Innovation finds home at Coega

Environmentally friendly may not be the first term that comes to mind when the Coega Development Corp (CDC) is mentioned. But the industrial development zone (IDZ) is working to create a green energy hub in the Eastern Cape — one that will be a leader in this increasingly important niche area.

Wind projects with a combined capacity of more than 6000MW are at various stages of the environmental impact assessment (EIA) process in the Eastern Cape.

In both first and second Phases of the department of energy’s independent power producers procurement programme the Eastern Cape has been awarded 870MW or 60% of the allocated renewable energy generation. This places the province at the forefront of renewable energy projects.

During his state of the nation address, President Jacob Zuma confirmed that SA “continues to search for renewable energy sources, especially solar electricity and biofuels as we implement the Green Economy Accord with economic stakeholders”.

Currently the CDC has in its Coega IDZ three wind energy projects and one solar energy project. These will contribute 200MW into the national grid by 2015, all things being equal.

Belgian company Electrawinds, which has invested R1,2bn in the Coega Wind Farm project, is leading the charge in renewable energy in the Coega IDZ.

Electrawinds’ first turbine alone has a capacity of 1,8MW, offering annual yields of 5,7mkWh, enough energy to power about 1700 households.

Another Coega investor, Innowind, has been successful in phase 2 in the bid to the department of energy to supply power of up to 103MW as an independent power producer.

It intends to submit a later bid for either the entire farm or a portion of it, depending on studies with the Civil Aviation Authority, according to a report by GetNews.

A 13MW photovoltaic (PV) solar facility by German-based EAB Astrum Energy — worth R278m in Zone 12 of the Coega IDZ, the fourth renewable energy investment within the zone — was given the go-ahead in March.

In terms of renewable energy components manufacturing, the CDC is in discussions with wind turbine components manufacturers (towers, blades, nacelles) and solar PV module assemblers.

“In total, 1000 jobs can be created from these projects, should the renewable energy industry take off in SA,” says energy business development manager Nkuli Mxenge-Mayende.

The CDC’s Renewable Energy Strategy aims to contribute 4% towards the national target for green energy by 2020, she says.

This focus on green energy will significantly contribute to Coega’s economic development objectives in terms of investment attraction in new industries such as solar energy, wind energy, biomass, biogas and biofuels in an impoverished area of the country.

This will link to the abundant resources of the province, while creating jobs and utilising the automotive sector’s skills as an enabler.

It will also help with the training of SMME companies to be part of a service centre for green technologies in the green technology hub being established, with people being trained in new skills.

In addition, she says, the green energy niche will contribute to rural development through backward linkages with agriculture.

Looking to the future, these developments will ensure electricity security — a high priority for the province — access to the latest technology in renewable energy for the metro and the broader Eastern Cape, and reaffirm the CDC’s goal of being a responsible corporate citizen.

The corporation is confident that more investors will recognise the benefits of the green energy hub and set up shop in the province.

Mxenge-Mayende lists the energy hub’s milestones as the establishment of a biomass pellet manufacturing plant at Coega.

There is also the pilot 1,8MW wind turbine owned by Electrawinds, which powered the Nelson Mandela Bay Stadium during the 2010 Soccer World Cup, and it is still providing green electricity to the metro for free.

Natural gas is another area to which the Coega IDZ is attracting investment. The proposed combined cycle gas turbine (CCGT) plant at Coega will be the first natural gas fired power station in SA.

It aims to become one of the solutions to the ongoing power shortage in the country, especially the Eastern Cape where it will also contribute to socioeconomic growth.

Natural gas as an energy resource has attracted much interest throughout Africa, especially on the east and west coasts.

Though natural gas usage has increased globally, the application of this resource in the SA electricity economy is small compared to other countries.

The development of clean, efficient electricity generation technologies is a key goal for both developed and developing countries.

CCGT, envisaged as a 6% source of new electricity, has the potential to help in balancing the national power grid by having power capacity in the south of the country.

The use of natural gas has been hampered by a variety of factors including inadequate gas reserves, the volatility of gas prices in the market and the fact that the gas price is linked to oil prices, she says. But these are being addressed through various measures.

She lists the benefits of the project as ensuring the security of the electricity supply in the Eastern Cape, securing and attracting potential investors and creating employment opportunities.

Skills development — during construction more artisans will be trained and equipped with skills that can be utilised in other related industries — is another benefit for the region.

“Given that this will be the first CCGT plant in SA of such magnitude, it will put the Eastern Cape on the map and will expand the country’s capacity for such greenfield projects through technology transfer,” Ncemane says.

CDC marketing & communications manager Ayanda Vilakazi concurs that there is a solid business case for component manufacturing in SA for wind and solar technologies, triggered by renewble energy demand in the country.

He points out that there is a “huge market”, in particular, for solar PV and off-grid technologies.

He says the Coega IDZ is the “ideal manufacturing platform” for renewable energy components that — in addition to contributing to the battle against global warming — are revenue generating, in addition to creating jobs and advancing socioeconomic development and transformation.

In other manufacturing sectors, the Coega IDZ is also home to SA’s first environmentally-friendly dairy processing plant.

The newly established Coega Dairy’s ultra-high temperature (UHT) processing plant — with the smallest carbon footprint in the southern hemisphere — features a plant design that is significantly more efficient than conventional UHT milk processing solutions available in other SA plants.

According to Coega Dairy, Coega was chosen as a location for the new plant based on the excellent infrastructure available in the Coega IDZ as well as its prime location in the heart of the dairy’s supply region.

Coega’s commitment to not only contribute to the economic development of the Eastern Cape but also to its environmental preservation is evident in its emphasis on green issues and initiatives that are both economically empowering and sustainable.