Gauteng Business 2022/23

The 2022/23 edition of Gauteng Business is the 13th issue of this highly successful publication that has established itself as the premier business and investment guide for the Gauteng Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on the growth and significance of the green economy is included in this edition. Every sector from agriculture to transport and logistics is referenced, with several Gauteng companies taking the lead in the field of creating a more sustainable future for themselves and for their clients. The fact that mining companies and others are starting to build facilities to generate power is significant for the country as a whole. Gold Fields’ 40MW solar project at its South Deep mine is one of the first of its kind and it is certainly a precursor of what we can expect to see a lot more of in the future. The unexpected fall from power in the province’s three big metropolitan municipalities in 2021 of the political party that is in charge at provincial and national level, the African National Congress, is noted in the Regional Overview. Whether this presages a change beyond the borders of Gauteng in elections to come remains to be seen, but the huge budgets which now fall under the control of coalition governments in Johannesburg, Tshwane and Ekurhuleni will certainly serve to sharpen the focus of ANC election planners for national elections in 2024.

OVERVIEW Energy Hydrogen

OVERVIEW Energy Hydrogen fuel cells are attracting interest. A locally-developed stationary hydrogen fuel cell is the subject of a test at the refinery of Impala Platinum in Springs, east of Johannesburg. Engineering News reported in 2021 that the first signs are positive. Implats has donated 16ha for the project and is invested in AP Ventures, a London-based company that invests in companies that use platinum group metals to promote the fight against climate change. Gold Fields is on course to build a 40MW solar power plant at its South Deep mine west of Johannesburg. Harmony, which has several mines in Gauteng, is already operating a 30MW solar plant in the neighbouring Free State province. Areas in the Gauteng province that can no longer rely on the mining industry to drive their economies may become focus zones for solar PV projects. Renewable Energy Development Zones (REDZs) have been allocated in other provinces but the potential for REDZs in Gauteng is huge, because vast amounts of energy needed to drive the country’s biggest economy. These zones would be developed in line with the national Integrated Resource Plan (IRP 2019) which the Gauteng Provincial Government is hoping will enable it to unlock several renewable energy projects. Other projects include promoting gas usage, the development of hydrogen fuel-cell technology and the recommissioning of power stations. In Johannesburg, the Northern Wastewater Treatment Works has its own electricity source in a 1.1MW biogas plant. It produces electricity using cogeneration, which is combined heat and power. A landfill site at Robinson Deep in Johannesburg has started generating 3MW of gas. This is the first of five renewable energy projects that Energy Systems SA has in Johannesburg. At the Cavalier abattoir in Cullinan, biowaste conversion company ibert provides about a quarter of the power that the abattoir needs to function. Absa Bank has followed up on its decision to take its central Johannesburg campus off the national grid. Investments in a 6 000-panel rooftop solar system (which cost R10-million), ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za South African National Energy Development Institute: www.sanedi.org.za South African Photovoltaic Industry Association: www.sapvia.co.za SECTOR INSIGHT Ford Motor Company has a plan to go off grid. A 100kw natural gas baseload fuel cell powers the offices of Minerals Council SA in Johannesburg. Credit: MineralsCouncil SA the synchronisation of gas and diesel generators and sophisticated water and underfloor heating systems have all contributed to massive energy savings. The rooftop solar installation at Absa’s Pretoria office provides 17% of its electricity needs and the bank intends rolling out solar solutions for another five offices soon in addition to investigating battery solutions in pursuit of what it calls “net zero offices”. Ford is spending R135-million on building a solar carport at its Silverton plant that will produce 13.5MW. The project is part of a bigger project to take the whole plant off the grid, Project Blue Oval. Ford is working with Uhuru Africa, a joint venture between Uhuru Energy and SolarAfrica Energy. ■ GAUTENG BUSINESS 2022 24

OVERVIEW Oil and gas An international investor is supporting a new LPG cylinder plant. SECTOR INSIGHT Glass manufacturer Consol has signed a new gas contract. Credit: BHIT A new liquefied petroleum gas cylinder manufacturing plant has attracted funding from J Sassoon Group. Bluedrop Energy will build its LGP plant in Johannesburg with technical assistance from an Israeli company and Fluor. Bluedrop will also be an LPG wholesalerand composite LPG cylinder manufacturer in Africa. The R300-million committed by Sassoon to the Gauteng project is part of a much bigger commitment the investment firm is making to invest in South Africa more generally: a figure of -billion over five years has been mooted. Glass manufacturer Consol, which has three plants in Gauteng, has signed a contract to buy liquid natural gas (LNG) from Renergen, the company that is developing a significant field in the neighbouring province of the Free State. Bespoke depots will be developed to cater to industrial clients such as Consol. Renergen is taking orders for its product from logistics companies such as Bulk Hauliers International Transport (BHIT) for 50 of its trucks (pictured), which should lead to lower operating and maintenance costs. South African Breweries is another client. Delta Natural Gas (DNG) Energy announced in 2019 the rollout of 400 natural gas refuelling sites across South Africa with a focus on the taxi and logistics sectors. The first sites will be Johannesburg and Tshwane. The Provincial Government of Gauteng has announced that it wants to take “decisive steps” to increase the availability and use of gas. NGV Gas, a subsidiary of CNG Holdings, is promoting compressed natural gas (CNG) as a versatile alternative across all sectors. Another subsidiary, CNG Technology, supplies equipment for filling stations and distributors, converts petrol and diesel-powered vehicles ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za South African Oil & Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za and advises companies on conversions. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. National policy is driving a switch to the use of gas. A national Gas Utilisation Master Plan (GUMP) is being developed. The country’s biggest supplier of industrial heating fluids, FFS Refiners, supplies this product out of a plant at Chloorkop while the company’s Evander site is responsible for heavy fuel oils. Evander also has a tank with installed capacity of 8 500m³. Egoli Gas has a pipeline network that extends over 1 200km in and around Johannesburg and the company has 7 500 domestic, industrial and commercial customers. The company that owns Egoli Gas, Reatile, has a 30% stake in Vopak and a stake in CNG Holdings. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed methane gas and natural gas rights in the provinces on Gauteng’s border, Free State and KwaZulu-Natal. ■ 25 GAUTENG BUSINESS 2022