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Japanese mobility group Toyota and its subsidiary Woven Planet have developed a working prototype of a portable hydrogen cartridge.

This cartridge design is set to facilitate the everyday transport and supply of hydrogen energy to power a broad range of daily life applications in and outside of the home.

Toyota and Woven Planet will conduct proof-of-concept trials in various places, including Woven City, a human-centered ‘smart city of the future’ currently being constructed in Shizuoka Prefecture, in Japan.

Toyota believes hydrogen cartridges offer numerous benefits.

They are portable (5 kg in weight), affordable and convenient as they make it possible to bring hydrogen to where people live, work and play without the use of pipes, and they are also swappable for easy replacement and quick recharging.

The small-scale infrastructure associated with the cartridges can also meet energy needs in remote and non-electrified areas, as well as during disasters.

Toyota notes that hydrogen is currently largely generated from fossil fuels and used for industrial purposes such as fertiliser production and petroleum refining.

“To use hydrogen as an energy source in our homes and daily life, the technology must meet different safety standards and be adjusted to new environments.

“In the future, we expect hydrogen that will be generated with very low carbon emissions and used in a wider variety of applications. The Japanese government is working on a range of studies to promote the safe, early adoption of hydrogen and Toyota and its business partners are excited to offer their cooperation and support.

“Our goal is to help hydrogen become commonplace by making this clean form of energy safe, convenient and affordable,” says the vehicle manufacturer.

“By establishing the underlying supply chain, we hope to facilitate the flow of a larger volume of hydrogen and fuel more applications.

“Woven City will explore and test an array of energy applications using hydrogen cartridges, including mobility, household applications, and many future possibilities we have yet to imagine.”

The South Africa government and Eskom have signed agreements with three of the 11 projects named as preferred bidders in March 2021 under the much-delayed Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

The 20-year power purchase agreements (PPAs) and associated implementation agreements were signed on June 2 with Scatec, of Norway, for three solar-battery hybrid projects that will provide 150 MW of dispatchable renewable electricity from 5:00 in the morning to 21:30 in the evening.

The three projects were not initially included among the eight preferred bidder projects selected in March last year, but were added a few months later, increasing to 1 995 MW the capacity being procured under the RMIPPPP.

The original list of projects was dominated by three Karpowership gas-to-power projects, which subsequently faced environmental and legal objections and obstacles that are yet to be cleared.

Known as Kenhardt 1, 2 and 3, the first-of-a-kind projects will be built in the Northern Cape and will have a combined solar photovoltaic (PV) footprint of 540 MW and battery storage capacity of 225 MW/1 149MWh.

The projects include a self-build component for the power line and substation infrastructure required ahead of connection to the Eskom grid.

The bid evaluation price announced at the time of project selection was about R188c/kWh.

The R16-billion investment will be funded through a combination of debt (80%) and equity (20%) and the projects have 60 days to achieve financial close, before entering into an 18-month construction period.

Scatec estimates that 4 968 job opportunities will be created during the period.

The debt is being provided by Standard Bank, which is also the mandated lead arranger and underwriter, and British International Investment, while Scatec (51%) and H1 Holdings (49%), a black-owned and -managed company, are the equity partners.

Scatec CEO Terje Pilskog described the signing, which took place in Centurion, Gauteng, as a landmark and said the hybrid projects were not only unique in South Africa, but would also be among the largest renewable energy and storage projects globally.

Pilskog also expressed confidence that construction would not be affected by supply chain disruptions, despite the fact that the bulk of the components were being source in China.

Scatec and H1 Holdings also stressed that all local-content obligations would be met.

Originally, solar PV modules were designated to be supplied 100% from South Africa, but that threshold was later reduced to 35% following engagement between the preferred bidder and the Department of Trade, Industry and Competition.

Mineral Resources and Energy Minister Gwede Mantashe, who presided over the signing ceremony, indicated that he would like all 11 projects selected under the “emergency procurement round” to reach financial close, including the controversial Karpowership projects.

He said the capacity was needed to reduce the ongoing risk of load-shedding, which he described as a “burning platform” for the country.

