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Aug 14, 2008

Real Economy Report

Engineering|Africa|Botswana|CoAL|Coal-fired Power Station|Defence|Denel|Eskom|Export|Gas|Generators|Industrial|Mining|PROJECT|Storage|Technology|Water|Africa|Energy|Manufacturing|Power
Engineering|Africa|Botswana|CoAL|Coal-fired Power Station|Defence|Denel|Eskom|Export|Gas|Generators|Industrial|Mining|PROJECT|Storage|Technology|Water|Africa|Energy|Manufacturing|Power
© Reuse this From Creamer Media in Johannesburg, this is the Real Economy Report. Our top stories this week: we explore the efforts being made to reduce air pollution from South Africa's newest coal-fired power station, the energy boom spurs a R100m manufacturing investment in Pretoria and, we look at the A-Darter missile programme.

Shannon O'Donnell:
With 11 of Eskom's 13 coal-fired power stations sited in the Mpumalanga province, air pollution is a major threat. Terence Creamer looks at what is being done to ensure it newest facility doesn't tip that air shed in to crisis.

Terence Creamer:
The new R80-billion Kusile power station, being built near Delmas, 110-km east of Johannesburg, will be the first South African plant to incorporate flue gas desulphurisation technology. Chief officer Brian Dames, who believes the emission-abatement investment will add more than R5-billion to the project's overall price tag, outlines the rationale for the expenditure, as well as its water-consumption downside.

Brain Dames

Terence Creamer:
The technology will reduce Kusile's atmospheric pollution by removing deleterious emissions such as sulphur dioxide as the plant ramps up its six 803-MW units to a final nameplate of 4 818 MW by 2017. But what of carbon capture and storage, which government views as integral to its ‘peak, plateau and decline' CO2 emissions aspiration, as well as its Cabinet endorsed climate-change mitigation framework?

Brain Dames

Terence Creamer:
Given that National Treasury has been mandated to look at instruments that will eventually place a price on carbon, possibly through an escalating CO2 tax, and/or the creation of a ‘cap-and-trade' mechanism, there is also likely to be an economic imperative on Eskom to take a lower carbon route. But for the immediate future, the trajectory remains upwards, until 2030 at best.

Shannon O'Donnell:
We'll be back after this short commercial break.

Den Braven Sealants advert

Shannon O'Donnell:
Steinmüller Africa has opened a pressure part manufacturing facility at Arcelor Mittal in Pretoria. Guy Copans reports.

Guy Copans:

Steimüller Africa's new pressure part manufacturing facility will manufacture pressure parts for steam generators and industrial applications such as headers, heat exchangers and cooled water wall machines. It cost over R100-million to build.

Steinmüller Africa MD Hermann Brümmer says that South Africa does not have a facility that can fabricate pressure parts, and has to build up capacity and knowledge again, and train and develop people.

Hermann Brümmer

Guy Copans:
While Steinmüller has no orders on its book yet, Brümmer says that it is negotiating with some of the main customers from Eskom's expansion programme. It is confident that it will get some major contracts within the next few weeks.

Shannon O'Donnell:
South Africa is developing the Denel Dynamics A-Darter missile in a joint programme with Brazil. Keith Campbell reports.

Keith Campbell:
The South African Air Force project officer for the A-Darter infrared-homing air-to-air missile programme is Colonel Ian van Vuuren. He explains the significance of the programme.

SAAF Col Ian van Vuuren

Keith Campbell:
The Brazilian Air Force project officer for the A-Darter programme, Colonel Nelson Silveira, outlines the form the cooperation is taking.

Brazilian Air Force Col Nelson Silveira

Shannon O'Donnell:
And now for a sneak preview of this week's Engineering News magazine:

We provide a comprehensive follow up on whether the EIA backlog has been reduced

We carry a piece on how a local defence company has developed further upgrade packages for three Mirage fighter platforms

And, we offer insight into a 400-million dollar, 250-MW coal-bed methane power project being developed in central Botswana

And in Mining Weekly this week:

Read how Russia's Norilsk Nickel now stretches from the Arctic to South Africa, and from the US to Australia

News that Anglo Coal South Africa is to supply Eskom's Kusile power station with 17-million tons of coal a year

And, a warning from Steve Phiri that the export of unbeneficiated raw chromite ore from South Africa is ‘suicidal'

Shannon O'Donnell:
That's Creamer Media's Real Economy Report. Join us again next week for more news and insight into South Africa's real economy.


Edited by: Shannon de Ryhove
Creamer Media Senior Deputy Editor Polity & Multimedia
© Reuse this Comment Guidelines (150 word limit)
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