EC Bioenergy Implentation Support Plan Scoping Report

Provincial Bio-energy
Implementation Support
Plan: Scoping Report
November 11, 2014
Draft Working Copy version 1.3 / Not for Circulation
Prepared For The Provincial Bioenergy Implementation Support Plan
Prepared by LINKD for the DEDEAT
Tender Number:
Page 1 of 142
PP 09-14/15-58
EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

DRAFT SCOPING R EPORT
Executive Summary
Bioenergy is a form of renewable energy represented by a diversity of organic
based feedstock that can be processed through a variety of technologies to
produce a diversity of fuels that includes solid fuels, liquid fuels, gel fuels and gas
fuels. These fuels are suitable for a variety of applications. Bioenergy can for
example, be converted to heat and electricity via combined heat and power plants
(cogeneration); it can also serve as a feedstock for direct combustion in modern
devices, ranging from very-small-scale domestic stoves and boilers to multimegawatt size power plants; and, it can be used as a vehicle fuel.
Bioenergy is a rapidly growing economic sector representing a significant portion
of the global energy mix. For example, the United States of America derives 4 per
cent of its total energy from biomass (nearly as much as it derives from nuclear
power), Sweden 14 per cent and Austria 10 per cent. Bioenergy is projected to
account for 21.6% of total global renewable energy and account for 60% of the
renewable energy market use by 2030 (IRENA 2014).
Besides the utilisation of firewood by rural communities, the Eastern Capes
bioenergy resources remain largely untapped as indicated in the graph below.
Present & future (2025) bioenergy poten als and u lisa on
Exis ng bioenergy
Current u lisa on
Future poten al
Planned u lisa on
Household firewood
Commercial forestry
IAP & bush encroachment
Biodiesel crops
Bioethanol crops
Biogas from agroecologicaly farmed energy crops
Biogas from ECRDA crop residues
Biogas from commercial animal farming manures
Biogas from tradi onal livestock
Biogas from municipal organic waste
Biogas from large (>40Ml/day) municipal WWTW
0
5,000
10,000
15,000
20,000
25,000
Tera Joules per annum
Figure 1: Present and future (2015) bioenergy resources potentials and utilisation in the
Eastern Cape
Page 2 of 142

Bioenergy is seen as an effective means to balance the spread of investment in

renewables right across the Eastern Cape Province. To date, the western side has
seen most of the R21,5 Billion invested to harness wind and solar resources, whilst
there is an urgent need to promote rural economic development in the east of the
province.
The eastern side of the province has a higher biological productivity as compared
to the western side, and thus also a higher biomass resource potential. Bioenergy
therefore represents an attractive opportunity to address the current imbalance
of renewable investment, and direct much needed rural economic development
into the eastern portion of the Province.
Bioenergy is recognized as the most labour-intensive segment of the Renewable
Energy sector (IEA 2003) over the long term, with potentially far reaching impacts
for communities deeply in need of LED opportunities. The Eastern Cape Provincial
Sustainable Energy Strategy emphasizes the importance of bioenergy for job
creation, and underscores the role that biogas/biomass projects could play in
contributing to local economic development.
This promise of job-creation coupled with the recently gazetted national Biofuel
Mandatory Blending regulations has spurred on the development of provincial
plans for the large scale cropping of bioethanol and biodiesel agro-fuels on a
targeted 280 000 ha of communal land in the eastern portion of the province. The
scale of funding for agrofuel cropping programmes is reported to be in the order
of R7bn and includes R4.5bn for the Phytoenergy canola to biodiesel cropping
initiative and R2.5bn for the IDC sorghum to ethanol cropping initiative.
The transformation traditional communal land use to large-scale agro-fuels
production is linked to opportunity costs for the affected communities that result
from the loss of viable productive land that could have been used for more
productive and climate resilient small-scale agroecological farming as well the
associated environmental, health, social and cultural externality costs that are
linked with the transformation of so called peasant farm land to large-scale green
revolution cropping practices.
Furthermore, these planned agro-fuel
developments should be measured against the historic successes of similar scale
approaches to the block-busting of communal lands such as the failed Massive
Food Production Programme and the failed ASGISA EC Integrated Biofuels
Cropping Programme.
The choice of appropriate biofuel cropping should also include an assessment of
their production efficiencies of how much energy is produced per ha of land. This
is closely linked to energy returned over energy invested (EROEI). The graph
below provides a measure of the energy production associated with the cultivation
of potential energy crops in the province, indicating that the best energy returns
will be to focus on bioethanol from sugar beet and biogas from sweet sorghum
and napier grass.
Page 3 of 142

Energy Poten al from Bioenergy Crops in GJ/ha

600.00
500.00
400.00
300.00
200.00
100.00
0.00
Biodiesel - Biodiesel - Ethanol Soya
Canola (dry Sugar beet
(dryland)
land)
(irrigated)
Ethanol Sugar beet

(dryland)
Ethanol Grain
Sorghum
(dryland)
Bioethanol
Gel - Sweet
Sorgum
Biogas Sweet
Sorghum
(irrigated)
Biogas Sweet
Sorghum
(dryland)
Biogas Biogas Napier grass Napier Grass

(irrigated) (dryland)
Figure 2: Energy potential per hectare for potential East Cape bioenergy crops
Another important aspect of consideration in the selection of appropriate

bioenergy options is the beneficiation across the full value chain by local
communities. Conventional bioethanol and biodiesel agro-fuel production typically
limit local beneficiation to production, logistics of feedstock and possibly local
milling or oil-pressing activities. This portion of the value chain typically becomes
price takers to the large corporations who control the conversion to biofuels,
blending and distribution portions of the value chain.
Biofuels such as biogas and bioethanol gel allow for the possibility of the complete
ownership of the value chain by the local community where it is possible to
produce the fuel in the community, by the community, for use by the local
community. These production models promote fuel sovereignty by allowing
communities to own the entire value chain from production to local end use.
Furthermore, local production of biogas and bioethanol gel can be incorporate
sustainable practices such as nutrient recycling of the biogas digester slurry
(digestate) and the stillage waste as well as the use of open pollinating seed
varieties and perennial grasses (for biogas), all of which serve to promote a
regenerative and truly renewable production system whereby production inputs
are minimised, further enhancing productivity and reducing monetary outflows
from these communities.
Page 4 of 142

Figure 3: Comparing value chain ownership between agrofuels and biogas/bioethanol
This sustainable approach to biogas and bioethanol gel production can be

extended to production using small-scale agroecogical farming systems, where a
portion of the land (between 15 and 25%) is set aside for energy crop production.
This holistic approach to biofuel production can lead to more jobs per ha, improved
biodiversity, reduction in agrichemicals, improved water utilisation and the
promotion of both local food and fuel security and sovereignty.
There is also growing recognition that the use of bioenergy in larger commercial
systems based on sustainable, already
accumulated resources and residues (such
as municipal organic waste), can help
improve natural resource management.
However, the policy environment must be
responsive to the needs of the bioenergy
sector
through
conducive
policy
development and on-going support for the
implementation of these policies.
Bioenergy systems can increase the
energy
available
for
economic
development without contributing to the
greenhouse effect since biomass is not a net emitter of CO2 to the atmosphere
when it is produced and used sustainably. It also has other environmentally
positive attributes such as lower sulphur and noxious emissions and its byproducts can help rehabilitate degraded lands.
Research, development and engineering efforts will have to be stepped up through
the piloting and demonstration of appropriate and easily replicable technologies.
The commercialisation of biomass technologies and biomass technologies should
be promoted through selective, well-targeted subsidies as well as fiscal and other
tangible incentives.
Page 5 of 142

Attention needs to be focused on up-skilling communities so that they can access

the large and small-scale energy options available to them both directly and
indirectly. In this way communities can adopt and engage with renewable
technologies thus facilitating the vision for the implementation of bioenergy and
the bioeconomy and reducing unemployment. This will require coordination
between industrial policy action plans, integrated resource plans and government
job creation policies.
This could be taken further to support to SMME's and targeted community skills
development could be stimulated through the integration of bioenergy
implementation plans into the provincial industrial policy action plans.
Action plans need to be put in place to support the achievement of appropriate
bioenergy initiatives as well as to localise the entire value chain for these
initiatives. Localization could include the input feedstock production and supply,
various support and service industries and, most importantly, the localization of
the end usage of the biofuels produced. This is critical in order to sustainably and
effectively divert monetary flows toward local communities previously displaced
by the imports of conventional energy carriers, such as fossil fuels from foreign
based multinational corporations and emissions intensive coal based electricity
produced by Eskom outside of the province.
Furthermore, an optimized local bioenergy value chain represents a viable option
for meeting the energy needs of the majority of rural communities, whether at a
household level, through the introduction of household biogas digesters and the
use of advanced, energy efficient, wood fuelled stoves; or at a town or village level
through the introduction of integrated bioenergy hubs and bioenergy-villages.
Page 6 of 142

Table of Contents
1.
Introduction ............................................................................................................ 17
1.1. Background .................................................................................................................. 17
1.2. The Eastern Cape Province in context ........................................................................... 18
1.2.1. Energy Status Quo ........................................................................................................... 18
1.2.2. Food Security ................................................................................................................... 18
1.2.3. Land allocation and communal land tenure reform........................................................ 19
1.3. Defining Bioenergy ....................................................................................................... 20
1.4. Types of biofuels .......................................................................................................... 22
1.4.1. Conventional biofuels ...................................................................................................... 22
1.4.2. Second Generation Biofuels ............................................................................................ 23
1.4.3. Third generation biofuel .................................................................................................. 24
1.5. Benefits of Bioenergy ................................................................................................... 25
1.5.1. Employment benefits ...................................................................................................... 25
1.5.2. Environmental Benefits ................................................................................................... 26
1.5.3. Economic Benefits ........................................................................................................... 28
1.6. Concerns ...................................................................................................................... 28
2.
Bioenergy Applications ............................................................................................ 30

2.1. Solid biofuel applications ............................................................................................. 30
2.1.1. Firewood for household use ............................................................................................ 30
2.1.2. Wood Chip production .................................................................................................... 31
2.1.3. Pellet production ............................................................................................................. 31
2.1.4. Charcoal production ........................................................................................................ 32
2.1.5. Gasification ...................................................................................................................... 32
2.1.6. Steam turbines ................................................................................................................ 33
2.2. Liquid Biofuels ............................................................................................................. 33
2.2.1. Bioethanol ....................................................................................................................... 33
2.2.2. Bioethanol Gel ................................................................................................................. 35
2.2.3. Biodiesel .......................................................................................................................... 35
2.2.4. Biobutanol ....................................................................................................................... 36
2.3. Gas Biofuels ................................................................................................................. 37
2.3.1. Biogas for heating and cooking ....................................................................................... 38
2.3.2. Biogas for Combine Heat and Power............................................................................... 39
2.3.3. Biogas as a vehicle fuel .................................................................................................... 42
2.4. Biogas for wastewater and of sewage treatment .......................................................... 46
2.5. Biogas and municipal waste recycling ........................................................................... 47
2.6. Municipal waste bio-refineries ..................................................................................... 48
2.7. Biogas and community based source separated waste collections ................................. 48
3.
Quantifying the Bio-energy Resource ....................................................................... 50

3.1.
3.2.
Existing Land cover ....................................................................................................... 50

Forestry related biomass .............................................................................................. 52
Page 7 of 142

3.3. Invasive Plants and Bush Encroachment........................................................................ 55

3.4. Energy Crops ................................................................................................................ 58
3.4.1. Maize ............................................................................................................................... 58
3.4.2. Sugar Beet........................................................................................................................ 59
3.4.3. Sorghum .......................................................................................................................... 59
3.4.4. Canola .............................................................................................................................. 59
3.4.5. Soya ................................................................................................................................. 60
3.4.6. Perennial grasses ............................................................................................................. 61
3.4.7. Summary & assessment of energy crop production ....................................................... 61
3.5. Agricultural Waste ....................................................................................................... 64
3.5.1. Crop Residues .................................................................................................................. 64
3.5.2. Animal Waste .................................................................................................................. 65
3.5.3. Agro-processing wastes ................................................................................................... 66
3.6. Municipal waste ........................................................................................................... 66
3.6.1. Organic fraction of municipal waste................................................................................ 66
3.6.2. Sewerage ......................................................................................................................... 67
3.6.3. Industrial Waste............................................................................................................... 68
3.7. Summary of Bioenergy Resource Potentials .................................................................. 69
4.
Market Demand ...................................................................................................... 71

4.1. Domestic Energy and Energy Poverty ............................................................................ 71
4.2. The Renewable Energy Independent Power Producer Procurement Programme ............ 73
4.3. Local Government ........................................................................................................ 74
4.4. Transport ..................................................................................................................... 75
4.5. Industry ....................................................................................................................... 75
4.6. Export Demand ............................................................................................................ 76
4.6.1. Wood pellets market ....................................................................................................... 76
4.6.2. Biodiesel from canola ...................................................................................................... 76
4.7. Bioethanol ................................................................................................................... 77
4.8. Biobutanol markets ...................................................................................................... 77
5.
Current and proposed bioenergy projects ................................................................ 78

5.1.
5.2.
5.3.
5.4.
6.
Biomass projects .......................................................................................................... 78

Liquid Bioenergy Projects ............................................................................................. 79
Biogas Projects ............................................................................................................. 80
Biomethane projects .................................................................................................... 81
PESTLE Analysis ....................................................................................................... 82

6.1. Policy Environment ...................................................................................................... 82
6.2. Economic opportunities and constraints ....................................................................... 84
6.3. Social Environment ...................................................................................................... 85
6.4. Technological ............................................................................................................... 86
6.5. Regulatory/Legal .......................................................................................................... 88
6.5.1. Policy prerogatives .......................................................................................................... 88
6.5.2. Regulatory Authorities..................................................................................................... 93
6.5.3. Regulations for bio-energy generation, transmission and distribution .......................... 94
Page 8 of 142

6.5.4. Regulations for private bio-energy developments .......................................................... 96

6.5.5. Regulations for public bio-energy developments ......................................................... 100
6.5.6. Other relevant South African legislation ....................................................................... 105
6.6. Environment .............................................................................................................. 105
7.
Ranking of bio-energy options ............................................................................... 107
8.
Priority applications & actions ............................................................................... 108

8.1. Promote improved and efficient usage of wood fuel ................................................... 108
8.2. Promote comprehensive knowledge transfer and skills exchange ................................ 109
8.3. Develop a strategy to support local decentralized bioenergy initiatives ....................... 109
8.3.1. Support for Rural Household Biogas Digester Rollout .................................................. 109
8.3.2. Promotion of bioenergy fuelled agri-processing hubs .................................................. 111
8.3.3. Promote Bioenergy Villages .......................................................................................... 111
8.4. Promotion of municipal biowaste to energy projects................................................... 112
8.4.1. Assist with the integration biowaste to bioenergy projects into Municipal Planning
Processes..................................................................................................................................... 112
8.4.2. Provide capacity and support for local government to realize their biowaste to bioenergy
potentials .................................................................................................................................... 114
8.5. Promote the adoption of biomethane applications as pre-cursor to fracking................ 114
8.6. Policy development actions ........................................................................................ 115
8.7. Conduct LCA of subsidised agrofuels programmes ....................................................... 116
9.
References............................................................................................................. 119
10. ANNEXURES........................................................................................................... 121

10.1. Annexure A: Bioenergy Case Studies ......................................................................... 121
10.1.1. Integrated Biogas & Algal Sanitation System at Rural Schools Chris Hani & Amathole
District Municipality .................................................................................................................... 121
10.1.2. Clean Tech Africa, East London, South Africa ............................................................. 126
10.1.3. Cradock Bioethanol & Lady Frere Grain Sorghum Project Case Study........................ 129
10.2. Annexure B: Rural Household Energy Service Needs Workshop & Group Survey ........ 134
10.2.1. Umsobomvu Off-Grid Community Survey Results ...................................................... 134
10.2.2. Melani village Survey Results ...................................................................................... 136
10.3. Annexure C: Reference Group Meeting Notes ........................................................... 138
10.3.1. Notes from Reference Group workshop held on November 5, 2014 ......................... 138
Page 9 of 142

Table of Figures
Figure 1: Present and future (2015) bioenergy resources potentials and utilisation in the Eastern Cape
2
Figure 2: Energy potential per hectare for potential East Cape bioenergy crops
4
5
Figure 4: Incidences of household food insecurity (Source: DEDEA)
19
Figure 6: State of biofuels development (IEA 2008)
24
Figure 7: Algal biomass research at the Institute of Environmental Biotechnology At Rhodes University
(Source: IEBRU)
24
Figure 8: Technology Lifecycle: Green House Gas emissions for various energy sources
27
Figure 9: Wood pellets produced at the EC Biomass Pellet plant at the Coega Industrial Development Zone
(Source EC Biomass)
31
Figure 10: A Community operated charcoal kiln
32
Figure 11: Early wood fuelled gasifier vehicles
32
Figure 12: The 150kWelec gasifier pilot at Melani Village (source: UFH)
33
Figure 13: The Cradock bioethanol supply chain
34
Figure 14: A decentralised bioethanol gel pilot production
35
Figure 15: Filling up with biodiesel from Greentechs fill station in Port Elizabeth
35
Figure 16: The versatility of biogas (Valorgas 2013)
38
Figure 17: Clean burning biogas for cooking
38
Figure 18: One of two South African manufactured biogas fueled 250kWelec /310kWtherm Combined Heat and
Power plant fitted with exhaust heat capture at Uilenkraal dairy farm in the Western Cape (Source
CAE)
40
Figure 19: Advantages of CHP over conventional power plants
41
Figure 20: Filling a mini-taxi retrofitted to run on methane fuel at the NGV fill station in Gauteng (Source:
CNG Holdings)
43
Figure 21: Natural gas vehicles in operation world wide (IANGV 2014)
44
Figure 22: Two City of Jo'burg busses converted to run on Methane
44
Figure 23: Volume of equivalence of CNG (CBM), LNG (LBM) and Diesel (Source NFVA)
45
Figure 24: A trailer with a 5 ton payload of compressed methane (CNG) ready for shipment to a point of use
at a local industry in Gauteng (Source: CNG Holdings)
46
Figure 25: The bioenergy value chain (green) within an integrated municipal waste management process 47
Figure 26: Example of a biorefinery processing municipal biowaste into various energy streams and nutrient
streams
48
Figure 27: The roll of biogas in community based organic waste recycling initiatives (ELIDZ 2014)
49
Figure 28: Existing landuse represented by land cover in the Eastern Cape
51
Figure 29: Map of Existing and potential future forestry plantations
53
Figure 30: Mapping of Invasive Vegetation, Bush Encroachment, the WfW projects and Forestry Plantations
(Source: DEA WfW 2014)
56
Figure 31: Areas suitable for dryland maize cropping (in green) (Source EC DoA 2006)
58
Figure 32: Suitability for dryland cropping of Sorghum (source DRDAR 2014)
59
Figure 33: Canola production potential (shown in purple) (Source: EC DoA 2006)
60
Figure 34: Soya production potential from dry land cropping (Blignaught, C and Taute M. 2010)
60
Figure 35: Perennial Napier grass, can yield 40tons of dry biomass per annum
61
Figure 36: Energy crop potential per ha according to type
62
63
Figure 38: Areas suitable for the cropping of maize and canola (Source: EC DoA 2006)
64
Page 10 of 142

Figure 39: Existing and potential present and future (2015) bioenergy resources and utilisation in the Eastern
Cape
70
Figure 40: Graphs of Socio-Economic factors relating to household energy access (Source: Strategic EDGE
Solutions calculations based on IHS Global Insight (2014)
72
Figure 41: European wood pellet demand (Source: RESI 2014)
76
Figure 42: EU biodiesel production, imports and consumption 2000-2010, with 2008 feedstock mix (ICCT
2013)
77
Figure 43: The wonderbag (Source: Choices-SA 2013)
108
Figure 44: Integrating Renewable Energy consideration into IDP and SDF processes (Source DEDEA 2013) 113
Figure 45: The Integrated Biogas and Algal Sanitation System for a Rural School
122
Figure 46: The biogas digester system (left) and the wind powered algal ponding system
123
Figure 47: The bioenergy and energy service needs workshop at Umsobomvu
134
Figure 48: The bioenergy and energy service needs workshop at Melani
136
Page 11 of 142

Glossary of Terms1
Agricultural by-products represent biomass by-products originating from
production, harvesting and processing in farm areas.
Agrofuels are biofuels obtained as a product of energy crops and/or agricultural
(including animal) and agro-industrial by-products (see definitions below) (FAO,
2004).
Agro-industrial by-products represent several kinds of biomass materials
produced chiefly in food and fibre processing industries.
Animal by-products are agricultural by-products originating from livestock
keeping. It includes among others solid excreta of animals.
Biochar is a solid material obtained from the carbonisation of biomass.
Bioenergy is a from of renewable energy derived from biofuels
Biofuels are produced directly or indirectly from biomass
Biofuel is energy produced directly or indirectly from biomass, where fuel is
defined as an energy carrier intended for energy conversion. Biofuels can include
for example, liquid biofuels i.e. fuel derived from biomass for transportation uses,
gaseous biofuels such as methane gas, and solid biofuels like fuelwood, charcoal
etc.
Biofuels from municipal waste include municipal solid waste incinerated to
produce heat and/or power, and biogas from the anaerobic fermentation of both
solid and liquid municipal wastes.
Biomass is material of biological origin excluding material embedded in geological
formations and transformed to fossil. Sources of biomass include energy crops,
agricultural and forestry wastes and by-products, manure or microbial biomass.
Biomass streams are biomass products that can be used to produce bioenergy.
Some examples are leaves, residues, cutover residues, sawdust, bark, chip, and
corn husks among others.
Biomass supply chain is an integrated approach to describe the entire bioenergy
production system. The supply chain incorporates all of the required production
processes that are critical to the production of the end energy carrier. The starting
point in a biomass supply chain is the production of biomass feedstock. This is
Bioenergy related definitions are extracted from the Unified Bioenergy Terminology of
FAO (2004).
1
Page 12 of 142

typically followed by the industrial conversion of the biomass to energy, an energy

carrier that is then used to generate energy.
Biorefineries. A facility where biomass feedstocks are converted into energy,
fuels or other useful products such as biofertilizer, biomaterials and biochemicals
using a range of thermochemical and biochemical processes.
Embedded Generation. Local onsite power generation where the generators that
are connected to the local onsite distribution network but do not have direct access
to the transmission network.
Energy carrier is a substance or phenomenon that can be used to produce
mechanical work or heat or to operate chemical or physical processes. To create
an energy carrier from an energy source a conversion process must occur. Typical
energy carriers include electricity, gasoline, heating oil, diesel, ethanol, biogas,
biodiesel, propane, and methane.
Food security exists when all people, at all times, have physical, social and
economic access to sufficient amounts of safe and nutritious food that meets their
dietary needs and food preferences for an active and healthy life. There are four
dimensions to food security as it relates to bioenergy: availability, access, stability
and utilization.
Woodfuels are all types of biofuels originating directly or indirectly from trees,
bushes and shrubs (i.e. woody biomass) grown on forest and non-forest lands
Page 13 of 142

Abbreviations
ADM
Amathole District Municipality
ANDM
Alfred Nzo District Municipality
BCMM
Buffalo City Metropolitan Municipality
BtL
Biomass to Liquids
Celcius
CBM
Compressed Biomethane
CCHP
Combined Cooling, Heat and Power (Trigeneration)
CDM
Clean Development Mechanism
CHDM
Chris Hani District Municipality
CHP
Combined Heat and Power
CNG
Compressed Natural Gas
CO2
Carbon Dioxide
DEDEAT
Department of Economic Development, Environmental Affairs and

Tourism
DRDAR
Department of Rural Development and Agrarian Reform
dw
Dry weight
DM
District Municipality
ECDC
Eastern Cape Development Corporation
ELIDZ
East London Industrial Development Zone
ESCO
Energy Services Company
EU
European Union
GDP
Gross Domestic Product
GGP
Gross Geographic Product
GHG
Green House Gases
G.I.
Glycaemic Index
GJ
Giga-Joules of energy
Page 14 of 142

ha
Hectares of land
HFO
Heavy Fuel Oil
HTC
Hydrothermal carbonisation
IAP
Invasive Alien Plants
ICE
Internal Combustion Engine
IDZ
Industrial Development Zone
JGDM
Joe Gqabi District Municipality
kW
Kilowatt
kWh
Kilowatt hours of energy
kWe
Kilowatt electrical power
kWth
Kilowatt thermal power (heat energy)
LED
Local Economic Development
LBM
Liquid Biomethane
LNG
Liquid Natural Gas
LPG
Liquid Petroleum Gas
LM
Local Municipality
MJ
Mega-Joules of energy
MW
Megawatt
MWe
Megawatt electrical power
NGV
Natural Gas Vehicle
Nm3
Normalised meter cubed of bas at atmospheric pressure)
NMBMM
Nelson Mandela Bay Metropolitan Municipality
NOx
Nitrous Oxides
ORTDM
OR Tambo District Municipality
PDI
Previously Disadvantaged individuals
RE
Renewable Energy
RED
Rural Enterprise Development
Page 15 of 142

REI4P
Renewable Energy Independent Power Producer Procurement

Programme
RSB
Roundtable on Sustainable Biomaterials
SMME
Small, Medium and Micro Enterprises
WfW
Working for Water
WfE
Working for Energy
Page 16 of 142

1.
Introduction
1.1. Background
The global energy picture is changing rapidly in favour of renewable energy and,
according to the International Renewable Energy Agency, it is anticipated that by
2030 renewables could account for 36% of the global energy mix. This would be
equal to a doubling of the global renewable energy share compared to 2010 levels.
Bioenergy has a major role to play in the development of this sector and is
projected to account for 60% of total global renewable energy use (IRENA 2014).
The Eastern Cape renewable energy sector has developed into a significant
industry with 21.5 Billion Rands worth of investments in Wind and Solar being
secured for the Province from the first three rounds of the National Renewable
Energy Procurement Programme. However, comparatively little progress has been
made in respect to bio-energy and there are currently less than 20 projects in the
province at the concept or feasibility stage, few of which have progressed to
construction.
As most of this renewable energy investment has been directed to harness the
abundance of wind and solar resources in the west of the Province there is an
urgent need to balance the spread of renewable energy investment across the
entire province and in particular to promote rural economic development in the
East of the province. Bioenergy represents an opportunity to redress this
imbalanced investment particularly as biological productivity increases towards
the east of the province.
Furthermore, bioenergy is recognized as the most labour-intensive segment of the
Renewable Energy sector (IEA 2003) and the Eastern Cape Provincial Sustainable
Energy Strategy notes the importance of bioenergy for job creation, and the role
that biogas/biomass projects could play in contributing to local economic
development.
Given the above, it is necessary to understand the reasons for the underdevelopment of a potentially important energy sub-sector in the province. Based
on such an understanding, enabling and support mechanisms for the
implementation of appropriate bio-energy in the province should then be
developed.
Page 17 of 142

1.2. The Eastern Cape Province in context

1.2.1.
Energy Status Quo
An estimated 400,000 (26,7%) of the 1,500,000million households do not have

access to electricity and at the current rate of electrification it will take about 8-9
years to have universal electricity access in the Eastern Cape Province to these
existing dwellings. Including new dwellings, it is foreseen that it will take about 15
to 20 years to address the combined backlogs in the province.
The total Eastern Cape Province electricity consumption in 2009 was about 8 000
GWh of energy.
Industry and Commerce account for about 54% of electrical energy consumed in
the province, while domestic customers consume about 40% of electrical energy.
There are 26 licensed municipalities that distribute electricity, together with Eskom
with the two largest municipal distributors, i.e. Nelson Mandela Bay Metropolitan
Municipality (NMBMM) and Buffalo City Metropolitan Municipality (BCMM) who
collectively supply about 35% of all customers and close to 60% of the sales
volumes distributed in the EC.
Household use is responsible for 50% of the provinces paraffin and 85% of the
LPG demand.
The use of Electricity and hydro-carbon fuels contributed to a total of 12 891 390
tons of CO2 emissions during 2009, of which electricity consumption was by far
the largest at 68.3% of the total.
The bulk of the electrical energy is imported into the province via the national
transmission grid and Eskom has access to 171MW of gas turbine power
generation (Port Rex in BCMM), while NMBMM has 40MW. This capacity is seldom
used due to the high fuel cost.
1.2.2.
Food Security
Food security is a major concern and it is estimated that 78% of the households
in the province may be classified as food insecure. This is much higher than
national average of 64%. This makes the issue of food versus fuel a major concern
and consideration in the development of bioenergy potentials for the province.
As can be seen in Figure 4, vulnerability to food insecurity is widespread with
higher incidences of food insecurity among households located in the Eastern half
of the province in Alfred Nzo DM (86%) followed by Chris Hani DM (83%) and O.R
Tambo DM (81%). This is an important consideration as these are some of the
areas of highest potential biological productivity and are therefore also the regions
earmarked for bioenergy development.
Page 18 of 142

