Gracia Munganga Waste Economy Programme Manager GreenCape South Africa
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1 Gracia Munganga Waste Economy Programme Manager GreenCape South Africa
2 South African bioenergy/biogas sector overview and skills needs implications 1. Bioenergy background and status quo in South Africa 2. Overview of the bioenergy industry in SA 3. SA Biogas industry challenges 4. SA Biogas market opportunities and drivers 5. SA Biogas industry support 6. SA Biogas industry skills & capacity building needs
3 Bioenergy background and status quo-sa Energy Department of Energy (DoE) Renewable Energy Independent Power Producer Programme (REIPPP) Capacity Price Biomass 25 MW R1.4/kWh Landfill gas 12.5 MW 94 c/kwh Biogas 12.5 MW 90 c/kwh DoE Biofuels Strategy and Regulatory Framework (2014) 2% mandatory blending in 2015 Crop for fuel (Sorghum & sugar beet) Strong focus on rural development Biofuels strategy on hold (subsidy vs competitive bidding) Waste management in SA (1) Limited separation at source Landfill is still the common method of waste disposal i.e. ~83-90% of solid waste (DEA, 2012) Cost of landfilling is relatively cheap e.g. R1900/ton to recycle vs. R390/ton in Stellenbosch (Haider,2014) Legislation acting as a driver for diversion from landfill disposal (National Environmental Management: Waste Amendment Act, No. 26 of 2014) Landfill diversion target of 20% by 2019 Potential ban from landfill disposal of certain waste streams (e.g. liquid hazardous wastes) Limited availability of land for new landfill sites (Stellenbosch & Drakenstein~3 years left)
4 Waste management in SA (2) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sweden Denmark Germany France Netherlands United Kingdom Canada South Africa Landfilled Recycled Waste-to-energy Composted Department of Science and Technology (DST), 2012
5 ioenergy background and status quo-sa (2) Municipal feedstock (s) Biological treatment Main feedstock: Organic Fraction of Municipal Solid Waste OFMSW) The potential for economies of scale located mostly in metros i.e. Johannesburg, Tshwane, Ethekweni, Ekurhuleni & City of Cape Town Sludge from wastewater treatments works (WWTWs) Private/commercial feedstock (s) Biological treatment Agricultural and agroprocessing wastes Wastes from animal husbandries (e.g. abattoirs i.e. blood, gutter, etc) Fuel replacement (combustion/co-combustion) Bagasse: sugar industry Agro-forestry wastes Paper sludge
6 Bioenergy Background and Status Quo-SA (3) Landfill gas Joburg LGP (REIPPPP), 18 MW Marianhill, 1 MW Bisasar, 6.5 MW 5 CDM UNFCC registered (8 pipeline) Anaerobic digestion (next slide) Biomass- REIPPPP Mkuze (16 MW), Kwa-Zulu Natal SAPPI Ngondwana (25 MW), Mpumalanga Biomass Small scale biomass boilers (e.g. Nollen Group, Sustainable Heating) Bioethanol Cradock (Sugar beet, Eastern Cape) Mabele fuels (Sorghum, Free State) Western Cape Ethanol (Triticale)
7 Overview of biogas industry in South Africa Small burgeoning industry in South Africa: digesters installed ±10 commercial plants, while the bulk are mostly domestic/rural units Biogas market elsewhere Germany 3.35 GW installed, 7500 biogas plants (± jobs). China India Lesotho millions 12 millions
8 Overview of biogas industry in South Africa (2) Domestic digester Size: <25 kw Dome digesters (concrete,e.g. TradePlusAid) Biobag (BiogasSA) BiogasPro (Agama) Small-medium scale Size: kw CAE (30 kw, Humphries) ibert (100 kw, Jan Kempdorp) EnviroServ, Bellville plant Large scale Size: >250 kw Bio2Watt (Bronkhorspruit, ±4 MW) Johannesburg WWTWs (±1.2 MW) biogas, Diepsloot CAE (600 kw, Darling) Elgin Fruit and Juices (500 kw)
9 SA Biogas industry challenges Private/commercial sector Environmental compliance: lengthy, cumbersome and expensive (1-2 years minimum) Access to the municipal grid, outside of the REIPPP-framework required for EG Municipal sector REIPPP not succeeded to boost the biogas market. However success achieved with landfill gas & biomass Cost of compiling bid too expensive (±R2-4 millions) & minimum size of plants too big (e.g. 300 kw vs 1 MW) Access to feedstock: complex municipal procurement process (can take 3-5 years to develop a project)-mfma, MSA Price of electricity generated typically higher than bulk price from Eskom (~15-20 c/kwh higher) Access to finance (e.g. conservative finance institutions on perceived risks)