IPP Office CEO Bernard Magoro said that there had been ongoing engagements with the other bidders ahead of the latest RMIPPPP deadline for financial close, but that none of the other projects were in a position to sign.

He said no decision had yet been taken to disqualify the outstanding projects, and that every effort would be made to ensure that they too achieved financial close.

“Should the remaining matter not be resolved, the department and other stakeholders will refer this back through the required governance structures to agree the next steps,” Magoro said.

Eskom CEO André de Ruyter expressed delight at both the conclusion of the PPAs and the fact that the contracts were the first to include a new antibribery clause; one which would feature in all future procurement with IPPs.

While far more capacity was required to reduce the threat of load-shedding, De Ruyter described the IPP market as vibrant and active, with 7 20...

The road transport sector can still reach the target of net-zero emissions by 2050 through electrification, but urgent action is required from policymakers and industry participants­ ­– this according to research company BloombergNEF’s (BNEF’s) latest yearly Long-Term Electric Vehicle Outlook (EVO).

Certain segments, such as buses and two- and three-wheelers are close to being on track for net zero, but action is needed to get on track elsewhere, especially in the medium and heavy commercial vehicle segments, notes the report.

“The window to stay on track for net-zero road transport emissions by 2050 is still open – but only just barely,” says BNEF electric vehicles (EV) head Aleksandra O’Donovan.

“A big push is needed from governments, automakers, part suppliers and charging infrastructure providers in the years ahead.”

The EVO report outlines two scenarios for the uptake of electric transport to 2050.

The Economic Transition Scenario, which assumes no new policies and regulations are enacted, is primarily driven by techno-economic trends and market forces.

The second scenario investigates what a potential route to net-zero emissions looks like for the road transport sector by 2050. This Net Zero Scenario looks primarily at economics as the deciding factor in whether drivetrain technologies are implemented to hit the 2050 target.

Sales Rising Rapidly

Passenger EV sales are set to grow rapidly in the next few years, rising from 6.6-million sold in 2021, to 21-million in 2025.

The fleet of EVs on the road is set to hit 77-million by 2025 and 229-million by 2030, based on BNEF’s economic transition scenario.

That’s up from 16-million units at the end of 2021.

As EV uptake continues to grow, they are already displacing 1.5-million barrels of oil demand a day, says the EVO report.

Most of this is from electric two- and three-wheelers in Asia, but rising passenger EV sales should push this to 2.5-million barrels a day by 2025.

Overall, oil demand from road transport is now set to peak by 2027, according to BNEF’s findings, as electrification spreads to all other areas of road transport beyond passenger cars.

Sales of internal combustion engine (ICE) vehicles already peaked in 2017 and BNEF expects the global fleet of ICE passenger vehicles to start to decline in 2024.

To get on track for a net-zero global fleet by 2050, zero-emission vehicles need to represent 61% of global new passenger vehicle sales by 2030, 93% by 2035, and the last ICE vehicle of any segment needs to be sold by 2038.

“EVs are a powerful tool in reducing global carbon dioxide (CO2) emissions from the transport sector,” says BNEF advanced transport team head and EVO report lead author Colin McKerracher.

“There are very positive signs that the market is moving in the right direction, but more action is needed – especially when it comes to heavy trucks. Action also needs to focus on emerging markets, which need financial support to help enable and accelerate the transition to electric mobility of all types.”

According to BNEF, developed countries and multilateral institutions should include EV investments, incentives and charging infrastructure deployments in their international climate finance plans, making capital available to emerging economies that have credible plans to develop this sector.

Concessional finance has been a key enabler for the development of renewable power generation in emerging economies and could play a similar role in the EV sector.

Net Zero Scenario

The fleet of passenger EVs is set to hit 469-million in 2035 in the Economic Transition Scenario, but needs to jump to 612-million by the same date in the Net Zero Scenario, says BNEF.

Much of the gap will have to be met in emerging economies, while wealthy countries should look at ways to support the transition in those markets and avoid a global slowdown of adoption.

Looking at different segments, two- and three-wheelers and buses are already very close to the trajectory needed to achieve B...