It is therefore important that bioenergy development adequately addresses the

issue of food security and ensures that these rural communities do not lose their
rights, capacities and capabilities to produce food from their lands through the
continuation of traditional agricultural and the enhancement of these practices
through adoption of small-scale agro-ecological farming which compatible to the
current communal land use allocation and are accepted by science (IAASTD 2008)
to be the best approach to achieve food security and food sovereignty by rural
communities.
Issues of food security should also be seen in the broader trend of de-agrianisation
of these areas where rural households are also becoming more dependent on
government grants as an income source while moving away from commercial or
agricultural-based activities rather than starting to engage in these activities.
Figure 4: Incidences of household food insecurity (Source: DEDEA)
1.2.3.
Land allocation and communal land tenure reform
Most of the areas in the Eastern half of the province with the highest biomass
production potential are predominately traditional communal rural lands that are
subjected to traditional land allocation. Currently individual land rights in these
areas are protected on communal land by the 1996 Interim Protection for Informal
Land Rights Act (IPILRA), which provides households with a level of land use and
land protection but not the right to individual property and title deed ownership.
Page 19 of 142

The proposed Communal Land Tenure Policy aims to transfer communal land titles
to traditional councils, stating that government will delegate certain governance
responsibilities to traditional councils. This places traditional leaders at the centre
of land management and allocation.
The continued lack of clarity on communal land tenure reform and land allocation
issues creates uncertainty for property rights, and hence bioenergy and other
agrarian development.
1.3. Defining Bioenergy

Bioenergy is essentially the result of the conversion of biomass resources such as
agricultural and forest residues, organic municipal waste and energy crops into
useful energy carriers including heat, electricity and transport fuels.
Biofuel is the energy produced directly or indirectly from biomass, where fuel is
defined as an energy carrier intended for energy conversion. Biofuels can include
for example, liquid biofuels such as biodiesel and bioethanol, gaseous biofuels
such as methane gas, and solid biofuels like fuelwood, charcoal and wood pellets.
Page 20 of 142

Bioenergy: a Carbon Neutral Renewable Energy Source

Bioenergy is produced in a cycle where Carbon dioxide (CO2) is withdrawn
from the atmosphere by the process of plant growth (photosynthesis) and
converted into vegetation biomass (trees, grasses, and other crops). The
resultant biomass and is processed into an energy carrier such as heat,
electricity or a fuel. Organic by-products and minerals from the processing
facility may be returned to the land where the biomass grew, thereby
recycling some of the nutrients such as potassium and phosphorus that were
used for plant growth.
Figure 5: The bioenergy cycle (CABER 2014)
Throughout the cycle, carbon dioxide from the use of production and use of
bioenergy is released back into the atmosphere where it can be used once
again to produce more biomass. If the growing of bioenergy crops is
optimized to add humus to the soil, there may even be some net
sequestration or long-term fixation of carbon dioxide into soil organic
matter. The energy to drive the cycle comes from the sun, and will continue
for many generations at a stable cost, and without depletion of resources.
Page 21 of 142

1.4. Types of biofuels

1.4.1.
Conventional biofuels
Conventional biofuels, also known as first generation biofuels refer to the biofuels
that have been derived from sources like starch, sugar, animal fats and vegetable
oil. The energy is obtained using the conventional techniques of production.
Other popular types of conventional biofuels include:
Solid fuels: such as firewood, wood-pellets and charcoal. One of the oldest
types of biofuels is firewood and it is still used as a primary source of energy
by over 80% of rural populations (ProBEC 2008).
Biodiesel: This is a biofuel with similar properties to mineral diesel and is

commonly used in the European countries. It is produced from vegetable
oils using a process called transesterification after mixing the biomass with
methanol and sodium hydroxide. The chemical reaction thereof produces
biodiesel. Biodiesel is very commonly used for the various diesel engines
after mixing up with mineral diesel. Diesel engines are commonly
manufactured to run on both mineral and biodiesel.
Bioalcohols: These are alcohols produced by the use if enzymes and micro
organisms through the process of fermentation of starches and sugar.
Ethanol is the most common type of bioalcohol whereas butanol and
propanol are some of the lesser known ones. Biobutanol is sometimes also
referred to as a direct replacement of gasoline because it can be directly
used in the various gasoline engines.
Biogas: Biogas is a methane rich gas mainly produced after the anaerobic
fermentation of the organic materials, including energy crops, animal
manures, food wastes, sewage and agricultural crop residues. The byproduct of digestion can be easily used as manure or fertilizers for
agricultural use. The biogas energy can be used directly for heating and
cooking thereby providing a useful clean convenient energy source to rural
households.
Biomethane: is produced by upgrading biogas to a high calorific gas the

equivalent of natural gas. Biomethane is a versatile fuel that can be:
injected into natural gas grids for use by industry. Biomethane can also be
compressed and used as a vehicle fuel for trucks, busses and passenger
cars. Biomethane can be used to produce electricity and heat in efficient
decentralised combined heat and power plants.
Page 22 of 142

Syngas: This is a gas that is produce after the combined process of

gasification, combustion and pyrolysis of woody biomass. The resulting gas
Syngas can be used for various purposes.
1.4.2.
Second Generation Biofuels
Second generation biofuels or advanced biofuels are produced from almost any
form of non-food biomass and are processed differently than first generation
biofuels. These processes are complex and very expensive, but can use cheaper
feedstock. Second generation process technologies include:
Thermochemical processes (biomass to liquids, BTL) work by gasifying

wood then synthesizing road-fuel from the gas. The sub-units (gasifier, gas
separation, Fischer-Tropsch synthesis...) already exist in other industrial
processes: they only need integration. This means one can predict
performance and cost, but scope for future improvement is limited.
The cellulose-to-ethanol process (which best uses straw and wet biomass),
is more innovative. Technology breakthroughs are needed to make it
competitive, and these are unpredictable....and are unlikely to be
competitive by 2020. (Edwards et al 2008)
Hydrothermal carbonisation (HTC) of biomass is a thermo-chemical process
for the conversion of wet biomass resources (such as sewage sludge) at
elevated temperature and pressure. This dehydration and decarboxylation
of a wet biomass result a higher calorific carbon biofuel similar to coal as
well the recovery of useful nutrients. Commercialisation of this technology
is progressing favourably and the first small scale HTC plants are built and
operational (Lubeck 2011).
Although second generation biofuels do not do not compete directly with food for
feedstock, if they are derived from a dedicated energy crops, they compete for
land and water resources. Some energy crops (switchgrass, poplar) can be also
grown (at reduced yield) on present grassland. This land use change may lead to
competition for grazing space as well as land use changes that may result in the
release of soil carbon depending on the disturbances to the soil and groundcover
associated with the clearing, cultivation and harvesting regimes for these biomass
feedstocks.
Page 23 of 142

Overview on Biofuel Technologies
Source: Modified from Bauen et al., 2009.
State of biofuels development (IEA 2008)

n AFigure
broad6:number
of conversion routes exist
n More RD&D is needed to get advanced biofuels to commercial-scale to prove they can
meet
cost andThird
GHG targets
1.4.3.
generation biofuel
Third generation biofuels refers to biofuel derived from algae. Bioenergy

production from micro algae provide a number of advantages such as carbon
sequestration of flue gases from fossil fuel power-stations and the purification of
municipal wastewater. Pilot scale examples of these applications exist however
the up-scaling of this technology to a commercial viable scale is unlikely to be
realized in the foreseeable future. After investing more than $600 million USD into
research and development of algae, Exxon Mobil came to the conclusion in 2013
that algae-based biofuels will not be viable for at least 25 years.
Figure 7: Algal biomass research at the Institute of Environmental Biotechnology At

Rhodes University (Source: IEBRU)
Page 24 of 142
OECD/IEA 2011

1.5. Benefits of Bioenergy

1.5.1.
Employment benefits
Bioenergy provides a diversified and decentralised energy option whose

implementation presents positive impacts on rural development by creating
business and employment opportunities. Jobs are created all along the bioenergy
chain, from biomass production or procurement, to its transport, conversion,
distribution and marketing. Bioenergy appears as the most labour-intensive sector
among renewables (IEA 2003).
The three categories of employment that result from bioenergy uptake are:
Direct employment results from operation and construction of plants and

fuel production. This refers to total labour necessary for crop production,
construction, operation, and maintenance of conversion plant, transporting
biomass, etc.
Indirect employment are jobs generated within the economy as a result of
expenditures related to bioenergy value chain such as supporting
industries, services and similar.
Induced employment are new secondary jobs not directly related to the
bioenergy sector but which have resulted from the higher purchasing
power, due to the spending of additional wages and profits from both
biomass production, the bioenergy plant activities and related service
industries.
The Department of Energy has calculated estimated employment creation for

production of biofuel for a reference or benchmark plant (i.e. grain sorghum as
feedstock for bio-ethanol and soya beans as feedstock for bio-diesel) as follows:
Bio-ethanol: 8 247 jobs / 158 million litres = 52.2 Jobs/million litres
Bio-diesel:
20 067 jobs / 113 million litres = 177.6 Jobs/million litres
These figures were however based on a decentralised agroecological based model

of biofuels production proposed by AGAMA energy. A more figures for job creation
using the large-scale agrofuels model that is currently envisaged by for the
Eastern Cape would be based on the Brazilian experience where the actual direct
jobs [2] in biofuels production are as follows:
Bio-ethanol: 20.3 Jobs/million litres
Bio-diesel:
30.2 Jobs/million litres
Based on IRENA 2013 direct employment figures calculated against actual production
Page 25 of 142

1.5.2.
Environmental Benefits
Spills and Surface Contamination

Biofuels are not 100% safe but they are much safer than fossil fuels. If you were
to spill a large quantity of biofuel into a concentrated area, it would likely kill living
organisms and contaminate surround soil or water. However, the scale of the
impact would be orders of magnitude smaller than with fossil fuels.
First off, biofuels are biological molecules and this means they are biodegradable.
Bacteria and other organisms that live naturally in the soil and water are able to
use biofuel molecules as energy sources and break them down into harmless byproducts. This means that even though concentrated biofuel spills can kill things
like plants and smaller animals, they will not persist in the environment and cause
damage or make an area uninhabitable for long periods of time.
Greenhouse Gas Saving

The use of bioenergy can significantly reduce greenhouse gas emissions. The
carbon dioxide it gives off when it is burned is counterbalanced by the amount
absorbed when the plant in question was grown. However, generating net
greenhouse gas savings also depends on the cultivation and fuel production
processes used.
The figure below indicates the typical green house gas savings of bioenergy (biopower) as compared with other renewable and conventional energy technologies.
Page 26 of 142
used. Examples are sunlight, wind, tides and swells as well as geothermal energy. Strictly speaking,
no technology can be 100% renewable at present. There would always be some non-renewable
component
in C
the
initial
manufacture
or ultimate
disposal of components
(see
1).
EASTERN
APE
P ROVINCIAL
BIOENERGY
I MPLEMENTATION
SUPPORT P
LANFigure
2014/2015
Figure
Technology lifecycle:
Greenhouse
gas emissions
.
Figure
8:1:Technology
Lifecycle:
Green House
Gas emissions
for various energy sources
Page 8
Zero-waste & Nutrient beneficiation

Bioenergy is often a by-product, residue or waste-product of other processes, such
as farming, animal husbandry and forestry. Bioenergy can also be produced from
municipal waste products such as foodwaste, the leafy fraction of garden waste,
waste-water and sewage sludge. In these instances serious environmental issues
are transformed into useful energy, offsetting greenhouse gas emissions and
without competing with food production.
Bioenergy production also results in useful byproducts which can be converted
into biofertilizer, biomaterials and biochemicals. This can be expanded into
the development of the bioeconomy activities such as biorefineries where biowaste
streams are converted into bioenergy, biomaterials and biochemicals.
Page 27 of 142
Rev D4

1.5.3.
Economic Benefits
Security of Supply
Eskoms ability to produce a stable supply of electricity to the province has come
into question over the past few years and the incidences of rolling blackouts are
set to continue as Eskom struggles to meet the ever-increasing demand for power.
The ability of bioenergy to produce heat and power from biogas or gasified
biomass using decentralised small scale combined heat and power plants
represents an opportunity for local industries to achieve some measure of energy
security whilst offsetting costs such as peak electrical demand charges
With regards to transport fuel, as much as 60% of the fuel is produced from
imported crude oil. This restricts the potential sources of supply, and makes supply
susceptible to political instability. Biofuels reduce dependence on foreign fossil fuel
and the related exposure to ever decreasing Rand / Dollar exchange rates.
Within rural communities it is possible for households, villages and towns to
extend the concept of energy security to energy sovereignty where biofuels
together with other renewable energy sources such as wind and solar can assist
communities to meet all of their energy needs.
Local economic benefits and multipliers

In the simplest terms the increase in economic activity through biofuels production
will lead to increases in local economic development and when energy produced
locally displaces the importation of energy from outside the community this
reduces monetary outflows and leads to inward investment and resultant local
economic multipliers. The increase in energy availability within a given region will
provide additional capacity for increased economic activity that is dependent on
energy.
Macroeconomic benefits
Macroeconomic benefits result from a reduction in fossil fuel imports that has a
positive effect on the balance of trade thereby creating positive contribution to the
Provincial GGP.
1.6. Concerns
While 1st-generation biofuels show a net benefit in terms of GHG emissions
reduction and energy balance, they also have several drawbacks. Current
concerns for many, but not all, of the 1st-generation biofuels are that they:
contribute to higher food prices due to competition with food crops;

are an expensive option for energy security taking into account total
production costs excluding government grants and subsidies;
most agrofuels (large scale bioethanol and biodiesel production) provide
only limited GHG reduction benefits (with the exception of sugarcane
Page 28 of 142

ethanol and at relatively high costs of carbon dioxide (typically $250 /t CO2)
avoided (IEA bioenergy 2008);
do not meet their claimed environmental benefits because the biomass
feedstock may not always be produced sustainably (e.g. agrofuel
monoculture with heavy fertilizer, herbicide and pesticide use);
typically rely on high input costs (seeds, fuel and agri-chemcials) for
biodiesel and bioethanol cropping, making farmers dependant on external
price factors , reducing profit margins per ha making it only financially
viable to crop large portions of land;
are increasingly rely on herbicides which are linked to a decline in species,
particularly amphibians and soil microorganisms and human health issues;
promote large scale cropping into traditional rural areas resulting in
profound land use change and the potentially indirect land use effects such
as loss of grazing, loss of land rights for more productive biodiverse farming
systems, health effects from contamination of atmosphere and surface and
ground water with pesticides and herbicides;
promote large scale monoculture crop production which potentially has a
negative impact on biodiversity;
compete for scarce water resources in some regions; and
additional uncertainty has also recently been raised about GHG savings if
indirect land use change is taken into account, in terms of carbon soil losses.
A recent EU study indicates that on the whole land use emissions for the
entire EU biofuels eliminate more than two thirds of the direct emission
savings that result from biofuel usage (IFPRI 2011).
Certification and standards for the sustainable production of biofuels and their
feedstocks and could help to ensure biofuels production meets sustainability
criteria, although some uncertainty over indirect land-use impacts is likely to
remain.
Page 29 of 142

2.
Bioenergy Applications
2.1. Solid biofuel applications

2.1.1.
Firewood for household use
Firewood is one of the oldest forms of bioenergy and has been used for heating
and cooking ever since man invented fire. Firewood is a primary source of energy
for more than 80% of the rural population who consume on average about 4.5tons
of firewood per annum (ProBEC 2008). An estimated 431 063 household in the
province use firewood as primary source of energy for cooking and 572 806
households use firewood for heating (DEDEAT 2013).
A large portion of this fuel is not sustainably harvested which results in
deforestation. The impacts on the environment through the harvesting of these
fuels, the impact on indoor air quality and the resulting health problems, and the
lack of access to cleaner energy are well documented and understood.
Furthermore, the use of firewood is linked to gender inequality issues as the
collection of firewood is traditionally the responsibility of women which is
estimated to take about 1.5 hours per day of woman or girl-childs time, often in
remote areas with associated personal safety risks, the risk of injury due to the
heavy head loads, health risks due to continuous exposure to wood smoke, and
the opportunity cost related to the time spent in collecting fuel-wood.
There is a critical need to promote improved and efficient usage of wood through
the following interventions:
the establishment of managed community woodlots under the Working for

Water programme;
the promotion of energy efficient best practices such as the pre-soaking of
maize samp and/or beans before cooking;
The promotion of improved and more energy-efficient wood fuelled
cookstoves; and,
The switchover to other cleaner and more sustainable fuels sources such as
solar cookers and household biogas to produce.
Sustainable wood supplies need to be part of integrated energy

programmes to address the historic shortfall in energy supplies to rural
households. This can be done through community forestry programmes,
the redistribution of surplus wood from industrial forests, the
management of harvesting from natural woodlands, and improved
efficiency in wood use. (DWAF Whitepaper on sustainable forestry
Development, 1996.)
Page 30 of 142

2.1.2.
Wood Chip production
Woody biomass can be chipped dried and used effectively as a fuel for industrial
boilers or gasifiers. Wood chips have a similar caloric value (typically 19MJ/Kg) to
coal (27MJ/kg) making them viable for as an effective fuel switch in coal fired
boilers and furnaces.
Wood chips from alien invasive vegetation is currently being used by local
industries such as Nestle in East London to effect a fuel switch from Heavy Fuel
Oil (HFO) and Coal, thereby reducing green-house emissions form the abatement
of fossil fuel use whilst improving the health of local river catchments and water
courses through the removal of alien invasive vegetation.
Besides the environmental benefits associated with the use of wood chips from
invasive vegetation, there are also economic benefit to end users who are
reporting savings of as much as 20% in fuel costs [3]. A recent 2013 study by
Mugido, W. et al conducted by the Working for Energy Programme shows that the
net cost to the energy entrepreneur using woody invasive alien plant species
harvested by the working for energy programme within a 50km radius of the
woodchip processing plant is estimated at R31 per GJ, whereas the cost of coal
landed in the province is R49 per GJ.
2.1.3.
Pellet production
Pellets made from woodchips, sawdust, straw and agrowaste have become a
popular fuel for household pellet stoves and fireplaces in Europe and North
America. Pellets can also be used as a fuel for industrial boilers and furnaces.
Pellets have an advantage over woodchips as a fuel switch for coal and HFO boilers
in that they are more compact and are less prone to blocking the furnace fuel
feeding mechanisms.
Figure 9: Wood pellets produced at the EC Biomass Pellet plant at the Coega Industrial
Development Zone (Source EC Biomass)
Interview with Nestle Plant Engineer Nico Schmidt on October 29,2014.
Page 31 of 142

2.1.4.
Charcoal production
Charcoal is usually produced by slow pyrolysis, the heating of wood or other

substances in the absence of oxygen. Although decentralised charcoal production
is recognized as an appropriate technology for rural communities to beneficiate
their existing forestry waste or alien resources, the province has yet to realize the
success of a community based charcoal production. A number of community based
charcoal initiatives were established through the Working for Water, the ECDC and
the Chris Hani District Municipality but these pilots never reached commercial
viability mainly due to issues relating to with logistics relating to the remoteness
of sites [4] as well as formal access to market [5].
Figure 10: A Community operated charcoal kiln6
2.1.5.
Gasification
Gasification systems turn biomass into a

gas. This is burned in a modified gas
engine to produce electricity, and heat is
recovered as part of the engine cooling.
In the gasifier, woodchip is turned into a
fuel known as synthesis gas or syngas.
This is generally done by applying high
temperature in a partial oxidation
process. The syngas components with
calorific value are mainly hydrogen (H2),
methane (CH4) and carbon monoxide
(CO). The remaining components are
carbon-dioxide (CO2), usually nitrogen
(N2) and other inert gases.
Figure 11: Early wood fuelled gasifier vehicles
The province has some experience and capacity in the operation of the wood
150kW wood fuelled gasifiers at Melani Village that is operated in a partnership
between the University of Fort Hare, Eskom and the local community.
Experiences of the Hluma Charcoal Development Co-operative from ECDC project leader
Bowell Solwandle
5
Interview with Michael Kowa, Department of Environment on October 27, 2014.
6
Source: SA Forestry Magazine article on the Emcakwini community in KZN.
4
Page 32 of 142
Gasifier system manufactured and installed.

Figure 12: The 150kWelec gasifier pilot at Melani Village (source: UFH)
The full benefit of the Melani Village gasifier has been constrained by issues
regarding the establishment of an appropriate institutional structure that reflects
community ownership but which is acceptable by the broader community. The
main lesson learned is that the overcoming technical barriers is only one portion
of the work, and that better planning and attention needs to be given to addressing
the soft issues of community participation and acceptance of the ownership,
operation and beneficiation of the bioenergy infrastructure installed.
2.1.6.
Steam turbines
Power generation using steam turbines is a highly developed technology. High

pressure steam (20 250 bar) is produced in a boiler and drives a turbine which
runs a generator producing electricity. This process is known as a Rankine Cycle.
As a result of the high pressures and temperatures, boilers and other equipment
must be designed and manufactured to a high specification. This is expensive and
CHP units using steam turbines are usually economical only above 2 MW.
Rance Timbers, the owners of sawmills with a collective capacity of processing
61000m3/annum in the Stutterheim area are in an advanced stage of developing
a 10MW Steam turbine to process their forestry residues and sawmill waste. They
have submitted a bid in the most recent Renewable Energy Independent Power
Producer Procurement Programme (REI4P) call.
2.2. Liquid Biofuels

2.2.1.
Bioethanol
The fermentation of sugar into ethanol alcohol is one of the earliest forms of
biotechnology known to mankind and it has been perfected to include the
Page 33 of 142

production of ethanol from a variety of feedstocks including most grains, canes,

berries, honey and fruits.
Bioethanol refers to ethanol that is typically blended into petrol (gasoline) for
vehicle fuel. Up to 5% ethanol can be blended in petrol without technical or
emissions problems. In some countries such as Brazil and Germany ethanol-rich
fuels (85% or higher) are available for use by vehicles with specially adapted
engines.
The South African Biofuels Mandatory Blending Regulations gazetted in August
2012 require the mandatory blending of 2% ethanol into fuels from 2015 onwards.
In order to support fulfil this demand the Provincial Department of Rural
Development and Agrarian Reform (DRDAR), together with the Eastern Cape Rural
Development Agency (ECRDA), have targeted the production of grain sorghum
and sugar beet in order to supply the proposed IDC biofuels plant in Cradock which
has an envisaged capacity of 200 million litres per annum.
This initiative will reportedly require a R2.5billion government funding in order to
establish the biofuels plant and the cropping of 6,000ha of irrigated sugar beet
14,000 ha of dry land sugar beet and 60,000 ha of grain sorghum on lands belong
to emerging farmers as well as traditional communal lands. The sugar beet will be
taken directly to the Craddock biofuel plant whilst the grain sorghum will be preprocessed milled at regional Rural Enterprise Development (RED) hubs before
been transported to the Cradock biofuels plant for processing into bio-ethanol.
Figure 13: The Cradock bioethanol supply chain
According to the ECRDA[7] the production of ethanol using the above mentioned
supply chain is economically viable with a cost production of R4 per litre and R0.49
per litre for bioethanol from grain sorghum and sugar beet respectively. A detailed
case study as well as a detailed supply chain assessment for this proposed
initiative is attached to this report for reference.
The by-product from ethanol fermentation and distillation can be used for animal
feed or a biofertilizer and the stover from the grain sorghum production can be
ensilaged and used as an animal feed and / or a feedstock for biogas production.
Interview with Roger Maclachlan, ECRDA, October 2014.
Page 34 of 142

This presents the opportunity for the implementation of decentralised CHP plants
at the proposed RED hubs that will be established to mill the grain sorghum.
2.2.2.
Bioethanol Gel
Bioethanol gel is a long burning, smokeless, non-toxic fuel suitable for use in gel
burning stoves, and as such represents a safer
and cleaner alternative to traditional wood and
paraffin stoves.
The gel is normally produced from denatured
ethanol sourced from large centralised
bioethanol plants however, it can also be
produced easily at a community level using the
decentralised Akasha agri-hub model that was
piloted at the Fort Cox Agricultural College in
2013/2014 which made use of sweet sorghum
as a the biomass feedstock.
Figure 14: A decentralised bioethanol gel pilot production
facility at Fort Cox Agricultural College (Source: Akasha)
2.2.3.
Biodiesel
Biodiesel for vehicle fuel can be produced from the transesterification of raw or
used vegetable oil. Biodiesel used vegetable
oils is typically produced on a small scale (of
less than 500000 litres per year) and the
biodiesel product is sold directly in an
unblended form to private vehicle owners who
are not concerned that vehicle manufactures
will not honour the warranty of engines that use
biodiesel from these sources. There are a
number of small scale waste oil to biodiesel
producers in the province. The largest being
Greentech Fuels who produce 300,000 litres per
annum.
Figure 15: Filling up with biodiesel from Greentechs fill station in Port Elizabeth
(Source: www.mype.co.za)
The South African Biofuels Mandatory Blending Regulations gazetted in August

2012 require the mandatory blending of 5% biodiesel into diesel fuel from 2015
onwards.
In order to fulfil the 5% inclusion rate South Africa will need an
additional 1,41 million tons canola (704,000ha) or 2,8 million tons of soya beans
(1,408,000ha) annually to fulfil a 5% inclusion rate of the 2012 biodiesel demand
(Farmers weekly 2013).
Page 35 of 142

There are two major biodiesel projects under development in the province namely:
The Clean Tech Africa biofuels plant at Berlin near East London. This existing
and licenced facility has an output capacity of 170 million litres/annum. The
proposed feedstock is 594,000 ton of Soybean per annum from 297,000
hectares of land. Soyabean meal will be initially sourced imported and
sourced from local commercial farmers the feedstock supply will be
supplemented by feedstock grown and supplied by emerging farmers.
The proposed Phytoenergy biofuels plant the Coega IDZ. The proposed
plant will have a output capacity of 400Mlitres/annum. The proposed
feedstock is 1,1 million tons of canola a year that is anticipated to be
sources as follows:
o 60% of canola feedstock sourced from commercial farmers
o 40% of feedstock earmarked to be from communal lands where it
will be produced in rotation with maize and other cash crops.
It is reported that it will cost R4.5bn to realise the Phytoenergy biofuels
plant and the associated cropping of canola agrofuels on 220 000 ha of
communal land.
The production of biodiesel will also result in the production of two main useful by
products, namely:
High protein oil cake products: 60% of the processed soya and canola will
yield oil cake that can be used as an animal feed to reduce protein meal
imports.
Glycerine: 10% of the output volume is also a byproduct is a common
ingredient of many personal care items such as body and hand lotions and
beauty soap and is also found in foods where it is used as a humectant and
low G.I. sweetener. Other possible uses for the glycerol are the manufacture
Glycerine acetate, Acraldehyde, Epichlorohydrin, Propylene glycol, Ethylene
glycol. Discussions with biodiesel developer Cleantech Africa indicate that
they have the technical capacity at their Berlin facility to exploit the
Glycerine byproduct value chain.
2.2.4.
Biobutanol
Biobutanol is second generation alcoholic fuel that can be produced form

conventional bioethanol energy crops as well as non food crops such as switch
grass. It has an energy content closer to that of gasoline than ethanol and so it
can be blended with gasoline at higher concentrations than ethanol for use in
standard vehicle engines. Currently European regulations allow biobutanol to be
blended at up to 15% by volume and US regulations allow 16% by volume.
Existing Bioethanol distillation plants can be easily converted to produce
Page 36 of 142

biobutanol (BP 2014) making this an attractive proposition for product diversity
for the proposed Cradock biofuels plant.
2.3. Gas Biofuels

Biogas from the anaerobic fermentation of organic matter is the most common of
gas-based biofuels. Other forms of gas-based biofuels including bio-hydrogen are
considered as second generation biofuels and are as yet not commercially
available.
Biogas is a methane rich gas that is colourless and 20% lighter than air and burns
with a clear odourless blue flame similar to that of LPG. It has an ignition
temperature in the range of 650 degrees to 750 degrees C. Its calorific value is
22 Mega Joules per m3 and burns with 60 percent efficiency in a modified
conventional gas stove.
Table 1: The typical composition of raw biogas
Composition of biogas
Substances
Symbol
Percentage
Methane
CH4
50 70
Carbon Dioxide
CO2
30 40
Hydrogen
H2
5 10
Nitrogen
N2
12
Water vapour
H2O
0.3
Hydrogen Sulphide
H2S
Traces
Raw biogas produced directly from an anaerobic digester represents an incredibly

versatile fuel that can be produced and used directly for lighting, heating, cooking
and even power generation by ordinary rural households, municipalities and
industry.
Raw biogas can be upgraded to Biomethane (95% methane). Biomethane greatly
enhances the application of biogas as it is similar to natural gas can be injected in
to a natural gas grid or compressed and bottled for use as a vehicle fuel or for
combined heat and power (electricity) production.
The versatility of the
applications of biogas is represented in the diagram below.
Page 37 of 142

Figure 16: The versatility of biogas (Valorgas 2013)
2.3.1.
Biogas for heating and cooking
Household applications of biogas

