/ 18 September 2006

Save energy, make money

Paper giant Mondi has saved R38-million in energy and water consumption since 2003, by implementing energy efficiency measures. It saw a net cost saving of 27,2% for purchased energy and water by the end of last year, compared with projected consumption without energy-saving measures.

South Africa’s energy-hungry companies are starting to implement measures that reduce consumption and deliver real savings and have signed the voluntary Energy Efficiency Accord as a public show of commitment.

Signatories include companies such as Mondi, Sasol, Unilever, Anglo American, Barloworld, Woolworths and cement maker Holcim. The accord was initiated by the National Business Initiative (NBI), a grouping of local companies that promotes sustainable development.

Mondi’s expansion project, included as a case study for best practices, was designed to increase production capacity, increase energy efficiency and improve environmental performance, at a cost of R2,3-billion. The goal was to realise a real reduction in water consumption and purchased energy. It was able to use 44,3% less purchased energy in 2005, compared with 2003 (the baseline year for the project). Its total reduced sulphur emissions was about 60%.

While cement manufacturing is energy-intensive by nature, Holcim’s Dudfield kiln now uses 15% less thermal energy and less coal for every ton of cement produced, which cuts carbon dioxide emissions. In 2003 and 2004, Holcim installed more efficient technology and eliminated false air leaks. The company said production had actually increased, as the kiln was now more reliable.

Eskom’s demand-side management programme, which includes the promotion of energy-saving compact fluorescent light bulbs (CFLs) and consumer education projects, resulted in a saving of 197mW in 2004, with more than two million CFLs sold and 64mW saved during peak periods. CFLs were originally priced at between R60 and R80 a lamp, but by 2004, the price had dropped to between R13 and R20 a lamp, because of increased sales volumes and promotions. Eskom aims to distribute three million CFLs to residential communities to reduce peak electricity demand.

Pick ‘n Pay has installed energy-efficient lighting in its new stores, and is retro-fitting 97 established stores. This should save about R1,5-million a year in energy bills, with the capital costs recouped in two years.

Sasol is upgrading its Secunda synfuels reactors with new, more efficient technology, which should result in a saving of 25mW once completed. This translates to an initial capital cost saving of R2 300 per kilowatt.

Energy consumption is closely allied to the GDP, said Jacqueline Obando of the NBI, which is why as a developing country South Africa is not required to reduce polluting emissions under the Kyoto treaty. The government is, however, trying to reduce energy demand voluntarily and is targeting a 12% reduction in energy demand by 2015, with a saving of 4 225mW over 20 years.

Our economy is one of the most energy intensive in the world, and is listed as 13th for carbon dioxide emissions, the NBI said.