Domestic new-vehicle sales in May inched up 2.1%, to 39 177 units, compared with the same month last year.

Naamsa | The Automotive Business Council says this marginal growth reflects the damage caused by the severe floods in KwaZulu-Natal in April, as well as the myriad of headwinds increasingly bruising economic growth and consumers’ disposable income. These include rising interest rates, soaring fuel prices and continued load-shedding.

The new-passenger-car market reached 27 437 units in May – a 13.8% jump on the same month last year.

The car rental industry supported the new-passenger car market during the month and accounted for 10% of sales.

Sales of new bakkies, vans and minibus taxis bore the brunt of the flooding in KwaZulu-Natal, with sales dropping by 22.6%, to 9 221 units.

The Toyota plant in Durban, which assembles bakkies and minibus taxis, saw very little production for the entire month of May.

May medium-truck sales grew by 11.8%, reaching 614 units, while heavy-truck and bus sales grew by 7.1%, to 1 905 units.

Exports was also heavily impacted by the flooding, and plummeted by 30%, to 25 786 units.

This comes as Toyota also produces vehicles for export, while the Port of Durban and its various logistics chains were also damaged during the natural disaster. Some key export markets also experienced challenges, notes Naamsa.

Year-to-date vehicle exports from South Africa are now 6.2% below the figure for the same period last year.

The preferred bidder for a gigawatt-scale green hydrogen-to-ammonia project near the coastal town of Lüderitz, in Namibia, is aiming to conclude an implementation agreement with government by August, opening the way for a full-scale feasibility study to enable the implementation of the $10-billion project.

Following a competitive bidding process, the Namibian government announced the selection of Hyphen Hydrogen Energy as the preferred bidder for the country’s first green hydrogen project in November 2021.

In an update provided at the recent World Economic Forum, in Davos, Switzerland, Hyphen’s Marco Raffinetti said the implementation agreement would signal the formal contract award and would trigger the feasibility-study phase.

A joint venture between Nicholas Holdings of the UK and ENERTRAG of Germany, Hyphen aims to develop the project in two seamless phases, beginning with the $4.4-billion first phase to produce 125 000 t/y of green hydrogen, to be further processed into 700 000 t/y of green ammonia for export to Europe.

Speaking at the Namibian pavilion, Raffinetti indicated that, following pre-environmental assessment phase studies and community engagements, Hyphen was gearing up for the feasibility study and was aiming to achieve financial close by the third quarter of 2024.

“That would then enable us to start mobilisation to commence construction in early 2025; targeting a two-year build and first gas at the end of 2026 and immediately rolling on to the second phase without demobilising the construction team.”

Raffinetti said rapid implementation was being supported by the greenfield approach that had been adopted by Namibia, which viewed the project as the start of a large-scale green hydrogen export industry.

The approach was premised on a common user infrastructure commercial and technical design to facilitate further green hydrogen projects in the earmarked zone, which is located in the Tsau//Khaeb National Park.

Tsau//Khaeb has a total area of 25 000 km2 and 4 000 km2 was awarded in the first auction. The area has solar resources of up to 2 800 full-load hours yearly and average wind speeds of 10 m/s, equivalent to offshore wind speeds in Europe.

ENERTRAG’s Dr Tobias Bischof-Niemz said the approach being adopted by government provided for “rapid scalability” beyond the Hyphen development and had the potential to lay the foundations for yearly production of three-million tons of hydrogen from Tsau//Khaeb.

The common infrastructure includes pipelines for desalinated water and return brine and for green hydrogen and ammonia, as well as port facilities and transmission lines to transport surplus renewable electricity into the Southern African Power Pool.

After Phase 2, the Hyphen project itself will have solar and wind electricity generation capacity of nearly 6 GW and 3 GW of electrolysis, which will yield 300 000 t/y of hydrogen, which translates into 1.7-million tons of green ammonia.

However, Bischof-Niemz said there was potential for Namibia – regarded as one of the leading global locations for the manufacture of green hydrogen (others being South Africa, Australia, Chile, Morocco and Saudi Arabia) – to produce 15-million tons of hydrogen yearly, or about 5% of global hydrogen demand for tradable hydrogen-based products by 2050.