Biogas has been used for over 3000 years as an effective fuel for cooking and
heating. There are now a number of examples in the province where householders
are producing their own biogas and using the gas to cook meals and heat water.
Figure 17: Clean burning biogas for cooking
It is estimated that there are 180,000 rural households in the Eastern Cape with
technical viability to participate in a rural biogas programme (these are the
households that inter alia have 4 cows or more, do not have access to grid
electricity, and are situated within a 1km radius of water) (AGAMA 2007). The
benefits of producing clean biogas cooking energy to rural householders include:
reduced safety risks from the elimination of paraffin stoves;
Page 38 of 142

reduced indoor air pollution from elimination of wood fires for cooking;
the provision of energy security and reduced monetary outflows for the
purchasing of other fuel sources; and,
the production of useful biofertilizer in the form of nitrogen rich mineralized
biofertilizer in the form of biodigested slurry (digestate).
Institutional application of biogas

Biogas can be used to provide an effective sanitation and bio-waste management
solution for schools, clinics, hospitals and prisons using appropriate technology in
the form of the integrated biogas and algal sanitation system technology that was
approved for rollout in the province after 12 years of extensive Water Research
Commission testing at the Institute of Environmental Biotechnology at Rhodes
University.
The application of this institutional use of biogas technology for cooking was
piloted at Three Crowns Rural School in the Chris Hani District Municipality in 2010
where it has demonstrated that biogas produced from the schools sewage, food
and garden waste can be used to provide gas energy for the cooking of school
meals and reduce expenditures on LP gas. The pilot has since been extended to
five other rural schools in the province and a case study outlining this system is
presented in this report.
Agricultural applications of biogas

Biogas from animal manures and crop residues can be used in agriculture for
cooking, heating and associated value added activities, such as cheese and
yoghurt making, pasteurization, etc. Heat energy can also be converted into
refrigeration energy and so it possible of biogas to be used to fuel refrigeration for
the preservation of agricultural product.
The use of agricultural biogas for heating is currently being piloted at the Fort Cox
agricultural college where it is used to provide heat for their pig stys in winter.
2.3.2.
Biogas for Combine Heat and Power
Biogas can also be used to fuel a combined heat and power (CHP) plants that can
produce electricity and useful process heat.
Page 39 of 142

Figure 18: One of two South African manufactured biogas fueled 250kW elec /310kWtherm
Combined Heat and Power plant fitted with exhaust heat capture at Uilenkraal dairy farm
in the Western Cape (Source CAE)
Applications for CHP Heat can also used effectively to dry vegetables and fruit as
is planned for the biogas CHP unit that is currently being installed at the University
of Fort Hare Agripark facility.
Other agricultural and industrial applications of the use of heat from a CHP
installation could include:
heating and humidity control for buildings such as paint shop environmental
conditioning required in the automotive industry;
heating of horticulture greenhouses, aquaculture, drying of wood wood,
heating for animal shelter, brewing, fermentation of ethanol, distillation,
sewage treatment, process heat (steam and hot water) for general
industrial applications.
heat energy can also be used for cooling in what is known as trigeneration
or Combined Cooling, Heat and Power (CCHP), and could be used to provide
refrigeration and cooling to dairies, retailers, servers/data centres and air
conditioning in buildings
Surplus electricity produced by a CHP plant can (in theory) be sold back to the
national electricity grid and surplus heat can also be sold to neighbouring
industries and buildings.
The diagram below shows the advantages of CHP over traditional heat and power
production. Electricity production from power stations is inefficient as the stations
are only 25-40% efficient (because they do not use the heat by-product) and there
are other losses due transmission of electricity to homes over long distances. CHP
represents an efficient and effective means of decentralised electricity production
Page 40 of 142

that includes heat production that can be very advantageous in terms of cost and
emission reduction.
Figure 19: Advantages of CHP over conventional power plants
CHP units require the partial upgrading of biogas to remove the corrosive Sulphur
elements. This is a relatively simple and low cost process that allows for biogas
the CHP plant to be directly coupled to the biogas digester as is the case with most
large agricultural or municipal biogas digester CHP applications.
Partially scrubbed biogas for CHP fuel can also be piped at low pressure (less than
0.2bar) to remote CHP plants and although this low pipeline pressure will not
trigger any the gas regulations, the piping of gas over a property boundary will
require a license under the Gas Act of 2008.
Industries that are not located next to a large biogas digester and who wish to use
biogas as a fuel source would need to make use of bio-methane (an upgraded
form of biogas) that can be compressed and stored for transportation from the
biogas facility to the point of supply or injected into a local natural gas grid.
CHP for embedded generation

The efficiencies of CHP to produce both heat and power make CHP and attractive
solution for industries such as the automobile, beverage, pharmaceuticals and
food processing industries wishing to reduce their electricity and heating costs.
Industries who wish to install CHP plants can do so provided they comply with
Eskoms Standard for the Interconnection of Embedded Generation which
essentially requires the utilization of an approved reverse current relay system to
restrict electrons from entering so as to ensure the safe and reliable operation of
the Distribution System. This essentially means that they will be able to remain
connected to the grid and whilst their CHP plant will be producing power to offsets
a portion of their electrical demand from the grid. The reverse current relay system
will ensure that no surplus power produced by the CHP is fed onto the grid.
Page 41 of 142

Connecting CHP plants to the grid

Connecting the Eskom grid: Under existing electrical distribution regulations, CHP
units can only sell their surplus energy onto the Eskom grid if they are greater
than 1MW in capacity and are licenced under the Renewable Energy Independent
Power Producer Procurement Programme (REI4P). As most biomethane fuelled
CHP units are typically less than 1MW in size they will generally not qualify under
the under the REI4P programme and so will not be able to connect to the Eskom
grid or sell their surplus power to Eskom.
The 26 municipalities in the Eastern Cape that are licenced to distribute electricity
and who have their own grids. CHP plants located within these grids are
theoretically able to connect and sell their surplus energy to the municipality. Most
municipalities, with the exception of the Nelson Mandela Bay Municipality (NMBM),
do not have the internal technical, legal and administrative capacity in place to
enable CHP units to feed surplus electricity onto the municipal grids.
The abovementioned restriction to grid access represents major barrier for entry
to market for the very efficient bioenergy solution and it is recommended that the
province addresses this by: (a) lobbying to Eskom and NERSA to allow smaller
CHP units to sell on surplus energy to the grid; (b) capacitating other
municipalities to adopt the mechanisms and procedures developed by the NMBM
to allow CHP plants to sell their surplus energy onto the municipal grids.
Pathways to market for CHP plants

The development of CHP sector is likely to take place through the establishment
of Energy Service Companies (ESCOs). These ESCOs would take responsibility for
the permitting, construction, running, fuelling and maintenance of the
cogeneration unit so that the customer or end user is released from operational
risks and capital intensive investment. The ESCO and the customer will sign a
contract, laying down the duration and particular client requirements and charging
will be agreed upon.
Besides the issues relating to selling of surplus energy onto the grid mentioned
above, a major barriers to entry for ESCOs is the lack of availability of the
bioenergy feedstock required to fuel the CHP plants. This means that the ESCO
would typically need to take responsibility for the development and production of
the specific bioenergy supply chain i.e. the biogas, biomethane, biodiesel, bioglycerine or woodchips or wood pellets if the CHP unit is to be fuelled by a gasifier.
2.3.3.
Biogas as a vehicle fuel
Biogas that is upgraded to Biomethane can be used to fuel conventional

Compressed Natural Gas (CNG) fuelled vehicles.
Page 42 of 142

There are a number of advantages for drivers switching to Methane fuelled (or
Natural gas) vehicles, namely:
Lower maintenance costs and longer service intervals as methane is a

cleaner burning than petrol or diesel fuel
Safer than petrol fuelled vehicles gas according to the Automobile
Association
No particulate, carbon monoxide, toxic and noxious emission compared to
that of petrol and diesel cars. The by-product from the combustion of
methane is water-vapour and carbon dioxide
Figure 20: Filling a mini-taxi retrofitted to run on methane fuel at the NGV fill station in
Gauteng (Source: CNG Holdings)
Most major vehicle manufactures now produce compressed natural gas (CNG)
vehicles that can run purely on compressed methane as well as dual fuel vehicles
allowing drivers to choose fill up with both petrol and/or methane. Existing petrol
vehicles can be retrofitted so that they can run on both petrol or methane as a
fuel source. Diesel vehicles need to be retrofitted so that the vehicle will run on
100% diesel or on a blend of up to 70% methane 30% diesel.
There are now more than 16.7 million Natural Gas Vehicles (NGVs) operating
worldwide. Natural gas can be used in all classes of vehicles motorcycles, cars,
vans, light and heavy duty trucks, buses, lift trucks, locomotives.
Page 43 of 142

Figure 21: Natural gas vehicles in operation world wide (IANGV 2014)
South Africa has lagged behind in the adoption of the natural gas vehicles and wilt
application limited to 110 methane fuelled taxis piloted by the IDC in Gauteng and
two methane and diesel duel fuel busses piloted by the City of Joburg.
Figure 22: Two City of Jo'burg busses converted to run on Methane
Biogas logistics fuel storage and transportation options

The best way to transport biogas is to pipe it from its point of production to its
point of use.
If this is not possible then biogas will need to be upgraded to bio-methane and
transported by truck or train as compressed biomethane (CBM) or Liquid
biomethane (LBM) to the desired point of use. CBM and LBM are the physical
equivalents of Compressed Natural Gas (CNG) and Liquid Natural Gas (LNG)
respectively, both of which are mature fuel storage technologies internationally.
Methane is a noble gas and is not compressed as easily as, for example, Liquid
Petroleum gas, and so to achieve a practical energy density biomethane is
Page 44 of 142

compressed to 200bar and stored in high pressure cylinders as Compressed

Biomethane (CBM) which is the equivalent to Compressed Natural Gas (CNG).
To improve the storage capability of methane it is possible to increase the energy
density by liquefying the methane gas at close to atmospheric pressure by cooling
it to approximately 162 C. In this form methane is commonly known as Liquid
Natural Gas (LNG) or Liquid Biomethane (LBM). LNG or LBM can be used as an
automotive fuel if stored inside on-board cryogenic tanks (vacuum-isolated
stainless-steel vessels) with a maximum transport pressure is set at around 0.25
bar pressure.
LNG achieves a higher reduction in volume than compressed natural gas (CNG) so
that the (volumetric) energy density of LNG is 2.4 times greater than that of CNG
or 60 percent of that of diesel fuel and the figure below provides a visual
comparison of the volumetric equivalence between diesel, CNG and LNG for a
given energy content.
Figure 23: Volume of equivalence of CNG (CBM), LNG (LBM) and Diesel (Source NFVA)
South Africa has some experience in the compression and transportation of

Compressed Natural Gas (CNG) where energy services companies such as CNG
Holdings are producing CNG from a point of connection on the Egoli Natural Gas
Grid and transporting this CNG in trailer form to industries who do not have access
to the Natural Gas grid.
Page 45 of 142

Figure 24: A trailer with a 5 ton payload of compressed methane (CNG) ready for shipment
to a point of use at a local industry in Gauteng (Source: CNG Holdings)
2.4. Biogas for wastewater and of sewage treatment

Municipalities can use the biological
resources in their wastewater and
sewage sludge can be digested to
produce gas which can be used to
municipal busses and waste collection
vehicles or to generate gas for industry
or to produce electricity to support the
electricity demand at the waste water
treatment
works
with
surplus
electricity fed onto the municipal grid.
Many existing wastewater treatment
works have reached an end of life or
are operating above capacity, which
creates an opportunity for municipalities to have biogas digestion incorporated
into their infrastructure upgrade plans through the Municipal Infrastructure Grant.
Page 46 of 142

2.5. Biogas and municipal waste recycling

The National Waste Management Strategy (NWMS) has outlined a number of key
sustainability linked goals including the promotion of waste minimisation, re-use,
recycling and recovery of waste and the growth of the contribution of the waste
sector to the green economy.
In this regard the following National targets have been set for 2016, namely:
The diversion of 25% of recyclables from landfill sites for re-use, recycling
or recovery.
The implementation of separation at source programmes in all metropolitan
municipalities, secondary cities and large towns;
The creation of 69 000 new jobs created in the waste sector with 2 600
additional SMMEs and cooperatives participating in waste service delivery
and recycling;
The strategy goes further to say that "municipalities will take
responsibility for diverting organic waste, which they can compost
or use in biogas digesters."
All municipalities are required to develop integrated waste management
plans to ensure that effective and efficient collection, processing and
recycling of waste. The position and biogas in the complexity of integrated
waste management value chain is shown in the diagram below.
INPUTS
PROCESSES
OUTPUTS
BUY BACK CENTRES
COMMUNITY OUTREACH
WEIGHING
PURCHASING
COMPACTING
WASTE GENERATION
BALING
MATERIALS
SOURCE
SEPERATION
MATERIAL
RECOVERY FACILITY
SORTING
COLLECTION
COMPACTING
BALING
LITTER
PICKING
WASTE
TRANSFER STATION
STORAGE
CLEANING
OF ILLEGAL
DUMPING
VALUE
ADDING AND
VALUE
RECOVERY
ANAEROBIC
DIGESTION &
COMPOSTING
Municipal Solid Waste
ENERGY
NUTRIENTS
CHIPPING
LANDFILL
COMPACTING
TREATMENT and /or

DISPOSAL
LEGEND:
PRODUCTS
OTHER
Separated Organic Fraction of Municipal Solid Waste
Figure 25: The bioenergy value chain (green) within an integrated municipal waste
management process
Page 47 of 142

2.6. Municipal waste bio-refineries

Biorefineries can be established as a cluster of bioenergy and biotechnologies in
an integrated facility as a means to convert multiple municipal biowaste resources
such as foodwaste, garden, refuse wastewater and sewage into useful energy and
byproducts.
Public
Transport
Heat
Wa
ste
Scrubber
wat
Biomethane
er
Process Water
Anaerobic
Digestion
s
op
Cr
gy
er
st
En
po
m
Co
Digested
sludge
Fo o
te
was
Industry
Biogas
Tree Nursery &

potting soil
High Rate Algae

Oxidation Ponds
Organic
fertilizer
Food and
Biofuel crops
Horticulture
and nursery
Bioprocess
Plant for the
extraction of
oils, biodiesel,
nutracueticals,
metabolites &
-carotene
Figure 26: Example of a biorefinery processing municipal biowaste into various energy
streams and nutrient streams
With the development of the bio-economy, it is anticipated that more focus will be
directed at nutrient beneficiation and the production of useful by-products from
conventional bioenergy production at municipal waste biorefineries. The Eastern
Cape Province is well positioned to take a leading role in the development of
important aspect of the bio-economy as it has the skills base in the form of the
Environmental Biotechnology research unit at Rhodes University could play a
major roll into the support of Research & Development and Demonstration (RD&D)
of these technologies and systems.
2.7. Biogas and community based source separated

waste collections
A key objective of the National Waste Management Strategy is specifically:
creating decent work through formalising the role of waste pickers and expanding
the role of SMMEs and cooperatives in waste management and in domestic waste
collection services.
Page 48 of 142

Biogas can play a major supporting role in the sustainability of community or

cooperative based collection of source separated waste as biogas produced from
collected organic waste can be used to fuel waste collection vehicles whilst the
nutrient rich by-product can be used to realise the full nutrient value chain through
the establishment of urban food gardens to produce valuable fresh produce for
sale back into the community.
The diagram below shows how bioenergy in the form of biogas could play an
important role in the value chain for community-based biowaste recycling
initiatives.
Source separated food waste collected from households

Anaerobic Digestion,
Composting and
Vermicomposting
Local food stall
Urban food gardens
Garden refuse and invasive vegetation chipped
Biogas for value

added processes,
refrigeration and
collection vehicle
fuel
Figure 27: The roll of biogas in community based organic waste recycling initiatives
(ELIDZ 2014)
The capacity of municipalities to support the implementation of these projects is

currently seen as a major constraint to the development and realisation of these
potential bioenergy opportunities. Options to address these barriers are discussed
further in section 8 of this report.
Page 49 of 142

3.
Quantifying the Bio-energy Resource
3.1. Existing Land cover

Only 1.2% of the total land cover in the Eastern Cape is cultivated for crops and
the majority of the uncultivated land is shrubland and fynbos (34.2%), and
grasslands (36.4%).
These grassland species are primarily suited for sheep, cattle and goat grazing. In
addition, the majority of grasslands in the Eastern Cape are classified as
moderately resilient. This means that excessive grazing can result in their
degradation. The impact of overgrazing is reflected by the 186 634 hectares of
shrubland and low fynbos that is classified as degraded, and the 1.3 million
hectares of grasslands that are classified as unimproved (i.e. grasslands that have
been overgrazed).
Of the 1.2% of total land use being used for cultivation only 32 400 hectares is
cultivated on a permanent basis (from year-to-year) while the remaining 1.36
million hectares is either used for temporary crop production (34.0%) such as for
the production of lucerne during periods of poor natural grazing, or for subsistence
purposes (66.0%). The split between dryland and irrigated production is estimated
to be 85-15.
There is a high incidence of degraded lands due to the low rainfall in the western
part of the province; farmers have to manage grazing land cover under very strict
and scientifically planned grazing patterns. This allows for enough rest of the
grazing veld and the ability of commercial farmers to maintain their animals during
the winter months. Likewise in the higher rainfall areas in the eastern part of the
province, forces farmers to manage their land well to prevent soil erosion due to
excessive runoff.
The biological productivity generally increases towards the east of the province
due to the increases in annual rainfall over this area. This would imply that the
eastern half of the province is best suited for bioenergy developments, however
as can be seen from Figure 28 below, there are also high levels of degraded lands
in this portion of the province. Certain bioenergy projects such as biogas and
gasification may have a role to play in the rehabilitation of these degraded areas
through the ability to return charcoal and nutrients back to the soil in the form of
biochar and biogas digestate.
.
Page 50 of 142

Figure 28: Existing landuse represented by land cover in the Eastern Cape
Page 51 of 142
homelands, the various government plantations were brought under the

new governments Department of Water Affairs and Forestry (DWAF). A
large new plantation was established inDRAFT

the Ugie/Maclear
SCOPING R EPORTarea by AngloAmerican Corporation, and this has recently been acquired by P G Bison.
3.2. Forestry related biomass
TableThere
1 shows
that 334
51%ha
of Forestry
the provinces
are privately
owned, as follows:
are 129
in the plantations
province which
are categorized
while 46% are state-owned (MTO and DWAF). 103 807 ha (81%) are Pine
Commercial forestry plantations (113 549 ha) which are either owned and
plantations. managed
Until recently,
the objective
plantations
by private
companiesof orthese
are state
forestswas
that the
are leased to private
companies
long
term (70
agreements.
production of
sawtimberthrough
over long
rotations
(25year)
yearslease
and longer).
With the
operationalisation
of the P G Bison chipboard plant in Ugie, the opportunity
Non-commercial state and community forestry plantations and communal
exists for the
rotation(15
length
some
the plantations
to by
be people
shortened.
woodlots
785ofha)
thatoftypically
are used
living adjacent to the
plantation
to source
building
timber,
fencing
and fuelwood.
Gum and wattle
species
are used
mainly
for local
building,
fencing and
The purposes,
table below
provides
an indication
the commercial
ownership of
the existing forestry
fuelwood
although
in some
areas theyofhave
uses,
plantations as well as the type of resource under state, private or community ownership.
mainly for treated pole manufacture.
Table 2: Ownership of existing forestry plantations (Source: DWAF 2007)
Ownership
Private
State
Community
Total
Existing Forestry Area (hectares)

Gum
Wattle
Other
Total
5811
15
1923
66481
13329
1206
306
59935
2361
556
2917
103827
21501
1777
2229
129334
Pine
58733
45094
Table 1 - Ownership
of Existing Forestry
Plantations
It is anticipated
that commercial
forestry
development will expected to expand by
100,000 ha in the Eastern part of the province over the next 20 to 25 year. While this
area of expansion is mainly owned by the state (in the legal sense as they lie within the
In addition
to the
information
tabled,
are many
areas in
boundaries
of the
former Ciskei
andthere
Transkei),
communities
arewhich
the de facto landowners
of
these
areas
under
communal
land
tenure
rights.
plantation species, mainly wattle, exist in unmanaged jungles. It is
estimated
from shown
discussions
with people
involved
in the forestry
sector thatexisting and future
The map
in Figure
29 shows
the extent
of the provinces
forestry
A large
majority
of the existing
are located on
therepotential
are around
5 000plantations.
ha of such trees
within
the province.
In someplantations
areas
the escarpment of the Amatola Mountains (near King Williams Town and Stutterheim),
thereMatiwane
is the potential
fell, re-establish
manage (Ugie,
such stands
(west of to
Mthatha),
Southern and
Drakensberg
Maclearfor
and Elliott) and other
smalleror
ranges
hills andwhereas
mountains.
Oneareas
large the
block
of plantations
commercial
other of
purposes,
in other
stands
may be is located in the
Tsitsikamma area in the southernmost region of the Eastern Cape. There are many
smaller plantations scattered in the areas formerly known as Ciskei and Transkei.
subject to environmental constraints.
The wide and scattered distribution of forestry plantations within the Eastern Cape
presents unique logistical and managerial challenges, as scale is an important factor in
management efficiency, risk profile and the profitability any potential biomass
enterprises.
Page 10
Page 52 of 142
EASTERN CMap
APE P2
ROVINCIAL
I MPLEMENTATION
- ExistingBIOENERGY
Plantations
and PotentialSUPPORT PLAN 2014/2015
Figure 29: Map of Existing and potential future forestry plantations
Page 53 of 142
Page 16

Firewood
An estimated 431,063 rural households use firewood as a primary sources of energy
consuming approximately 4.5tons/annum per household (ProBEC 2008). That is a
staggering 1,939,784 tons of firewood consumed per annum which is equivalent to
20,173,700 GJ /annum of energy [8].
Infield commercial forestry residues

Biomass residues are created during the pruning and harvesting of commercial forestry
plantations. It is estimated that over a ten year period forestry plantation can produce
24tons per ha of harvestable biomass in the form of brush and waste wood with a
diameter less than 80mm (ASPIRE 2010). This would mean that provinces 113,549 ha
of commercial forestry could potentially yield 272,000 tons per annum of infield biomass.
The removal of this forestry brush is seen as an advantage for plantation owners as it
reduces fire risks, however some environmentalists suggest that this practice of whole
tree harvesting will negatively affect soil carbon, fertility and ecology.
Sawmill waste
The existing commercial plantations produce an estimated 770 500 m3/annum of timber
which is processed in the following facilities:
1 000m per day particle board plant;

three large (>50 000 m3/a), efficient sawmills that produce high quality, softwood
lumber;
25% is processed by three medium (20-49 000 m3/a), and
39 small (<20 000 m3/a) sawmills.
It is conservatively estimated that sawmills produce about 0.33m3 of waste wood and
sawdust for every cubic meter of sawnboard product [9]. Most of this waste wood is
generally burnt onsite to provide heat for drying kilns and other processes. It would be
possible to utilise the estimated 67252 tons per year of sawmill waste wood more
effectively to produce both heat and power using through gasification (<2MW) or through
a steam boiler (>2MW).
Given the onsite heating and electricity requirements at sawmills it makes sense to use
this waste material to generate combined heat and power using steam boilers or
gasifiers. The current sawmill waste could be used to potential to produce 9.47MW of
electrical power using conventional steam based power plant [10]. The capacity of these
biomass plants could be increased fourfold through the incorporation of harvested infield
forestry residues as is the case with the proposed 10MWelec steam turbine plant that is
planned at the Rance Timbers sawmill at Stutterheim.
Chopped firewood (40% moisture content) has calorific value of 10.4MJ/kg.

Interview with Owners of Shank Sawmill in Melani Village.
10
Assuming 11559.14m3/annum of waste wood per MWelec capacity for a steam boiler based power
plant
8
9
Page 54 of 142

Biomass non-commercial state and community forest plantations

The existing 15 785 ha of state and community owned forest plantations and woodlots
could form a valuable source of biomass for bioenergy and as most of these forests are
in remote rural areas it is possible that these could be used to enhance energy service
provision and security to these communities. The National Department of Environment
is currently spearheading such initiatives where some community forests are managed
under the Working for Water Expanded Public Works Programme.
It is difficult to quantify the biomass availability for bioenergy applications as these
forests often harvested in an ad hoc manner by the surrounding community for poles
building materials and firewood. However, the potential availability of residual biomass
for bioenergy is estimated to be in the order of 37,884 tons per annum [11]. This biomass
could be chipped for export to as a boiler fuel or it could be used to fuel gasifier based
CHP plants at local agri-processing hubs or bio-villages.
The collective CHP generation potential of waste biomass residues from these community
forestry plantations is estimated to be 4MW capacity of electrical energy and 7MW
capacity for thermal energy [12], which is enough heat energy capacity to produce 28400
tons of dehydrated vegetables per annum.
Table 3: Summary of present and future forestry biomass and bioenergy potentials
Description of Commercial Forestry Biomass
Biomass
tons per Moisture
annum
content
Dry
weight
(tons)
Energy density
Bioenergy
Potential
(GJ/annum)
Existing biomass from sawmill waste
67,252
20%
53,802
19 MJ/kg (dw)
1,022,231
Future biomass from sawmill residues
126,479
20%
101,183
19 MJ/kg (dw)
1,922,486
Exisiting infield residues from commercial forestry
272,518
40%
163,511
10.4 MJ/kg (dw)
1,700,510
Future infield residues from commercial forestry
512,518
40%
307,511
10.4 MJ/kg (dw)
3,198,110
37,884
40%
22,730
10.4 MJ/kg (dw)
236,396
Infield residues from community forests

Totals
648,737
8,079,732
3.3. Invasive Plants and Bush Encroachment

Invasive Alien Plants (IAPs) are widely considered as a major threat to biodiversity,
human livelihoods and economic development. The department of Environmental Affairs
have a Working for Water (WfW) programme that focuses on removing and eradicating
this vegetative biomass as part of an Extended Public Works Programme (EPWP).
Based on a potential average biomass yield from brush and <80mm diameter branches of 2.4
tons per ha per annum.
12
Assuming 15372.4 m3/annum of biomass will fuel a 1MW gasifier that will also produce
1.748MW of thermal energy capacity.
11
Page 55 of 142

Figure 30: Mapping of Invasive Vegetation, Bush Encroachment, the WfW projects and Forestry Plantations (Source: DEA WfW 2014)
Page 56 of 142

The working for water programme is now investigating the viability of producing
woodchip fuel for the IDC owned palletisation plant at Coega, and a recent study by
Mugido, W. et al conducted by the WfW Programme shows that using woody IAP species
harvested by the WfW programme it is possible to produce a wood chip biofuel at the
cost of R31 per GJ which is lower than cost of coal at R49 per GJ.
According a recent Agricultural Research Council study in 2010, over 600 000 hectares
(condensed area) of the Eastern Cape are infested with black, green and silver wattles,
and 200,000 ha has been lost to invasive Australian gums. WfW is targeting a total of
349,000 ha of IAP for removal [13] and a recent study (Mugido, W. et al. 2013) indicates
that the typical average harvestable density for woody IAP biomass in the province is
62.5 tons/ha and so it can be inferred that the total biomass resources in the province
from woody IAP is in the order of 21,812,500 tons of woody biomass. This biomass
resource is spread across catchment areas that include public, communal and private
land and so there are a number of harvesting and logistics constraints that limit the
extent to which this biomass resource can be accessed and so it is assumed this total
IAP biomass targeted by the WfW programme will be harvested over a 30 year period.
Bush Encroachment is another potential source of biomass. Bush encroachment is the
increase in the cover and biomass of woody plants over time. In bush encroached areas
the grass production is low, often to the point where the ground is almost bare beneath
the trees. Bush encroachment is thus also regarded as part of the desertification process
since the increase in the extent and density of woody vegetation occurs at the expense
of other desirable grasses and forbs, resulting in an alarming reduction in agricultural
productivity.
Bush encroachment is a serious environmental problem in the Eastern Cape affecting
some 22,067 ha [13] of commercial & communal grazing which results in a direct impact
on the livelihoods of both commercial and communal farmers and their employees.
Invader bush presents positive opportunities of energy generation and the resultant
impacts of improved ecosystem conservation, greater biodiversity, poverty alleviation,
energy security and sustainable energy access. Based on experience of the CBEND
programme in Namibia it would appear that the harvestable biomass for bush
encroachment is 10tons/ha and that this resource could be harvested over a period of
30 years. Furthermore, the most appropriate methodology for harvesting this energy is
through the use of decentralised gasifier fuelled CHP plants range between 200 to 500
kVA.
Table 4: Total Bioenergy Potentials from Alien Invasive Vegetation and Bush Encroachment
Based on communications with Charles Hope from the Department of Environmental Affairs
Working for Water Programme.
13
Page 57 of 142

Total
Biomass
tons
IAP and bush encroachment

Alien Invasive vegetation
Harvetable
Biomass
(tons/
Moisture
annum)
content Dry weight (tons)
Energy density
Bioenergy
Potential
(GJ/annum)
21,812,500
727,083
40%
436,250
19 MJ/kg (dw)
8,288,750
220,760
7,359
40%
4,415
19 MJ/kg (dw)
83,889
Bush Encroachment
Totals
734,442
8,372,639
3.4. Energy Crops

