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JSE-listed energy group Sasol reports that it produced its first green hydrogen in Sasolburg in June, during the commissioning phase of a project to repurpose an operational electrolyser to use renewable electricity to split water into hydrogen and oxygen.

Sasol has set aside R350-million for the pilot Free State project, which is expected to produce up to 5 t of green hydrogen daily.

CEO Fleetwood Grobler reports that the first green hydrogen was produced using electricity from a 3 MW solar photovoltaic facility built in Sasolburg.

However, consistent production is anticipated only in early 2024 once the 69 MW Msenge Emoyeni Wind Farm, in the Eastern Cape, begins supplying the facility.

"Once operational, the Msenge wind farm together with the Sasolburg solar farm will provide sufficient renewable power to commercialise green hydrogen in South Africa.

"This is a huge step forward in the energy transition, not just for Sasol but also for South Africa," Grobler said during a presentation of the group's 2023 results.

The green hydrogen produced in Sasolburg will be used in mobility applications and Grobler told Engineering News in an interview that formal partnership announcements would be made later in the year.

"There is a demand for green hydrogen to decarbonise the mining industry, and in other mobility applications."

Separately, Sasol's hydrogen-based sustainable aviation fuel (SAF) HySHiFT joint venture in Secunda, Mpumalanga, which is being pursued in partnership with Linde, ENERGTRAG and Hydregen, has been short-listed to bid for an offtake agreement under Germany's H2Global platform.

Through H2Global, long-term purchase agreements are extended to projects outside of Germany that offer competitively priced green-hydrogen derivatives, such as ammonia, methanol and SAF. The products are then sold, under short-term contracts, to European consumers, with public funding used to compensate for any difference in pricing.

Sasol energy business VP Priscillah Mabelane indicated that the bid should be submitted before the end of the calendar year.

Mabelane also reported that a master plan had been finalised and handed over for a mega-hydrogen project in the Northern Cape and Sasol was closely monitoring progress on the development of the new port in Boegoebaai, which is seen as key to further progress.

Energy and chemicals group Sasol says it is continuing to assess several technology and feedstock solutions to bolster post-2030 liquid fuels and chemicals volumes at its Secunda refinery, in Mpumalanga, while still meeting its commitment to reduce greenhouse-gas emissions by 30% by the end of the decade.

None of these alternatives have advanced to maturity, however, and the JSE group has, therefore, revised the refinery's post-2030 yearly production guidance to only 6.7-million tons from the 7.5-million-ton-plus output achieved previously.

As a consequence, it has also impaired the liquid-fuels-linked assets at the integrated complex by a whopping R36-billion. Sasol's earnings before interest and tax fell by 65% to R21.5-billion year-on-year in 2023, partly because of the impairment of assets.

It has, however, restated 2050 as being the useful life of the refinery, albeit with the prospect of negative cashflows arising from the fuel business after 2030, partially offset by the value that will continue to arise from the chemicals business.

The group was initially aiming to sustain volumes by progressively switching from coal to gas as a transition feedstock, but it has to date failed to secure significant additional gas and has also shelved an idea for using imported liquefied natural gas on the basis that such a solution was uneconomic.

Sasol reported progress on its $530-million gas drilling campaign in southern Mozambique, where five additional wells have been brought online to help extend a supply plateau to 2028 and ongoing exploration to extend production beyond 2030 yielded some positive results. However, these are regarded as contingent resources that could not yet be included in its business assumptions.

Likewise, Sasol was keeping close tabs on Kinetiko Energy's exploration activities in Mpumalanga and was engaging with the company on its discoveries to understand the technical aspects of the resource, as well as to assess the economics.

WORST-CASE VS DIRE SCENARIOS

In an interview with Engineering News, president and CEO Fleetwood Grobler described both the impairment and the revised volume guidance as a "worst-case scenario", reporting that Sasol was making steady progress on gas, biomass, carbon capture and utilisation and energy efficiency options that could limit the falloff in volumes.

These solutions would be required in addition to projects that were already under way targeting energy efficiency, reducing yearly coal usage from 40-million tons to 30-million tons, the turning down of boilers and integrating 1 200 MW of renewable energy.

Grobler acknowledged, however, that the impairment and volume revisions assumed that the JSE group would prevail in its appeal of the National Air Quality Officer's decision to decline its application to have its Secunda boilers regulated using a load-based emission limit for sulphur dioxide (SO2).