At such a scale (150 GW of electrolysers and 250 GW of renewable electricity), Namibia’s entire energy sector would not only be fully decarbonised but could also support the efficient decarbonisation of hydrogen importers, as less wind, solar and electrolyser capacity would be required for the same level of output.

Seaborne exports would likely take the form of easily tradeable and transportable products such as ammonia and methanol, while direct hydrogen could be supplied by pipeline to South Africa to produce products such as green iron or steel on the West Coast and synthetic fuels and chemicals at Secunda, in Mpumalanga.

The surplus electricity produced could also support South Afr...

The National Planning Commission (NPC) and Operation Vulindlela have announced that they intend working together to support the implementation of the structural reforms identified as a constraint to higher levels of growth and job creation.

The two entities met on May 26, where Operation Vulindlela provided a progress report on the five priority areas for economic reform, including:

reforms in the electricity sector designed to stabilise energy supply, reduce the risk of load-shedding and accelerate the transition to renewable energy;

reforms in the digital communications sector to reduce the cost of data and broadband, expand Internet access to low-income households and unlock new investment in telecommunications infrastructure;

reforms in the water sector to increase investment in the maintenance and construction of water infrastructure and to improve water quality;

reforms in the transport sector to improve the efficiency of South Africa’s freight logistics infrastructure; and

reforms to the visa regime so as to attract skills and promote tourism.

Modelling by the National Treasury indicates that the reforms, if implemented, can raise economic growth significantly beyond the current sub-2% level and create over a million jobs, relative to a scenario absent any reforms being pursued.

In a recent speech, Finance Minister Enoch Godongwana reported that the reforms in digital communications had led to a successful allocation of high-demand spectrum, which had raised R8-billion for the fiscus and was expected to unlock R50-billion in new investment.

Reforms in the freight transport and electricity sectors faced implementation challenges. If addressed, however, the Minister said they could stimulate R58-billion in new transport investment and R54-billion in embedded generation investment.

“Over the coming months, we will redouble our efforts to resolve the energy crisis and ensure that the reforms facing implementation challenges access the support they need to progress, because we are committed to unlocking the dynamism of this economy and placing our growth on a permanently higher trajectory,” Godongwana said.

At the NPC meeting, it was decided that the two entities would engage regularly to help shape Operation Vulindlela’s list of economic priorities, particularly as implementation progress is made and further interventions identified.

The third NPC, which was appointed by President Cyril Ramaphosa in December, has made implementation of the National Development Plan (NDP), which is approaching its tenth anniversary, a top priority.

The NDP highlights several areas in need of urgent reform to meet the goals of ending extreme poverty and reducing unemployment and inequality by 2030.

It is widely accepted, however, that the targets will not be met given a combination of poor implementation of the plan and a series of subsequent crises, including the Covid pandemic, which have resulted in regression rather than progress in meeting the NDP goals.

The official South African unemployment rate has decreased by 0.8 of a percentage point to 34.5% in the first quarter of this year, compared with the unemployment rate of 35.3% in the fourth quarter of 2021.

Statistics South Africa (Stats SA) statistician-general Risenga Maluleke on May 31 shared the results of the latest Quarterly Labour Force Survey for the quarter ended March 31, highlighting that 370 000 jobs were gained between the fourth quarter of last year and the first quarter of this year.

The biggest job gains, of 281 000, were recorded in community and social services, followed by manufacturing gaining 263 000 jobs and trade employing 98 000 more people. The mining sector also managed to gain 36 000 jobs in the quarter under review.

There were, however, job losses recorded from private households totaling 186 000 and finance totaling 72 000, while the construction and agriculture sectors also shed jobs to the tune of 60 000 and 23 000, respectively.

Meanwhile, the unemployment rate according to the expanded definition, which includes discouraged work-seekers, also decreased by 0.7 of a percentage point to 45.5% in the first quarter.

The total number of people employed in South Africa was 14.9-million, against 7.9-million unemployed people at the end of the first quarter.

