MechChem Africa March 2020

Sandisiwe Ncemane, Coega Development Corporation’s energy sector manager, comments on measures of ensuring SouthAfrica’s security in the energy sector, as it undertakes extensive technical readiness work for up to 3 000 MW of gas-driven power. Measures of ensuring SA’s security in the energy supply

T heCoegaDevelopmentCorporation (CDC) welcomes the statements made by the Department of Min- eral Resources and Energy minister Gwede Mantashe to catalyse developments toensure electricity andenergy supplywithin the short and medium term. In the context of the CDC, access to reli- able andaffordableenergy is a critical enabler to drive industrialisation and economic growth. To ensure a competitive investment location for its clients and future investors, the CDC has prioritised the provision of a stable, continuous energy supply and as- sociated utility services. Furthermore, this advocates for themove towards a diversified energy mix to establish a well-integrated en- ergy value chain, inclusive of electricity, liquid fuels and natural gas. With a proven track record in delivering mega-projects, the CDC plays a pivotal role in advancing readiness for the realisation of various energy projects in South Africa. These comprise production, generation, manufacturing and services. The Coega Special Economic Zone (SEZ), includes world class infrastructure, extensive roof area and serviced land that is available to host various

energy programmes, with spin-offs for other sectors. Distributed generation solutions are rap- idly providing an alternative for industries within the SEZ. Complementing this is the existing48kWsolar plant, which feeds power to the CDC head office. Leveraging massive factory roof tops, the roll out of the Coega Solar RooftopProgrammewill alsodrawfrom the innovative mechanisms available within theNelsonMandelaBayMetro toaddress the short-to-medium term energy gap. Embedded generation is a viable and attractive proposition in the Coega envi- ronment. Over the past decade, the Coega location has bolstered momentum to ensure it is a well-equipped site for integrated gas- driven power solutions and has secured key pre-requisites that support development in the shortest time. “Coega continues to undertake extensive technical readiness work for up to 3 000MW of gas-driven power, which demonstrates our eagerness to advance readiness for SA’s first LNG importation with the assistance of relevant stakeholders,” says Ncemane. The Eastern Cape Government continues to support this programme, with a detailed

annual electricity consumption.While asso- ciatedgas cannot always beused toproduce power, it canoftenbe utilised in a number of other productive ways, or conserved. “A critical development for the oil-and- gas industry is the advancing technology in natural gas generators to use fuel sources that would otherwise be considered waste products,”Nezerwehighlights. “This leads to robustpowersolutionsevenwithaggressive fuels with minimal derating. “The result is that routine flaring can be reduced and transformed into a more environment-friendly option, while help- ing communities by supplying electricity. These advancements in power generation applications allowoperators touse environ- mentally harmful raw flare gas for diverse purposes instead of simply burning it, with clear benefits to theenvironment,”Nezerwe concludes. q plan for a provincial gas economy, comprising market analysis, logistics studies, third party (small-scale) gas localisation for SMMEs and black industrialists, as well as natural gas research and decision support. The finalisation of Section 34 determina- tions will set in motion the development of theseimpactfulenergyprogrammes,andposi- tively impact SouthAfrica’s energy landscape. Ncemane believes the Coega SEZ is an ideal location to unlock South Africa’s diversified energy economy. “To advance this vision, the CDCcontinues towork hand in handwith the Eastern Cape Province, other state organs, and the private sector,” he explains. Integrated to the Liquified PetroleumGas (LPG) value chain, MM Engineering, a gas cylinder manufacturer, led by a black female industrialist is located in Zone 3 of the SEZ, within 5 km of the Port of Ngqura, where the liquid fuel tank farm is currently under construction. LPG will propel the regional gas market demand, and trigger inclusive gas localisation. “The CDC`s initiatives for diverse energy investments are towards achieving govern- ment objectives of stimulating the South Africanenergysector,”concludesNcemane. q

Power generation with flare gas in oil-and-gas sector Dynamic expansion in the oil-and-gas in- dustry continues to fuel demand for new technologies that tackle the impact of flare gas emissions globally.While theproduction of oil has grown by roughly 30% over the past twodecades, the climate impact of flare gas, typically consideredawasteby-product by the oil-and-gas industry, continues to be a cause for concern. Globally, 140 million cubic metres of natural gas are flared annu- ally, emitting more than 300 million tons of carbon dioxide (CO 2 ) into the environment. and oil companies around the world are being pressured to look at the amount of money spent in gas flaring, and the damage it is causing to the environment,” says Linda Nezerwe, technical specialist and emissions expert for gensets at Cummins.

The company launched the HSK78G natural gas generator series, designed to provide reliablepower regardlessof thenat- ural gas source or the climate. It is capable of generating power from very aggressive fuels, otherwise consideredwasteproducts. “Thequantityof unburned fuel that needs to be flared is usually known, but the question is what to do with it,” Nezerwe outlines. The World Bank, which has launched an initiative called Zero Routine Flaring by 2030, has stated that if this quantity of gas were used for power generation, it could provide about 750billion kWhof electricity, ormore than theAfricancontinent’s current

According topower generation company Cummins, a lackof infrastructure to capture and sell the flare gas released when drilling for oil is a major environmental problem. Billionsofdollarsinwastednaturalgascould be used to generate reliable, affordable electricity, and yield billions more per year in increased global economic output. “Governments, development institutions

16 ¦ MechChem Africa • March 2020