To date the production of energy crops has been limited to small pilot trials that include
sugar beet at Cradock, Sweet sorghum at Fort Cox, and Dohne, grain sorghum and
canola in the Chris Hani District Municipality.
3.4.1.
Maize
The use of maize grain (corn) as an energy crop is not permitted under South Africas
biofuel regulations. There are however no restrictions on use of maize stover (crop
residue) as an energy crop.
Potential: Discounting current maize production by commercial farmers the ECRDA
estimates that there is a potential for 80,000ha of irrigated maize and 50,0000ha of
dryland maize cropping in the eastern half of the province.
Figure 31: Areas suitable for dryland maize cropping (in green) (Source EC DoA 2006)
Page 58 of 142

3.4.2.
Sugar Beet
Current production: Limited to the Cradock Pilot study that was completed in 2012.
Potential Production: 6000 ha of irrigated land and 14000ha of dry land cropping
identified in the Craddock region.
3.4.3.
Sorghum
Current Production: Limited to field trials

Potential production: The area 390,000 ha suited to dryland cropping of grain and sweet
sorghum of which 60,000 ha has been earmarked for the production of grain sorghum
for the Cradock biofuels facility using the ECRDA Mega farm concept where communities
combine there lands into a mega farm which is contract farmed to produce grain sorghum
for ethanol.
Figure 32: Suitability for dryland cropping of Sorghum (source DRDAR 2014)
3.4.4.
Canola
Current Production: Limited Field trials

Potential production:
planned
No quantified data available at the time of study, 220000 ha
Page 59 of 142

Figure 33: Canola production potential (shown in purple) (Source: EC DoA 2006)
3.4.5.
Soya
Current Production: Not quantifiable

Production Potential: 755199 ha (Blignaught, C and Taute M. 2010) of which 297 000 ha
has been earmarked by for the production of 594 000 ton of Soybean per annum t the
Clean Tech Africa 170kl per annum biodiesel production facility.
Figure 34: Soya production potential from dry land cropping (Blignaught, C and Taute M. 2010)
Page 60 of 142

3.4.6.
Perennial grasses
Perennial crops need far less energy to plant, require less fertilizer and pesticides, and
show a lower negative environmental impact compared with annual crops like maize &
sorghum. This makes the cultivation of perennial crops as energy crops more sustainable
than the use of annual crops. The conversion of perennial grasses into biogas is well
understood.
Perennial feedstock crops such as Napier grass provide the following benefits:
Perennial production to remove annual establishment costs

Flexible harvest timing during the year to improve feedstock supply logistics.
Ability to cut more than one per year.
Flexible harvest timing allows for multiple application times for digestate
biofertilizer
Napier fodder (Elephant Grass) is an

excellent high yielding, drought resistant
perennial grass that is grown extensively
in the Eastern Cape as windbreaks for
vegetable crops, It is a popular feedstock
for biogas plants in the USA where Napier
grass can yield as much as 40tons of dry
biomass per ha on irrigated lands or
17.8tons dry biomass on dry lands.
As with other biogas energy crops,
perennial grass can be preserved through
ensilaging to allow for continuous supply
of feedstock to the biogas facility
throughout the year.
Figure 35: Perennial Napier grass, can yield 40tons of dry biomass per annum
Although there is currently no agronomic assessment available for the potential Napier
Grass production across the province, Napier grass is a crop that is known to grow well
in the eastern half of the province.
3.4.7.
Summary & assessment of energy crop production
The energy yield per ha for each energy crop is shown in the graph below, indicating that
it makes more sense to target biogas crops and sugar beet production.
Page 61 of 142

Energy Poten al from Bioenergy Crops in GJ/ha

600.00
500.00
400.00
300.00
200.00
100.00
0.00
Biodiesel Soya
(dryland)
Biodiesel Canola (dry

land)
Ethanol Sugar beet

(irrigated)
Ethanol Sugar beet

(dryland)
Ethanol Grain
Sorghum
(dryland)
Bioethanol
Gel - Sweet
Sorgum
Biogas Sweet
Sorghum
(irrigated)
Biogas Sweet
Sorghum
(dryland)
Biogas Biogas Napier grass Napier Grass

(irrigated)
(dryland)
Figure 36: Energy crop potential per ha according to type
The table below provides a summary of the planned biofuels cropping in the province
with an indication of the subsidy cost to realise the project and the cost of this subsidy
in relation to the bioenergy produced.
Table 5: Summary of planned energy crop production in the Eastern Cape
Crop type
Biodiesel - Soya (dryland)
Biodiesel - Canola (dry land)
Planned
crop land
Yield
(kl/ha)
Total yield
(Ml/
annum)
Cleantech Africa
297,000
0.572
Phytoenergy
220,000
Project
GJ/ha
Investment
(R million)
Investment
per GJ
(Rands)
170.0
20.43
2,500.0
411.93
0.960
211.2
34.27
1,800.0
238.73
Ethanol - Sugar beet (irrigated)
Craddock
6,000
16.000
96.0
337.60
Ethanol -Sugar beet (dryland)
Craddock
14,000
8.000
112.0
168.80
473.0
200.14
Ethanol - Grain Sorghum (dryland)
Craddock
60,000
1.268
76.1
26.74
2,027.0
1,263.22
Ashoka
500
3.273
1.6
69.05
10.2
295.42
Biogas - Sweet Sorghum (irrigated)
Izimba Biogas
400
11225
4,490.0
401.03
89.0
554.82
Biogas - Dry land napier grass /

Sweet Sorghum
Izimba Biogas
750
6123
4,592.1
218.75
116.0
707.06
Bioethanol Gel - Sweet Sorgum
Note: The Cradock project investment cost was distributed across the area of cropped traditional and emerging farmlands
Page 62 of 142

Although the cost of investment for biogas and bioethanol gel bioenergy crops (reflected
in the table above) is higher than that of biodiesel from canola or ethanol sugar beet it
should be noted that the value chain ownership for biogas is completely captured by the
local community. This is not the case with Agrofuel production such as biodiesel and
bioethanol energy crops, where only a very small portion of the value chain is owned by
the local community who produce the crops and where they are essentially price takers
with very small margins of profit.
Biofuel production models such as biogas & bioethanol promote fuel sovereignty by
allowing communities to own the entire value chain from production to local end use.
Furthermore, biogas and bioethanol can be produced using sustainable practices such as
nutrient recycling of the digestate and stillage waste as well as the use of open pollinating
seed varieties, all of which serve to promote a regenerative and truly renewable
production system whereby inputs are minimised
The sustainable approach to biogas and bioethanol gel production can be extended to
production using small-scale agro-ecological farming systems, where a portion of the
land (between 15 and 25%) is set aside for energy crop production. This holistic
approach to biofuel production can lead to more jobs per ha, improved biodiversity,
reduction in agrichemicals, improved water utilisation and the promotion of both local
food and fuel security and even sovereignty.
Given the extent of land use change planned for biofuel production, consideration should
be given to both the value of bioenergy that will be produced per hectare as well as the
value of production of the biofuel that can be retained by the community.
For these reasons the development of biogas and bioethanol gel becomes an attractive
option to maximise bioenergy production, local ownership and the resulting economic
spin-offs with regards to local multipliers and reduced monetary outflows and local
energy security.
Page 63 of 142

3.5. Agricultural Waste

3.5.1.
Crop Residues
Crop residues such as maize and sorghum stover, and other leafy crop waste can be
ensilaged and codigested with a nitrogen rich feedstock such as chicken manure to
produce biogas. There is limited data available on existing cropping and activities in the
province, but the planned maize, canola, sorghum and soya cropping programmes
present an opportunity for the integration of biogas digester to process the agricultural
residues from these programs and to produce biogas for combined heat and power at
regional agriprocessing hubs and bioenergy villages or for use as a vehicle fuel.
The map in Figure 31: Areas suitable for dryland maize cropping (in green) (Source EC
DoA 2006) provides shows the 500,000ha of land suitable for dry land cropping of maize
and on communal and traditional lands in the East of the Province.
Although the above cropping potential is unlikely to be realised the ECRDA is focusing on
an integrated cropping regime targeting the copping of 220ha of communal lands for
canola and production as a winter crop with maize as a summer crop in order to source
canola oil for the planned Phytoenergy biodiesel production facility at Coega.
Figure 38: Areas suitable for the cropping of maize and canola (Source: EC DoA 2006)
Furthermore, the production of sugar beet and grain sorghum for the Cradock biofuel
plant presents further opportunities for the integration of biogas production into the
Provinces biofuels programme. The potential biogas energy production from the
provinces biofuels cropping residues is presented in the table below.
Page 64 of 142

ha of
dryland
cropping
Crop Residue
Maize stover
Grain Sorghum Stover
Sugar beet tops (irrigated land)
sugar beet tops (dry land)
residue
yield per ha total biomass
(tons dw)
(tons dw)
biogas energy
(GJ/annum)
220,000
5.00
1,100,000
1.062
12,347,874
60,000
4.00
240,000
0.850
2,694,082
6,000
2.80
16,800
0.441
139,841
14,000
1.40
19,600
0.221
163,148
Total Energy
3.5.2.
Tons
CH4 /ha
1,376,400
15,344,945
Animal Waste
Animal manures can be converted to biogas with the benefit that after digestion in an
anaerobic digester as much as 90% of the pathogens are destroyed, the odour is reduced
by at least 80% and the nutrients in the manure are mineralised and more readily
available for plant absorption and as such are an appropriate biofertilizer. The biofertilizer
potentials of biogas slurry (digestate) are an important option for farmers to reduce
fertiliser costs.
Dairy farms
Biogas from dairy waste: Discussions with biogas developers and dairy farmers indicate
that biogas to heat and power is only economically feasible for large dairies with 100%
manure capture at large dairy farms. There are currently no 100% manure capture dairy
farms in the province.
There are however opportunities for small scale dairy farmers practising the
agroecological methods of cut-and-carry methods which result in high manure capture
to produce biogas that can be converted into heat energy to produce high value produce
such as yoghurt and cheeses from their raw milk. There are currently no such dairy
farmers in the province.
Piggeries
Commercial piggeries can make use of biogas to process their piggery waste that is
considered hazardous waste by the Department of Water Affairs. The provinces
commercial pig farmers have an estimated 94380 pigs (DAFF 2012) that produce
estimated producing an estimate 644m3 of pig slurry per day with a 5.7% solids content.
This slurry could be digested to produce 115,560GJ of biogas energy per annum.
Chicken farms
Chicken manure is very rich in nitrogen that makes it a valuable source of nutrients for
farmers. Because of its high Nitrogen to Carbon ratio it is difficult to digest for the
production of biogas unless mixed with other high carbon feedstocks such as energy
crops like sweet sorghum.
Page 65 of 142

Rural households
There 180 000 rural households who have four or more cows and who are technical
capable of participating in a biogas programme (AGAMA 2008). The biogas produced
form these digesters will provide clean safe cooking and water heating energy services
for these rural households. This rollout of 180000 biogas digesters represent a collective
energy generation potential of 2,791,684 GJ per annum.
3.5.3.
Agro-processing wastes
Milling waste
Not quantified
Abattoir waste
Not quantified
3.6. Municipal waste

3.6.1.
Organic fraction of municipal waste
The expected biogas yield from the organic fraction of municipal waste (OFMSW) is
assumed to be 100 m3/t at 55% methane content (DOE 2014). A synthesis of the total
organic fraction of municipal waste generation based on waste production information
in the various local municipalitys integrated waste management plans has yet to be
completed. A preliminary high level assessment of the potential organic waste
generation indicates that: based on an estimate of 0.24 kg biowaste (foodwaste)
person/per day from the provinces estimated 2.943 million urban residents, the
province is generating about 257,807 tons of digestable organic waste per annum,
most of which is currently ending up in municipal landfills. This potential biowaste
resource would produce 552,634 GJ/annum of bioenergy, enough energy to fuel 5.1MW
of electrical generation capacity.
Experiences in cooperative based collections of source separated household waste [14]
show that it is possible to collect about 55% of this potential biowaste resource and so
divert a total of 141,794 tons/annum of digestable biowaste from landfill and generate
an estimated 303,948 GJ/annum in bioenergy
Bases on the experiences of the DBSA CoGTA CWP source separation pilot at 880 households
in Duncan Village at BCMM.
14
Page 66 of 142

3.6.2.
Sewerage
The average biogas potential at Wastewater treatment works (WWTW) in South Africa is
3
estimated to be 83m /ML wastewater at 65% methane content (DOE 2014). A

preliminary high level assessment of the total biogas potential from the provinces
estimated 2.943 million urban residents
[15]
with access to waterborne sanitation would
generate approximately 441ML of wastewater per day which would potentially amount
to 310,568.58 GJ/annum of embodied bioenergy in this provinces wastewater, enough
energy to fuel 2.9 MW of electrical generation capacity.
The trouble with such an assessment is that it does not take into account the economies
of scale required to warrant the production of biogas at a wastewater treatment works.
Most of the wastewater treatment works in the province are less than 15Ml in even large
populated areas such as BCMM have a decentralised WWTW infrastructure with 15 small
sized plants distributed across its wastewater catchment infrastructure.
It is generally considered economically viable to develop biogas projects at where there
is at least 140m3 per hour of biogas production per hour which can produce about 250kW
of electrical generation capacity. This would preclude most WWTW below 40Ml in
capacity. Any production of biogas at volumes below this 140m3 per hour threshold would
generally be flared or could be piped to local communities or use as a household cooking
gas at a limited number of households.
The wastewater treatment works with a capacity over 40Ml per day in the province are
listed below together with their energy production capability.
Table 6: Energy production potentials from WWTW over 40ML/day in capacity
Capacity
(Ml/day)
Biogas
potential
(m 3 /h)
Electrical
Generation
Capacity
(KW)
Bioenergy
Potential
(GJ/annum)
WWTW
Municipality
Fish Water Flats
NMBMM
132
457
900
92,865
East Bank
BCMM
40
138
250
28,141
Total
121,005
Smaller WWTW can however participate in bioenergy initiatives if they are linked with
energy crop production and wastewater produced from these facilities can be used for
irrigation to further enhance energy crop yields. Many WWTW are surrounded by
unutilised buffers of land that can be used to cultivate these energy crops.
15
Global Insight Data, 2013.
Page 67 of 142

Furthermore, the WWTW at many small towns and villages in the province are close to
their end of life and/or are over strained die to the increased rollout in waterboure
sanitation to communities and the eradication of the bucket system. This requires that
these WWTW be upgraded which provides for the possibility many small towns the
wastewater treatment works.
In this way, the provision of sanitation can be linked to bioenergy production and even
the form the basis for the establishment of bioenergy villages. For example if 200 ha of
irrigated energy crop production was established alongside the WWTW at a rural towns,
this would generate a total of 800,000GJ/annum of bioenergy, the equivalent of
1.84million litres petrol energy that could be used to provide for local vehicle fuel needs
and divert much needed inward investment (that would have been spent on importing
petrol) back to the town.
3.6.3.
Industrial Waste
No data, not quantified at the time of the study.
Page 68 of 142

3.7. Summary of Bioenergy Resource Potentials

The table and graph below present a summary of the bioenergy resource potentials for
the province showing current utilisation as well as future planned utilisation of these
resources.
Table 7: Summary of the Bioenergy Resource potentials in the Eastern Cape
Bioenergy Resource
Household firewood
Existing
Bioenergy
Resource
Potential
(GJ/annum)
Future
Bioenergy
Resource
Potential
(GJ/annum)
Existing
Planned (2015)
Bioenergy
Bioenergy
Resource
Resource
Utilisation
Utilisation
(GJ/annum) (GJ/annum)
20,173,748
19,342,287
20,173,748
19,342,287
Forestry
2,959,137
5,356,992
IAP & Bush Encroachment
8,372,639
8,372,639
1,900,000
252,288
Biodiesel crops
22,971,836
13,608,840
Bioethanol crops
14,819,058
6,027,982
Biogas crops
21,700,000
324,473
ECRDA crop residues for biogas
4,490,136
15,344,945
Biogas from commercial animal

farming manures
115,560
115,560
29,386
2,721,684
2,721,684
Municipal waste organics
303,948
303,948
28,688
Municipal WWTW large
121,005
121,005
42,211
39,257,858
111,169,954
Traditional livestock
Total
121
20,173,869
1,784
41,557,940
From the assessment above it is clear that there are major opportunities and gaps in the
utilisation of:
forestry waste residues;

invasive alien vegetation (IAP)s and bush encroachment;
biogas production from crop residues and agroecological farmed energy crops;
biogas from traditional livestock (kraal) manures;
Page 69 of 142

biogas from municipal waste; and, to a lesser extent,

biogas from the provinces two large waste water treatment works
The graph below presents a graphical representation of the above table, clearly outlining
the present and future bioenergy potentials form the listed resources as well an indication
of current and planned (2015) utilisation of these resources.
Present & future (2025) bioenergy poten als and u lisa on
Exis ng bioenergy
Current u lisa on
Future poten al
Planned u lisa on
Household firewood
Commercial forestry
IAP & bush encroachment
Biodiesel crops
Bioethanol crops
Biogas from agroecologicaly farmed energy crops
Biogas from ECRDA crop residues
Biogas from commercial animal farming manures
Biogas from tradi onal livestock
Biogas from municipal organic waste
Biogas from large (>40Ml/day) municipal WWTW
-
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
Tera Joules per annum
Figure 39: Existing and potential future (2015) bioenergy resources and utilisation in the Eastern
Cape
Page 70 of 142

4.
Market Demand
4.1. Domestic Energy and Energy Poverty

It is important to contextualize domestic energy and energy poverty within the socioeconomic situation of the Eastern Cape. In doing so, the need not only for generation of
energy for heating, lighting and other energy requirement are defined, but also the need
for additional infrastructure requirements are defined. In doing so, the need for an
integrated approach to bio-energy as a means of energy generation and as a means of
providing for other infrastructure requirements, e.g. sanitation and refuse removal, is
highlighted and considered in terms of proposed recommendations and interventions for
the province in terms of bio-energy.
A large portion of the nearly 7million people living in the Province reside in traditional
rural areas east of the province which also has a high biomass production capability. The
spread of the population across the different district municipalities, the associated
poverty levels and the usage and access to electricity is represented in the series of
graphs below.
Urban & Rural Population: 2013
100%
44 499
90%
155 322
68 344
80%
70%
3 740 838
522 994
60%
236 061
720 833
50%
1 226 699
1 148 226
40%
617 795
766 087
398 806
30%
20%
2 943 632
284 081
10%
120 719
175 163
156 837
0%
Eastern
Cape
NMBM
BCM
SBDM
ADM
Urban & Rural Population
CHDM
JGDM
ORTDM
42 005
ANDM
Rural Population
Proportion of Population living in Poverty (%): 2013

70,0%
65,7%
62,7%
60,0%
51,3%
52,7%
51,7%
51,2%
ADM
CHDM
JGDM
50,0%
41,2%
40,4%
BCM
SBDM
38,1%
40,0%
30,0%
20,0%
10,0%
0,0%
Eastern
Cape
NMBM
Page 71 of 142
ORTDM
ANDM

Number of Households by Electricity Connection: 2013
100%
90%
Department of Economic80%
Development, Environmental Affairs & Tourism
February 2013
70%
60%
2.2
50%
Drivers
for Change in Energy Carriers
40%
30%
20%
Globally, the
energy sector is in a phase of change from being largely fossil fuel energy based to Renewable
10%
Energy.
0%
South Africa is byEastern
far the NMBM
largest greenhouse
gas emitter
inCHDM
Africa and
the 15
largest in the world,
BCM
SBDM
ADM
JGDMamong
ORTDM
ANDM
Cape
accounting for 2% of global emissions with the average household responsible for 9,9 tons of CO2 just from
Electricity for lighting and other purposes
Not using electricity
electricity per year. Electricity for lighting only
The White Paper onElectricity
Renewable
Energy
provides
for thewithout
replacement
10 000 GWh of fossil fuel based
Backlog:
Number
of Households
Electricalof
Connection:
2013
electricity generation with Renewable Energy by 2013.
100 000
92 569
Government
and NERSA accepted the Renewable Energy Feed-in-Tariff (REFIT)
mechanism
during the latter
88 080
90 000
part of 2009, which allows for higher in-feed tariffs for electricity generated into the National Grid for
80 000
73 766
Renewable Energy generation sources in order to stimulate the introduction of Renewable Energy into the
70 000
energy mix of South Africa.
60 000
50 000
2.3
50 002
42 971
40 000
101
Eastern
Cape29 Province
Status Quo
30 000
20 000
28 739
16 886
About 12%oof
the c untrys
1 households (i. 5 m llion) are
o f und in the Eastern
a Cp e.
10 000
On average, the0 population growth of the province was approximately 2.5% from 2000 2008.
NMBM
BCM
SBDM
ADM
CHDM
JGDM
ORTDM
ANDM
By 2015, it is estimated that the Eastern Cape will have a population of about 7 million.
Figure
Socio-Economic
factors
relating
to household
energy
(Source:
It has40:
beenGraphs
projectedofthat
the Province requires
a sustainable
annual
economic growth
of ataccess
least 4.5%
to
Strategic EDGE Solutions calculations based on IHS Global Insight (2014)
accomplish the socio-economic transformation being planned for the region.
The total Eastern Cape Province electricity consumption in 2009 was about 8 000 GWh of energy.
According to the Eastern Cape Sustainable Energy Baseline Study there are over 400,000
Diesel and petrol are mostly used for transport, while about 50% of paraffin and about 85% of LPG are used
households without electricity and it is foreseen that it will take about 15 to 20 years to
by households as primary energy carriers.
address the combined backlogs in the province. As can be seen from the table below, a
Given that about 400 000 households are still without electricity, and comparing it with the current rate of
large
portion of these households are dependent on dirty energy such as open wood
electrification, it will take about 8-9 years to have universal electricity access in the Eastern Cape Province,
fires
paraffin
for their
cooking
and heating
requirements
.
justand
to existing
dwellings.
Including
new dwellings,
it is foreseen
that it will take
about 15 to 20 years to
address the combined backlogs in the province.
Table 8: Household access to energy for heating and cooking (DEDEA 2013)
ENERGY
COOKING (HOUSEHOLDS)
HEATING (HOUSEHOLDS)
Electricity
700 000
517 700
Gas
43 833
10 687
Paraffin
370 093
436 300
Wood
431 063
572 806
Coal
2 564
9 015
Animal dung
18 470
12 001
Solar
714
604
Other
1 140
27 648
Households access to energy for cooking and heating in Eastern Cape Province (Stats SA, 2007 Community Survey results
and data obtained from ECSECC)
Page 72 of 142

Bioenergy in the form of biogas and decentralised biomass CHP plants provides these off
grid communities with access to clean energy to address their energy needs.
An estimated 180,000 (45%) of the 400,000 households that do not have access to
electricity are technically capable of producing biogas in that they have cattle and access
to water. Given that householders typically spend around R100 to R300 per month on
fuel for heating requirements [16] this presents an opportunity for to roll out a subsidised
household biogas programme with contributions from householders, basic access to
energy subsidy from government and a carbon revenue stream from a programmatic
rollout under the Clean Development Methodology (CDM) as has been achieved in other
countries such as Rwanda.
A number of biogas digesters have been successfully piloted in rural communities across
the province and a coordinated approach needs to be made to ensure that the benefits
of this technology can be rolled out to the estimated 180 000 rural households in the
province who do not have access to the electricity and who are technically capable to
benefit from a biogas digester.
4.2. The Renewable Energy Independent Power Producer

Procurement Programme
Bioenergy has been allocated a total of 25MW of capacity under governments Renewable
Energy Independent Power Producer Procurement Programme (REI4P). Bioenergy
projects could also access a further 100MW of allocated grid connection under the Small
Projects (<5MW) category. To date, the only known project in the province that has
submitted a bid to participate in this programme is the 10MW Steam turbine project that
is under development at Rance Timbers near Stutterheim.
Table 9: IPP Procurement (Bid Window 1 and Bid Window 2) allocations under the REI4P
16
Based on results of group survey at two rural communities and the Choices-SA 2013 report
Page 73 of 142
3.5
Technology Allocation
The following table indicates the allocation cap and allocation for each bid window based on the Renewable
Energy Technology type.
ALLOCATED
RE TECHNOLOGY
ALLOCATION
CAP (MW)
BID WINDOW 1
MW
BID WINDOW 2
PROJECTS
MW
PROJECTS
CAP
AVAILABLE
(MW)
TOTAL
Wind
1850
634
562.6
1051.1
798.9
Solar (PV)
1450
631
18
417.1
1194
256
Solar (CSP)
200
150
50
200
75
14.3
14.3
60.7
Hydro
Landfill
25
25
Biomass
12.5
12.5
Biogas
12.5
12.5
Small Projects (<5MW)
100
100
3725
1415
28
1044
19
2459.4
1265.6
TOTAL
IPP Procurement (Bid Window 1 and Bid Window 2)
Eastern Cape Sustainable Energy Baseline Study
Chapter 3 :
Page 17
Sustainable
Energy Dataset
It should be noted however that participation in the REI4P is restricted to projects that
are over 1MW in capacity.
4.3. Local Government

Local government as potential off-takers of bio-energy is limited in its ability to enter
into a contract longer than three (3) years, in terms of the Public Finance Management
Act (No. 29 of 1999) and the Municipal Finance Management Act (No. 53 of 2003). This
may create difficulties in terms of the generator of bio-energy, as an off-take agreement
of three (3) years of less will not prove economically feasible.
Local Government however at its disposal large reserves of potential bioenergy feedstock
in the form of sewage sludge and the organic fraction of municipal solid waste (foodwaste and garden refuse. These resources could be used to provide electricity to offset
its own electricity requirements at wastewater treatment works as well as to offset its
fuel requirements for collection vehicles. This will invariably require potential for PublicPrivate Partnerships, particularly in terms of bio-digestion of wastewater sludge should
Page 74 of 142

be considered. This is further explored in terms of relevant legislation as included in the

PESTLE analysis.
4.4. Transport
The province currently consumes about 845Ml/annum of petrol and R635 Ml/annum of
diesel. All of these fuels are currently fossil fuel based and imported from outside of the
province with an estimated 60% of these fuels imported from outside of the South Africa.
The development of the biomethane vehicle fuel has the capability to displace these fossil
fuel imports and create a positive affect the national and provincial balance of trade
whilst reducing risks associated with oil price instability and the dependence on the
polluting liquid fossil fuel and it social, political and environmental externalities.
It is estimated that 110 000ha of bioenergy cropping of sweet sorghum or perennial
napier grass will produce enough biomethane energy to displace all petrol imports into
the province.
4.5. Industry
Industry requires heat, power and vehicle fuel, all of which can be supplied by bioenergy
through as follows:
the production of electricity to the grid,

embedded CHP generation for heat power and even refrigeration
fuel switching from LPG to biomethane
fuel switching of coal and HFO to biomass woodchips.
fuel switching to compressed biomethane for petrol and diesel vehicles
Besides consuming a large (unspecified) portion of the provinces transportation fuels the
commerce and industries in the Eastern Cape consume the following fossil fuels [17]:
Electricity: 4,643 GWh of electricity

LPG : 1.35Ml per annum
Heavy Fuel Oil: 24Ml per annum
Coal: 97,700 tons per annum
Data sources: Eskom 2009, South African Petroleum Producers Association 2008; compiled for
ELIDZ, 2009
17
Page 75 of 142

4.6. Export Demand

4.6.1.
Wood pellets market
Wood pellet fuel, initially used as a niche alternative to oil heating, has become a mature
and diverse market with applications ranging from home heating to displacing coal in
some of the largest power plants in the world.
Global wood pellet demand is rapidly expanding as consumers, businesses and regulators
look for alternatives to fossil fuels. Globally, wood pellet demand is projected to grow
from an estimated 23 million tonnes in 2014 to 50 million tonnes in 2024 (RESI 2014).
Figure 41: European wood pellet demand (Source: RESI 2014)
4.6.2.
Biodiesel from canola
European and North American demand for canola based biodiesel is high as biodiesel
from canola oil is suitable for use in cold winters as it has a low gelling temperature as
compared to other biodiesel oil sources. Canola (or rape seed oil) accounts for 58% of
the EU total biodiesel production in 2013.
Demand for biodiesel accounting for about 80% of total biofuels use in transport and is
predicted to stagnate at 12.28m litres, down 1.79m litres, or 12.7%, on its 2011 high as
a recent change in German biofuel accounting rules has led to a switching demand to
bioethanol, while other countries, such as Spain, have already reduced mandates for
biodiesel consumption.
Page 76 of 142

Figure 42: EU biodiesel production, imports and consumption 2000-2010, with 2008 feedstock
mix (ICCT 2013)
4.7. Bioethanol
Although the global market for bioethanol is rapidly expanding it is unlikely that South
Africa will meet its own bioethanol demand requirements in the foreseeable future and
as the strong local demand for bioethanol will outcompete the export market.
4.8. Biobutanol markets