The number of unemployed people decreased by 60 000 quarter-on-quarter.

The number of discouraged work-seekers decreased by 54 000 and the number of people who were not economically active for reasons other than discouragement decreased by 112 000, resulting in a net decrease of 166 000 non-economically active people.

Maluleke reiterated that young people remain vulnerable in the labour market, despite a slight decrease in the number of unemployed youth in the first quarter of the year.

The total number of unemployed youth – aged between 15 and 34 years – declined by 5 000 to 4.7-million people.

He says there was a noticeable increase in the number of youth in employment, up by 5%, or 244 000, during the quarter. The youth unemployment rate, therefore, improved to 47.8% – a 1.2 percentage point increase compared with the fourth quarter of last year.

South Africa’s unemployment rate has been steadily rising over the last decade, alongside stagnant economic growth.

The formal sector in South Africa’s labour market accounts for 68.3% of total employment, keeping 10.2-million people employed, while the informal sector employs about 2.8-million people and accounts for 18.9% of total employment.

Private households account for 7.2% of total employment at 1.1-million, and agriculture accounts for 5.7% of total employment, keeping 800 000 people employed.

COMMENTARY

Altough the unemployment rate declined, a change in the Stats SA's survey method could have affected the outcome, says Nedbank. However, Stats SA assured media stakeholders during a briefing on May 31 that its feedback rate on its quarterly surveys has improved markedly, now that face-to-face interviews have resumed.

The bank adds that economic activity is broadly normalising from the Covid-19 shock as most major lockdown restrictions were removed, and companies' profitability are returning. Simultaneously, more people returned to the labour market as improving conditions increased job seekers' confidence in finding jobs.

Nedbank believes that employment in the domestic trade sector was mainly lifted by firmer activity in the hotel and tourism industries. "The annual numbers showed that the economy has not yet recovered enough to support a significant increase in employment creation," the bank states, adding that the outlook for the job market remains uncertain, owing to global stagflation.

North West University Business School economist Professor Raymond Parsons comments that it is not yet clear whether whether the latest improvement in the employment situation will be sustained in the months ahead, given the renewed negative global and domestic economic trends that have emerged in the secon...

The South African government has announced a two-month extension to the temporary reduction in the general fuel levy, but has warned that the R4.5-billion in foregone revenue will have an impact on the fiscal framework.

In a joint statement Finance Minister Enoch Godongwana and Mineral Resources and Energy Minister Gwede Mantashe announced that Godongwana had submitted a letter to the Speaker of the National Assembly requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy.

“This will take the form of a continuation of the relief of R1.50 per litre for the first month, from 1 June 2022 to 6 July 2022, and then a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022.

“The temporary relief will be withdrawn from 3 August 2022.”

The Ministers warned that, unlike the previous announcement, the proposal, which is estimated to result in R4.5-billion in foregone revenue, was expected to have an impact on the fiscal framework as it will not be fully funded through a sale of strategic oil stocks.

"Government remains committed to the fiscal framework outlined in the Budget 2022.

"The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the Budget.

"Any changes, if required, will be announced at the time of the 2022 Medium Term Budget Policy Statement."

The decision to extend the temporary relief beyond May 31 was based on an assessment that a re-introduction would "contribute to an increase in petrol prices of close to R4 per litre, and push prices of 95 octane unleaded petrol (ULP) to above R25 per litre, an increase of just under 20%".

The DMRE announced the following price change for implementation from midnight:

Petrol (both 93 ULP and LRP) to increase by 243.00c/l;

Petrol (both 95 ULP and LRP) to increase by 233.00c/l;

Diesel (0.05% sulphur) to increase by 110.00c/l;

Diesel (0.005% sulphur) to increase by 107.00c/l;

Illuminating Paraffin (wholesale) to increase by 156.00c/l;

SMNRP for IP to increase by 208.00c/l; and

the Maximum LPGas Retail Price to decrease by 51.00c/kg.

The adjustments, the Department of Mineral Resources and Energy (DMRE) said, were premised on an increase in international petroleum product prices and a deterioration of the rand relative to the US dollar.