The appeal was lodged with Forestry, Fisheries and the Environment Minister Barbara Creecy on July 31, after Sasol's proposed alternative to the concentration-based emissions limit prescribed by the South African authorities was rejected on July 11.

Should the appeal fail, Grobler said the consequences would be "dire", as it would result in the "phased shutdown" of Secunda.

He expressed confidence that Sasol's load-based solution would prevail, arguing that it not only lowered SO2 emissions, but also particulate matter and nitrogen oxide emissions, while sustaining economic activity at the complex.

"We are very clear of the stakes. If we cannot get the appeal and the remedies thereafter, then the impact is dire."

The Department of Industrial Engineering at Stellenbosch University (SU) has joined forces with Rham Equipment to convert a Toyota Hiace Ses'fikele minibus taxi into a battery electric vehicle (EV).

The university's team, consisting largely of postgraduate students, is headed by professor Thinus Booysen, who holds the research chair in the Internet of Things.

Toyota South Africa Motors is aware of the project, but is not a participant.

The South African National Energy Development Institute (Sanedi) provided funding for the project, and the Transport Services division at SU donated the minibus.

The Ses'fikile is by far the most popular minibus taxi in South Africa. It is assembled at Toyota's plant in Durban.

Booysen says the prototype taxi is currently being verified as roadworthy, which will be followed by performance testing to see how well the vehicle matches the department's various simulations.

This process will, however, make use of weights, and not real passengers.

"More than 70% of public transport trips in South Africa are by minibus, which is why we are hoping to encourage the retrofitting of some of the 250 000 minibuses in the country with electric propulsion," says Booysen.

"These will be cheaper than new EVs, with retrofitting also much more environmentally friendly than producing brand-new EVs."

Booysen says the conversion costs about R750 000 in hardware, and took 500 hours to complete. He believes, however, that the price tag can be reduced to R470 000 if working at a scale of 1 000 vehicles at a time.

The converted taxi can still accommodate 15 passengers, plus the driver, despite the added weight of the lithium-iron-phosphate (LFP) battery.

LFP batteries are viewed as more thermally stable.

The range on the electric vehicle is between 100 km and 120 km, and the maximum speed 120 km/h.

The minibus' electric motor offers 90 kW of power, with battery capacity at 53.76 kWh.

One of Booysen's team members, Stephan Lacock, who is completing his master's degree in electronic engineering at SU, funded by bus operator Golden Arrow, helped design the retrofitted minibus, along with Rham Equipment.

He explains that the team removed the minibus' internal combustion engine and its associated components, such as the petrol tank, manual transmission and radiator.

Throughout the development process, the retrofit had to comply with national road safety regulations, particularly the requirement not to make any permanent changes to the minibus chassis (base frame), such as drilling or welding, as well as the specific weight requirements.

"Rham Equipment and our research team have successfully created a reproducible kit that includes the main components of the electric powertrain or system that propels the vehicle forward," says Lacock.

"These include an electric motor, inverter, charger, electronic control unit and a single-speed reduction gearbox. Also, the powertrain is connected to a custom-designed battery pack that meets the specific operational needs of a minibus."

Lacock says one of the standout features of the retrofitted minibus is its regeneration system which harnesses the energy generated during deceleration and downhill driving, thereby enhancing the vehicle's energy efficiency and overall range.

"Thanks to the inclusion of a 20 kW charger, the minibus can be efficiently charged in just under three hours," he adds.

What's Next?

Booysen hopes to use the vehicle to prove a number of simulation models within the next two months.

Following this, the next 18 to 24 months could be spent creating a locally made electric motor, inverter and vehicle control unit.

These components, he believes, can be produced locally with relative ease. Battery cells could prove trickier, and costly.

Ultimately, the goal is to create a local assembly line for commercial vehicles.

Booysen and his team also stand ready to move on to the retrofit of a Golden Arrow bus, which should be completed in October.

Booysen believes that it is time ...

Chinese President Xi Jinping says China stands ready to import more quality products from South Africa, while also encouraging Chinese enterprises to invest in the country, which he described as a "strategic" bilateral and multilateral partner.

China is South Africa's single biggest trading partner and South Africa is China's largest African trading partner, with bilateral trade of $57-billion recorded in 2022.