Biobutanol, an emerging renewable alcohol, is well positioned for substantial future
growth. It is seen as a game changer as: an advanced biofuel - superior to ethanol in
and useable as a jet fuel and biogasoline, a valuable established chemical and solvent,
and gateway molecule to a wide range of chemical derivatives. Butanol is used
worldwide, with current global demand exceeding 1.2 billion gallons per year and valued
at over US$6 billion annually. This high valued market will be an early target for lower
cost biobutanol. As bioethanol plants can be adapted to produce Biobutanol this presents
additional market options to the proposed Cradock biofuels plant.
Page 77 of 142

5.
Current and proposed bioenergy projects
5.1. Biomass projects

Project Type
Project Name
Biomass Boiler
& Steam
Rance Timbers
Turbine
Location
Project Size
Feedstock
Land Use Change
Status
Whole tree harvesting

Under development,
on 5000ha of
REI4P bid submitted
plantations
Investment
10MW
Sawmill waste and

forestry residues
255kW
Waste wood from

local industries &
None
BCMM garden refuse
Under development
R5 million
required
Fort Cox
Agricultural
College
0.110MW
Invasive vegetation,
bush encroachment
and crop residues
Rehabilitate invasive
plant infested & bush
encroached lands
Under development,
seeking funding &
technical partner
R9 million
required
Saw mill waste
None
Pilot by Eskom and

University of Fort Hare.
R2.4 million
Adopted buy SANEDI EC
Bioenergy Cluster
Invasive vegetation
and community
forestry residue
Under development,
Repatriation of 180 ha
seeking funding &
of invasive wattle
technical partner
Stutterheim
Undisclosed
Gasifier CHP
Collectall waste
ELIDZ
wood gasifier
Gasifier CHP
Fort Cox
Biomass CHP
Gasifier CHP
Melani Village
gasifier
Melani Village
150kW
gasifier
Gasifier CHP
Ndakana Heat
and Power
Facility
Ndakana
0.25 MW
Wood chips
and wood
pellets
Bio Coal
Manufacturers Stutterheim
and Distributors
10 tons/day,
expanding to Invasive vegetation
100 tons /day and forestry residue
in 2015
plant infested lands
Producing 10 tons/day
for local industry fuel
switch
Wood pellets
EC Biomass
50 000 ttons
per annum
Invasive vegetation,
sawmill and forestry
residue
plant infested lands
Closed, IDC inestigating

options with Working for Undisclosed
Water
Coega IDZ
Page 78 of 142
R14 million
required
Undisclosed

5.2. Liquid Bioenergy Projects

Project Type
Project Name
Location
Project Size
Feedstock
Land Use Change
Status
Investment
Biodiesel
Cleantech Africa Berlin
170Ml/annum Soya
297 ha of soya sources

from commercial
farms supplemented
production from
Biodiesel
First in Spec
Biofuels
Coega IDZ
48 Ml /
annum
None
EIA in process
R250 million
Biodiesel
Greentech
Biofuels
Port Elizabeth
400,000 litres
Waste vegetable oil
per annum
None
Operational
Undisclosed
Under development
R4.5 billion
required
Biodiesel
Phyto Energy SA Coega IDZ
400 million
litres/annum
Bioethanol
Cradock
IDC/ECRDA
biofuels plant
290Ml /
annum
Cradock
Akasha
Hogsback /
Bioethanol gel
bioethanol gels Keiskamma
3Ml/annum
Imported waste
vegetable oil
Existing plant licenced to

produce 170Ml biodiesel R1.8 billion
required
per annum. Under
development
1.1million tons of
canola (40%
cultivated on
communal farms)
220 000 ha of
traditional communal
lands
Sugar Beet
60,000ha of communal
lands, 20,000 ha of
Under development
emerging farmer lands
R2.5 Bn
earmarked by
IDC & ECRDA
Sweet sorghum
500ha total of small

scale agroecological
stands in communal
areas
R2,5 million
invested. Total
investment
undisclosed
Pilot sweetsorghum
trials and ethanol gel
production at Fort Cox,
Agricultural college
A case study for this clean tech biodiesel project and the IDC/ECRDA Cradock bioethanol project is attached to this report. A
supply chain assessment of the IDC/ECRDA project is also attached for reference.
Page 79 of 142

5.3. Biogas Projects

Project Type
Project Name
Location
Project Size
Biogas CHP
Fort Hare Piggery University of Fort

Biogas Generation Hare Campus &
220kWe
Facility
Agripark
Biogas for
cooking of
school meals
Integrated biogas
& algal sanitation
system at schools
Biogas to
Electricity
Feedstock
Piggery waste
Land Use Change
None
Status
Under construction
Investment
R7 million grant
from DST
CHDM & ADM
sanitation and
6m 3
agricultural
digester at 30
Five school pilot

Wastewater, manure, 30 x 1000m 2
complete, funding for 30
foodwaste & garden agroecological gardens
R30 million
school roll-out secured
waste
established at schools
from EU funding
Fishwater flats
WWTW
NMBM
900kW
Sludge from 132

Ml/day wastewater
None
Feasibility Study
Unknown
Biogas to
Electricity
No 2 Piggeries
Cookhouse
250kWe
Piggery waste
None
EIA complete, waiting

for access to municipal
grid
Undisclosed
Biogas to heat
Cala Municipal
abattoir
Cala
1000m3
digester
30LSU abattoir solid

and liquid waste
None
Constructed but not

commissioned as
R2.5 million
abattoir not operational
East London
300m3 digester 100 LSU abattoir solid

with 80kW gas waste with energy
5 ha of energy crop
boiler
crop
Glenvictor meats
Biogas to Heat
abattoir digester
Household
biogas
Biogas digester
rollout at SANEDI
EC Bio-energy
Cluster
SANEDI EC
110 household
Bioenergy Cluster digester
Household
Biogas
ECRDA
Multiple
Household
biogas
University of Fort
Hare pilot
Household
biogas
WRC Household
biogas and
rainwater
harvesting study
Under construction
R600,000
Cattle manure and

crop residues
None
Pilot digester installed
R3.5 million
3 household
digester pilot
Cattle manure
None
Pilot by ECATU/ ECRDA
R200 000
Alice campus
1 household
digester
Various organic waste None
Research, Development
& Demonstration
Unknown
Machubeni
5 household
digester
Cattle manure
3 year study almost

complete
R450,000
Page 80 of 142
None

5.4. Biomethane projects

Project Name
Location
Project Size
Feedstock
Land Use Change
ELIDZ / BCMM
waste to energy
project
Wastewater & sludge

3800tons/annum
2nd Creek landfill
(diverted from marine outfall
of Biomethane to
None
site, East London
pipe), food waste, abattoir
industry (MBSA)
waste. + Landfill gas
Izimba Biogas
Great Kei
Great Kei
Municipality
8.5 tons
biomethane per
day
Sweetsorghum & Napier

grass
Izimba Biogas
ELIDZ
East London
8.5tons
biomethane per
day
Sweetsorghum & Napier

grass
Status
Investment
Biogas & landfill gas

technical feasibility
study completed.
R260 million (vs R300million

for deep sea pipeline to
achieve compliance for
unlicensed marine outfall pipe)
500ha commercial
farmlands
Under development
R90 million
750ha of degraded
pineapple farmlands
remediated
Under development
R117 million
The ELIDZ / BCMM waste to energy facility is a proposed biorefinery processing of municipal wastewater, sludge and organic
waste. It is proposed to be positioned at the landfill site at 2nd creek and so the production of biomethane can be supplemented
with scrubbed landfill gas. A DBSA technical feasibility study has been completed and an EU funded Energy & Environment
Programme bankability study for this facility including a technical institutional and financial roadmap will be finalised by the
end of 2014. The Eastern Cape Development Corporation has committed R1 million to cover the cost of EIAs, the Municipal
Systems Act Section 78 process and the necessary environmental authorisations.
This proposed facility will support the current cooperative based collection of source separated waste initiative that is being
rolled out to 13000 household in East London by the DEA EPWP, the ELIDZ and BCMM provides an opportunity for the feedstock
organic supply for biogas production. This aspect of the project is described in more detail in section 2.7 of this report.
Page 81 of 142

6.
PESTLE Analysis
6.1. Policy Environment

Government in South Africa is politically stable. The Republic of South Africa is a
democracy and the African National Congress has been democratically elected as the
ruling party both nationally and within the Eastern Cape.
Generally, there is political support for the development of the bio-energy sector in South
Africa, predominantly from a national government perspective. Various policies and
strategies relating to the promotion of the bio-energy sector in South Africa specifically
and Southern African generally confirm this support. These policies and strategies as well
as the regulatory authorities are outlined in subsequent sections describing the legislative
and policy environment related to bio-energy.
In terms of the Eastern Cape the need for alternate mechanism for energy generation,
particularly in the context of a large proportion of energy poor households in the
province, in appreciated and encouraged. This is evident in the commissioning of both
this study to identify support that provincial government may provide in the
implementation of bio-energy projects and concurrently the development of the Strategic
Environmental Assessment for Bio-energy in Eastern Cape. These studies will enable
policy and decision makers to make accurate and informed decisions related to bioenergy development and related support in the Eastern Cape.
Local government generally, however, often does not understand the bio-energy
economy and this gap in capacity may result in uninformed or misinformed decisions
being taken at local municipal level in terms of bio-energy developments or worse yet,
inactivity owing to lack of capacity. This is particularly apparent in the outsourcing of
management related to Wastewater Treatment Works (WWTW) that may include an
element of bio-digestion of wastewater sludge.
There are exceptions to this trend in the Eastern Cape. The Nelson Mandela Bay
Municipality has initiated the Small-Embedded Generation Programme. While this
programme currently only allows for the use of wind or solar generated energy, it paves
the way for the local municipal regulatory framework (as required by NERSA) for bioenergy generation. In addition, NMBM is in the process of considering both a landfill
gasification project and a project related to bio-digestion of wastewater at Fish Water
Flats WWTW.
It should be noted that although there is general government support for the promotion
of the bio-energy economy in South Africa, there are specific politically related issues
that will hinder the development of bio-energy nationally and in the Eastern Cape.
The food vs. fuel debate must be noted, particularly in the context of first generation
manufacturing of bio-fuels from agricultural crops. Food security is a national and
provincial government priority and it is unlikely that government will allow bio-fuel
Page 82 of 142

feedstock cultivation on arable land that may be utilised for the production of food. This
debate is on-going and must be noted particularly when considering first generation
production of bio-fuels.
Similarly, there exist in the Eastern Cape individuals who have sufficient influence over
communities and / or public sector officials to dissuade bio-energy developments if said
individuals do not personally benefit from the development.
It must be acknowledged that various developments, not specifically within the bioenergy sector, are hindered in the eastern half of the Eastern Cape owing to issues in
terms of land tenure and tribal vs. political authority. Land tenure remains a thorny issue
in South Africa and recent mutterings of proposed land redistribution have left traditional
commercial farmers concerned.
While not limited to the bio-energy economy, one cannot overlook corruption owing to
undue private and public officials self-interests. Corruption or perceived corruption in
the infant bio-energy economy may taint the sector and result in hesitance to further
development the economy, both from a private sector and public sector perspective.
While issues of land tenure, tribal authority and corruption are not unique to the bioenergy economy, these realities must be considered when conceptualising bio-energy
developments.
Provincial Renewable Energy Strategy that is endorsed and adopted by the Provincial
Executive Council in 2012. Includes the following provincial strategic energy priorities:
Provide an enabling environment for municipalities to promote/ purchase co-generation
and micro grid-connected RE generation
Provide an enabling environment for the attraction and establishment of RE generation
facilities in the province
Support innovation and research and development around sustainable energy
There is a large gap between the policy ideals and the implementation of these policies.
A case in point is the National Waste Management Strategy (NWMS) which outlines
number of key sustainability linked goals including the promotion of waste minimisation,
re-use, recycling and recovery of waste and the growth of the contribution of the waste
sector to the green economy. In this regard the following National targets have been set
for 2016, namely:
the diversion of 25% of recyclables from landfill sites for re-use, recycling or
recovery.
the implementation of separation at source programmes in all metropolitan
municipalities, secondary cities and large towns;
the creation of 69 000 new jobs created in the waste sector with 2 600 additional
SMEs and cooperatives participating in waste service delivery and recycling;
for municipalities to take responsibility for diverting organic waste to compost or
to biogas digesters; and,
Page 83 of 142

the creation of decent work through formalising the role of waste pickers and
expanding the role of SMEs and cooperatives in waste management and in
domestic waste collection services.
Very few, if any of the municipalities in the Eastern cape are likely to achieve these goals
by 2016 or have put action plans in place to attempt to meet these targets.
6.2. Economic opportunities and constraints

Bioenergy opportunities are diverse and the can be applied at different scales of economy
from mega projects such as agro-fuel production of conventional bioethanol and biodiesel
to the micro scale such as household biogas digesters. There are also opportunities for
medium scale enterprises such as energy entrepreneurs who wish to produce woodchip
fuel from alien biomass or bioethanol gel from the small scale production of energy crops.
The opportunity to cluster bioenergy production such as the production of combined heat
and power together with agri-processing facilities provides economy of scale and
efficiencies that can support local economic development.
Agro-fuels typically rely on high input costs (seeds, fuel and agrichemicals) for biodiesel
and bioethanol cropping, making farmers dependant on external price factors, reducing
profit margins per ha making it only financially viable to crop large portions of land.
The biofuels industry, accordingly to both public and private sector representatives is
only economically feasible with some level of discounting to the Basic Fuel Price (BFP) of
the competing mineral petroleum product. This practice is common internationally with
both Germany and Holland subsiding their respective biofuels industries. Recently
European countries have begun to decrease the subsidies for renewable energy, including
bioenergy, which has resulted in a decrease in the demand for energy generated from
renewable sources.
To date the only subsidy for bioenergy is in the form of the DoE Biofuel Subsidy for
bioethanol and biodiesel production. There are no subsidies to assist with the adoption
of bioenergy to meet the energy needs of off-grid rural communities, although it is
possible that these could be packaged together with the provision of basic services such
as sanitation. Furthermore, the basic access to energy grant for households (which is
conventionally applied to grid electricity at a rate fo 50kWh/ household/month) could be
used to support the financing of these initiatives.
The ability of bioenergy to displace energy imports will have a positive effect on the GDP
and balance of trade of the province. The displacement of crude oil based liquid fuel
imports through the production of biodiesel, bioethanol and compressed biomethane will
have a further positive effect on the National GDP.
Page 84 of 142

Financial mechanisms to support bioenergy production are available to developers,

however funders such as the IDC have indicated that there is currently a lack of
financially feasible proposals from bioenergy developers.
Biofuels economics are optimised when logistics and costs are minimised. Therefore, the
Department of Energy has proposed that preferred off-takers, excluding own use by
producers and directly by consumers close to biofuels generation plants, will be via the
existing oil industry at the depots, or refineries closest to the biofuels plants. These
refineries are located in Cape Town, Secunda, Sasolburg, Mossel Bay and Durban (which
has two refineries). The Department of Energy purports that using the existing oil
industry will assist in ensuring quality control.
6.3. Social Environment

Most of the areas in the eastern half of the province with the highest biomass production
potential are predominately traditional communal rural lands that are subjected to
traditional land allocation which provides householders have level of land use and land
protection but not the right to individual property and tittle deed ownership.
The proposed Communal Land Tenure Policy aims to transfer communal land titles to
traditional councils, stating that government will delegate certain governance
responsibilities to traditional councils. This places traditional leaders at the centre of land
management and land allocation that may result in issues regarding the equitable
allocation of land and ownership rights to bioenergy projects and the social issues such
as jealousy and sabotage that may result. The continued lack of clarity on communal
land tenure reform and land allocation issues creates uncertainty for property rights, and
hence bioenergy and other agrarian development.
Social acceptance of change: Bioenergy is not just about getting the technology mix right
but also ensuring that proper consideration is given to the social soft issues that relate
to the adoption of the technology buy the communities on the ground. An example of
this is the Melani Village gasifier, whose full benefit has not been realised by the
community as the implementation has been constrained by issues regarding the
establishment of an appropriate institutional structure that reflects community ownership
and which is acceptable by the broader community. The main lesson learned is that the
overcoming technical barriers is only one portion of the work, and that better planning
and attention needs to be given to addressing the soft issues of community participation
and acceptance of the ownership, operation and beneficiation of the bioenergy
infrastructure installed.
The social impact of Bioenergy interventions has yet to be measured; the implications
are that there is the potential to change peoples lives for the better, while bringing
enterprise development opportunities and improved livelihoods. Cradock Bioethanol
Project is where lessons should be taken from and learnt, Nasterlack 2013, interviewed
Page 85 of 142

both emerging and commercial farmers over a range of issues related to socioeconomic
and environmental controversies.
There are several highlights illustrated (Nasterlack 2013) in the Cradock Social and
Environmental study; poor communication and transparency, lack of trust, beneficiaries
(emerging farmers) not trained properly, deterioration of the farms granted to the
beneficiaries and a host of complaints that need to be addressed.
The development opportunity and potential in the Eastern Cape region cannot be ignored,
it is a matter of how the change in land use is introduced to the impoverished
communities; there is very little room for land use change in the commercial farming
areas west of the Kei River, this leaves the areas east of the Kei River, where vast tracts
of land lie fallow and underutilised. History has shown that there are land ownership
issues that have sabotaged well planned and well intentioned initiatives. Until this is
resolved, there will be constant conflict and investment opportunities lost.
It appears that the bottom up approach, via co-operative mechanisms, and appropriate
technologies that the bioenergy sector would be more likely to succeed in this
environment.
Furthermore, communication and transparency between farmers and government, as
well as within involved departments were believed to be poor. This was confirmed by the
Cradock Department of Agriculture, a state agent involved in the purchase of commercial
farms, and a representative of ARDA, who said that the government officials only see
what they have to see, they dont have the overview (Nasterlack 2014).
The emerging farmers often lacks support, information, infrastructure and resources to
succeed as a Biofuel feedstock producer; he needs ongoing, medium term training to
become a sustainable feedstock producer a complex problem which needs urgent
attention.
6.4. Technological
The slate of bioenergy under consideration in the 2014/2015 bioenergy implementation
support planed technologies is presented in section 2 of this report.
These first generation bioenergy technologies are generally considered as technically
mature, however there is little experience in the adoption of these technologies in the
province. These knowledge gaps can be addressed knowledge through comprehensive
knowledge and skills exchange programmes with other countries who are at an advanced
stages of bioenergy development. This should include capacity and skills building of
energy developers, entrepreneurs, farmers, technicians and artisans as well as capacity
building within local municipalities to promote the utilisation of municipal biowaste
resources in local bioenergy initiatives.
Page 86 of 142

Supply chain issues: Harvesting, treating, transporting, storing, and delivering large
volumes of biomass feedstock, at a desired quality, all-year-round, to a biofuel
processing plant requires careful logistical analysis prior to plant investment and
construction. Supplies need to be contracted and guaranteed by the growers in advance
for a prolonged period in order to reduce the project investment risks. The aims should
be to minimise production, harvest and transport costs and thereby ensure the economic
viability of the project. Supply logistics will become more important as development
accelerates and competition for biomass feedstocks arises. Reducing feedstock delivery
and storage costs should be a goal since feedstock costs are an important component of
total biofuel costs.
Page 87 of 142

6.5. Regulatory/Legal
This section provides an overview of relevant legislation and the regulatory implications
for developments broadly and points to legislative issues that should be considered and
where necessary addressed in the development of bio-energy initiatives.
There are various policy perspectives and legislation that are relevant to bio-energy
developments in the Eastern Cape. There is specific legislation related to bio-energy as
a sector and legislation related to development in general. Legislation and policies related
to both is outlined in this section.
6.5.1.
Policy prerogatives
The (previous) Department of Minerals and Energy published the White Paper on
Renewable Energy in November 2003. The White Paper noted that the medium-term
target for government, in terms of the renewable energy is as follows:
10 000 GWh renewable energy contribution to final energy consumption by 2013, to be
produced mainly from biomass, wind, solar and small-scale hydro. The renewable energy
is to be utilised for power generation and non-electric technologies such as solar water
heating and bio-fuels. This is approximately 4% (1667 MW) of the projected electricity
demand for 2013 (41539 MW).
The White Paper notes biomass as a source of renewable energy as follows:
Heat and electricity generation: Co-generation of electricity in the industrial sector

from biomass in the bagasse and pulp and paper industries is currently taking place
but this is used on-site and not exported to the national electricity grid because of
the low price of electricity generated from coal.
In many of South Africas neighbouring states charcoal is used extensively as a
domestic fuel. In South Africa however charcoal is currently used mainly in the
recreation, catering and metallurgical industry, leaving scope for its further
exploitation.
Bio-fuels: Various crops can be fermented to produce ethanol (ethanol gel fuel) and
sunflower seeds and Jatropha tree nuts crushed and processed to yield bio-diesel.
South Africa is dependent on importing crude oil for its liquid fuels requirements.
Considerable scope therefore exists to supplement imported petroleum with bio-fuels
with their job-creation spin-offs.
The White Paper explicitly notes that biomass production for energy should not compete
and or conflict with food production.
In addition, the White Paper notes that in South Africa, transport fuels make up 30% of
energy consumption (by energy content) and 70% of energy consumption (by value).
Page 88 of 142

Therefore the transport sector is an important energy sector to consider the development
of renewable energy sources and technologies.
Following the publication of the White Paper on Renewable Energy, the most significant
policy development in terms of the bio-energy economy is the Biofuels Industrial
Strategy published by the (previous) Department of Minerals and Energy in 2007. The
strategy notes that the biofuels programme has the potential to uplift agricultural sectors
and to unlock substantial economic benefits in sub-Saharan Africa and other developing
regions, in particular by:
Attracting investment into rural areas;

Promoting agricultural development;
Import substitution of foreign oil with balance of payment savings; and
Overcoming the trade distorting effects that South Africa, African subcontinent and
other developing countries have faced overtime because of subsidised agricultural
production in developed countries.
The strategy maps out significant legislative and policy developments that seek to
promote bio-energy generation in South Africa:
2003: The Petroleum Products Amendment Act, (Act No. 58 of 2004), authorises the
Minister of Minerals and Energy to require licensed liquid fuel wholesalers and
producers to supply and sell petroleum products made from vegetable matter. This
is an important legislative vehicle for the biofuels development in the country.
16 February 2005: The United Nations Framework Convention on Climate Change
(UNFCCC) and its related Kyoto Protocol comes into effect. The Kyoto Protocol obliges
industrialised countries (known as Annex 1 countries) to reduce their greenhouse
gas emissions by at least 5% compared to 1990 levels over 2008 to 2012, primarily
by investing in cleaner technologies in developing countries. South Africa acceded to
the Kyoto Protocol in March 2002. Although the Kyoto Protocol does not commit the
non-Annex 1 countries (like South Africa) to any quantifiable emission targets, there
is potential for future, low-cost emission reduction options in these countries. The
Clean Development Mechanism (CDM) provides for trade in certified emission
reductions (CERs) between non-Annex 1 countries and Annex 1 countries and thus
supports sustainable development with respect to greenhouse-gas emissions
reduction in developing countries. At the same time it helps Annex 1 countries to
comply with their Kyoto Protocol commitments. Biofuels projects may apply for
carbon emission reduction credits via mechanisms such as fuel switching.
2005: The National Treasury approved the increase of the Fuel Levy exemption for
biodiesel from 30% to 40%. The exemption was introduced in 2003. SARS allows for
100% exemption for small biodiesel producers (less than 300 m 3 annually). Biofuels
investments also qualify for a tax-depreciation write-off of 50:30:20 percent over
three years. This equates to support of about 10 cents per litre.
2005: A Department of Science and Technology (DST) led Bio-diesel Joint
Implementation Committee conducted a detailed examination and concluded that
government supported biodiesel production can be justified due to its environmental
Page 89 of 142

and socio-economic benefits.

July 2005: The National Treasury released a Discussion Paper on Environmental
Taxes, which proposed an extension of the fuel levy exemption incentive to
bioethanol, and that the basis for incentives should be linked to external benefits.
September 2005: The National Treasury approved a Renewable Energy Capital
Subsidy Scheme administered by the DME. In 2006/7. The Subsidy provides for 16.7
c/l subsidy for bioethanol and 27.3 c/l for biodiesel, up to a maximum of R20 million.
However, cost competitive world scale projects typically require an investment in the
order of R1 billion. Effectively this proposed support amounts to 2% of the required
investments.
2006: The DST supported the South African Bureau of Standards to develop the
required analytical and technical capacity to perform bio-fuels analysis.
2006: The Cleaner Fuels Programme phased-out leaded petrol and reduced sulphur
in diesel to a maximum of 0,05% (mass). Regulations gazetted under the Petroleum
Products Amendment Act in June 2006 in support of this programme included a
specific allowance for biodiesel addition and mandates fuel specifications according to
South African National Standards (SANS). SANS has finalised specifications for
biodiesel and fuel ethanol, and is developing a standard for ethanol gel fuel. The
standards are in line with European, United States of America and Japanese
standards. These countries were selected because the automotive industry is
dominated by manufacturers from these markets. The revision of standards and their
deployment fits in with the measures proposed in this document, which will enhance
the development of cleaner fuels into the South African petroleum pool.
The Biofuels Industrial Strategy set the scene for the development of the draft position
paper on the South African Biofuels Regulatory Framework, published by the
Department of Energy in January 2014. Notable implications of the strategy include:
The Biofuels Industrial Strategy recommended that a 2% penetration level of

biofuels into the national liquid fuels (petrol and diesel) pool needs to be achieved
by (2008 2013) but the framework notes that this is not logistically possible and
therefore recommends a penetration between 5% and 10% in some geographic
areas, but mostly limited to inland areas
The Mandatory Blending of Biofuels with Petrol and Diesel (know as the Mandatory
Blending Regulations) was promulgated on 1 October 2013. This gave effect to the
Biofuels Implementation Committee (which includes representatives of the oil and
biofuels industry, Transnet and is chaired by the DOE) to deal with all issues related to
blending biofuels with petrol and diesel from August 2013.
The Biofuels Pricing Framework and Reference Crops incentivise the production of
bio-fuel has commenced. The framework proposed a 50% General Fuel Levy exemption
for biodiesel manufacturers and an acceleration of depreciation of manufacturing facilities
as a tax incentive.
Page 90 of 142

Bio-fuels manufacturing
NEMA
Bascic Assessment or Environmental Impact
Assessment
Department of Environmental Affairs
Petroleum Products Act License (manufacturing
or wholesale or site and retail license)
Office of the Controller of Petroleum Products
Land Use Authorisations:

Eastern Cape LUPO
Provicial Government
Spatial Development Framework
Local municipalities
Subdiviaion of Agricultural Land Act
Water Use Licence

Department of Water Affairs (Regional)
Generation License
NERSA
Biofuels Pricing Framework and Reference Crops
Department of Energy
The pricing models for the incentive is based on reference crops and form the basis of
determining the incentive. Grain sorghum (bio-ethanol) and soya beans (bio-diesel) are
currently the only two reference crops
The incentive is calculated using a Return on Assets (ROA) of 15%, which is deemed
sufficient to reward investors. The incentive is the difference actual market related
earnings and the earnings required to achieve ROA of 15% for the benchmark plant.
Page 91 of 142

The Criteria to Qualify as a Beneficiary under Governments Biofuels Subsidy

Scheme included in the Biofuels Regulatory Framework and includes the following
standards, criteria and indicators:
Table 10:
Standards
Contribution to liquid
industry transformation
fuels
Facilitation of social inclusion
Protection of agricultural land

rights
Positive contribution to rural
development
Criteria
Mandatory
ownership
by
Historically
Disadvantaged
South Africans (HDSA)
Mandatory part sourcing of
biofuels feedstock from small
holder farmers and other
farming HDSA
Prior written consent from land
owners to participate in biofuels
programme
Appointment of labour
Mandatory spend on SMMEs
Avoidance
threats
of
food
security
Protection
resources
of
scarce
natural
Prohibition
of
diverting
commercial
farmlands
to
biofuels feedstock production.
Avoidance of deforestation
Page 92 of 142
Indicators
A minimum 25% ownership and
control
of
biofuels
manufacturing plant by HDSA.
Combined minimum of 10%
feedstock sourced from small
holder
farmers,
emerging
farmers and HDSA farmers
within four years of start up
plant operations
Legally sound consent form
signed by the land owner
Bio
fuels
manufacturers
feedstock supply contract must
contain a clause stating that a
minimum
of
70%
labour
procured
from
the
South
African citizens (if available)
appointed
in
agricultural
activities.
A combined minimum of 10%
unskilled, semi and skilled
labour procured from the South
African citizens (if available)
appointed in manufacturing
plant
Percentage of the annual
procurement spend of the
manufacturing plant on local
SMMEs,
Co-operatives
and
community initiatives.
Type and qualify of training
afforded local SMMEs, Cooperatives
and
community
members.
Letters to the Department of
Agriculture
Forestry
and
Fisheries (DAFF) confirming the
feedback has been / will be
planted in Designated Areas
and not in currently productive
commercial farmlands (save for
land acquired through the land
restitution and other redress
programmes).
The supply contract shall
contain a clause that stipulates
a prohibition of clearing of trees
(and
indigenous
trees
in
particular)
for
feedstock
production unless agreed to in
writing by relevant authorities
e.g. the Department of Water
Affairs (DWA) & DAFF, etc.

