B Sonjica: PetroSA biogas to Electricity Project launch

Speech by Ms BP Sonjica, Minister of Minerals and Energy at
PetroSA biogas to Electricity Project launch

28 September 2007

Programme Director,
Honourable Minister,
Distinguished guests,
Captains of industry,
Senior government officials,
Ladies and gentlemen

I derive great pleasure in launching the PetroSA biogas to electricity
project developed and implemented by METHCAP SPVI (Pty) Ltd today. This is the
second project to benefit from the renewable energy subsidy scheme that we are
providing to renewable energy projects since the scheme was established in
2005.

One of the most important pre-occupations for many governments around the
world is energy security. Renewable energy will significantly contribute to
energy supply security by increasing diversification of energy resources,
promoting access to energy, services and contributing to sustainable
development through the optimum use of cleaner energy resources. A number of
renewable energy sources and technologies are available in South Africa, but
most still need to be developed to their full potential.

We all recognise the need to diversify energy supply by developing advanced
non-polluting, more efficient, affordable and cost-effective energy
technologies, to meet the rising global demand for energy, particularly in
developing countries. When looking at these alternative energy sources, an
increasing number of countries, including South Africa recognise the role that
renewable energy can play in the reduction of Greenhouse Gas Emissions.

The Renewable Energy Policy White Paper sets out a specific target of 10 000
GigaWatt hours (GWH) by 2013 for the contribution of renewable energy into the
national energy system. This target can only be achieved through the
appropriate development of renewable energy technology and the PetroSA biogas
to electricity is one those projects that will contribute to the achievement of
the target. We recognise that there are barriers that could hamper the
achievement of the renewable energy target and many of you would be aware that
one of these barriers is high capital costs associated with renewable energy
technologies.

We have however, developed a number of policy initiatives and financing
projects in order to get the best possible renewable energy mix for South
Africa. Some of the initiatives include the Renewable Energy Finance and
Subsidy Scheme which contributed significantly to the successful implementation
of the PetroSA biogas to electricity project we are launching today. Other
initiatives include the Tradable Renewable Energy Certificates System the
department is establishing, the Wind Energy Generation studies which we are
undertaking, the Green Power Trading investigations and the Darling Wind Farm
pilot project. We believe that all these initiatives will contribute to the
establishment of a viable renewable energy industry.

The launch today of the PetroSA biogas to electricity project indicates that
the implementation of renewable energy in South Africa is not just a fantasy
from government but it is actually doable. The PetroSA biogas to electricity
together with the programmes we have established will certainly ensure that
renewable energy contribution towards the total energy mix is increased. It is
important that we see this project as a catalyst for the development of other
renewable energy projects in the country.

We can use the success of this project for the long term benefit of our
country. The PetroSA biogas to electricity project is a practical example of
the application of renewable energy technologies in our country, and it
demonstrates how bringing different inputs and infrastructure can stimulate
development of a viable renewable energy industry.

Programme Director, before I conclude, I would like to thank METHCAP SPVI
(Pty) Limited for their ongoing commitment to the development and
implementation of this project. I would also like to thank PetroSA for
welcoming the proposal from METHCAP Company to have the project implemented in
their location and agreeing to buy the power that will be produced.

To conclude, Programme Director, as we respond to the Renewable Energy White
Paper of 2003 which clearly states that by 2013, renewable energy should
contribute 10 000 GWh to the national energy system, the Department Minerals
and Energy will continue to partner with project developers like METHCAP to
successfully implement renewable energy projects in the country and we will
also continue investigating and implementing initiatives that will ensure that
we achieve our renewable energy target.

I thank you.

Issued by: Department Minerals and Energy
28 September 2007

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