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Climate change

 

Climate change, energy and greenhouse gases

Exxaro recognises that a commitment to clean energy is essential to remain competitive while dealing effectively with:
  • potential energy shortages
  • climate change
  • related environmental concerns
  • rising costs of energy.

Exxaro commits itself to both national and international protocols aimed at encouraging countries and industries to adopt more responsible energy use programmes.

In particular, Exxaro has committed to optimising energy use by improving energy efficiency by 15% by 2015 as outlined in the national energy efficiency accord of the Department of Minerals and Energy for the industrial and mining sectors. As part of fulfilling this commitment, Exxaro has initiated an independent verification of baseline energy use, using prior-year diesel and electricity figures.

The 2007 energy consumption baseline assessment showed that the coal business commodity is the largest consumer of both electricity and diesel energy, mainly
from operational activities.

From this baseline data, it was possible to derive our greenhouse gases exposure profile from primary energy use and express the results as carbon dioxide equivalent (CO2-e). For 2007, Exxaro produced 237kt of CO2-e from primary energy use, ie the consumption of electricity and diesel. As expected, our coal business commodity accounts for the largest share of CO2-e emissions.
 
Clean energy policy
Exxaro has established a clean energy forum that aims to reduce the company’s carbon footprint by becoming more energy efficient and by using cleaner technologies. The forum – made up of key members of senior management – has compiled a clean energy policy which states that Exxaro will:
  • improve energy efficiency by 15% within the next seven years
  • minimise energy consumption and costs
  • promote the use of energy-efficient equipment and designs
  • understand and reduce our carbon footprint
  • use and develop cleaner technologies, ie co-generation and renewable energy
  • reduce emissions and participate in the carbon trading market.

Specific timelines have been drawn up:
  • By the first quarter of 2008 we will have assessed and quantified the total carbon footprint for Exxaro
  • Within the second quarter of 2008, targets and timeframes will be in place for all business units, and activities will begin
  • By end May 2008 we will have submitted our co-generation proposal to Eskom, and can expect feedback by mid August
  • By March 2008 we will start assessing energy efficiency levels throughout the group, as well as set goals and target dates.

Our vision is to become a zero carbon footprint company and we will benchmark this footprint against other companies in South Africa and globally.

  

Case study

Renewable energy project in Namibia

Street lights in Tutungeni township, near Rosh Pinah, look ordinary. But their source of power is extraordinary. These lights are run off zinc air fuel cells – an affordable renewable energy technology recently developed through an Exxarosponsored research project.

The fuel cells use zinc to generate safe, environmentally friendly electricity. They can also be used to power appliances such as televisions, radios, small refrigerators and even certain computers.

Developed by the Alternative Energy Development Corporation after six years of research and development, the technology was successfully trialled in December 2006 when it was installed in 18 homes in Tutungeni.

In addition, zinc air fuel cells create opportunities for small businesses in areas off the power grid as they can be used to power cellphone batteries,sewing machines, haircutters and other small appliances. Capitalising on this, service centres are already planned for Tutungeni which will create sustainable employment for an increasing number of people. We plan to broaden the scope of this successful project by rolling it out to other operations within the group in 2008.
   

 


Quantifying Exxaro’s carbon footprint began in 2007 using globally accepted standards such as ISO 14064-1. The exercise for our head office revealed that 80% of emissions stemmed from electricity use. Various initiatives are under way to educe our footprint and we will report on progress annually.

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