Transnet in search of extra power
SEEKING a more reliable source of energy for its operations throughout South Africa, Transnet is exploring alternative sources for electricity. Anticipating a surge in demand, the rail, port and pipeline parastatal expects it will need between 58% and 66% more electricity in 2020 than it used last year to keep up with its market demand strategy.
It is now looking beyond Eskom to green energy resources to help with energy security and carbon mitigation.
The company published a request for information (RFI) this week to invite independent electricity suppliers of alternative energy sources, including shale gas, to come up with a cheaper, more reliable, green energy plan.
Transnet SOC Ltd spokesman Mboniso Sigonyela said the RFI formed a part of the company's proactive steps to address forecast energy demands in a sustainable way. "The RFI is not a procurement or pre-qualifying process for electricity supply to Transnet. It is designed specifically to source factual, technical information on Transnet's electricity supply options."
The RFI states that Transnet's total electricity consumption in 2012-13 was 3.6 terawatt-hours (TWh) and South Africa's total consumption is about 255 TWh per year.
The majority of the electricity consumption of the company last year was used for freight rail locomotive traction (71%) and the total electricity cost in 2012-13 amounted to R2.6-billion – about 16% of the total company costs.
Some reasons given in the RFI as to why Transnet was exploring a green electricity plan was because of the vulnerability from outages, the constrained capacity of Eskom to meet the demands of the country's electricity needs and increasing costs. A submission requirement for the RFI was to make use of sources such as natural gas, wind, solar, hydro and cogeneration from waste heat or waste products. The natural gas sources are listed as liquefied or compressed or modular natural gas, coal-bed methane and shale gas.
Treasure the Karoo Action Group (TKAG) chief executive Jonathan Deal said Transnet was to be applauded for looking for ways to reduce its carbon footprint and improve operational efficiency. However, he said, shale gas had not been shown to be a viable option in South Africa.
"International developments in the economics of shale gas are showing the resource is not performing as well as its supporters in SA and elsewhere claim. In our view, having regard for the plethora of issues to be settled before energy from shale gas production could realistically be included in strategic planning, Transnet would do better to base its plans on gas from natural offshore sources and other countries.
"Natural gas is an attractive source of energy for many reasons and we support gas being part of the energy mix of SA, as we move towards a low carbon future as well as Transnet's electricity plan, provided that the gas source is conventional, and not shale gas," Deal said.
Shale gas is trapped within shale formations and a controversial method of accessing the natural gas is hydraulic fracturing, commonly known as fracking, which involves pumping water, sand and chemicals into horizontally drilled wells, under hydraulic pressure to fracture the underground shale layers.
In addition to pricing, reduced greenhouse emissions and meeting Transnet's electricity demand needs, another priority factor to be taken into account with the RFI submissions, which close on July 29, was listed as socio-economic outcomes such as job creation and targeted local content. - Cindy Preller
