Multinational engineering group Alfa Laval says that, given South Africa’s energy situa- tion, carbon credit financing through the Clean Development Mechanism (CDM) will make for an attractive investment, both eco- nomically and environmentally.

Process division manager Moses Modibela says that the company is “pushing” the concept more actively in South Africa and that the response has been positive. Alfa Laval has, together with a carbon investor, developed a concept to support customers running energy-efficiency projects using heat recovery.

The model is based on a ‘no cure, no pay’ model, making it a win-win situation for customers and the investor, with full application and project support by the carbon investor. “This is a country that has wasted large amounts of energy underpinned by the history of low energy costs.

These costs gave rise to a lack of interest in promoting environmental and energy-saving investments. But the tables have turned, and rising energy costs, the constraints of electricity supply, global warming and a drive for sustainable buildings in South Africa are setting a foundation for carbon credit financing, efficient use of energy and reduction of the carbon footprint,” he says Modibela.

“Carbon financing can affect the investment calculus of customers considerably, but in many cases investments reducing energy consumption and emission will turn out financially attractive due to short pay-back horizons. In fact, carbon financing frequently brings an investment incentive in countries with moderate energy costs,” says Alfa Laval sales engineer Anthony Makgale.

He points out that this type of financing is frequently used by sectors such as district heating systems and setups using waste energy from industrial plants. Cogeneration is an area that would directly benefit from an increased focus on heat recovery. He adds that environmental issues are becoming increasingly prominent, both politically and socially.

Technology that can be used to reduce carbon emissions includes systems designed to recycle heat, such as in heat exchangers.

The products use waste heat, which is originally produced in the process for other downstream process applications. For industries such as refining, chemical processing, pulp and paper, and power production, heat recovery is a key factor.

The Tamoil refinery, in Switzerland, has, through heat recovery, saved €3,8-million in fuel cost and generated a €1-million saving on emissions, by improving its energy efficiency using plate-type heat exchangers.

Alfa Laval has installed 5 000 Compabloc heat exhangers in heat recovery duty. Combined, these units have reduced CO2 emissions by about 12-million tons, which is equivalent to the total emissions from all passenger cars in Sweden.

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