CHALLENGES OF CCS DEPLOYMENTSOUTH AFRICA

2

Run-of-MineProduction313.8 Mt

“Washing”

“Screening”

Discards70.2 Mt

244.5 Mt

69.3 Mt

67.1 Mt

SOUTH AFRICA’S COAL CHAIN 2006

Stocks

2.1 Mt

Synfuels43.7 Mt

Electricity108.7 Mt

Local Use 24.5 Mt

Export68.8 Mt

38.7 Mt 47.5 Mt

3.1 Mt 5.0 Mt 61.2 Mt

3

COST OF ELECTRICITY WORLDWIDE

- 5.00 10.00 15.00 20.00 25.00

DenmarkItaly

AustriaPortugal

JapanIrelandFrance

Sw itzerlandGermany

UKHungary

FinlandSlovakia

SpainGreeceMexicoPolandTurkeyCzech

USChinese Taipei

KoreaNorw ay

AustraliaSouth Africa

US c/kWh

Households

Industry

The extremely low cost of electricity in South Africa gives the country asignificant competitive advantage in terms of energy intensive industries

4

HIGHEST CO2 EMITTING POWER PLANTS IN THE WORLD(>20 MTONNES OF CO2)

5 of the highest CO2 Emitting Power plants in the World are

located in South Africa

5

Matla

Matimba

Majuba

Kendal

Tutuka

Lethabo

DuvhaKriel

Matla

6

NIRP2Stage2Capacityoutlook2004to2022

30000

32000

34000

36000

38000

40000

42000

44000

46000

48000

50000

52000

54000

56000

58000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Cap

acit

y(M

W)

EskomExistingCapacitywithDecommissioning Non-EskomExistingCapacitywithDecommissioningImports-CahoraBassaHydro SimunyeEskommothballedplantsPumpedStoragecapacity PeakingcapacityBaseloadcapacity ExpectedAnnualPeakDemand(beforeDSM)ExpectedPeakDemandafterexpectedDSM Requiredcapacity(Plan14=RM14.4%LT)Requiredcapacity(Plan01=RM5.6%LT) Requiredcapacity(Plan02=RM20%LT)

GreenfieldPBMR(Base)- Earliest end2013

GreenfieldPF(Base) - Earliest end2015

CCGT(Base) - Earliest 2009

FBC(Base)- Earliest 2010Fast track- Earliest end2009

GreenfieldPumpedStorage-Earliest 2013

KomatiPF-Earliest2008

OCGT- 2006

Grootvlei PF- 2007

Camden

7

Eskom's Installed profile

WilgeTaaibos Salt RiverHighveldKomati

IngaganeCamden

Grootvlei

Hendrina

Arnot

HF Verwoerd

Kriel

Acacia

Port Rex

Vanderkloof

Matla

Duvha

DrakensbergKoeberg

Tutuka

Lethabo

Matimba

Palmiet

Kendal

Majuba 1-3Zesco

Cahora BassaCamden

Majuba 4-6Komati

Grootvlei

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

55 60 65 70 75 80 85 90 95 00 05 10 15 20 25 30 35 40

Year

Meg

awat

tIns

talle

d

55 60 65 70 75 80 85 90 95 00 05 10 15 20 25 30 35 40

Dashed line = Approved peak demand + 20% Reserve Margin

EXISTING PLANTEXISTING PLANT –– AGEAGE

Most stations at mid life refurbishment point.

Now

8

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

tC

O2

inm

illio

ns

t CO2 3030 2680 1490 661 400 356 226 212 222

MGWh Energy 4720 2500 1770 989 1020 625 246 362 246

CO2 per MGWh 0.642 1.072 0.842 0.668 0.392 0.570 0.919 0.586 0.902

USA China India Russia Japan Germany Australia UK RSA

RELATIVE tCO2 EMISSIONS BY POWER PLANTS

9

•SASOL

10

11

12

CHALLENGES

Location of the powers plants relativeto CO2 geological storage sites

Transport infrastructuralcost

13Location of the powers plants relative to

CO2 geological sites-

14

PRELIMINARY WORK

• Study commissioned in 2004: Yes CO2 STORAGE POTENTIAL SA• CCS Atlas Project to identify the Storage sites, Capacity and

characterization in progress• Public Outreach

– Media– Workshops

• Capacity building– Membership planned: IEA Greenhouse Gas Research and

Development Program– Capacity building in school: students send for training (Supported

by CSLF and IEA), sustainability through tertiary education training– USA supported CCS capacity building – CSLF

(SASOL,AngloCoal,Eskom,PetroSA,Council for GeoSciences,DME)

• System of Innovation: Establishment of chairs (SANERI)– Clean Coal Technologies– Hydrogen Economy– Carbon Capture and Storage (next)

15

CHALLENGES………

• REGULATORY GAPS ANALYSISAND LINKAGE TO INTERNATIONAL STANDARDS

• CAPACITY BUILDING:CO2 GEOLOGICAL STORAGE CAPACITY ANDCHARACTERISATION- COLLABORATION SUPPORT

• COST OF CO2 SEQUESTRATION• PUBLIC OUTREACH• CCS DEMO PLANT IN ONE OF THE EMERGING

ECONOMIES• PRIORITIES

ENERGY SECURITYSOCIAL OBLIGATION