Humphries Boerdery Piggery Methane Capture and … · Humphries Boerdery Piggery Methane Capture and Electricity Generation Project Cape Advanced Engineering (Pty) Ltd Andrew Taylor

Humphries Boerdery Piggery Methane Capture and Methane Capture and

Electricity Generation Project

Cape Advanced Engineering (Pty) Ltd

Andrew [email protected]

+27 82 775 1001

1Cape Advanced Engineering (Pty) Ltd

Project History

•2006 Project initiation – planning, EIA, agreements

•2007 Construction of Bio-Digester

•2008 Construction of CAE Bio-Gas power generator

•2009 Operation of Pilot Plant – imbedded in the grid


•2010 Foreign partner exits the project ! ?


•2010 “Bela-Bela Working for Energy” Agreement

•2010 Development of 2nd generation Bio-Gas Plant

•2011 Operation of 2nd generation Bio-Gas Plant

Project History

•2007 Construction of Bio-Digester


Project History

•2008 Construction of CAE Bio-Gas power generator


Project History



Project History

•2010 Development of 2nd generation Bio-Gas Plant


Project History

•2011 Operation of 2nd generation Bio-Gas Plant


Project Highlights

• Operational experience with bio-digesters – local knowledge gained

• Bio-digester design evolution – appropriate technology developed– low cost solution – viable in SA market


• Additional projects initiated – 3 new bio-digesters in construction

• Local bio-gas power generator development- cost effective, low risk and local jobs.

• Evaluation of local technology

• Human resource development / capacity building

The good news

• A cost effective and market ready bio-digester has been developed – also addresses water quality.

• A locally manufactured and fully proven bio-gas power plant has been developed – cost competitive.


plant has been developed – cost competitive.

• Projects are viable at the 2009 REFIT tariff, with CDM, on a scale of only 200 kW = typical large farm.

• Projects will reduce the cost of food production,improve water quality and reduce health risks.

• Economically sustainable projects are now being built

Bio-gas vs Wind / Solar

� 15 November 2011 – Minister of Energy on RE IPP’s

�53 bids submitted – 50% wind, 48% solar & 2% hydro

�2.1 GW @R70 billion = R33.3 million per MW installed

� if availability / capacity factor = 30% for wind and 20% for solar then average = 25%


20% for solar then average = 25%

� then actual cost =R133.33 million per MW generated

� local content and permanent job creation ?

� investment and profit retained in SA ?

� Medupi cost >R25 million per MW @ 90% = R28m/MW

Bio-gas vs other RE

�………..continued – for wind and solar IPP

� then actual cost = R133.33 million per MW delivered

� Medupi cost >R25 million per MW @ 90% = R28m/MW

� Local bio-gas at 0.2 MW < R20/MW @ 90% = R20m/MW


� Local bio-gas > 10 new permanent jobs per MW !

� If wind / solar = 1 job / MW then 1 new job costs R133m

� Bio-gas costs R20m / MW thus 1 job costs < R2 millionbio-gas job cost : wind/solar job cost = 100 : 1

� Germany has 4000 bio-gas plants @ average of 400 kW = 1.6 GW with a capacity > wind and solar of 4.8 GW !

Disappointments

• DOE announced that by 2013, 10 000 GW.hr would have been generated onto the grid = R1 billion revenue

• actual revenue = < 2% of this target.

• no enabling structures have yet been announced

• the process prevents independent initiatives


• the process prevents independent initiatives

• the process has favoured foreign competitors and denied local developers and manufacturers from market access.

• DOE advertised subsidies for RE projects

• never implemented

Disappointments

• There has been no announcement on the COP17 IPP Invitation to Offer (ITO)

• There is no mention of any provision for projects smaller than 1 MW


smaller than 1 MW

� in other words, the entire German bio-gas industry would be disqualified and would not exist.

• >R5 billion has already been withdrawn from the economy into the REFIT funds, but no projects will be approved before July 2012.

� 2010+R3b, 2011+R4b, 2012+R5b = R12 billion

Disappointments

• RSA has only registered approximately 10% of the value of CDM’s per GDP of that registered in South America, Central Asia and China

– this is a lost opportunity – no provision for CDM after 2012.


CDM after 2012.

Concerns

� Our national tendency to over specify / over regulate

� DOE : IPP procurement process – a 200 kW bio-gas project costing R4 million need not be evaluated on the same terms as a R1 billion wind project


� NERSA : Generating licences – special provision is appropriate for small projects below 1 MW

� Eskom : physical grid connection – a 200 kW bio-gas plant cannot damage the network – there is no need for expensive high voltage protection and isolation – conventional fuses are adequate.

The Way Forward

�IPP support structure of Bio-Gas projects required�Generate renewable energy�Reduced GHG�Improve water treatment / water quality�Improved food cost / security


�Job creation�Local content

�� Provide access to the REFIT reserve fundo 2010+R3b, 2011+R4b, 2012+R5b = R12 billion

�� Provide subsidy as advertised by DOE � ��Release the private sector

Bio-Gas – in Africa, for Africa by Africans

Documents

Humphries Boerdery Piggery Methane Capture and … · Humphries Boerdery Piggery Methane Capture and Electricity Generation Project Cape Advanced Engineering (Pty) Ltd Andrew Taylor