B Sonjica: centre for carbon capture and storage signing
ceremony

Speech by the Minister of Minerals and Energy B P Sonjica
during the signing ceremony of the charter for the South African Centre for
Carbon Capture and Storage Centre

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

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