Standards
Criteria
Controlled
irrigation.
Ability to produce sustainability
biofuel
feedstock
Demonstrate the commitment

to establish a biofuels plant and
be
financially
sustainable
(continue as a going concern.
Indicators
Letters from DWA approving
the use of irrigation water for
biofuel feedstock production.
Detailed
motivation
for
irrigating
biofuel
feedstock
without negatively impacting
the countrys constrained water
resources.
An EIA Record of Decision must
be in place.
Letters of intent/MOUs from
debt and equity funders to be
provided covering the full
investment
Summary business plan to be
provided.
In addition, general eligibility criteria include that a producer must:

Be licensed in terms of the Petroleum Products Act (No. 120 of 1977)
Comply with criteria in the table
In terms of Petroleum Products Act license applications for the manufacturing of biofuels
are to apply to the Office of the Controller of Petroleum Products.
In terms of government support for manufacturers of bio-fuel the criteria have been set
to ensure that each initiative benefits the macro-economy to justify subsidies. The
incentives will be awarded on a first come first serve basis and determined based on
production (litres of biofuel blended), as opposed to plant capacity. The framework notes
that the revision of subsidy mechanism for penetration greater then 2% to ensure food
security and environmental integrity in necessary.
The incentives will be funded through the General Fuel Levy that is to include a levy for
the subsidization of the manufacturers of biofuels. The Department of Energy will
disburse the incentive to qualifying manufacturers, in terms of criteria to be developed,
in conjunction with National Treasury and the South African Revenue Services (SARS).
6.5.2.
Regulatory Authorities
In terms of regulatory authorities, the following authorities and related mandates are
relevant to bio-energy developments and initiatives:
Department of Energy:
o Independent Power Producer Procurement Programme
o Regulator of Biofuels Pricing Framework and Reference Crops
National Energy Regulator of South Africa
o Licence to generate, transmit or distribute energy
Office of the Controller of Petroleum Products
o License to manufacture biofuels
Page 93 of 142

Department of Economic Development, Environmental Affairs and Tourism

o Environmental Impact Assessment authority
o Waste Management authority
o Environmental Impact Assessment (renewable energy projects)
Department of Water Affairs
o Water Use Licence
6.5.3.
Regulations for bio-energy generation, transmission
and distribution
This section outlines regulation in terms of generation, transmitting or distributing bioenergy both in terms of the Department of Energys Independent Power Producer
Procurement Programme (REI4P) and generation independent of the REI4P.
The Department of Energy (DOE) launched its Renewable Energy Independent Power
Producer Bidding Programme in August 2011, whereby independent power producers are
invited to submit proposals for renewable energy power generation. To date four
windows have been opened and closed.
In terms of section 34 of the Electricity Regulation Act, the Minister of Energy made
3,725 MW available for renewable energy generation: 3,625MW was made available for
large scale renewable energy project and 100MW has been reserved for small projects.
There has been limited response to the Request for Proposals in terms of bio-energy.
In addition to the REI4P, bio-energy developments must be registered with the National
Energy Regulator of South Africa. In terms of the Electricity Regulation Act (No. 4 of
2006) the National Energy Regulator of South Africa (NERSA):
No person may, without a license issued by the Regulator in accordance with this Act,
Operate any generation, transmission or distribution facility;

Import or export any electricity; or
Be involved in trading.
Page 94 of 142

Renewable Energy Independent Power Producer

Procurement Programme
Department of Energy
NEMA
Basic Assessment / Environmental Impact
Assesssment
Atmospheric Emissions Licence (AEL) for
biomass and biogas
DM / Metro & DEDEAT
Waste Management Licence (WML) for
biomass, biogass and landfill gas
DEDEAT
Eastern Cape LUPO

Subdivision of Agricultural Land Act
Submission of bid
DOE
Water Use Licence
Power Purchase Agreement
Eskom
Generation License
NERSA
Major Hazard Installation Registration

Local municipality
There are exceptions to this, as noted in the Act as follows:
Any generation plant constructed and operated for demonstration purposes only
and not connected to an inter connected power supply
Any generation plant constructed and operated for own use
Non-grid connected supply of electricity except for commercial use
Page 95 of 142

NERSA has made provision for municipalities to manage embedded generation within
municipal borders, given that the generation does not exceed 100kW. Therefore the
generation of bio-energy within a municipal boundary that does not exceed 100kW need
only register with the relevant local authority.
In addition NERSA is responsible for Piped Gas Regulations, which must be adhered to in
the transmission and distribution of bio-fuels.
6.5.4.
Regulations for private bio-energy developments
In terms of bio-energy developments, such developments would need to comply with

regulation related to development generally. This includes adherence to the following:
National Environmental Management Act (No.107 of 1998) (NEMA). The Environmental
Impact Assessment (EIA) process in terms of NEMA:
Requires a developer/applicant to subject a listed activity to either the Basic

Assessment or Scoping and EIA process, depending on the nature of the listed
activity;
Requires a developer/applicant to evaluate the activity he/she intends to undertake
and to consider the environmental impacts of the proposed activity/development
and to consider alternatives and mitigation measures that will reduce those
environmental impacts;
Provides the public with a meaningful opportunity to understand and comment on
the proposed activity;
Provides the government decision-makers with important information to assist them
in deciding whether to approve or deny the Application for Environmental
Authorisation to proceed with the activity.
Gives Interested and Affected parties the legal right to participate in the EIA process.
The main stakeholders/parties involved in the Environmental Impact Assessment
process are:
o The applicant/developer (the party requesting the authorisation);
o The Environmental Assessment Practitioner (the party managing the
process on behalf of the Applicant);
o The Competent Authority (based on the outcome of the EIA process will
either grant or refuse the requested Environmental Authorisation). In the
case of renewable energy projects, the National Department of
Environmental Affairs is the competent authority; and
o Interested and Affected Parties.
Page 96 of 142

Private Bio-Energy Developments
NEMA
Assesssment
Atmospheric Emissions Licence (AEL) for
biomass and biogas
DM / Metro & DEDEAT
For waste water sludge
Air Pollution License
Disposal site Authorisation & Permit
DEA
Waste Management Licence (WML) for
biomass, biogas and landfill gas
DEDEAT
Land Uase Authorisations:
Eastern Cape LUPO

Water Use Licence
Department of Water Affairs (regional)
Generation License
NERSA
Major Hazard Installation Registration
Local municipality
The EIA requires that, inter alia, the following is considered:
Waste licensing: Waste disposal sites are controlled under Chapter 5 of the National
Environmental Management: Waste Act, 2008 (No. 59 of 2008). Technical guidance on the
development, operation and monitoring of waste disposal sites is provided through
Government's Minimum Requirements.
Page 97 of 142

Of particular importance is the Guidelines for the Utilisation and Disposal of Wastewater
Sludge, most notably Volume 5: Requirements for thermal sludge management

practices and for commercial products containing sludge.
This guideline notes that DEA is the lead authority in terms of the implementation of
the National Environmental Management Air Quality Act (No.39 of 2004) (NEM-AQA).
However, regulation of activities such as combustion has been delegated to provincial
and local government level. Thus the licensing authority is the metropolitan or district
municipality or a provincial organ of state where this function has been delegated. Air
quality is not the only aspect related to incineration with legal requirements. These
aspects include:
Sludge handling and storage area: sludge may only be present at these areas
for short periods at a time, but on a continuous basis. Therefore, in effect these
areas are considered disposal areas and must have the applicable permits
according to the Environmental Conservation Act
Ash handling: the residual of incineration is ash. The ash may have elevated
concentrations of metals, depending on the quality of the sludge that was
incinerated, and should be considered as hazardous waste until proven
otherwise.
The guidelines note the following regulatory considerations:
Air quality
Applicable Act
Governing
Practice
Authorisation
Required
Lead authority
Regulatory
Instrument
Regulatory
Atmospheric
Pollution
Prevention Act
(APPA) (Act No. 45
of 1965,
Second Schedule)
National
Environmental
Management Air
Quality Act (NEMAQA) (Act No.39 of
2004)
Air Pollution Licence
Sludge storage
area
Environmental
Conservation Act
(Act No. 73 of
1989)
National
Environmental
Management:
Waste
Management Act
Disposal site
Authorisation
(Section 20 permit
or exemptions or
directions)
DEAT
Ash handling
Conservation Act
(Act No. 73 of
1989)
National
Environmental
Management:
Waste
Management Act
Disposal site
Permit
(Facility bound)
DEAT
DEA (or delegated
organ of State,
Provincial or Local
municipality)
Disposal site
Disposal site
Air Pollution
Registration
Permit
Permit
Certificate
Sludge guidelines (Volume 5) and/or Ambient Air Quality
Guidelines and/or
Page 98 of 142

Guidelines
Minimum Requirements (Latest edition)
Water use license: The National Water Act (No. 36 of 1998) governs optimal
management of national water resources. All water users who are using water for
agriculture: aquaculture, agriculture: irrigation, agriculture: watering livestock,
industrial, mining, power generation, recreation, urban and water supply services
must register their water use. This includes the use of surface and ground water.
Applicants must contact the Regional Office of the Department of Water Affairs. A
signed Registration certificate will be issued to successfully registered water user.
Cape Land Use Planning Ordinance (Ordinance 15 of 1985) (LUPO): Land-use

management and zoning is managed at municipal and provincial levels. The Eastern
Cape is governed by the Cape Land Use Planning Ordinance and individual
municipalities also having their own regulations, zoning systems and procedures in
terms of their respective Spatial Development Frameworks.
Some developments will require legal rights to use the land for the project and in most
cases alongside these legal rights will be the securing of various planning and land-use
permissions including:
Subdivision of Agricultural Land Act (No. 70 of 1970) for the subdivision of land
change of land use
A requirement of all these laws procedures is that the applicant must either be the owner
of the land in question or have the written consent of the owner. If the applicant wishes
to own the land then obviously he or she will need to engage in the purchase of that land
by way of commercial transactions with existing land-owners.
Other important considerations in terms of LUPO include the National Heritage
Resources Act (No. 25 of 1999).
It is important to note that the need for an environmental authorization in terms of NEMA
is triggered both by the change of the land use and, in most cases, the subdivision of
land (a subdivision of subdivision of portions of land 9 hectares or larger into portions of
5 hectares or less will trigger an EIA). Environmental authorisation, in terms of NEMA, is
required prior to land use changes and / or subdivisions.
One additional significant issue related to land is the related land claims. There is
a specific land claims process in South Africa which was established to provide redress
to individuals or communities who were dispossessed of their land after 1913 due to
racially motivated legislation. The Commission on Restitution of Land Rights (CRLR) and
the specialised Land Claims Court were established in terms of the Restitution of Land
Rights Act (No. 22 of 1994) as amended, in order to finalise land claims. The process is
managed by regional Land Claims Commissions and allows for three mechanisms of
Page 99 of 142

redress: land to be returned to original owners; alternative land to be provided; or a

comparable cash payment to be made in lieu of land. It is possible that some land being
considered for renewable energy development may have land claims pending.
The deadline for the submission of all land claims has passed, however not all these
claims have yet been verified, registered and compensation granted in terms of the
required process. Therefore in considering the lease or purchase of a parcel of land
developers should ascertain whether a land claim exists on that land. The existence of a
land claim does not necessarily preclude the use of that land for a development but does
raise certain issues which developers should be aware of. A land owner can also negotiate
with the land claimants around future land use. For example, land could be leased from
land claimants after a claim is settled. However, it should be noted that there may be
restrictions imposed upon the sale of land after a claim has been granted. Further, care
needs to be taken in ensuring that any agreement entered into is entered into with the
correct land-owners or their representatives.
6.5.5.
Regulations for public bio-energy developments
This section applies to developments for which local government may be a significant
partner in the bio-energy development, most notably where local government services
related to waste management will be implicit. In this instance, the Municipal Structures
Act (No. 117 of 1998) guides the determination of the implementation agent for delivery
of municipal services related to waste and / or water management.
Section 76 of the Municipal Structures Act (No. 117 of 1998) (MSA) states that a
municipality may provide a municipal service through either an internal or external
mechanism. An external mechanism includes a municipal entity, another municipality,
an organ of state, a community-based organisation or other non-governmental
organisation (NGO), or any other institution, entity or person legally competent to
operate a business activity. Thus it is permissible to provide a municipal service through
a public-private partnership (PPP) agreement with a private sector entity.
Section 77 of the MSA describes the points at which a municipality should review and
decide on a mechanism to provide a municipal service. These occasions include when an
existing municipal service is to be significantly upgraded, extended or improved; when
the municipality is restructured or reorganised in terms of the MSA; when review is
required by a provincial or national intervention; when a new activity is to be undertaken;
when requested by the local community; when a review of the integrated development
plan requires a review of the delivery mechanism; or when a performance evaluation
requires a review of the mechanism.
Page 100 of 142

Public Bio-Energy Developments
Section 78 Assessment
Municipal Systems Act
Public Private Partnership
Municipal Finance Management Act
National Treasury
OR
Public Public Partnership
Public Management Finance Act
NEMA
Assessment
For waste water sludge
Air Pollution License
Disposal site Authorisation & Permit
DEA
Waste Management Licence (WML) for biomass,
biogas and landfill gas
DEDEAT
Eastern Cape LUPO
Water Use Licence
Generation License
NERSA
Major Hazard Installation Registration biomass,
biogass and landfill gas
Local municipality
Page 101 of 142

In terms of Section 139(1) of the Constitution, it is possible for a provincial government

to take charge when a municipality fails to fulfil an executive obligation. This would be
possible if the Eastern Cape Provincial Government were to resolve that a municipality is
not carrying out its waste management obligations adequately, or at all. The intervention
may take place by way of a directive setting out what needs to be done and corrected,
or alternatively by the provincial authorities assuming responsibility for the obligation.
The Constitution does not afford national government the right to intervene in local
government matters. However with regard to waste management installations operated
by local government the national Department of Environmental Affairs is the licensing
and regulatory authority in terms of the National Environmental Management: Waste Act
(No. 59 of 2008). An intervention by national government could therefore be in the form
of a compliance notice or directive, a license withdrawal, or a prosecution under this Act,
or alternatively a High Court application for an interdict to stop polluting activities or to
mandate appropriate waste management practices.
Section 78 of the MSA provides that when a municipality undertakes an MSA section 77
review of its delivery mechanisms, it must first assess the provision of that activity
through an internal mechanism, after which it may decide to explore the delivery of that
activity by an external mechanism. If the municipality decides to explore service
provision by an external mechanism, it must also conduct a feasibility study.
Section 78(1) sets out a mandatory evaluation process which municipalities must
undertake once it is determined in terms of Section 77 that a service delivery mechanism
must be extended, upgraded or improved, or there has been provincial or national
government intervention which requires this.
Section 78(2) prescribes what must happen after the Section 78(1) evaluation has been
conducted. Essentially it states that a mechanism must be decided upon to provide the
service, but only after the possibility of providing it through an external mechanism has
been explored. Thus it is mandatory for municipalities to give consideration to external
service delivery mechanisms. In reality, particularly with large infrastructure projects,
municipalities will often not have the financial or human resources to utilise internal
service delivery mechanisms, may not wish to embark upon ventures in which they lack
experience and which may carry financial risk.
Section 78(3) sets out the process that must be adhered to when the possibility of
external service delivery mechanisms is being explored.
[P]ublic-private partnership is defined as a commercial transaction between a
municipality and a private party in terms of which the private party performs a municipal
function for or on behalf of a municipality, or acquires the management or use of
municipal property for its own commercial purposes, or performs both a municipal
function for or on behalf of a municipality and acquires the management or use of
municipal property for its own commercial purposes and assumes substantial financial,
technical and operational risks and receives a benefit from performing the municipal
Page 102 of 142

function, from utilising the municipal property or from both

From this definition it is apparent that a municipal PPP is conceptualised as a commercial
contract, which suits both the municipality and the private entity. For the municipality,
it is a means to create necessary infrastructure and to perform essential services. For
the private entity, it is a commercial opportunity, and sometimes an opportunity to gain
access to municipal resources and to use these optimally for commercial gain.
Public-private partnerships (PPPs) are a useful vehicle for large infrastructural projects
of organs of state which provide essential services, but for which the relevant organ of
state lacks both the financial resources to build the infrastructure and the capacity to
manage the project once it is in operation. However it should be noted there is generally
not an appetite for PPPs as the process, as governed by National Treasury is long and
onerous.
The Municipal Service Delivery and PPP Guidelines published by National Treasury in
2012 deal with feasibility assessments for both Section 78 and PPP purposes and indicate
clearly that the technical feasibility assessment may be done separately from the other
parts of the investigation.
Section 120 of the Municipal Finance Management Act (No. 56 of 2003) is the
empowering provision granting municipalities the authority to enter into PPPs and
section 120 notes the following:
120. (1) A municipality may enter into a public-private partnership agreement, but only
if the municipality can demonstrate that the agreement will(a) provide value for money to the municipality;
(b) be affordable for the municipality; and
(c) transfer appropriate technical, operational and financial risk to the private party.
It is specifically provided in Section 120 (3) of the MFMA that if the proposed PPP involves
the provision of a municipal service, the provisions of Chapter 8 of the Local Government:
Municipal Services Act must also be complied with. Thus for the project at hand, the
Section 78 MSA processes remain mandatory whether or not the project actually
proceeds as a PPP. From a strategic perspective, if a project requires a Section 78 MSA
process and is envisaged as a potential PPP, it makes sense, both financially and in terms
of limiting the duration of the planning phase of the project, to ensure that the feasibility
study done for Section 78 purposes also meets the mandatory criteria for a PPP feasibility
study.
The Municipal Service Delivery and Public Private Partnership Guidelines explain that
there are two types of PPPs:
Where the private party performs a municipal function; or
Page 103 of 142

Where the private party acquires the use of municipal property for its own
commercial purposes.
A PPP may also be a hybrid of these types.

It is important to note that the tests of affordability, value for money and transfer of risk
are guiding principles that apply throughout the PPP process. The Municipal Service
Delivery and PPP Guidelines describe value for money as follows:
The performance of a private party in terms of the agreement will result in a net
benefit to the municipality in terms of cost, price, quality, quantity, risk transfer
or any combination of those factors.
The PPP Regulations provide clear direction as to how a PPP must be established,
in distinct phases.
It is important to understand that the PPP rules and processes as laid out in the MFMA
and the PPP Regulations do not permit a municipality to participate in a Special Purpose
Vehicle. A Special Purpose Vehicle (SPV) may be a desirable vehicle for the private party
to create, or alternatively the private party could be a multi-disciplinary consortium. At
the time of tendering for the public-private partnership contract, it is up to each bidder
to determine how to structure the bidding entity in a way most favourable to the parties
involved, in compliance with the bid specifications.
If a SPV would be predominantly state-owned, which means that it would have to be
established as a public entity in terms of Chapter 6, read in conjunction with Section 1,
of the Public Finance Management Act (No. 1 of 1999), the contract between the SPV
and the government would then be a publicpublic partnership and not a publicprivate
partnership.
Public sector procurement is governed by the Preferential Procurement Policy Framework
Act (No. 5 of 2000) (PPPFA). This forms the basis of respective provincial and municipal
Supply Chain Management (SCM) Policies. Should provincial and / or local government
wish to procure bio-energy as a source of energy and / or fuel, the relevant organ of
state would have to follow supply chain management policies to procure such goods and
services.
In addition to the PPPFA, provincial and local government finances are managed through
the Public Finance Management Act (PFMA) and the Municipal Finance Management Act
(MFMA) respectively. When considering provincial and local government as an off-taker
of bio-energy generation, it is important to note that the PFMA and the MFMA both restrict
provincial and local government from entering into a contract for more than a contract
period of three (3) years.
Page 104 of 142

6.5.6.
Other relevant South African legislation
In addition to legislation governing the bio-energy economy and developments in terms

of bio-energy, the following South African legislation must be adhered to in terms of
either piloting or commercialisation of any development:
Occupational Health and Safety Act (No. 85 of 1993)

Basic Conditions of Employment Act (of 1997)
6.6. Environment
Some forms of bioenergy do not meet their claimed environmental benefits because the
biomass feedstock may not always be produced sustainably (e.g. agrofuel monoculture
with heavy fertilizer, herbicide and pesticide use). Issues include:
extensive herbicide usage which is linked to a decline in species, particularly

amphibians and soil microorganisms and human health issues;
promote large scale monoculture crop production which potentially has a negative
impact on biodiversity;
compete for scarce water resources in some regions; and
additional uncertainty has also recently been raised about GHG savings if indirect
land use change is taken into account, interns of carbon soil losses. A recent EU
study indicates that on the whole land use emissions for the entire EU biofuels
eliminate more than two thirds of the direct emission savings that result from
biofuel usage (IFPRI 2011).
The transformation traditional communal landuse to large-scale agroefuels production is

linked to opportunity costs for the affected communities that result from the loss of viable
productive land that could have been used for more productive and climate resilient
agroecolgical farming as well the numerous environmental, health, social and cultural
externality costs that are associated with the transformation of peasant farm land to
large-scale green revolution cropping practices
One of the ways to mitigate against environmental concerns is through the use of
sustainable biofuel certification programs. Certification scheme standards address
environmental issues but also other sustainability criteria, such as economic and societal
aspects.
There a number of international initiatives. The FAO-supported Global Bioenergy
Partnership (GBEP) (2011) identified in total 24 sustainability indicators of bioenergy:
eight indicators for each pillar of sustainability: environmental, societal and economic.
These indicators were selected in terms of their relevance, practicality and scientific
basis. Their aim is to guide domestic-level bioenergy analyses and facilitate sustainable
bioenergy development. Following the agreement on these 24 indicators, a number of
countries started developing projects to test their applicability for policy making.
Page 105 of 142

Another international initiative has been undertaken by the International Organization

for Standardization (ISO) through the project committee ISO/PC 248 for the
development of Sustainability Criteria for Bioenergy (ISO 13065). The aim of this
standard is to prevent the harmful effects of bioenergy on the environment and society.
The target date for publication of this standard is mid-2015.
There are also voluntary global initiatives, such as the Roundtable on Sustainable
Biomaterials (RSB), which brings many stakeholders including farmers, companies,
NGOs, governments and inter-governmental agencies together for the sustainable
production and processing of biomaterials. This initiative covers both biofuels (i.e., liquid
biofuels, biomass and biogas for power and heat generation) and biomaterials (e.g., biochemicals). The aims of the initiative are: 1) to provide and promote global standards
for sustainable production and conversion of biomass; 2) to ensure that users and
producers have credible, practical and affordable certification; and 3) to support through
standards the continuous improvement of bioenergy applications.
Another important initiative is the International Sustainability and Carbon Certification
System (ISCC), a government-financed certification system of sustain-ability and GHG
emission savings of biomass.
In 2013, the United Nations Industrial Development Organization (UNIDO) prepared a
set of guidelines to help developing countries mitigate the negative impacts of liquid
biofuel projects on the environment and society. This report identifies 11 indicators which
could be used for rating projects. With regard to environmental impacts, GHG emissions,
land and water use, and biodiversity-related indicators are covered.
In addition to certification schemes and standards addressing different stages of the
bioenergy supply chain, there are many initiatives that focus specifically on feedstock
sustainability. For example, the Forest Stewardship Council (FSC) and the Sustainable
Forestry Initiative (SFI) are two examples of forestry certification and standards. The
Sustainable Agricultural Network (SAN), and the Roundtable on Responsible Soy are
related to the agricultural sector.
Certification and standards are vital to ensure the sustainable supply and use of biomass.
Implementing them for all forms of bioenergy and incorporating them (e.g., life cycle
GHG emissions savings) into renewable energy policies will also impact future bioenergy
trade,
As renewable policies develop over the coming years, sustainability criteria for bioenergy
will be more comprehensively incorporated. This will require the production of
commodities that fulfil such criteria. These commodities will either be locally produced
or else, as countries rely more on international trade, imported. As a result, countries
will either need to develop and implement technologies to produce bioenergy
commodities complying with certain sustainability criteria or else risk losing their share
of the global market.
Page 106 of 142

7.
Ranking of bio-energy options

Ranking Criteria
Wood
chips
Wood
Wood
Steam
Charcoal Gasifier
pellets
turbines
(CHP)
Biodiesel
BioHouseBioBioethanol
hold
ethanol
butanol
gel
Biogas
Agricultural
Biogas
BioBioMuniBiomethane methane
cipal methane
for
vehicle
Biogas
CHP
industry
fuel
Ease of Implementation
Low Technology Complexity
3
1
2
1
1
1
1
2
0
3
2
1
1
1
1
Technology Maturity
3
3
3
2
2
3
3
3
0
3
3
3
3
3
3
Low Skills Requirements or Existing Skillset available
3
1
3
1
1
1
1
2
1
3
1
1
1
1
1
Enabling Policy & Regulatory Frameworks in Place
3
3
3
1
2
3
3
2
2
3
3
3
2
2
2
Finance availability
3
2
1
1
2
2
2
1
2
1
2
2
2
2
2
Socio-Economic Benefits
Financial Return on investment
2
2
1
1
1
2
2
1
2
1
1
1
2
2
2
Energy Return on Investment
3
2
1
1
2
2
2
2
2
1
2
1
2
2
2
Low Cost of Carbon abatement
3
2
2
1
1
1
1
2
1
1
2
2
1
1
1
LED and Local Multipliers
3
3
3
2
2
2
2
3
2
2
2
2
2
2
3
Contribution to provincial GDP
3
3
3
2
2
3
3
2
3
2
2
3
2
2
2
Job Creation
3
3
3
3
2
2
2
3
2
1
1
1
1
1
2
Improved Livelihoods
1
1
1
1
0
0
0
3
0
3
0
1
0
0
0
Promotes energy sovereignty within local communities
1
0
1
3
1
0
0
3
0
3
1
2
1
1
1
Environmental
Minimimal landuse change impacts
3
3
3
3
1
0
0
1
0
3
2
3
2
2
2
Minimimal usage of agrichemicals and pesticides
2
2
2
2
2
0
0
1
0
3
2
2
2
2
2
Supports agroecology and biodiversity
3
3
3
3
0
0
0
1
0
3
1
1
2
2
2
Reduces pollution from waste and wastewater
0
0
0
0
0
0
0
0
0
3
3
3
2
2
2
Reduces green house gas emissions
3
3
2
3
2
2
2
3
2
2
3
3
3
3
3
Obstacles and Constraints
Market readiness
1
2
1
1
1
2
2
1
2
3
2
3
2
2
2
Rollout not dependant on requirements of scale
3
0
3
3
1
0
0
3
0
3
2
3
2
2
2
Institutional & Policy Alignment
3
3
3
1
3
3
3
2
3
2
3
1
3
3
2
No impact on food security (food vs. fuel)
3
3
3
3
3
1
1
1
1
3
3
3
2
2
2
Total
55
45
47
39
32
30
30
42
25
52
43
45
40
40
41
Notes:
The above table represents a first order of magnitude estimate of a rating (from 0 to 3) for each criteria & provides a high level indication of the appropriateness of each energy category for
development.
Bioethanol gel production assumed to be produced in decentralised energy hubs with feedstock sourced from small scale farmers.
Biobutanol assumed to be produced from conventional bio-ethanol feedstocks at adapted bioethanol distillation plant.
Agricultural biogas assumes biogas production from animal manures and some energy cropping with utilisation of embedded CHP with surplus electricity sold to municipal grid where possible (could
include piped biogas for CHP production at local agri-hubs).
Municipal biogas assumes job creation from cooperative based separation at source.
Biomethane for CHP assumed piped or trucked methane to industry for embedded CHP with surplus electricity to the municipal grid where possible.
Biomethane from to industry for CHP, Industrial fuel switch and vehicle fuel assume that a portion of this energy will be produced from energy cropping with nutrient recycling.
Page 107 of 142