10 SA biogas market opportunities Large scale AD projects Organic Fraction of Municipal Solid Wastes (OFMSW) e.g. City of Cape Town (planning phase), Drakenstein (EIA phase) Biogas from Wastewater treatment works (WWTWs) Rural biogas/off-grid energy solution Small-medium AD plants (energy for own consumption, waste management solution, high value sludge), payback: 6-11 years -Animal husbandries -Agro-processing wastes Landfill gas to electricity Minimum size: 1 MW for a viable project (~R50 millions) ~10 potential upcoming projects nationwide
11 SA Biogas market opportunities-drivers Large scale projects Lack of landfill airspace & diversion from landfill disposal WTWWs Energy efficiency (Jhb WWTWs can generate 15-60% of energy needs) Rural biogas Energy access & sanitation 3.3 million people still lack access to electricity, where only 10% could be connected based on costs (Qase, 2014) Small-medium biogas plants Anaerobic digestion (AD)- principally a waste management solution Potential ban of disposal of abattoir wastes in landfills beyond 2017 Landfill gas Clean Development Mechanism REIPPP from DoE
12 SA biogas industry support Southern African Biogas Industry Association (SABIA) Annual National Biogas Conference Four working groups Marketing, Legislation, Information gathering & administration Approached treasury for a review of biogas tariffs GIZ National Biogas Platform Four working groups: Vehicular biogas, Rural biogas, Small scale biogas and value of fertilizer Plans to support biogas in WWTWs (pilot municipalities) as part of DoE s Municipal Energy Efficiency Programme (MEEP) UNIDO Project proposal to the Global Environmental Fund (GEF) to support the biogas industry Focus on small-medium scale projects Projects in development phase to be selected Strong support for R&D and SABIA Dept. of Energy (DoE), Dept. of Trade and Industry (DTI), Industrial Development Corporation (IDC), Dept. of Environmental Affairs (Climate Change)
13 Support structure output-legislation Guideline for environmental authorization requirements and processes developed by Cape EAPRAC (Louise_Mari van Zyl), available at: 10 potential departments: ~2-3 years GIZ/GreenCape tool: Waste Treatment Guide, available online in Q3, 2015
14 Support structure output-financing Document outlining list of local and international financial institutions Accessible at: Types of funds Stage/Phase Target audience Grants Phase I: project screening/conceptualizing/research Private sector Loans Phase II: project development Public entity Municipal fiscus Phase III: project implementation/execution NGOs Other information available: minimum project value, explanation notes (criteria to secure funding) Developed by National Biogas Platform (DTI and IDC), SANEDI and GreenCape
15 Support structure output-wwtws Spreadsheet to evaluate the financial viability of WWTWs, developed by WEC Projects for the National Biogas Platform Available on the SABIA website:
16 Biogas sector-skills & capacity building needs Simplified regulatory framework Alignment of legislation, e.g. discrepancies between NEM:WA and NEM:AQA Norms & Standards (required for biogas, both for waste licenses and gas utilisation) Value of Sludge/effluent Represents an additional revenue stream ((R150-R500/ton), and can contribute (~30% revenue) Standards for compost/fertilizer -Department of Agriculture Training and Local R&D Limited facilities to test different substrates (biomethane potential tests, BMPs to determine the biogas potential) Monitoring performance-plant operators/installers-(design, construction, operation & maintenance) Active institutions: University of Cape Town (UCT), Cape Peninsula University of Technology (CPUT), North West University and North West University
17 Many thanks! Questions?
18 Contact details Gracia Munganga/Quinton Williams Tel: SABIA, Mark Tiepelt/ David Cornish National Biogas Platform, Sofja Giljova
19 References Department of Science and Technology (2012). South African Waste Sector 2012 An analysis of the formal private and public waste sector in South Africa. A National Waste RDI Roadmap for South Africa: Phase 1 Status Quo Assessment. Department of Science and Technology: Pretoria Haider, S. (2014).Waste management in Stellenbosch entering a new era. Proceedings of the GreenCape Waste Economy Workshop, Cape Town (South Africa).Available from: Qase, N (2015). Rural Digesters and Off-grid
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