"The movement in product prices has led to higher contributions to the Basic Fuel Price of petrol 95 ULP and 93 ULP by 143.39c/l and 134.19c/l respectively, diesel 500ppm and 50ppm by 4.75c/l and 0.74c/l respectively, while the contribution to illuminating paraffin was 50.86c/l."

Meanwhile, the rand depreciated, on average, from R14.90 to the US dollar to R15.95 during the period-on-period.

The Ministers said the continuation of the Russia/Ukraine conflict, supply chain bottlenecks and a tightening of global monetary policy had led to further unfavourable changes in the two key drivers of the regulated petrol price, the exchange rate and the global oil price.

"As announced on 31 March 2022, government will also take further measures to help reduce fuel prices in a more sustainable manner.

"From 1 June 2022, the DMRE will remove the demand-side management levy of 10c per litre that has been applied to inland 95 ULP.

"After a review and consultation by the DMRE, it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months."

The Ministers said government intended to continue with consultations and proposals to remove the price cap on 93 ULP, which would partially deregulate the market and introduce more competition to lower pump prices.

"A review on the Regulatory Accounting System (which includes the retail margin, wholesale margin and secondary storage and distribution margins) will be completed by the DMRE to assess the potential to lower margins over the medium term."

South African customers can now order their Ineos Grenadier online, with the starting price for the base model set at R1.41-million.

The vehicle launches as a five-seat sports-utility vehicle, with permanent four-wheel drive, two-speed transfer case and centre-locking differential included as standard.

In addition to the standard specification Grenadier, Ineos Automotive also offers two preconfigured vehicle editions.

The Grenadier Trialmaster and Fieldmaster Editions have both been curated with specific purposes in mind and are built to take on the outdoors.

The Trialmaster edition has been specified with extreme off-roading in mind, while the Fieldmaster edition is for those with a more sporty lifestyle who will use their vehicle to get them and their kit to wherever they want to go.

An online configurator at ineosgrenadier.com takes customers through the build of their Grenadier, step-by-step, with a host of extras and options available.

The site also offers vehicle price updates in real time, with the price shown on the configurator to be the price customers will pay for their Grenadiers.

Once customers have settled on their specific configuration, they will be able to choose their collection location, with an interactive map showing the nearest retailer.

A deposit of R40 000, refundable until the vehicle contract is signed, secures a build slot.

South African owners get a five year/100 000 km warranty. In all global markets the Grenadier comes with a three-year paint warranty, a three-year warranty for accessories, while the ladder-frame chassis and body components have a 12-year antiperforation warranty.

Indian truck manufacturer Ashok Leyland has announced a distribution partnership with ETG Logistics (ETGL), which will include ETGL operating Ashok Leyland dealerships in six countries in Southern Africa.

The agreement will cover countries such as Zambia, South Africa and Mozambique.

ETG is a global conglomerate operating across various markets, with its ETGL vertical an automotive and farm equipment distribution business active in South Africa, Namibia, Zimbabwe, Lesotho, Swaziland, Botswana, Tanzania, Zambia, Mozambique and Kenya.

“We have ambitious growth plans for the African market,” says Ashok Leyland international operations head Amandeep Singh.

“Our time-tested products are well suited for the African terrain and offer a superior value proposition. ETG group’s extensive connections in these markets will complement our growth plans.”

Ashok Leyland is already present in most East and West African countries.

ETGL CEO Rajeev Saxena believes the new partnership will be instrumental in providing “a range of commercial vehicle solutions to address the specific requirements of different customer groups in the territory”.

The Ashok Leyland trucks to enter the Southern African market range from small 1.5 t payload movers to 20 t tucks and tippers, notes ETGL South Africa business head Pavankumar Nair.

ETGL is currently engaged with the process to meet the local compliance requirements on the range of Ashok Leyland vehicles to be introduced locally, and “should be able to start sales in South Africa in July”.

Sales in the rest of Southern Africa “will start soon”, says Nair.

He adds that Ashok Leyland is a familiar name in the region, as the brand has a presence in the specialised defence vehicle market and, to some extent, commercial vehicles that arrived as special projects.