“Each year we conduct a GHG emissions assessment to identify areas for GHG mitigation and increasing efficiencies

Case study: Managing energy security concerns

The continuing electricity supply constraints in South Africa present a significant and potentially prolonged impact on our South African operations. In its 2015 budget review National Treasury of the Republic of South Africa stated that the country will experience constrained electricity supply for at least the next two to three years.

Eskom load curtailment

As a ‘key customer’ or ‘energy-intensive user’ with Eskom, Implats has specific agreements in place with the electricity provider. In terms of a signed ‘load curtailment document’, Impala Rustenburg is given timely caution to implement load curtailment measures whenever the power system becomes severely constrained. During a stage 1 and 2 load curtailment, we are required to reduce demand by 10% within two hours of notification, under stage 3 we have to reduce demand by 20% within two hours, while stage 4 represents an unscheduled requirement to reduce demand, as instructed by the National System Operator. As a result of our on-site real time power-monitoring system, we have been able to act swiftly and accurately when required. This information also makes Impala’s efforts to assist Eskom more credible, contributing to the ongoing good relationship that we have been careful to maintain with Eskom.

Energy reduction plans have been developed and modelled for a range of Eskom scenarios, designed to minimise risks to employee safety, and ensure minimal production loss.

During the year Impala received 56 stage 1 and stage 2 load curtailment requests to reduce electrical power usage by the required 10%. The total declared emergency amounted to 514 hours. The weekend requests were and are managed by ensuring the compressors do not exceed 60MW. For early morning week-day requests, load reduction first takes place at our Mineral Processing Plant (furnaces, slag plant and milling circuits) until such time as the Impala profile falls below the calculated Eskom average demand. Afternoon requests by Eskom have not impacted production thus far and this is due to significant reduction in the Impala demand profile from early afternoon through to early evening.

Exploring self-generation initiatives

Given the current energy context we are aggressively pursuing opportunities to take Implats along the path of sourcing alternative energy supply. As part of this initiative we have been partnering with local businesses to develop and deliver fuel cell solutions that provide sustainable economic returns. The first phase of the project involves the installation of cells using phosphoric acid fuel cell technology from Fuji Electric in Japan. This will operate off excess hydrogen piped to Impala Springs for the metal reduction process. The fuel cells will supply an initial 1.8MW of power in two tranches of 900kW and will also produce heat that will be integrated into the operation. The chemical reaction by the fuel cells produces zero emissions except for clean water that can be utilised within the plant. The first electricity from this project will be available in 2016, subject to final approval and implementation of a power purchase agreement. The second phase of the project will involve the installation of a Doosan fuel cell system producing up to 20MW operating on natural gas.

Additionally, a solar powered project to deliver sufficient power alleviating stage 1 load curtailment is being considered for installation and across the fence supply of power at Impala. The project will need a vast area for installation of the solar panels, which will require the cooperation/involvement of the Royal Bafokeng (land owners).