However, President Cyril Ramaphosa's administration has made the reduction of the trade deficit between South Africa and China a key priority, along with improving access to the Chinese market.

"Our bilateral trade has grown exponentially, from less than R1-billion in 1998 to over R614-billion in 2022.

"As South Africa, we would like to see the significant trade deficit narrowed and this visit is an opportunity for us to look at ways to do so," Ramaphosa said following a meeting with Xi at the Union Buildings and after bestowing the Chinese leader with national orders.

Xi, who is on his fourth State visit to South Africa, said Chinese and South African relations had become more significant strategically since the establishment of diplomatic relations 25 years ago and were currently also of "global significance".

Speaking through a translator, Xi said he had held productive talks with Ramaphosa on the "development of bilateral relations in the new era and international and regional issues of common concern".

"Both President Ramaphosa and I believe that our two countries should be strategic partners, enjoying a high degree of mutual trust," he added, reporting that the two countries would support each other on "issues concerning our core interests".

Ramaphosa indicated that, besides ongoing bilateral initiatives, South Africa and China would pursue multilateral cooperation at Brics, a bloc of Brazil, Russia, India, China and South Africa that would hold its fifteenth yearly summit in Johannesburg this week.

That cooperation would extend further, Ramaphosa indicated, to the Forum on China-Africa Cooperation, the G77 plus China, and the G20.

"President Xi and I look forward to the upcoming Brics Summit and have agreed that Brics must play an expanded role in global affairs," Ramaphosa said, while also indicating that Xi had welcomed the peace mission to Russia and Ukraine initiated by African leaders.

Potential for development cooperation was also highlighted, with Xi and Ramaphosa set to co-chair a China-Africa Leaders' Roundtable on the sidelines of the State visit, which would focus on development, industrialisation and integration of African economies.

"We need to be development partners," Xi declared.

South Africa's Industrial Development Corporation (IDC) and the Bank of China (BoC) have signed a framework agreement that could unlock a R10-billion funding package over the next five years to support regional projects in energy, infrastructure, manufacturing, agriculture, and mining.

Signed ahead of the Brics summit in Johannesburg, BoC CEO Dr Longjian Chen said the agreement highlighted the bank's resolution to partner with South Africa in sustainability, just energy transformation and other funding initiatives.

Chen also chairs the South Africa and China Economic and Trade Association.

The agreement's other objective is to formalise the relationship between the IDC and BoC and strengthen their cooperation on funding initiatives, especially Chinese foreign direct investment into South Africa.

IDC CEO TP Nchocho said the lack of access to capital remained one of the biggest challenges affecting entrepreneurs across the continent.

"This framework agreement therefore will bring to fruition capital mobilisation and technology cooperation, among other benefits, which should ultimately lead to integration of regional economic and industrial development across the continent," Nchocho said.

Meanwhile, a memorandum of understanding (MoU) was also signed between the Department of Trade, Industry and Competition and the China Africa Development Fund (CADF), which has an equity investment fund managed by the China Development Bank.

Signed in Midrand by Trade, Industry and Competition Minister Ebrahim Patel and CADF chairperson Song Lei, the MoU reportedly aimed to stimulate increased industrial investments from China into South Africa

The fund has invested more than $5-billion in Africa to date and is already active in South Africa's electronics, capital equipment, steel and resources sectors.

The MoU makes specific reference to co-funding green economy projects, including those related to electric vehicles, green hydrogen and critical-minerals processing.

"These MoUs set the stage for transformative collaborations that will significantly contribute to South Africa's industrial growth, technological advancement, and economic prosperity," Patel said.

A new study from Juniper Research has found that the lack of public infrastructure is severely limiting electric vehicle (EV) adoption in urban environments.

In particular, as flat and apartment owners typically cannot have home chargers fitted, the lack of public infrastructure is acting as an active stumbling block to EV adoption within cities.

While global EV charging points in service will grow from 14.2-million in 2023, to 45-million in 2027, the research identified a significant gap between public and home charger adoption, with more than twice as many home chargers as public chargers being in service by 2027.

Partnerships to accelerate roll-outs in key areas, as well as improving the shared data on charging point distribution could, however, address the gap.

The study found that the existing initiatives from governments are not sufficient to accelerate EV adoption, with new innovation and business models within the EV charging sector needed.