8.
Priority applications & actions
8.1. Promote improved and efficient usage of wood fuel

Firewood is a primary source of energy for more than 80% of the rural population who
consume on average about 4.5tons of firewood per annum (ProBEC 2008). The
environmental impacts through the non-sustainable harvesting of these fuels, the impact
on indoor air quality and the resulting health problems, and the lack of access to cleaner
13
energy are well documented and understood.
Furthermore,
the
useMunicipality
of firewood
is linked
to gender
inequality
issues
as1 the collection
Blue Crane
Route
Community
Energy
Access Workshop
Series
Report
Survey Household
Case Study Presentations:
Coordinators
the group of
of firewood isEnergy
traditionally
the responsibility
of womens work
which from
is estimated
tosurvey
take
enumerators
gave
a
short
case
study
presentation
of
a
selected
household
surveyed
(video
away about 1.5 hours per day of woman or girl-childs time, often in remote areas with
evidence).
associated personal
safety risks, the risk of injury due to the heavy head loads, health
risks due to continuous exposure to wood smoke, and the opportunity cost related to the
time spent in collecting fuelwood.
Case Study 1: Lack of Energy Access (videos)
IMG_0257.MOV
IMG_0246.MOV
There is therefore a critical need to promote improved and efficient usage of wood
Case Study 2: Good Energy Access
through the following interventions:
Case Study 3: Lack of Efficiency
the establishment of managed community woodlots under the Working for Water
Case Study 4: Energy Efficient
programme;
the promotion of energy efficient best practices such as the pre-soaking of samp
and/or beans before cooking and the use of insulated heat retention cookers such
2.2.5 The Wonderbag Demonstration
as the wonderbag whose use has been successfully piloted in rural communities
The real
life demonstration
showed how this energy efficiency product can be used to cook a
in the blue
crane
district;
meal with much reduced energy use. The application and benefits of the product was shared
The promotion of improved and more energy-efficient wood fuelled cook-stoves;
and the food cooked with it eaten during lunch. This created excitement in terms of potential
and,
of energy efficiency and ability to save energy costs. It also was successful to create general
the switchover
otherenergy
cleaner
and more
sources
such
solar
awareness to
towards
efficiency
and thesustainable
availability of fuels
products
that need
to beasadopted.
cookers
and
household
biogas
to
produce.
Key benefits of the Wonderbag are shared below:
Figure
43: The
(Source:
Choices-SA
The activity
leadswonderbag
to the first sale
and appointment
of 2013)
a woman agent for the Wonderbag in
the BCRM.
Page 108 of 142

8.2. Promote comprehensive knowledge transfer and skills

exchange
The bioenergy technologies that are identified for support in this implementation support
plan (refer to section 2 of this report) are generally considered as technically mature,
however there is little experience in the adoption of these technologies in the province.
These knowledge and skills gaps need to be urgently addressed knowledge through
comprehensive knowledge and skills exchange programmes with other countries such as
Germany, Brazil, China, and India who are at an advanced stage of bioenergy
development. This should include capacity and skills building of energy developers,
entrepreneurs, farmers, technicians and artisans as well as capacity building within local
municipalities to promote the utilisation of municipal biowaste resources in local
bioenergy initiatives.
This knowledge transfer could be achieved in the context of the provinces on-going
partnerships with the German province of Lower Saxony as well as within the context of
the countries BRICS partnership agreement.
8.3. Develop a strategy to support local decentralized

bioenergy initiatives
Given the massive opportunities that bioenergy presents with regard to rural
development and job creation there is a need to push towards a diversified biomass
supply chain, focused on the valorisation of agricultural crops and residues, biomass
wastes and decentralized units to produce heat, electricity, or biofuels at local level. To
do this, a strategy must be developed with the most appropriated technologies for local
biomass valorisation, improving citizens awareness, knowledge, to create an efficient
strategy across every step of the supply chain: harvesting/collecting transportation trading storage processing and end use.
8.3.1.
Support for Rural Household Biogas Digester Rollout
There is great reliance on non-renewable sources of biomass (in the form of fuel wood)
in rural areas, with its associated issues of health, safety and gender inequality and
environmental (deforestation). A number of biogas digesters have been successfully
piloted in rural communities across the province and a coordinated approach needs to be
made to ensure that the benefits of this technology can be rolled out to the estimated
180000 rural households in the province who are do not have access to the grid and who
are technically capable to benefit from a biogas digester.
The provision of biogas digesters will require some form of subsidisation and this should
be seen in the context of the provision of free basic energy to these households as per
Page 109 of 142

Governments existing policy of providing householders with 50kW/h per month of

electricity.
The province should also champion the development of a programmatic rollout under the
Clean Development Methodology (CDM) in order to realise further revenues in the form
of carbon revenues following the example of similar household biogas rollout
programmes in other countries such as Rwanda.
Motivation for the rollout of a subsidised rural household biogas digesters programme
should be centred around Governments commitment to achieving the millennium
development goals (MDGs), and the roll that such a domestic biogas programme will play
in achieving these goals as follows:
MDG1: Eradicate extreme poverty and hunger.
Construction and installation of biogas digesters creates employment for rural
people.
o Biogas saving on the use of traditional cooking fuels creates economic relief to its
users.
o The nutrient effluent (bioslurry) produced by the biogas digester is an excellent
organic fertilizer that can be used for food production
MDG 3: Promote gender equality and empower women:
o
o Biogas can provide light that helps women and girls to extend the amount of time
that they can study
o Biogas reduced the workload of women by reducing the need to collect firewood,
tend fires and clean soot from cooking utensils. This can save on average 2-3
hours per household per day
MDG 4: Reduce Child Mortality
o Biogas stoves eliminate indoor air pollution and hence the related health risks that
particularly affect children who are often heavily exposed to indoor smoke
o Biogas stoves and lighting eliminate the use of paraffin and associated paraffin
related poison most prevalent to children
o Biogas significantly improves the sanitary conditions of the farm yard, lowering
the exposure of household members to harmful infections, especially children who
spend extended periods in the farm yard
o Biogas systems produce biofertilizer that will significantly improve agricultural
production (e.g. vegetable gardening) thus contributing to food security for the
community.
MDG 6: Combat HIV/AIDS, malaria and other diseases:
o Biogas virtually eliminates health risks (e.g. respiratory diseases, eye aliments,
burning accidents) associated with indoor air pollution
o Biogas improves on-yard manure management, improving sanitary conditions,
protecting freshwater sources and lowering the exposure to harmful infections
(e.g. helminths)
MDG 7: Ensure environmental sustainability
Page 110 of 142

o
o
Biogas has positive environmental impacts including pollution control, green

house gas emission reductions and forestation
Biogas reduces freshwater pollution as a result of improved management of
manure
8.3.2.
Promotion of bioenergy fuelled agri-processing hubs
Bioenergy and in particular the use of biogas and or gasifier fuelled Combined Heat and
Power Plants can play a vital role in contributing to the sustainability of governments
plans to establish decentralised agri-processing hubs and agri-parks at rural towns to
mill grains, dry vegetables, fermentation and distillation etc.
This integrated
development approach allows for the development of agri-processing clusters that will
serves as attractors for additional business as well as attracting much needs skills back
into these rural economies into the rural areas.
The University of Fort Hare is already in the process of piloting this concept and has is in
the process of installing a 110kWe CHP unit that runs of biogas from its piggery to provide
heat and power at its Agripark facility in order to reduce the cost of its vegetable drying
and soup making enterprise.
There are already obvious linkages with the ECRDA plans to establish rural enterprise
development centres REDs as part of the sorghum cropping programme that will preprocess the sorghum before fermentation at the Cradock Biofuels plant. A portion of the
crop residues (stover) from the production of sorghum could be used to produce biogas
to provide heat and power to the proposed REDs.
8.3.3.
Promote Bioenergy Villages
The support for local decentralsised bioenergy initiatives can be extended to the
promotion of bioenergy villages whereby rural villages and towns are capacitated to
make use of their existing and potential biomass resources to achieve energy security
and sovereignty.
Page 111 of 142

The strategy should include knowledge exchanges and the sharing of institutional
frameworks, lessons learned and best practices and methodologies for the successful
establishment bioenergy villages with other provincial and local government both locally
and internationally with a track record of successful bioenergy village establishment.
8.4. Promotion of municipal biowaste to energy projects

Municipal waste in the form of sewage sludge and the organic fraction of municipal waste
represents a substantial biomass resource that could be used by towns and cities for the
production of bioenergy whilst solving important environmental and cost concerns
associated with conventional waste management.
The management of municipal solid waste and wastewater streams is the constitutional
responsibility of local government. Municipalities and metros struggle to manage these
waste streams appropriately and there are recent examples in the province where this
has led to a number of environmental and health concerns.
The conversion of these problematic biowaste streams to bioenergy represents an
opportunity for local government to:
manage these waste streams effectively; enhance local energy security displacing
the importation of fossil based energy;
generate much needed revenues and or cost savings from the sale of or utilization
of bioenergy;
reduce monitory outflows from the municipality associate with the importation of
fossil based energy streams
stimulating the local economy through associated service industry and enhancing
local economic multipliers
8.4.1.
Assist with the integration biowaste to bioenergy
projects into Municipal Planning Processes
Local authorities or municipalities are required to develop Integrated Development Plans
(IDPs) and Special Development Frameworks (SDFs) that ensure its constitutional
objectives of: providing democratic and accountable government for local communities;
ensuring the provision of services to communities in a sustainable manner; promoting
social and economic development; promoting a safe and healthy environment; and
encouraging the involvement of communities and community organisations in the
matters of local government.
The IDP process as such represents an appropriate vehicle/mechanism to ensure the
inclusion of bioenergy projects within towns and cities. The figure below maps out the
IDP and SDF planning processes indicating the points for the inclusion of renewable
energy (RE) projects such as bioenergy at a local government level.
Page 112 of 142

Suitable bioenergy projects for inclusion onto the IDP process include the diversion of
waste to landfill through separation at source programmes or material recovery facilities
where foodwaste is processed into biogas.
Another example of a suitable bioenergy application for inclusion into the IDP process is
the production of biogas from wastewater especially if the existing wastewater treatment
works are overburdened and /or have reached their end of life. Furthermore, the
provision of access to sanitation and new waterborne sanitation infrastructure can be
include for the provision of a biogas based waste-water treatment works.
Part of the capacity building at municipal level should be to support municipalities with
the awareness and capacity to have municipal biogas systems finances through the
Municipal Infrastructure Grant programme. In addition to theoretical capacity building,
municipal officials should be encouraged to visit demonstration sites to observe the
processes in practice.
Figure 44: Integrating Renewable Energy consideration into IDP and SDF processes (Source
DEDEA 2013)
Page 113 of 142

8.4.2.
Provide capacity and support for local government to
realize their biowaste to bioenergy potentials
Although local authorities are responsible for the management of biowaste and the
development of integrated plans to do so appropriately, it is generally recognized that
there are currently serious capacity constraints in local municipalities related to the
shortage of sufficient human resource and lack of experience of officials with regards the
development of bioenergy and other renewable energy projects. This is a trend found
throughout most of the local municipalities (DEDEA 2013).
Further as municipalities often lack the financial capital or technical capacity to build own
and operate these potential biowaste to bioenergy facilities they will typically be required
to develop Public Private Partnership (PPP) to design, build and/or operate these facilities
within the constraints of the Municipal Finance Management Act and Municipals Systems
Management Act. The lack of capacity and understanding of local government in
overcoming these regulatory requirements has been identified by private sector
developers as a serious roadblock for the development of bioenergy projects in this
sector.
National and provincial government have a constitutional mandate to ensure that they
assist and capacitate municipalities in order to effectively and efficiently fulfil their
functions and mandates. It is therefore imperative that in order to realize the potential
biowaste to energy opportunities, provincial Government works together with National
Government in a concerted effort to effectively deal with capacity constraints within
municipalities within the Eastern Cape, so as to ensure sufficient human resource
capacity with regards to facilitating biowaste to bioenergy project developments,
especially within the planning and infrastructure departments of municipalities.
It is recommended that this approach includes the following:
Facilitate horizontal knowledge transfer process at both a political and technical

level through knowledge exchanges with other local governments both locally and
internationally who are able to demonstrate success in the implementation of
appropriate biowaste to bioenergy projects at a municipal level.
Provide technical, legal and regulatory capacity in the form of access to a dedicated
task team experts mandated to assist local governments in assessing their
biowaste-to-energy opportunities and to handhold them through the process of
developing these projects from the feasibility study stage, through to the
construction and operation of these projects.
8.5. Promote the adoption of biomethane applications as precursor to fracking

Biomethane and natural gas from fracking are physically equivalent and can be used in
the same applications, for example as a fuel for Compressed Natural Gas (CNG) vehicles
Page 114 of 142

or for the production of heat and power in a natural gas fuelled CHP engines. For this
reason the development of a biomethane based industries will provide the Eastern Cape
a competitive advantage to enable the province to realize the full economic benefits of
the potential methane resources that may arise from the proposed fracking activities in
the province. In preparation for the forthcoming fracking related natural gas economy
following bio-methane activities and industries should be prioritised:
Skills development and the certification of natural gas and biomethane installers
Biogas to biomethane upgrading
Biomethane and storage for both CBM (CNG) and LBM (LNG) storage
Biomethane logistics for both CBM (CNG) and LBM (LNG)
Biomethane vehicle fill stations
Certified CNG and CBM (compressed biomethane) vehicle fuel installers to retrofit
passenger and commercial vehicles using lessons learned from the IDCs 110 taxi
pilot in Gauteng.
Embedded Combined Heat and Power (CHP) generation at industries and
government institutions similar to the 110kWe biogas fueled CHP unit planned for
installation at the university of Fort Hare.
8.6. Policy development actions

The promotion of bioenergy can help provide solutions to multiple issues including energy
security and diversification, rural economic development, GHG mitigation and help
reduce other environmental impacts. Policies designed to support the promotion of
bioenergy must be carefully developed if they are to avoid unwanted consequences and
potentially delay commercialisation.
It is recommended then that Provincial Government promote the adoption of the
following policy interventions at a national level:
I.
II.
III.
Promote a more level playing field for bioenergy by lobbying for the introduction
of a carbon tax or other CO2 reduction incentives in place. Taking into account the
environmental impacts of CO2 emissions from liquid fuels derived from fossil fuels
would mean biofuels could compete on a more equal footing. This is also important
to ensure that bioenergy feedstocks are put to their highest value use, due to
competition for the limited biomass resource for heat, power, bio-material
applications etc.
Call for an integrated package of policy measures to provide continued support for
R&D and the developing demonstration plants to assist with the deployment of 1st
and 2nd generation biofuels particularly at a decentralized level.
Call for continued investment into Research Development & Demonstration
(RD&D) for both 1st, 2nd and 3rd generation biofuels includes evaluating sustainable
biomass production, improving energy crop yields, reducing supply chain costs, as
well as improving the conversion processes via further basic RD&D and
Page 115 of 142

demonstration. The goals of public and private RD&D investments into the
bioenergy sector should include:
producing cost effective biofuels;
enabling sustainability lessons learned from 1st-generation biofuels to be used
for 2nd-generation;
increasing conversion technology performance;
evaluating the costs and benefits of increasing soil carbon content and
minimizing loss of soil carbon via land use change;
increasing crop productivity and improvement of ecosystem health through
management techniques, improved mechanization, water management,
precision farming to avoid wasting fertilisers and agro-chemicals, and plant
breeding and selection;
continued analysis of co-benefits including energy security, GHG mitigation,
potential local advantages particularly for rural communities and sustainable
development, and the value of co-products;
provide ongoing support for local academic and research institutions focusing
on research and development of bioenergy projects; and,
determine the economic feasibility of bioenergy developments, as required by
private and public financiers.
There are three academic and research institutions in the Eastern Cape who are
currently engaged in bioenergy research, namely: Rhodes Universitys
Environmental Biotechnology Research Unit (biogas and algal biomass from waste
water); the University of Fort Hare (Biogas, gasification and CHP RD&D); and,
Nelson Mandela Bay University (3rd generation (algal) biofuels research).
8.7. Conduct LCA of subsidised agrofuels programmes

The Province is about to embark on two major agrofuels initiatives that will profoundly
and irreversibly change resultant change from land use from traditional communal
farming land allocation that is well suited to highly productive biodiverse agroecological
to large-scale agro-fuels cropping of 220 000 ha for canola and 60 000 ha for grain
sorghum in stands of 200ha or more.
The transformation traditional communal land use to large-scale agroefuels production
is linked to opportunity costs for the affected communities that result from the loss of
viable productive land that could have been used for more productive and climate
resilient agroecolgical farming as well the numerous environmental, health, social and
cultural externality costs that are associated with the transformation of peasant farm
land to large-scale green revolution cropping practices.
The scale of funding for agrofuel cropping programmes is reported to be in the order of
R7bn and includes R4.5bn for the Phytoenergy canola to biodiesel cropping initiative and
R2.5bn for the IDC sorghum to ethanol cropping initiative. The investment should be
measured against the historic success of government investment into projects of of a
Page 116 of 142

similar scale and green-revolution approach to the block-busting of communal lands

such as the failed Massive Food Production Programme and the failed ASGISA EC
Integrated Biofuels Cropping Programme.
The constitution of South Africa guarantees the rural communities, whose lands have
been earmarked for this large-scale agrofuels cropping programmes, the right to an
environment that is not harmful to their health or well-being; and to have the
environment protected, for the benefit of present and future generations, measures that
(i) prevent pollution and ecological degradation; (ii) promote conservation; and (iii)
secure ecologically sustainable development and use of natural resources while
promoting justifiable economic and social development.
Given the scale of public investment into these agroefuels cropping regimes, the failure
of similar approaches in the past, the potential economic opportunity costs from the loss
of viable small scale agroecological farming land and the potentially adverse impacts to
the environmental, health, social and cultural wellbeing of the rural communities that
will be impacted by this investment, it is important that these programmes are properly
assessed against their full economic, social and environmental life cycle costs. These
programmes should be evaluated against best agricultural development practices such
as small scale agro-ecological farming which are accepted by science to be: more
productive; more socially and environmentally beneficial; and, more culturally
appropriate (IAASTD 2008).
It is therefore recommended that the current Biofuels Strategic Environmental
Assessment be enhanced to include a full life cycle assessment (LCA) that will address
the following criteria:
1) The energy balance of the proposed projects;
2) The cost of carbon abatement of the projects;
3) An risk based evaluation against the success of projects of historic projects of a
similar scale and approach such as the failed Massive Food Production Programme
and ASGISA EC Integrated Biofuels Cropping Programme;
4) Quantifying the pesticide and agricultural chemical usage including the impacts to
farmworkers through application of these chemicals, and the community and the
environment through impacts to air quality, water quality and soil pollution. The
use of glyphosate herbicides needs to be given particular attention given the
recent health issues for peasant farmers in Argentina which led to the Santa Fe
province banned the spraying of glyphosate and other herbicides near populated
areas after it was reported that following the expansion of genetically-modified
soya in the region, the childhood cancer rate tripled the rate of birth defects
increased nearly fourfold over the entire province.
5) Quantification of the local economic benefits related to both the government
subsidy and the resultant incomes, quantifying the portion of each revenue stream
that reaches the local community as opposed to outside service companies, seed
companies and agrichemical suppliers;
6) The effect of the project on soil ecology and carbon;
Page 117 of 142

7) The effect of the project on water availability, and ground water levels;
8) The effect of landuse on grazing land availability and possible related impacts
overgrazing of marginal lands;
9) The evaluation of the proposed landuse change against more productive, socially
and environmentally appropriate agricultural development such as agro-ecological
farming (IAASTD 2008).
Page 118 of 142

9.
References
AGAMA 2007, South African National Rural Domestic Biogas Feasibility Assessment
Agama Energy, November 2007
ASPIRE 2010, The Amabele Heat & Power Enterprise - Assessment For The Working For
Energy Programme, Authors CES, September 7, 2010
Blignaut, C and Taute M. 2010, Soybean Production regions of RSA
CABER 2014 Centre for Advanced BioEnergy
http://bioenergy.illinois.edu/about/bioenergy.html
Research
(CABER),
website,
CHOICES-SA 2013, Community and Household Options In Choosing Energy Services,

Blue Crane Route Municipality Community (BCRM) Energy Access Workshop Series
Report 1, REEEP, April 2013.
DAFF 2012 A Profile Of The South African Pork Market Value Chain, 2012, DAFF report,
Source: MorokoloB@daff.gov.za
DWAF 2007, Eastern Cape Forestry Sector Profile, Department of Water Affairs &
Forestry, October 2007
DEDEA 2013 Mapping of Provincial / Municipal Permitting and Authorization Processes
for IPP Projects in the Eastern Cape, Draft Executive Summary, Revision 1.0, November
2013
DEDEAT 2013, Eastern Cape Sustainable Energy Baseline Study, Report: 05/2013/02,
February 2013
DOE 2014, Energy Recovery from Municipal Waste in South Africa, Update of the 2006
Prefeasibility Study, 31 January 2014
Farmers Weekly 2013 Canola: Fields of gold, Lindi van Rooyen, December 05, 2013
GTAC 2014, Integrated Wild Coast Development Programme: A strategic synthesis,
Government Technical Advisor Centre, August 2014
IAASTD 2008 Agriculture at a crossroads, International Assessment of Agricultural
Knowledge, Science, and Technology, 2008.
IANGV 2014 Natural Gas Vehicle Knowledge Base (formally the International Association
of Natural Gas Vehicles) website http://www.iangv.org/ accessed on October 27, 2014
ICCT 2013, Vegetable oil markets and the EU biofuel mandate Briefing Paper,
International Council of Clean Transportation, February 2013
IEA 2003. The ECOTEC study The impact of renewables on employment and economic
growth. Directorate General for Energy, European Commission, 1999.
Page 119 of 142

IEA 2008, Technology roadmap, biofuel for transport Bioenergy ExCo Workshop 10 May
2011, Helsinki
IEA Bioenergy 2008, From 1st- to 2nd-Generation BioFuel technologies, An overview of
current industry and RD&D activities, Ralph Sims, Michael Taylor International Energy
Agency, IEA Bioenergy, November 2008
IFPRI 2011, Assessing the Land Use Change, Consequences of European, Biofuel Policies
Final Report, October 2011
IOL Invasive alien plants shock for Water Affairs, July 27 2010 at 05:12pm, website
http://www.iol.co.za/news/south-africa/invasive-alien-plants-shock-for-water-affairs1.671043#.VFY4RIdGymE, accessed October 38, 2014.
IRENA 2014a, Global Bioenergy, Supply And Demand Projections, A Working Paper for
REmap 2030, International Renewable Energy Agency, September 2014
IRENA 2014b, Renewable Energy and Jobs, Annual review 2014
Lubeck 2011 Future sludge treatment: Hydrothermal Carbonisation (HTC), Technical
University Hamburg-Harburg, 7.09.2011
Mills et al 2009, Investing in Sustainability - Restoring degraded thicket, creating jobs,
capturing carbon and earning green credits, Dr Anthony Mills, Prof James Blignaut, Prof
Richard Cowling, Andrew Knipe, Dr Christo Marais, Sarshen Marais, September 2009
Mugido, W. et al. 2013. Determining the quantity and the true cost of harvesting and
delivering invasive alien plant species for energy purposes in the Nelson Mandela
Metropolitan Area. Beatus: Unpublished report commissioned by IDC/EC Biomass.
ProBEC 2008, A Synthesis Report on Biomass Energy Consumption and Availability in
South Africa A report prepared for ProBEC. By Dr Oliver Damm and Ralph Triebel LHA
Management Consultants February 2008
RESI 2014, Global Pellet Demand Outlook Report, September 2014
RESTMAC Cogeneration at Small Scale Simultaneous Production of Electricity and Heat
European Commission under the Sixth Framework Programme (FP6). CONTACT NO:
TREN/05/FP6EN/S07.58365/020185
Robert EDWARDS (IE) Szabolcs SZEKERES (IPTS) Frederik NEUWAHL (IPTS) Vincent
MAHIEU (IES) Biofuels in the European Context: Facts and Uncertainties, EU
Commission, Joint Research Centre, 2008
USDOE 1988, Handbook of downdraft gassifier engine systems, US Departmetn of
Energy, March 1988.
VALORGAS 2013, Valorisation of food waste to biogas EU FP7
Page 120 of 142

10.
ANNEXURES
10.1.
Annexure A: Bioenergy Case Studies
10.1.1. Integrated Biogas & Algal Sanitation System at Rural

Schools Chris Hani & Amathole District Municipality
Summary
The Chris Hani & Amathole District Municipalities have installed, a pilot wind-powered
integrated biogas and algal sanitation system (IBASS) at Three Crowns School in Lady
Frere region and Chintsa East Primary School in the Great Kei region respectively.
The systems have been operating successfully providing decent sanitation, renewable
energy in biogas energy for cooking, nutrient recycling in the form of pathogen-free algal
biofertilizer and recycled irrigation water for the school gardens.
The systems also serve as a practical life science laboratories teaching students through
the practical demonstration of zero waste, environmental biotechnology, renewable
energy production, resource recovery & recycling and integration to climate resilient local
agroecological food production.
The province has endorsed the rollout of the system in 2012 and the first full systems
including enterprise development for the sale of biogas and fresh produce to school
through the schools nutrition programme are earmarked to be installed by April 2017.
Introduction
The first pilot Integrated Biogas and Algal Sanitation system (IBASS) was commissioned
in 2010 at the Three Crowns School in the Lady Frere District by the Chris Hani District
Municipality as part of the DBSA funded Chris Hani District Municipality Environmental
Page 121 of 142

Support Programme. The system was designed specifically to address the need for
decent and dignified sanitation at rural schools as well as to support and complement
the existing school garden and feeding programmes by providing:
a demonstrable Biogas energy for cooking;

Pathogen free biofertilizer for the garden;
Pathogen free water for aquaculture and reuse as irrigation;
Create and educational example of zero waste environmental biotechnology.
2
Wastewater
Biogas
Food waste
Food gardens
4
5
Algal fertilizer
Digestate
Ensilaged grass
cuttings and Manure
Key
1. Wastewater Biogas Digesters
2. Facultative / Settling Pond
3. High Rate Algal Ponds
4. Algal Settling Pond
5. Algal Harvesting & Drying Bed

6. Maturation Pond / Aquaculture
7. Agricultural & Food Waste Digester
Figure 45: The Integrated Biogas and Algal Sanitation System for a Rural School
Based on the success of this pilot the Amathole District municipality commissioned a
similar pilot system at Chintsa East Primary School. Both systems have been operating
and producing gas for the cooking of school meals. Biogas digester effluent from the
digestion of food-waste, animal manures and garden waste is used at the schools
gardens to enhance fresh produce production to support the schools nutrition
programme.
Objectives
The rollout of sustainable resource management at schools, using the robust integrated
biogas and algal sanitation system linked to agro-ecological food garden production, is
linked to a number of positive social, financial and local economic objectives that include:
the provision of dignified sanitation linked to improved school attendance

(particularly by girl children), staff motivation and loyalty, & improved public
health;
the displacement of fossil fuel imports (LP gas) and savings in energy (and
associated transport costs), being costs associated with the cooking of school
meals for the schools nutrition programme;
Page 122 of 142

the displacement of high carbon food imports associated with the schools nutrition
programme (currently 86% of fresh produce consumed at schools is imported from
outside the province).
the increased security of local supply of energy, nutrients and water;
employment opportunities for the operation of the system (funded by financial
income of locally produced energy, nutrients and recycled water);
increase in local multipliers through the reduction in economic outflows for bottled
gas and food imports.
The implementation of sustainable resource management systems at schools
serves to create a platform (or sustainability commons) within the community
demonstrating the practical application and practice of technologies that can be
replicated within the broader community.
The system also creates a practical life science laboratory in environmental
biotechnology for learners, and the functioning of all aspects of the system
including anaerobic and aerobic bacteria, algae, zooplankton, aquaculture,
vermiculture and windpower (paddle wheel) can be built into the learners lesson
plans.
the low (appropriate) technology construction of the IBASS system is suitable for
roll-out as an Extended Public Works Programme (EPWP) with high local job
creation potential.
Figure 46: The biogas digester system (left) and the wind powered algal ponding system
Methodology
The pilot project arose out of a scoping report for biogas that was commissioned by the
Chris Hani District Municipality (CHDM) as part of its Environmental Management Support
(EMS) Programme. The selection of the beneficiary school of Three Crown was based on
current EMS linkages between the CHDM, WESSA which included the demonstration of
wind and solar power systems. An assessment of the schools water resource and
sanitation requirements was conducted and based on this it was recommended to install
a downscaled version of the Integrated Algal Ponding System that was had undergone
12 years of extensive Water Research Commission testing in the province at the Institute
of Environmental Biotechnology at Rhodes University (IEBRU) . A pilot system was
Page 123 of 142

installed by Finishes of Nature in June and July 2010. The performance of the system
was then evaluated by IEBRU together with Environmental Health Officers from the
CHDM for a period of a year. Based on the success of the system, the Amathole District
Municipality decided to commission a similar system at Chintsa East School as part of its
Renewable Energy Strategy Support Programme and the system was showcased at the
Provinces Renewable Energy Investment conference in 2012.
Financial resources and partners

The combined costs of installing both systems was R1,200,000. Grand funding of
R450,000 was provided by the DBSA for the initial pilot at Three Crowns School. The
Amathole District Municipality provided R590,000 for the installation of the system at
Chintsa School and Finishes of Nature provided cofounding for the balance of funding.
Finding / Outcomes
The systems have been consistently producing biogas for the cooking of school meals
and provide savings to the school. This has enabled a fuel switch from LP gas to biogas
and associated savings to each school of between R500 to R1000 per month. The
quantities of fresh produce produced by the schools gardens have not been quantified.
The pilot integrated biogas systems have achieved their objectives to demonstrate the
viability of integrated biogas technology as an appropriate technology system for roll out
at rural schools, not only as an effective sanitation system but the system also serves as
a life science laboratory that teaches through the practical demonstration of important
sustainability concepts and technologies such as zero waste, environmental
biotechnology, renewable energy production, resource recovery and recycling as well as
support and integration to climate resilient local agroecological food production systems.
The next phase of the project, namely the rollout of the system at 30 schools will expand
upon the success of the hardware installed and focus on the development of local
enterprises that will manage the systems and achieve operational sustainability through
the generation of revenues through the sale of biogas for cooking and fresh produce for
school meals to the school and local surrounding community.
Lessons learned and repeatability

