M Mangena: South African National Energy Research Institute
launch

19 February 2007

The Minister of Minerals and Energy, Ms Buyelwa Sonjica,
Directors-General of the departments of Science and Technology and Minerals and
Energy,
The Management of the International Energy Agency,
CEOs of the Central Energy Fund and SANERI
Distinguished guests,
Ladies and gentlemen,

In the past, the Energy sector in South Africa was given a level of research
funding equivalent to what government was providing to the Medical Research
Council for medical research. However, the results of such a significant level
of funding were not evident in terms of its impact on the challenges that faced
South Africa. Then, research funding was geared towards providing a minority
with cheap and reliable energy, and in meeting the needs of the
minerals-industrial complex.

Today, our energy related challenges are much more demanding. We need to
meet the energy needs of the poor and marginalised whilst supporting a growing
and globally competitive economy. We need energy solutions that balance
economic and social development without long-term negative impacts on our
environment. My department, together with the Department of Minerals and Energy
(DME), have jointly established the South African National Energy Research
Institute (SANERI) to address these challenges. The establishment of SANERI
will support governments’ commitment to a sustainable energy future.
Consequently, SANERI will have, as its primary objective, the advancement of
public-interest energy research and development.

Ladies and gentlemen, the continued democratisation of our society requires
higher economic growth and social development. Increasing investment in energy
research and development needs to be complemented by enhanced levels of
commercialisation of these efforts. Therefore, there is a need for SANERI to
enhance its interaction with the private sector when rolling out its programmes
and initiatives.

In addition, SANERI will need to rapidly implement a successful partnership
model between government, academia and the private sector, which can focus our
efforts and limited capacity on key energy research and development (R&D)
challenges. In developing an energy research and development strategy, a key
weakness that was identified was the paucity of human capital in key areas of
focus. As a result, a key requirement for SANERI over the next decade is to
make a significant contribution to human capital development. SANERI has been
functional for less than a year, but I am pleased at the progress already being
made in this regard.

The multi-pronged strategy includes support for internships and
post-graduate studies. It also includes the imminent appointment of Chairs of
Energy Research. These will be located at various universities throughout the
country, and will be a noteworthy step in the development of world-class
cutting-edge energy research and national innovators.

Allow me this opportunity to congratulate SANERI on the establishment of the
Renewable and Sustainable Energy Research and Development Hub at the University
of Stellenbosch. The hub will support the development of a vibrant renewable
and sustainable energy supply industry in South Africa. A noteworthy feature of
the "National Hub for the Postgraduate Programme in Renewable and Sustainable
Energy Studies" (its official name in full) is the inclusion of sustainable
development and management into what is fundamentally an engineering programme.
It is such initiatives that will boost the innovative capacity of our emerging
scientists and engineers and we anticipate the establishment of more of these
building blocks for our sustainable energy future.

We look forward to congratulating the first graduates of this programme. I
am confident that in a few years' time, we would have achieved the critical
mass to establish a greater emphasis on renewable and sustainable energy
solutions.

Energy research, development and innovation that focus on efficient
management of our natural resources can play a key role in our society in
future. Researchers must assist in transforming the current energy system into
a more sustainable one, making it less dependent on imported fuels. The end
result should be a diverse mix of energy sources, especially renewable ones,
energy carriers and non-polluting sources.

In this way, energy efficiency, which includes improvements in the use and
storage of energy, will be enhanced, thus addressing the pressing challenges of
security of supply and climate change. Shifting from the human capital
development focus let me highlight three specific priorities of government that
SANERI needs to factor into its plans.

Firstly, there is a need for appropriate energy models if we are to avert a
looming Southern African energy crisis as demand begins to outstrip supply in
the Southern African Development Community (SADC) region. The challenges of
energy supply facing the SADC region point the direction for governments’
commitment to energy planning and provision. In this regard, research on energy
planning and modelling is included in the research and development strategy.
Due to the urgency of this work, SANERI will be required to prioritise this
work.

Secondly, there has been much talk of an emerging Hydrogen Economy. SANERI
is suitably placed to take advantage of such emerging research and development.
These research and development challenges of the Hydrogen Economy are more than
energy challenges. Problems of supply, storage and distribution need to be
solved and these issues require efforts in other research and development
domains, such as the development of platinum catalysts. Effective co-ordination
with other research efforts is crucial if we are to position South Africa as an
important player in this regard. Whoever manages to conquer the challenges
raised by the hydrogen economy is well placed to influence the geopolitical
stage.

Thirdly, given the lack of natural oil resources in South Africa, and our
economic dependence on the internal combustion engine, it is also critical that
research and development into our liquid fuel supply is improved. I'm pleased
to observe that one of the first Chairs of Energy Research that SANERI will
award is that of the Biofuels Research. This should provide a strong foundation
for further work in this area. Allow me to use this opportunity to also
register our pride with the South African breakthrough on photo-voltaic by the
University of Johannesburg, which was achieved through the support from my
department's Innovation Fund. Together with a group of Ministers, I have given
firm commitment that we will be supporting the local demonstration and
commercialisation flowing from the second license. SANERI has a key role to
play in the demonstration.

Over time, SANERI may have to develop the capability to conduct in-house
research through the parliamentary allocation in the context of the energy
industry development interest of our partner, the Department of Minerals and
Energy. The DME is at the early stages of developing a new industry group of
energy producers that will most likely need customised research and technology
development support. It should be noted also that SANERI has been established
as a wholly owned subsidiary of the Central Energy Fund, enhancing the
opportunity space to develop any potential commercial spin-offs through the
Energy Development Corporation of the Central Energy Fund (CEF).

My department, together with the Department of Minerals and Energy, have
finalised an Energy Research and Development Strategy. SANERI will be the
implementing agency of this research and technology development strategy and we
are confident that they will be successful in this task. In closing, please
join me in congratulating the team and officials from the departments of
Science and Technology and Minerals and Energy, who have worked tirelessly
towards the realisation of SANERI. SANERI is a confirmation of South Africa’s
readiness to contribute to global efforts on energy related technology-based
initiatives.

I thank you.

Issued by: Department of Science and Technology
19 February 2007