"It is clear that regulator initiatives, such as requiring charging points to be added to new buildings, are insufficient by themselves to roll out charging infrastructure on a wide enough scale to drive environmental benefits," says research co-author Nick Maynard.

"EV charging networks must work together with both city authorities and each other to identify how best to plug gaps in charging infrastructure, or EV adoption will continue to be limited."

The fragmentation in charging networks also still limits EV adoption globally.

The number of different charging rates, payment systems and access requirements is harming consumer enthusiasm, which is limiting growth of the overall space.

EV charging networks must simplify networks and develop interoperability to make the ownership experience simpler, with regulator action needed to harmonise systems, says the Juniper Research study.

Electricity Minister Dr Kgosientsho Ramokgopa has acknowledged that South African cities and towns face the real prospect of ongoing power interruptions even if the balance between supply and demand is restored, owing to significant investment backlogs in the distribution sector.

Quoting from research conducted when he was overseeing Infrastructure South Africa, Ramokgopa estimated the backlog to be above R30-billion, given that underinvestment in maintenance and refurbishments had been found to be growing at an average yearly rate of about R2.5-billion from 2011 to 2022.

Municipal finances, he said, had not improved since that research, which meant the problem was likely larger today than when the study was concluded.

"The message I'm trying to convey is that when we get to a situation where we have resolved loadshedding, it doesn't follow that communities are going to have electricity, as a result of the failing of these [distribution] assets," the Minister warned during a weekly update on the implementation of the Energy Action Plan.

Besides Eskom Distribution, which is in the process of being unbundled into a separate entity, there are 238 municipal distributors, some of which are currently struggling to service communities, owing to a combination of financial and skills constraints.

In addition, overdue debt owed to Eskom from municipalities now stands at R63.2-billion, having grown by R4.7-billion since April.

A total of 44 municipalities, including many of the Top 20 debtors which collectively owe R48.9-billion, have been identified as having low electricity distribution competence and only 11 of the 28 municipalities that had active payment plans as of July were honouring these plans.

It was also confirmed that only 13 municipalities had applied for the debt relief package announced by Finance Minister Enoch Godongwana in February and that only seven had, to date, been approved to participate in the scheme.

Eskom Distribution group executive Monde Bala said that a key condition for receiving relief under the scheme was for the defaulting municipality to keep its current account up to date for a period of 12 months. Such a reconciliation could take place only once a municipality had participated for more than a year.

The National Energy Crisis Committee (Necom) had established a workstream to discuss ways to finance the investment and maintenance backlogs, including by possibly securing funds from the $8.5-billion Just Energy Transition Partnership.

Engagements were also under way involving the Department of Cooperative Governance and Traditional Affairs, the National Treasury, the South African Local Government Association and Eskom to discuss how the sector could be made more sustainable in future.

A previous attempt to establish seven wall-to-wall regional electricity distributors was found to be in breach of the Constitution, which gives municipalities the authority to reticulate electricity.

However, the tabling of the Electricity Regulation Amendment (ERA) Bill, which could have far-reaching implications for the structure and functioning of the distribution sector, had been postponed. This, owing to a mishandling of changes made to the draft, which led to Parliament sending the Bill back to the Office of the Chief State Law Advisor for re-certification.

Ramokgopa refused to be drawn on the delay saying only that, from government's perspective, the passage of the ERA under the current Parliament was regarded as urgent and that Deputy President Paul Mashatile, as leader of government business, would interface with Parliament on the matter.

In the meantime, Necom was working on proposals for some immediate changes to regulations with implications for the sector, on which the National Energy Regulator of South Africa (Nersa) would facilitate public consultations before making decisions.

A proposed net billing framework, allowing firms and households to be remunerated for electricity they feed into the grid, was und...

Energy Ministers and officials from the Brics bloc met in Sandton on Friday to discuss potential areas of collaboration for improving access to secure and affordable energy, while transitioning to cleaner energy systems.

The meeting was chaired by South Africa's Mineral Resources and Energy Minister, Gwede Mantashe, who reiterated his stance that the transition should address both the lowering of emissions and ongoing energy poverty.

He also repeated that South Africa, where a long-running imbalance between supply and demand has resulted in daily power cuts, would continue to pursue all technologies, including coal and nuclear, to improve its own security of supply.

