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27 march 2009

Programme director
Minister Erik Solheim in absentia
Ambassador Mr Tor Christian Hildan
Deputy High Commissioner Ms Judith Slater
CEO of Central Energy Fund (CEF) Mr Damane
South African industry
Members of the media
Honoured guests
Ladies and gentlemen

We are gathered today to take part in the signing ceremony of the charter for the South African Centre for Carbon Capture and Storage. We have already heard of the technology of carbon capture and storage and the actions that the centre will be undertaking. Those actions will facilitate a state of country readiness for South Africa that will ensure, at the appropriate time, the technology can be readily applied.

My department fully supports this initiative, a measure that along with other activities of the Department of Minerals and Energy such as renewable energy and energy efficiency, is expected to address the control of greenhouse gas emissions and reduce our carbon footprint.

South Africa is a coal based country and here we see that the major coal producers and users have the vision to appreciate the part that carbon capture and storage can play in their industries in the future. Industry is usually guarded when it comes to matters such as technology development. But here we have an example where they can see the benefits and cost effectiveness of co-operation. I also see industry here taking the path of corporate social and environmental responsibility.

Already, PetroSA, AngloCoal, Eskom, Sasol and South African National Energy Research Institute (SANERI) are financing the development of a carbon dioxide storage Atlas for South Africa. This project has already started and the Atlas is scheduled to be completed mid 2010. That Atlas will locate and characterise potential carbon dioxide storage sites in South Africa. It is a critical step in the process for carbon capture and storage in South Africa. Currently the Atlas focuses only on South Africa. However, one might envisage it as a basis for a regional Carbon Dioxide Geological Storage Atlas that might be developed in co-operation with our Southern African Development Community (SADC) neighbours.

It is also significant that the governments of Norway and the United Kingdom have joined with our government, South African industry and other stakeholders in helping to make this venture a success. Climate change is a global dilemma that requires a global resolution. Carbon capture and storage is a relatively new technology for the mitigation of greenhouse gases and is being propelled forward in a global context and it is essential that South Africa accesses worldwide advances and co-operates with other experts in the field.

Your collective support for the Centre for Carbon Capture and Storage is greatly appreciated and we believe will accelerate the development of the technology in South Africa. This will be one of the avenues that will strengthen the bonds between our countries.

The South African government has already formed co-operative arrangements with other international organisations that address carbon capture and storage important among these is the carbon sequestration leadership forum. In fact, South Africa hosted a conference on behalf of Carbon Sequestration Leadership Forum (CSLF) that I officially opened in 2008. These co-operations will ensure that the South African Centre will have a voice on the world carbon capture and storage stage facilitating the two way exchange of experiences and country specific perspectives.

South Africa has a strong and world reputation when it comes to mining operations. South Africa is blessed with considerable mineral resources sometimes holding the world’s largest deposits. We know how to cost effectively extract the wealth of the earth and make it available to the markets. The South African Centre for Carbon Capture and Storage’s job now, is to tap that expertise and apply it to the safe geological storage of carbon dioxide.

As a coal based energy economy, South Africa is a country with significant greenhouse gas emission per capita. We have other initiatives targeted at conserving energy and reducing our carbon foot print. The carbon capture and storage (CCS) project is just but one of them. We have established renewable energy and energy efficiency programmes and targets. We hope that the collective impact of these initiatives will make significant inroads into the energy economy. The South African government is already taking actions to address greenhouse gas emissions.

At the recent Climate Change Summit held in Midrand during 3 to 6 March 2009 it was announced that South Africa is to seek a course of limiting greenhouse gas emissions. In line with government initiative on Green house gas (GHG) emissions reduction, Eskom is already building the Medupi coal fired electricity generation station supercritical, which will make it more efficient than current operating stations. The right steps are being undertaken and CCS has an important role. The long term mitigation scenario plan of the Department of Environmental Affairs and Tourism (DEAT) (South Africa’s ‘sterne’ report) includes a measure for five percent of South Africa’s greenhouse gas emissions to be mitigated by carbon capture and storage. Should our storage potential prove significant, then that percentage could rise.

South Africa has already indicated that it will undertake its part in the matter of climate change, commensurate with our need to develop and the global actions of other countries. South Africa is a developing economy. As demonstrated by DEAT policy on climate change, Department of Minerals and Energy (DME) initiatives like the development of the Carbon Capture and Storage Atlas of Republic of South Africa, the CCS Centre, renewable energy and energy efficiency strategies, is multifaceted approach with more emphasis on the latter.

Today is the signing ceremony for the centre’s charter. My department, along with other organisations, supports this centre and all other initiatives related to carbon capture and storage. I want to take this opportunity to thank the support from both the Norwegian government represented by Minister Erik Solheim and Ambassador Mr Tor Christian Hildane and the British government represented by Deputy High Commissioner Ms Judith Slater. It is significant and gratifying that South African industry is supporting this initiative.

The South African industry and other stakeholders have demonstrated that private public partnership in resolving challenges that face not only South Africa but the global community at large can work. I thank you. This is applauded and I hope that other sectors and stakeholders can learn from this initiative. The Department of Minerals and Energy, the Central Energy Fund represented by Mr Damane here together with SANERI have done a sterling job to bring us together. SANERI you have the responsibility of ensuring the success of this project and I expect regular feedback to all the stakeholders and the sponsors of this initiative.

Ladies and gentlemen

Thank you

Issued by: Department of Minerals and Energy
27 march 2009