An outlook on the energy mix at South African beverage manufacturers and opportunities for greater adoption of renewable energy solutions.

Date
2024-02
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: For the world to decarbonise, industry, which accounts for half of total energy demand, must embrace renewable and sustainable energy solutions. This, not only to meet electricity requirements but, more importantly, to substitute fossil fuels used to generate process heat. This research aims to assess the technoeconomic and carbon emission reduction benefits of renewable and sustainable energy solutions for the South African beverage sector, which represents an estimated 3020 GWh per annum in energy demand, and to provide a framework for the broader adoption of these technologies. This dissertation consists of three manuscripts collectively achieving the study’s ambition. In Chapter 2, the historical generation capacity and learning rates of leading solar and wind electricity generation technologies are used to derive a data-driven methodology to forecast costs. The approach to long-term forecasting is then applied to more novel technologies, such as energy storage systems, high temperature heat pumps and solar thermal energy solutions, which lack meaningful cost projections. The transparent approach to forecasting technology cost evolution supports decision-making regarding future investments in renewable energy solutions. Chapter 3 includes a proposed three-stage framework for the progressive reduction of fossil fuel usage by industry. Stage 1 advocates ongoing energy efficiency as the primary pillar. Under Stage 3, the framework introduces a broader role for industry as a catalyst to create municipal heating and cooling networks to lower overall community energy consumption. However, the paper focuses on Stage 2 and the large-scale adoption of renewable and sustainable energy solutions. This is particularly relevant to the South African beverage sector, which operates many coal-fired steam boilers and is primarily owned by international shareholders who have made bold carbon emission reduction commitments. A detailed evaluation of energy usage in the South African beverage sector is used to quantify the relative financial benefits and potential carbon emission reductions. For South African beverage producers, the paper concludes that investments in photovoltaic and battery energy storage systems will continue to take priority, given the 17–21 % Year-1 return on capital. However, given spatial and capital constraints, the judicious planning of solar thermal energy system requirements is advocated, to address the in-situ nature of process heat generation. Finally, a detailed techno-economic analysis of solar thermal parabolic trough collectors is presented in Chapter 4. In 2020 real US Dollar value, a levelised cost of heat of US$38–70/MWhth, was calculated. This remains higher than the cost of coal at US$20–40/MWhth at contract prices of US$100–200 per tonne. However, with the turmoil in energy markets and large-scale installations being commissioned in Europe in 2023, the article argues that a tipping point has been reached and that coordinated efforts between industry and service providers can lead to large-scale systems to be commissioned. This research demonstrates that the South African beverage industry can reduce carbon emissions through continued energy efficiency initiatives and value creating investments in renewable electricity generation and storage. Solar thermal energy technologies will need policy and fiscal support to compete against alternative investments and to displace coal and gas.
AFRIKAANSE OPSOMMING: Vir die wêreld om te dekarboniseer, moet die industrie, wat verantwoordelik is vir die helfte van die energieaanvraag, hernubare en volhoubare energie-oplossings omarm. Dit, nie net om aan elektrisiteitsvereistes te voldoen nie, maar, belangriker nog, om fossielbrandstowwewat gebruik word om proseshitte te genereer, te vervang. Hierdie navorsing poog om die tegniese en ekomoniese voordele van hernubare en volhoubare krag-oplossings vir die drank sektor in Suid-Afrika te assesseer, wat ‘n beraamde 3020 GWh per jaar verteenwoordig van die totale nasionale energieaanvraag.Hierdie proefskrif bestaan uit drie gepubliseerde en ongepubliseerde referate wat gesamentlik die studie se ambisie bereik. Hoofstuk 2 gebruik die historiese opwekkingskapasiteit en leertempos van toonaangewende son- en windkragopwekkingstegnologieë om 'n data-gedrewe metodologie af te lei om koste te voorspel. Die benadering tot langtermynvooruitskatting word dan toegepas op meer nuwe tegnologieë, soos energiebergingstelsels, hoëtemperatuur-hittepompe en sonkrag-termiese energie-oplossings, wat nie betekenisvolle kosteprojeksies het nie. Die deursigtige benadering tot die voorspelling van tegnologiekoste-evolusie ondersteun besluitneming rakende toekomstige beleggings in hernubare energie-oplossings. Hoofstuk 3 sluit 'n voorgestelde drietrapsraamwerkin vir die progressiewe vermindering van fossielbrandstofgebruik deur die industrie. Fase 1 bepleit deurlopende energiedoeltreffendheid as die primêre pilaar. Onder Fase 3 stel die raamwerk 'n breër rol vir die industrie as 'n katalisator in om munisipale verhittingen verkoelingsnetwerke te skep om algehele gemeenskapsenergieverbruik te verlaag. Die werkstuk fokus egter op Fase 2 en die grootskaalse aanvaarding van hernubare en volhoubare energie-oplossings. Dit is veral relevant vir die SuidAfrikaanse dranksektor, wat baie steenkool gestookte stoomketels bedryf en hoofsaaklik besit word deur internasionale aandeelhouers wat stappe neem om volgens verpligtinge koolstofvrystelling te verminder. 'n Gedetailleerde evaluering van energieverbruik in die Suid-Afrikaanse dranksektor word gebruik om die relatiewe finansiële voordele en potensiële vermindering van koolstofvrystellings te kwantifiseer. Vir Suid-Afrikaanse drankprodusente kom die papier tot die gevolgtrekking dat beleggings in fotovoltaïese en battery-energiestoorstelsels steeds prioriteit sal neem, gegewe die 17–21 % Jaar-1 opbrengs op kapitaal. Tog, weens ruimtelike en kapitaalbeperkings, word die bedagsame beplanning van die vereistes vir sontermeïese energiestelsels aangemoedig om die insitu-aard van proseshittegenerasie aan te spreek.Laastens word 'n gedetailleerde tegnoekonomiese ontleding van sontermiese paraboliese trog-opvangers in Hoofstuk 4 aangebied. In 2020 is die reële Amerikaanse dollarwaarde, 'n gelykgemaakte koste van hitte van VS$38–70/MWhth, bereken. Dit bly hoër as die koste van steenkool https://scholar.sun.ac.za vi teen VS$20–40/MWhth teen kontrakpryse van VS$100–200 per ton. Met die onstuimigheid in energiemarkte en grootskaalse installasies wat in 2023 in Europa in gebruik geneem is, voer die joernaal artikel egter aan dat 'n kantelpunt bereik is en dat gekoördineerde pogings tussen die industrie en diensverskaffers nou nodig sal wees vir grootskaalse stelsels in opdrag te gee. Hierdie navorsing toon dat die Suid-Afrikaanse drankbedryf koolstofvrystellings kan verminder deur voortgesette energiedoeltreffendheidsinisiatiewe en waardeskeppende beleggings in hernubare elektrisiteitsopwekking en -berging. Termiese sonkragtegnologieë sal beleids- en fiskale ondersteuning nodig hê om teen alternatiewe beleggings mee te ding en om steenkool- en gasaangedrewe stoomketels te verplaas.
Description
Thesis (PhD)--Stellenbosch University, 2024.
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