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Humphries Boerdery Piggery Methane Capture and Methane Capture and
Electricity Generation Project
Cape Advanced Engineering (Pty) Ltd
Andrew [email protected]
+27 82 775 1001
1Cape Advanced Engineering (Pty) Ltd
Project History
•2006 Project initiation – planning, EIA, agreements
•2007 Construction of Bio-Digester
•2008 Construction of CAE Bio-Gas power generator
•2009 Operation of Pilot Plant – imbedded in the grid
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•2010 Foreign partner exits the project ! ?
•2010 Operation of Pilot Plant – imbedded in the grid
•2010 “Bela-Bela Working for Energy” Agreement
•2010 Development of 2nd generation Bio-Gas Plant
•2011 Operation of 2nd generation Bio-Gas Plant
Project History
•2007 Construction of Bio-Digester
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Project History
•2008 Construction of CAE Bio-Gas power generator
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Project History
•2009 Operation of Pilot Plant – imbedded in the grid
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Project History
•2010 Development of 2nd generation Bio-Gas Plant
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Project History
•2011 Operation of 2nd generation Bio-Gas Plant
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Project Highlights
• Operational experience with bio-digesters – local knowledge gained
• Bio-digester design evolution – appropriate technology developed– low cost solution – viable in SA market
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• Additional projects initiated – 3 new bio-digesters in construction
• Local bio-gas power generator development- cost effective, low risk and local jobs.
• Evaluation of local technology
• Human resource development / capacity building
The good news
• A cost effective and market ready bio-digester has been developed – also addresses water quality.
• A locally manufactured and fully proven bio-gas power plant has been developed – cost competitive.
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plant has been developed – cost competitive.
• Projects are viable at the 2009 REFIT tariff, with CDM, on a scale of only 200 kW = typical large farm.
• Projects will reduce the cost of food production,improve water quality and reduce health risks.
• Economically sustainable projects are now being built
Bio-gas vs Wind / Solar
� 15 November 2011 – Minister of Energy on RE IPP’s
�53 bids submitted – 50% wind, 48% solar & 2% hydro
�2.1 GW @R70 billion = R33.3 million per MW installed
� if availability / capacity factor = 30% for wind and 20% for solar then average = 25%
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20% for solar then average = 25%
� then actual cost =R133.33 million per MW generated
� local content and permanent job creation ?
� investment and profit retained in SA ?
� Medupi cost >R25 million per MW @ 90% = R28m/MW
Bio-gas vs other RE
�………..continued – for wind and solar IPP
� then actual cost = R133.33 million per MW delivered
� Medupi cost >R25 million per MW @ 90% = R28m/MW
� Local bio-gas at 0.2 MW < R20/MW @ 90% = R20m/MW
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� Local bio-gas > 10 new permanent jobs per MW !
� If wind / solar = 1 job / MW then 1 new job costs R133m
� Bio-gas costs R20m / MW thus 1 job costs < R2 millionbio-gas job cost : wind/solar job cost = 100 : 1
� Germany has 4000 bio-gas plants @ average of 400 kW = 1.6 GW with a capacity > wind and solar of 4.8 GW !
Disappointments
• DOE announced that by 2013, 10 000 GW.hr would have been generated onto the grid = R1 billion revenue
• actual revenue = < 2% of this target.
• no enabling structures have yet been announced
• the process prevents independent initiatives
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• the process prevents independent initiatives
• the process has favoured foreign competitors and denied local developers and manufacturers from market access.
• DOE advertised subsidies for RE projects
• never implemented
Disappointments
• There has been no announcement on the COP17 IPP Invitation to Offer (ITO)
• There is no mention of any provision for projects smaller than 1 MW
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smaller than 1 MW
� in other words, the entire German bio-gas industry would be disqualified and would not exist.
• >R5 billion has already been withdrawn from the economy into the REFIT funds, but no projects will be approved before July 2012.
� 2010+R3b, 2011+R4b, 2012+R5b = R12 billion
Disappointments
• RSA has only registered approximately 10% of the value of CDM’s per GDP of that registered in South America, Central Asia and China
– this is a lost opportunity – no provision for CDM after 2012.
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CDM after 2012.
Concerns
� Our national tendency to over specify / over regulate
� DOE : IPP procurement process – a 200 kW bio-gas project costing R4 million need not be evaluated on the same terms as a R1 billion wind project
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� NERSA : Generating licences – special provision is appropriate for small projects below 1 MW
� Eskom : physical grid connection – a 200 kW bio-gas plant cannot damage the network – there is no need for expensive high voltage protection and isolation – conventional fuses are adequate.
The Way Forward
�IPP support structure of Bio-Gas projects required�Generate renewable energy�Reduced GHG�Improve water treatment / water quality�Improved food cost / security
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�Job creation�Local content
����� Provide access to the REFIT reserve fundo 2010+R3b, 2011+R4b, 2012+R5b = R12 billion
����� Provide subsidy as advertised by DOE � ����Release the private sector
Bio-Gas – in Africa, for Africa by Africans