However, there were also initiatives under way to accelerate the deployment of renewable energy, which currently contributed less than 10% of the country's electrical energy.

Other participants to the meeting emphasised the importance of integrating social justice into the energy transitions under way in each country, as well as the importance of transmission-related investment to support the connection of renewable generation.

In a statement released following the meeting, the Department of Mineral Resources and Energy (DMRE) reported that the Ministers agreed that an "inclusive, diverse and holistic" approach to the energy mix was required to achieve sustainable energy supply while averting potential future disruptions in the sector.

Deliberations reportedly focused on programmes to promote energy cooperation with a view to "enhancing energy security, advancing universal access to energy, minerals for energy transitions and research and technological cooperation".

The Brics countries also agreed that "balanced and economically sound" energy policies, based on national circumstances, should be employed to support energy security.

On minerals for energy transitions, the Ministers undertook to exchange best practices and standards in the development and beneficiation of minerals in the country of origin.

The DMRE reports that the delegates also committed to exploring various technologies and new materials that were central to global energy transitions and carbon reduction.

South Africa's automotive manufacturing sector is widely regarded as a success story; however, it must now bolster local demand and adapt its policies and initiatives amid a weak domestic growth outlook and the global, albeit uneven, shift towards new energy vehicles (NEVs).

Speaking during a recent Creamer Media webinar, Toyota Wessels Institute for Manufacturing Studies manufacturing ambassador Professor Justin Barnes indicated that South Africa faces real headwinds in relation to the transition to NEVs.

South Africa and Africa's automotive markets are still dominated by internal combustion engine (ICE) vehicles, while the shift towards NEVs - which constitute a wide array of technologies - is occurring rapidly in the European Union and other developed markets.

NEV development is, therefore, moving along in other markets in which South Africa competes, but not its domestic market, as NEVs are still not price competitive with ICE vehicles without considerable subsidies, Barnes explained.

The country, thus, faced the conundrum of needing to meet export demand for NEVs while being unable to supply the domestic market, owing to affordability constraints.

The Automotive Production and Development Programme (APDP) in its current form is a particularly good incentive scheme for the production of NEVs and, therefore, the real challenge lies in the marketplace, Barnes argued.

The country's automotive industry is export orientated, with the APDP incentivising firms through a rebate mechanism that is tied to a reduction in import duties. If the domestic market does not perform well, there is less of an incentive to export, he pointed out.

"Without the rebate model, we are not a globally competitive export producer. The key issue, therefore, is how do we stimulate demand for NEVs in South Africa, or how do we displace exports of present vehicles into the developed world markets that will still be consuming ICE vehicles?" Barnes questioned.

National Association of Automotive Component and Allied Manufacturers executive director Renai Moothilal reiterated Barnes' sentiments about bolstering local demand and mentioned scope for provincial support structures to explore market-stimulation initiatives.

"We need to start thinking creatively - how do you support the roll-out of charging stations and the like. I think there's sufficient impetus in supply-side support. What is missing in the South African context is [a clear plan for] reshaping the market. It is important from the way the incentive package works, and not just from a 'can we sell vehicles' perspective," he outlined.

To meet the market demand for ICEs and NEVs, Barnes suggested that South Africa's automotive industry's opportunity lies in Africa and in creating regional value chains.

Only ten-million adults in South Africa can afford a new vehicle, and projections show that this is not set to increase, owing to the challenging economic climate.

However, there are opportunities on the continent, with several countries having developed a middle class and, therefore, South Africa should position itself as a hub for the region, he highlighted.

Barnes called for strategising an African automotive pact that will provide the biggest opportunity for growth in traditional vehicle production, but that will also support potential production in relation to NEVs.

"We will actually be facing major demand growth in . . . the traditional ICE . . . and NEV space, and a combination could be a huge advantage for us going forward," he highlighted.

Coega Development Corporation senior business development manager Thandile Jack also reiterated Africa's presenting a market opportunity for the country and added that the Middle East presents a new market in terms of NEVs.

Barnes explained that the country's automotive manufacturing sector has a very strong foundation that has been established over generations, which ensures that it will be producing vehicles well into the future.

"The question is whethe...

Engineering News editor Terence Creamer discusses the importance of the Electricity Regulation Amendment (ERA) Bill; why the Bill has not yet been tabled in Parliament despite Cabinet having approved its tabling in March; and the implications of this delay.