that they need at their plant in Mpumalanga at Secunda.
They are producing about 33 % at the moment 280 MW and they will go to 600 MW by 2012 and that will be about 1,5 % of our national capacity.
So for one company coming in with 1,5 % is quite a big undertaking and it is all in the interest of cost as well, because they believe through co-generation they can produce that electricity a little bit lower. We know that Eskom at the moment is going to lift their tariffs quite substantially in the next three years.
Makwetla: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he'll be back with us at the same time next week.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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 network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Does crime, political enemies or shady business deals make you a little bit nervous? Looking for an armoured sports-utility vehicle (SUV)? Mercedes-Benz has the product for you. The new R2.3-million ML500 Guard vehicle has been unveiled in South Africa. The M-Guard,...
A joint venture (JV) company created by South Africa’s Denel defence industrial group and the United Arab Emirates (UAE) group Tawazun has won a R5-billion contract for precision guided munition (PGM) systems for the UAE Air Force. The JV is Tawazun Dynamics and it...
A dry flue-gas desulphurisation (dry FGD) system uses a lime-based reagent to remove sulphur oxides (SOx) from the flue gases of any combustion installation without using water, says gas and energy specialist engineering company Tractebel Engineering South Africa...
Chery South Africa (SA), importer of the Chinese Chery brand, is entering the local commercial vehicle market for the first time with the introduction of the P10, a 15-seater people-mover. The vehicle is priced at R289 900.
Trade and Industry Minister Rob Davies recently reported that revised guidelines for the National Industrial Participation Programme (Nipp) would be circulated “shortly”. This would form part of the “strengthening and alignment” of Nipp with “other public...