Exploratory discussions are under way between the European Commission (EC) and South Africa’s Department of Environmental Affairs and Tourism (Deat) that could result in South Africa’s direct participation in a large-scale clean-coal technology rollout being proposed by the 27-country bloc.
As part of its recently released integrated energy and climate change package, the European Union (EU) is proposing the development of 12 commercial-scale clean-coal demonstration projects, embracing technology that captures carbon dioxide emissions and stores them underground.
The EU plan, which was unveiled on January 10, is designed to cut the greenhouse gas emissions in Europe by at least 20% by 2020. Among other things, it calls for the technology for carbon capture and geological storage to be proved commercially by 2015, thereafter it is envisaged to make the technology mandatory for all of Europe’s fossil-fuel power plants by 2020 - agreement is still to be reached on the second part of the proposal.
The discussions with Deat have, thus far, sought to explore the possibility of South Africa aligning itself generically with some of the envisaged programmes and projects that will emerge from the EU commitment - made unilaterally by the EU in a bid to break the current deadlock in global climate-change negotiations (see this week’s cover story on page 16). However, the EC’s climate strategies unit, Artur Runge-Metzger, who was in South Africa recently to discuss the package, tells Engineering News that it has also had initial discussions with the Deat about the clean-coal plan, and that it would also like to engage with power utility Eskom, which is a big coal user.
In fact, while South African mines produce around 242-million tons of coal yearly, a large portion of 178-million tons sold locally is employed in power stations, making Eskom arguably the biggest single burner of coal worldwide. The utility also revealed recently that it could raise its coal purchases by about 44,9-million tons a year by 2025 as it invests in additional coal-fired plant.
Under the Kyoto Protocol, South Africa is classed as a ‘developing country’ and is, therefore, exempt from specific emission-reduction targets. However, there is increasing social pressure on Eskom to pursue cleaner technologies as well as to invest in renewable-energy sources as it expands its generation capacity - the utility plans to add some 2 000 MW/y of generation capacity over the next 25 years in a bid to keep up with demand, much of which will arise from fossil-fuel sources. The country is, thus, arguably well-suited to link up with the EU’s clean-coal thrust.
However, a big drawback could be the cost that capture and storage adds to the generation of power, particularly given that Eskom has a stated intention of remaining the world’s lowest cost industrial power producer, which government also views as crucial to South Africa’s industrial-development ambitions. At present, it is estimated that carbon capture and storage will cost up to €50/t, which could raise electricity selling prices by up to 20%. This would be untenable for South Africa and Eskom, which is already warning of a possible surge in electricity prices purely on the basis of rising primary energy and equipment costs. However, European scientists believe that the cost associated with carbon capture could be reduced to as little as €15/t through, among other things, commercial-scale demonstration.
“These 12 power plants will not only be built in Europe, but also with some of our developing-country partners,†Runge-Metzger confirms. “We already have an agreement with China to build such a plant, between 2012 and 2015, and we might also sign up with some other developing countries that have shown an interest in clean-coal technology. We have partnership agreements in place with Russia, China and India and we are in talks with Deat in South Africa to come to a partnership on the environment in general and climate change more specifically,†Runge-Metzger concludes.
Copyright © Creamer Media (Pty) Ltd
« WYOMING COUNTY - Two mechanics and a high school senior are helping to save and share the anthracite history of Northeastern Pennsylvania. | Monroe Minerals provides update on mining rights for London mine and exploration program for Angola »