The Need for Clean Coal in Africa The Case of Botswana

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1 The Need for Clean Coal in Africa The Case of Botswana Mr. Kgomotso Abi Director, Department of Mines, Ministry of Minerals, Energy and Water Resources, Botswana

2 Why Develop Coal in Botswana? Botswana traditionally has imported majority (over 70%) of its power from South Africa cheap and plentiful power South Africa is phasing out its power exports to Botswana and the region faces severe load shedding -- Botswana must find new sources of power Botswana coal resources very large estimated at 212 billion tons coal, remain largely undeveloped as a result of past cheap power imports Botswana s response is twofold (i) measures and incentives for users to improve demand side management; energy efficiency and conservation (ii) development of low cost domestic energy resources Botswana coal is abundant, offering low cost power and energy security at a time when the country faces power shortages and sharp increases in tariffs Gas (Coal bed methane) is still being explored and reserves are not yet known Botswana has the potential to shift from a power importer to a power exporter to neighboring countries

3 Southern African Power Pool (SAPP) Installed Capacity versus SAPP Peak Demand Figure-1. SAPP Generation Vs SAPP Load Forecast MW SAPP Effective Capacity SAPP Peak Demand

4 Botswana s Power Supply and Demand Outlook Botswana Power Supply Situation Demand 530 MW, (72% imported)

5 Coalfields of Botswana

6 Botswana s Coal Resources are Significant Globally Inventory of Coal Resources of Botswana (1992) Coalfield Measured (Mt) Indicated (Mt) Inferred (Mt) total (Mt) Morupule Moijabana Mmamabula Letlhakeng Ncojane Dukwi Mmamantswe Serule Dutlwe Foley Bobonong Total Mt - million tonnes

7 Balanced Portfolio Approach From Power Importer to Exporter Near Term i. Increase energy efficiency and conservation ii. Installation of 70 MW of small diesel fired units iii. Construction of c. 80MW and 170 MW fuel oil units with dual firing capacity for CBM when available Mid Term i. Construction of Morupule B 4x 150 MW power plants Domestic resources improves energy security Uses highly efficient technology to reduce carbon emissions Carbon capture compatible Long Term i. Development of other coal resources (e.g. Mmamabula and Mmamantswe) ii. Development of coal bed methane resources iii. Development of off grid / grid solar power, and possible bio-fuels

8 Technology Options Morupule B Power consists of four 150-MW units, each capable of producing MW (net). - The boiler utilizes circulating fluidized bed (CFB) combustion technology, a state-of-the-art technology capable of reducing acidrain pollutants (SO 2 and NOx emissions). - The CFB boiler is designed to burn coal from the Morupule Colliery; sulfur content of the coal ranges from 0.9 to 2.1 percent, while the heating value is expected to be MJ/kg. CFB is flexible, A unit size of 150 MW optimizes system needs and power grid reliability, stability, and maintainability in line with Botswana s load demand profile. Air emissions. The CFB boilers and control equipment are designed to satisfy World Bank Environmental Guidelines, with guaranteed emissions: Particulates: less than 50 milligrams per normal cubic meter (mg/nm3) SO2: less than 455 mg/ Nm3 NOx: less than 750 mg/nm3

9 Lowering Carbon: Options The Morupule B Power Station carbon emission efficiency will be about 920 kilograms of carbon dioxide per MWh compared with 830 kilograms of carbon dioxide per MWh for supercritical technology (applicable for 500 MW and larger size units). However, the operating characteristics of large supercritical units are not practical for meeting domestic demand in Botswana. So the Government is seeking other ways to reduce the carbon footprint Lowering the Carbon Footprint The government and industry have taken an initial look at carbon sequestration Pilot injection of a pure carbon dioxide stream from SASOL Secunda (South Africa), by pipeline to Botswana into wells which were to be drilled at Kalahari Gas Corporation CBM exploration area; to enhance the pilot production of CBM. SASOL Secunda produces nearly 1 bcf / day making it the largest point source of CO2 in the world If Botswana is to become a regional energy provider what can it learn now about CO2 injection / storage?

10 Lowering Carbon: Options The process was delayed when some government agencies raised concerns regarding: potential long term impacts necessary regulatory / institutional strengthening The government now seeks a feasibility study to better understand: economic and environmental costs and benefits of the Project for Botswana, The impact of utilizing Botswana s coal resources as a carbon capture and storage ( CCS ) host, including an assessment of the long-term implications for the future exploitation of coal resources; Regulatory issues and legislative requirements

11 Lowering Carbon: Options Government would like to better understand CO2 Storage: The economic and environmental costs and benefits of the project for Botswana, including a strategy for addressing the issue of carbon credit financing; The impact of utilizing Botswana s coal resources as a carbon capture and storage ( CCS ) host, including an assessment of the long-term implications for the future exploitation of coal resources; The regulatory issues and legislative requirements required to facilitate implementation of the project; and Since this project would have a major impact on energy resource developments, both within Botswana and in the region through the export of gas and/or power, the impact of the Project on energy resource development in Botswana and the region is very important. The undertaking of CO2 injection and storage will potentially make Botswana a leader in Africa, as it embarks upon becoming a significant producer of power for the region and potential exporter of coal.

12 Summary Botswana has modest system needs for domestic supply, and is looking to coal for a secure, reliable and low cost viable energy resource for base-load power (Morupule B Project) Coal will be developed as a part of the national mix of energy sources including renewables and bio-fuels to offer secure, reliable and affordable energy Botswana has sufficient coal resources to also offer low-cost regional electrification (Mmamabula and Mmamantswe) As the nation moves towards regional exports it wishes to understand the geological and regulatory requirements to lower carbon emissions through carbon sequestration Botswana continues to address GHG s through improved technologies, while also looking at CO2 sequestration impacts / needs going forward. For nothing is impossible with God - Luke 1:37 Thank You

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