Will South Africa finally ignite minerals and energy growth engines in 2022?

Problems in South Africa’s electricity sector will, sadly, continue to dominate the headlines and undermine growth and confidence in 2022. Despite the fact that the crisis is now deep into its second decade, there is little sign of immediate relief and load-shedding remains a clear and present danger.
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Support services ramping up for new motor distributor deal

Bearings and power transmission supplier Bearings International (BI) is aiming to provide a comprehensive support service for engineering company ABB Africa’s motors this year, which the company now distributes in Southern Africa, says BI business unit leader Stephen Bekker. “We aim to provide comprehensive support for low-voltage ABB motors. This would include covering sales, stock, technical support, application support and spares.”
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Approvals for Eskom’s ‘exciting’ grid-tied battery project expected in February

Eskom CEO Andre de Ruyter reports that the tender evaluation for Phase 1 of the utility’s battery energy storage systems (BESS) project has been completed and that he expects the final approvals to be in place in February. Speaking during a briefing on the state of the system on Thursday, De Ruyter expressed enthusiasm for the project, which he said would be the first large-scale deployment of grid-tied batteries in South Africa.
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Public Works to release RFP for renewable energy programme this quarter

The Department of Public Works and Infrastructure (DPWI) will publish a request for proposals (RFP) for its Integrated Renewable Energy and Resource Efficiency Programme (iREREP) in the first quarter of this year, it said in a statement on January 27. The iREREP will be the largest programme for the procurement of renewable energy and resource efficiency for public facilities.
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Eskom warns of elevated diesel use as system outlook remains precarious

State-owned electricity group Eskom is warning that its use of the country’s diesel-fuelled open cycle gas turbines (OCGTs) is set to remain elevated in the coming months as the utility seeks to avoid load-shedding in a context of rising planned maintenance and the ongoing risk of unplanned breakdowns. Eskom has already spent R5.5-billion for the year-to-date to run its own OCGT plants and a further R3-billion to purchase electricity from the private Avon and Dedisa plants, as the energy availability factor (EAF) from its coal fleet slumped to 62.9% against a target of 70%.
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South Africa’s emergency power process nears another deadline

South Africa has made faltering progress toward implementing plans announced more than two years ago to procure additional power needed to swiftly address crippling energy shortages. The Department of Mineral Resources and Energy first issued a request for information from potential electricity suppliers in December 2019. A year later it listed 28 interested bidders, and in 2021 it chose the winners of contracts to generate about 2,000 megawatts of capacity under its so-called Risk Mitigation Independent Power Producer Procurement Programme.
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Bitcoin-paying solar power company plans African expansion

Sun Exchange, a South African firm that crowd-sources funds for solar panels and leases them to customers, plans to expand to other countries on the continent. The company, backed by a group part-owned by billionaire Patrice Motsepe’s African Rainbow Capital Investments Ltd., raised $1.4 million for a solar panel and battery-storage project at a Zimbabwean fruit and berry producer, in what it says is the biggest crowd-funded project in Africa.
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Green primary iron could help South Africa offset fall in coal export revenues – study

Producing carbon-free primary iron in South Africa using green hydrogen direct reduced iron (GHDRI) technology could create a new globally competitive green export industry that could help offset the losses associated with the eventual decline in coal exports, a new study shows. Such exports would also reduce the cost of decarbonising global steel production, owing to the relative cost advantages of producing renewable energy in South Africa and, therefore, green hydrogen. Producing GHDRI involves a new type of furnace that uses hydrogen for the direct reduction of the iron-ore, as opposed to the traditional route that uses coke.
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CEF in the clear with exec appointments

The board of the Central Energy Fund (CEF) says the Auditor-General’s (AG’s) final management report relating to the appointment of CEF executives confirms that the appointment processes were conducted lawfully and in accordance with internal recruitment policies.    The CEF recently appointed group CEO Dr Ishmael Poolo, COO Dr Tshepo Mokoka and group executive for legal affairs Brenda Moagi.
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Agreement inked to develop hydrogen recycling of end-of-life wind turbine magnets

Magnet metal and rare earths miner Pensana has signed a cooperation agreement with oil, gas and wind power company Equinor, forming a working group to share technical and commercial information to develop a low-energy method for recycling end-of-life magnets at Pensana’s rare earths hub in the Saltend Chemical Park, in the UK. Pensana chairperson Paul Atherley says the agreement relates to processing end-of-life magnets from wind turbine nacelles using properties found in hydrogen as a powerful reductant. Recycling permanent magnets using hydrogen not as a fuel, but as a reductant, while also benefitting from the decarbonised power supply within Saltend, offers the parties a clean alternative that uses 88% less energy than virgin magnet manufacture.
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