Mineral Resources and Energy Minister, Gwede Mantashe, says while coal production remains a strategic sector for the country, it must innovate and commit to “moving from high carbon to low carbon emissions” as part of the country’s just energy transition.
He was speaking during an engagement with South African coal producers held at the Council for Geoscience on Tuesday.
“Domestically, the commodity will continue to play a role in developing economic energy mix, steel and cement industries but its use will eventually decline as nations and businesses strive to reduce their environmental impact and abide by climate policies.
“We must as a sector map out clearly an engagement strategy on the national interests with regards coal.
“Coal remains an important commodity as highlighted by the massive reserves. It is upon the coal industry to help map out its future,” Mantashe said.
The Minister said despite challenges rising from the need to reduce carbon emissions, the sector remains an “essential component” in South Africa’s energy mix.
The industry accounts for 70% of energy consumed and 95% of the energy produced in the country.
He said government also intends to assist the industry to transition to cleaner technologies.
“[Coal] will remain the mainstay of South Africa’s energy basket for the next 10 to 20 years and a strategic sector, as well as a job provider. The new Eskom build and the coal Independent Power Producers will sustain the coal industry.
“As a significant player in the country’s economy and future contributor considering the value on the ground, government intends introducing interventions that will not sterilise the development of its coal resources.
“Instead, all new coal power projects would be based on high efficiency, low emission technologies and other cleaner coal technologies coupled with underground coal gasification, Fluidized Bed Combustion (FBC) and the development of Carbon Capture and Storage," Mantashe said.
Addressing South Africa’s just energy transition, Mantashe said South Africa’s “national realities” must be weighed while the country moves towards lower carbon emissions.
“A just energy transition must out of necessity speak to the national development interests of our massive endowment with coal, current status of baseload generation, sizeable contribution to [the Gross Domestic Product], large contingent of employees [at least 85 000] and other relevant economic factors.
“Furtherance of the COP26 agenda cannot afford to ignore these national interests altogether but, should be integrated into plans serving our national development interests as it is with all other States bargaining the global trajectory of climate change,” he said. – SAnews.gov.za