It is possible to achieve the target of decent and dignified sanitation at school through
the conversion of inappropriate existing sanitation infrastructure to sustainable ecological
systems that produce renewable energy and other environmental and health benefits.
In order to ensure operational sustainability and maximum benefits from the system, in
particular from fresh produce production in the agroecological food gardens, the schools
should facilitate the establishment of enterprises to manage the biogas system and food
gardens.
Page 124 of 142

Contact for more information:

Project Web Site: www.finishesofnature.co.za
Organisation / Agency: CHDM and Amathole District Municipality in with contractor
Finishes of Nature Global (PTY) LTD
Main contact : David Oldfield
E-mail: davidoldfield@finishesofnature.co.za
Printed reports or other literature available: www.finishesofnature.co.za
Title: Implementation report for Three Crowns School
Page 125 of 142

10.1.2.
Clean Tech Africa, East London, South Africa
Summary
The Biodiesel Plant is situated at Berlin, 30 km West of East London, Eastern Cape. The
company has been issued a licence (BASFOUR 3528) to make 170 million litres p.a.. This
is the only existing plant in South Africa.
Clean Tech is poised to respond to the Government off take mandatory 5% blending,
which means that as of 01 October 2015, all fuel companies are mandated to blend 5%
biodiesel with diesel.
The guaranteed government subsidy, for a period of 20 years, is based on a 15% Return
on Investment, which, in this case equates to R25 million per month, on a project costing
R2 billion.
Introduction
Clean Tech Africa is a local company who have compiled a financial plan (undisclosed) to
fund the R 2bn project, creating jobs and downstream opportunities in the East Cape
Region.
Objectives
The main objective is to source soybean meal from local sources, to process biodiesel
and supply the local market; the feedstock supply will be supplemented by feedstock
grown and supplied by emerging farmers in the East Cape region, and further.
When running at full capacity, the plant will require 594 000 ton of Soybean per annum,
this equates to 297 000 hectares of land (estimated yield assumption is 2 tons soybean
per ha).
Also, adherence and compliance with the Biofuels Industrial Strategy, this strategy was developed
and approved by Cabinet on 5 December 2007.
Page 126 of 142

Methodology
Three Phase Value Chain Capture
Agriculture all feedstock farming inputs

Crushing Plant produce oil & feed cake (livestock feed)
Biodiesel plant produce biodiesel & glycerine
Clean Tech Requirements:
Financial approval, as a result of the verification of the Ministers guarantee of the

subsidy pricing structure
Contract negotiations completion after approximately 6 months
Plant Build: 2 phases
Bio-refinery 5 months
Crushing plant 12 months
OTHER BENEFITS:
Estimated job creation per plant including indirect and induced jobs is 2 067
permanent jobs
Estimated greenhouse gas emissions savings is 50%
Stimulating local agricultural growth, utilising previously underutilised or fallow
land
Reducing reliance on imported feedstock and vulnerability to world price
fluctuations through off take agreements and contracts
Providing emerging farmer off take opportunities, meeting the Gazetted
Regulation (January 2014) that at least 25 % of Biofuel feedstock will be provided
for by emerging farmers, within three years of starting to process.
Large volumes of Soybean cake will enter the local market, reducing the imports
currently imported.
Over the past five years, soybean production in South Africa has expanded rapidly. The
area of production has more than doubled and despite the current seasons drought, total
domestic production will reach almost 700 000 tons. This is contrary to all other major
cereal and oilseed crops where the area under production has declined since the
deregulation of markets in the mid-nineties. Beyond the farm gate, soybeans were
mainly processed and marketed in the feed industry in the form of full-fat soya and
despite a rapidly growing demand for soybean cake, only very small quantities of
Page 127 of 142

soybeans were crushed. Imports of soybean cake spiraled and by 2008 approximately 1
million tons of soybean cake was imported.
Lessons learned and repeatability

When considering the available land countrywide, and then locally, in the Eastern cape
Region, Clean Tech will be provided with the challenge of platform generation, and
relationships with emerging and commercial farmers; in this context, the Soybean
market demands cannot be met by the present production capacity (1.2 million tons
soybean imported annually).
The revitalisation of underutilised and fallow land in the Eastern Cape region will require
significant investment from Government to elevate the soil fertility and mineralisation to
acceptable levels to achieve a commercially viable crop
Transfer of knowledge and technology is vital with the view to integration of emerging
farmers into the feedstock supply chain.
Risks
Subject to international soybean price fluctuations until local supply (local and the
SADEC region cooperation and involvement) meets the local demand.
Further delays in the ministers promulgation of the Biofuels Mandatory Blending
Regulations and subsidy scheme, resulting in another seasons delay in the
feedstock production opportunity.

Project Web Site: www.ctafrica.co.za/
Organisation / Agency: Clean Tech Africa
Main contact: Derek Breetszke
Address:
Tel: 083 299 6848
Fax:
E-mail: derek.breetzke@draglobal.com
Page 128 of 142

10.1.3. Cradock Bioethanol & Lady Frere Grain Sorghum Project

Case Study
Summary
ECRDA (Eastern Cape Rural Development Agency) integrated with AsgiSA-EC to create
a holistic approach to development in the Eastern Cape.
The vision: To create a viable sustainable rural economy to improve the livelihood of
rural communities in the Eastern Cape. This will address Land reform, Agrarian
Transformation and Food Security, A Non-Farming Rural Economy, Infrastructure, Social
and Human Development and Enabling the Environment.
Part of the ECRDA mandate on rural development is:
Social and Human Development, Rural Development Needs (which is a

Constitutional Right), to address Poverty and Inequality, Ownership and Control
of Natural Resources, Entrepreneurship and Beneficiation.
To Empower rural communities In the Eastern Cape to partake in ownership of
natural resource through (land ownership), growing and harvesting grain
sorghum, soya for Bio-Fuel Feedstock production.
Introduction
To create Sustainable Growth and Development through Mega Farm and Rural Enterprise
Development (RED) Hub Concept, for improved quality of life within rural Eastern Cape.
These Hubs and Mega Farms will be used to produce biofuels as well as food. The primary
crop will be 60000ha of grain sorghum for bioethanol feedstock production. The grain
will be stored in silos and milled at the RED hubs and then transported to the proposed
biofuel facility in Cradock for processing into bioethanol.
Page 129 of 142

Objectives
The main Objective of the project is to: Promote support and facilitate rural development
in the province by-mobilising resources, provide funding and financial support services
to persons ordinarily resident or carrying on business in the Province. To Promote and
encourage private sector investment in the province. To Promote, assist and encourage
the development of the Provinces human resources and financial infrastructure, in
association with other institutions who have similar related objectives.
Acting as the governments agent for performing any development-related tasks and
responsibilities that the government considers may be more efficiently or effectively
performed by a corporate entity.
Driving and coordinating integrated programs of rural development, land reforms and
agrarian transformation in the Province.
Methodology
Establishment of Mega farms where:
Individual small-scale farmers availing their land to be integrated and managed

as part of the mega farm and not individually.
Land preparation and inputs are provided and administered to the whole mega
farm and not on an individual basis. Enhance bulk buying.
Individual stockpiling of manure to be combined for application on the entire mega
farm and not on an individual basis.
Harvesting of the crop will be based on harvesting the entire mega farm with an
average yield calculated as to determine an Individuals yield and subsequent
potential returns. The produce to be sold as one not individually.
Mechanization equipment to be owned and managed by the co-operatives and not
individuals within the project.
Establishment of Rural Enterprise Development Hubs (REDS) in order to:
Provide mechanisation planting and harvesting services to mega-farms.

Provide silo space for storage of grains harvested.
Provide agro-processing such as milling to add value to agriculture produce.
Creating business opportunities such as a trading store for the supply of agriinputs.
Provide a centre for skills development and training.
Next Steps:
To create five Mega Farm and RED Hub pilots (two already being established) in
order to advance previously disadvantaged individuals (PDI) into commercialized
economic and sustainable farmers.
The plan is to plant 1000 ha (hectares) to grain sorghum in 2014.
Page 130 of 142

In 2015 a minimum of 5000 ha planted to grain sorghum in different areas, 300

ha to soya beans in the area planted to grain sorghum (2014 Lady Frere) and 200
ha planted to soya beans in different areas.
In 2016 minimum of 10 000 ha planted to grain sorghum, 3000 ha planted to soya
beans, 700 ha bio-fuel farms in Cradock, 300 ha planted to soya beans bio-fuel
farms in Cradock.
In 2017 minimum 30 000 ha planted to grain sorghum, 10 000 ha planted to soya
beans.
In 2018 60 000 ha planted to grain sorghum and 20 000 ha planted to soya beans.
The estimated yield envisaged is an average of 3.25 tons per ha. Off take agreement to
purchase all grain sorghum is being negotiated (R3 100 per ton in 2014 harvest)
Soya beans should be planted on a 3rd of the previous portion planted to grain sorghum
per annum.
From 2017 the demand for grain sorghum (sweet grain), will be 235 000 tons per annum.
The ethanol licence agreement demands a minimum of 10% feedstock should be sourced
from PDI farmers. The target is to meet the ramp-up proposal of a minimum supply
from PDI farmers and communities.
Financial resources and partners

The total funding over a 3 year period is R46 867 850.
year 1 a total of R31 673 375 will be released during 2014/2015,

year 2 a total of R12 746 025 will be released during 2015/2016 and,
year 3 a total of R1 938 450 will be released during 2016/2017 financial years.
A total of 137 jobs will be created at the investment cost of R 46,357,820 & working
capital cost of R9 176 750.
The project is funded by ECRDA.
The Project Team comprise of ECRDA staff: Roger Maclachlan, Luvo Qongqo, Zingisa
Somlomtha, Mzimkhulu Zenzile.
Steering Committee - Eastern Cape Departments & Co-Op:
Mayor of Emalahleni Chair person

Ibuyambo Secondary Co-Op Dep Chair
Ibuyambo Secondary Co-Op 2 x Representatives
ECRDA (Eastern Cape Rural Development Agency) 1 x Project leader and 1
Representative
LED (Local Economic Development Eastern Cape South Africa) 1 x Portfolio
Counsellor and 1 x Manager/ Official
Page 131 of 142

DRDAR (Department of Rural Development) 2 x Representatives

DLRDLR (Department of Rural Development and Land Reform)
CHDA (Chris Hani Development Agency) 1 x Representative
IPED (Emalahleni Local Municipality) 1 x Representative
Lessons learned:
The BEE programme implemented for the sugar beet trials is seen with scepticism by the
commercial farmers, and the emerging farmers face substantial problems on their
allocated farms. Most of these farms are in a deteriorated condition and the emerging
farmers lack crucial farming implements.
Delays between purchasing and allocating the land have been identified as the main
factor for the deterioration of farms.
Poor training and supervision were frequently raised as potential pitfalls by the
commercial and emerging farmers.
The agricultural land-use footprint of fuel ethanol production in Cradock will be small.
With a projected annual production of up to 16,000 litres of ethanol per hectare from
sugar beet, yields are substantially higher than in other countries.
Agricultural activity takes place on existing farm land, or on biomes classified as least
concern. Because biofuel feedstock will replace some of the maize crops currently
grown, the use of climatically critical nitrogen fertiliser is likely to decrease with biofuel
feedstock production.
Food security is unlikely to be jeopardised because of i) animal feed co-production during
feedstock-to-ethanol conversion operations, ii) the scale of the project, and iii)
agricultural expansion and positive yield development which offset a shortage in food
crop production. Despite the high yields in the area, greenhouse gas emission savings
are found to be relatively low (27 to 33 %, depending on land-use change and cultivation
practice). This is mainly due to the high carbon footprints of coal and the grid electricity
that will be utilised during conversion operations.
It is concluded that much of the global biofuels controversy does not apply to the specific
Cradock case, and that fuel ethanol production from sugar beet has the potential for
biofuel production with few negative environmental and social impacts, although initial
emission reductions and net-energy benefits will be small.
Expected yields and costs are: 400 Litres per ton of Sweet Grain Sorghum @ +- R4 per
litre to produce, sugar beet @ R0.49c litre. (Roger Maclachlan, ECRDA. 2014)
Stakeholders and Community Mobilization is critical and should include the following
Basic elements:
Trust building
Setting ground rules
Clarification of roles and responsibilities
Page 132 of 142

Scanning the environment

Collective problem solving
Building lasting relationships
Levelling the playing field
Risk factors identified

experience
Lack of social facilitation
from
past Mitigating factors
Stakeholders community and farmers not

having full understanding and buy in on the
RED hub concept
Late delivery of equipment
Late delivery of inputs
Contractor failure to comply
Bird predation
Animal invasion
Climatic changes and fire
Pests and diseases
Proper and coordinated social

facilitation
Radical stakeholder consultation
and interaction on an on going
basis
Appointment of project leader and
steering committee
Timeous procurement of goods
and services
Precautious
agreement
with
outside contractors
Minimising bird predation by
means of employing rangers t
guard lands, erection of bird nets
and capture cages
Adequate fencing
Access to weather forecasts and
climate trends
Correct
application
of
agro
chemicals

Organisation / Agency: ECRDA
Main contact: Roger Maclachlan
Address:
Tel:
043 703 6300/ 082 650 1427
Fax:
043 6425824
E-mail:
roger@ardasa.co.za
Web Site:
www.ecrda.co.za
Page 133 of 142

10.2.
Annexure B: Rural Household Energy Service Needs
Workshop & Group Survey
10.2.1.
Umsobomvu Off-Grid Community Survey Results
Background
The village of Umsobumvu was established between 1990 -1991 and is made up of 250
households. It is situated within Ward 26 at the Buffalo city Metropolitan Municipality.
The total population of the village is 1260 (22% adult males, 31% adult Female and 47%
children) with five people in each household. The village has the high level of the
unemployed with 52% depending on the government grants only, 16% being as casual
workers only, 12 % government & casual labour, 8% permanent labour only and 9%
with no income at all. Most of the houses are being made by metal or mud, there very
houses which are being made by brick, with all of them having metal roofs.
Methodology
A community workshop was held in the Umsobmomvi community hall on Friday the 24th
of October 2014 where the concepts of bioenergy were introduced to the community
including: potential bioenergy appropriate bioenergy carriers that could be produced
from local resources such as biogas, biomass and combined heat and power for minigrids. The community was then asked to outline their current energy demand and
expenditure, determine and rank their energy service requirements as well as to outline
the biomass resource availability at a household level.
Figure 47: The bioenergy and energy service needs workshop at Umsobomvu
Result of Survey
Number of Participants: 67
1) Current Energy Consumption for Householders by energy carrier:
Firewood :
Summer: R20
Winter:
Page 134 of 142
R100

Electricity: Summer: N/A

Winter:
Paraffin:
Summer: R120
Winter:
LP gas:
Summer: 290
Winter:
Coal:
Summer: N/A
Winter:
Petrol /Diesel: Summer: R260
Winter:
owners but includes electrical generators)
N/A
R300
R870
N/A
R580 (limited
to
vehicle
2) Energy Services and Needs Survey

Energy Service
Energy Needs
Cooking
Fast cooking
Free / affordable fuel
Less smoke in the

kitchen
Light
for
general
purpose needs- cooking
etc.
Lighting for study
Light for illumination
intensive work- sewing
etc.
Light for Security
Room Heating
Room Cooling
Drinking
Cooking
Bathing, washing
Washing clothes
Washing clothes
Charging mobile phone
Radio Power
Dish TV Power
Music Player Power
Refrigeration
Iron
Car
Bakkie
Taxi (owner)
Lighting
Space
Conditioning
Water Heating
Communication &
Entertainment
Other
3)
Not
important
Good
have
to
Important
Biomass Resource availability for households

a)
b)
c)
d)
Q: How many householders have cattle? A: 8.96% of households

Q: How many householders have pigs? A: 17.9% of households
Q: How many householders have sheep or goats? A: 41.8% of households
Q: How many householders have more than 3 chickens, geese or ducks? A:
59% of households
e) Q: How many households have kraals and use them regularly to keep livestock?
A: 68.7% of households
Page 135 of 142

f) Q: How many householders have home vegetable gardens? A: 88% of

households
g) Q: How many householders have and use a plot of land for agriculture? A:
53.7% households
10.2.2.
Melani village Survey Results
Background
Melani is a rural village located approximately 12 km north of Alice town and the
University of Fort Hare, Eastern Cape, South Africa; it consists of approximately 500
households, housing approximately 3000 people with a clear 70% majority between the
working age of 20 and year and characterized by the lack of skills. The village forms part
of the existing SANEDI Biomass Cluster and already has a community biogas digester
and 150kWe gasifier installed.
Methodology
A community workshop was held in the Melani Village community hall on Tuesday the
28th of October 2014 where the concepts of bioenergy were introduced to the community
including: potential bioenergy & appropriate bioenergy carriers that could be produced
from local resources such as biogas, biomass and combined heat and power for minigrids. The community was then asked to outline their current energy demand and
expenditure, determine and rank their energy service requirements as well as to outline
the biomass resource availability at a household level.
Figure 48: The bioenergy and energy service needs workshop at Melani
Result of Survey
Number of Participants: 96
1) Current Energy Consumption for Householders by energy carrier:
Current Energy Consumption for Householders by energy carrier:
Firewood :
Electricity:
Paraffin:
Summer: R50
Summer: R150
Summer: R90
Winter:
Winter:
Winter:
Page 136 of 142
R150
R450
R150

LP gas:
Summer: R290
Coal:
Summer: N/A
Petrol /Diesel: Summer: R120
Winter:
Winter:
Winter:
R580
N/A
R240
2) Energy Services and Needs Survey

Energy Service
Energy Needs
Cooking
Fast cooking
Free / affordable fuel
Less smoke in the

kitchen
Light
for
general
purpose needs- cooking
etc.
Lighting for study
Light for illumination
intensive work- sewing
etc.
Light for Security
Room Heating
Room Cooling
Drinking
Cooking
Bathing, washing
Washing clothes
Washing clothes
Charging mobile phone
Radio Power
Dish TV Power
Music Player Power
Refrigeration
Iron
Car
Bakkie
Taxi (owner)
Lighting
Space
Conditioning
Water Heating
Communication &
Entertainment
Other
Not
important
Good
have
to
Important
3) Biomass Resource availability for households

a)
b)
c)
d)
Q: How many householders have cattle? A: 15.6% of households

Q: How many householders have pigs? A: 33.3% of households
Q: How many householders have sheep or goats? 45.8% of households
Q: How many householders have more than 3 chickens, geese or ducks? 41.6%
of households
e) Q:How many households have kraals and use them regularly to keep livestock?
A: 7.2% of households
f) Q:How many householders have home vegetable gardens? A: 31.3%
g) Q: How many householders have and use a plot of land for agriculture? A:
35.4%
Page 137 of 142

10.3.
Annexure C: Reference Group Meeting Notes
10.3.1. Notes from

November 5, 2014
Reference
Group
workshop
held
on
Welcome
Effort into agro-bio-energy projects

EC has struggle to get momentum for the spread of bio-energy in EC
EC done well in terms of wind and solar farms, but largely in the west of the
province, linked to high capacity grids
Project came into being previous MEC what about east of the province?
Few wind farms in former homelands, but competitive disadvantage
Wind resource not as good as in east of province
Bio-energy potential in east is far higher than west
Why are there not more bio-energy projects in the province?
Chain of connections
Not bio-fuels ECDC completing SEA for bio-fuels; working in cooperation with
bio-fuels SEA as there are linkages between all types of bio-energy
What the barriers are to bio-energy roll out
What kind of support processes can assist in the development of bio-energy in
EC
Government must provide enabling environment question is how
Purpose of the workshop

Project management under PSC ECDC, DOE, SANEDI, DEDEAT
Reference group
Broader group, by invitation only, to feed into what the project is about and is in
touch with reality and not missing vital information
Scope for much broader consultation at a later stage
Presentation
Feedback on draft scoping report by 14 November 2014
Feedback directly to Linkd
Specific feedback on ranking of bioenergy options
Q&A
Riaz (SANEDI):
Timeframes for implementation of implementation strategy
Water resource is an issue
Yields SA in terms of what is producing of ton per hectare (1/t yield is not
good). Increase yields on agricultural energy crops
National Biogas platform
Traditional leaders vs. political leadership (who are elected)
Page 138 of 142

Matthew Gaylard (Linkd)

Timeframes are important note not an implementation plan, but rather support
plan; timeframes in terms of what is achievable when and timeframes for what
needs to happen
Water is a key constraint nationally and provincially; climate change is important
for this sector and land use planning (and related to yields)
Ongoing engagement with traditional leaders by the province is important
What are the skills requirements and current level
Not sufficient time to do a full analysis
Lack of skilled jobs (including project development, financiers, community
facilitation skills) to unlock lower level skills
Obstacles to developing in the eastern half of EC is infrastructure predominantly
Louis (Linkd)
Social issues are challenging traditional leadership, provincial departments
(nepotism)
Lack of technological capacity, etc and lack of motivation to participate
Relationship development programmes are key; HR is critical
Backup for key personnel is important, e.g. internet connectivity, road
infrastructure, etc
Fort Cox developing hub corporate approach to getting structures in place,
but must be at household / family level
Must stimulate creativity of villager / farmer
Quality nutrient must stay in village
Stock is an issue and can destroy crops
Mark Wells (Linkd)
Water may be used to produce nutrients from food waste energy (15%) and
nutrients (aquaculture, micro-algae, etc) and then the value chain becomes
much bigger
Bio digestion produces more nutrients than composting but combination is good
Municipalities collect woody fibre cannot be digested and then can be composted
Skills resources are being lost at the coal face, owing to infrastructure challenges
More of a focus on RD&D
Decentralised model is best where there is little infrastructure
Lower Saxony whole institutional model developing bio village give all other
services (wastewater reticulation)
Demonstrating technologies
Keep income flowing within a village, e.g. paying Eskom for power
If you have a hub you can attract the right skills that you need and clustering of
bioenergy with RED hubs is an opportunity
Sampson (UFH)
Issues related to skills development do we have enough skills in EC?
If not enough, what can province do?
Skills from all levels, government to people in villages
Universities are training M and D level, but most graduates leave the province
Page 139 of 142

US
What type of jobs are there? Mostly agricultural jobs.
How many jobs can be created and what qualifications are required?
Felix Hobson
Rural economic development hub usually co-op; primary co-ops have share in
the processing hub
Hub assist technologically agricultural practices, e.g. mechanisation
Technological backup of farmer
Purchase inputs on behalf of farmer economies of scale
All products sold to hub, who market and sell
Transport deducted from revenue farmer makes and gets profit from transport
service
Processing feed for agricultural production to supply to local producers
Storage system for grain achieve higher price is stored for 6 months
Must be administered correctly
Financial model is important
Cultural, social, financial, physical and institutional infrastructure make as
simple as possible
Cost to import skills to start with is high, only justified through scale, but must
start at lower level model for EC is labour-intensive
Much have association to support farmers, e.g. Wool Growers
ECRDA
Rural Enterprise Hubs
Cooperatives are used but can be any other structure
Pilot at the moment currently harvesting, biggest one at Nqgura
Need good administrators
Crop rotation to be introduced
Pilot site has electricity but move to areas where there is no initiatives
Speaking the language of the people, not jargon
Alistair McMaster
Cogeneration (combined heat and power) at RED hubs is this a viable option?
Heat for heating or drying
Bioenergy villages and bio-fueled agro-processing hubs are inseparable as social
and institutional
Must unpack these more and link back into Rural Development Strategy and
ECRDA and link to Wold Coast Development Plan
Four types of infrastructure (FH) linked to ranking options in terms of
appropriate
Ranking must be seated about what is real in province; complexities of
communities
What are the constraints?
ECRDA political buy-in LM to provincial level

Success story integrate bioenergy into Ngqura
Political buy-in needs to be without the correct context
Reduce political intervention tiers of buy-in; institutional, local, family,
provincial
Page 140 of 142

Standards for bioenergy impacts approval in terms of finance, municipalities /

schools implementing projects
SANS must be brought into standards
Skills required for smaller and larger developments (large vs. households) two
different questions
Must be ruthless in interventions ruthless in selection of programmes to be
implemented
Value of demonstration is crucial politicians go but projects stay
What is the immediate support required in the short-term
What is DEDEAT realistically able to do money and political support, e.g. fund
to support bio-energy to invest in some initiatives
DEDEAT must facilitate and therefore agencies must release budgets bring
budgets from agencies into implementation support plan
LM massive waste generation
Targets for municipalities must be financially sound
ID set of projects and ranked and selected as provincial flagship projects and all
agencies must rally around financial and other support
Municipalities need to know what technologies are available and what is best
demonstration sites
Bamboo as an energy crop?
Bioenergy may be complement to traditional electricity to power all needs
(microwave, TV, etc) cultural change is necessary
Technology must be linked to context
What is the best option to get to of this product, e.g. wood
Communities will not see the vision that we see
Determination of market study market leaders and tap into what we want to
do
What is the lowest hanging fruit that needs limited intervention that has best
impact form socio-economic perspective and can succeed
Must reduce to what to support, skilled person, change in MFMA, tack onto
ECRDA processes
Comments from Rob Short, UNIDO

There is a need for demonstration project and to focus on on what can be
achieved now.
A strategy requires funding and if you dont have funding you need to plan to
facilitate to get others to release their budgets.
Set targets, for example every municipality with financial means should
implement a biogas from waste project
Alistair Macmaster:
It may be advisable to identify a set of projects around which all departments
rally to support
Nompelo Daniels
The solid waste department is constantly approached by various developers with
waste to energy technologies and it is difficult for the municipality to decide
There is a lack of information on waste profiles
Municipalities need guidance as to how to implement these projects under the
MFMA
Page 141 of 142
A publication produced by DEDEAT:
Physical Address
Beacon
Hockley
King
SOUTH
5605
Postal Address
Williams
Hill
Close
Town
AFRICA
P/Bag
Bhisho
SOUTH
5605
Tel: +27 (0) 43 605 7000

www.dedea.gov.za
Contact Person:
Telephone:
Email:
DISCLAIMER: Content is intended to be informative and is not to be taken as

absolute, advisory or counsel. The Quarterly Economic Research Forum and its
affiliates will not be held responsible or liable for any losses, injuries or damages
that occur as a result of any reader acting on the comments and views expressed
herein and further will not be held responsible or liable for any errors, omissions
or inaccuracies, or any damage or harm that results from any errors, omissions
or inaccuracies in published article due to the evolving nature of the topics
reported on herein.
Page 142 of 142

EC Bioenergy Implentation Support Plan Scoping Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EC Bioenergy Implentation Support Plan Scoping Report

Uploaded by

Copyright:

Available Formats

Provincial Bio-energy

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Tera Joules per annum

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Bioenergy is seen as an effective means to balance the spread of investment in

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Energy Poten al from Bioenergy Crops in GJ/ha

Ethanol Sugar beet

Biogas Biogas Napier grass Napier Grass

Another important aspect of consideration in the selection of appropriate

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Figure 3: Comparing value chain ownership between agrofuels and biogas/bioethanol

This sustainable approach to biogas and bioethanol gel production can be

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Attention needs to be focused on up-skilling communities so that they can access

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Bioenergy Applications ............................................................................................ 30

Quantifying the Bio-energy Resource ....................................................................... 50

Existing Land cover ....................................................................................................... 50

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

3.3. Invasive Plants and Bush Encroachment........................................................................ 55

Market Demand ...................................................................................................... 71

Current and proposed bioenergy projects ................................................................ 78

Biomass projects .......................................................................................................... 78

PESTLE Analysis ....................................................................................................... 82

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

6.5.4. Regulations for private bio-energy developments .......................................................... 96

Ranking of bio-energy options ............................................................................... 107

Priority applications & actions ............................................................................... 108

10. ANNEXURES........................................................................................................... 121

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

typically followed by the industrial conversion of the biomass to energy, an energy

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Amathole District Municipality

Alfred Nzo District Municipality

Buffalo City Metropolitan Municipality

Combined Cooling, Heat and Power (Trigeneration)

Clean Development Mechanism

Chris Hani District Municipality

Combined Heat and Power

Compressed Natural Gas

Department of Economic Development, Environmental Affairs and

Department of Rural Development and Agrarian Reform

Eastern Cape Development Corporation

East London Industrial Development Zone

Energy Services Company

Gross Domestic Product

Gross Geographic Product

Green House Gases

EASTERN CAPE P ROVINCIAL BIOENERGY I MPLEMENTATION SUPPORT PLAN 2014/2015

Heavy Fuel Oil

Invasive Alien Plants

Internal Combustion Engine

Industrial Development Zone

Joe Gqabi District Municipality

Kilowatt hours of energy

Kilowatt electrical power

Kilowatt thermal power (heat energy)

Local Economic Development

Liquid Natural Gas

Liquid Petroleum Gas