Page 52 - Energize November 2021

TECHNICAL

Decarbonising SA’s mining,

petrochemical and chemical sectors

Information from NBI, BUSA and BCG

eports on the decarbonisation pathways for South Africa’s mining, petrochemical, would allow South Africa’s mining sector
and chemical sector have been released. This work by the National Business Initiative to be a prime destination for global long-
R(NBI), Business Unity South Africa (BUSA) and the Boston Consulting Group (BCG) term investments in the context of a just
shows that it is possible to decarbonise key economic sectors. The report will also unlock transition to net-zero in South Africa.
opportunities for the country in the mining, green fuels and chemicals space.
Decarbonising the petrochemical and
Decarbonising the mining sector chemical sector
South Africa’s mining sector is a key socio-economic contributor. To remain competitive globally, The report confirms the petrochemicals
it will need to decarbonise, respond to shifting value pools, and adapt to local climate change and chemicals sector as a key contributor
impacts – while ensuring a Just Transition. This is the central finding of the “Decarbonising South to South Africa’s energy security, and as a
Africa’s Mining Sector – towards a Green Technology-driven Mining Ecosystem” report. significant role-player in a decarbonised
The report shows that South Africa can decarbonise its mining sector and promote socio- economy in the long-term.
economic development via enabling cross-sector green-tech opportunities. The sector currently drives 13% of
The biggest mining sector decarbonisation lever is a cleaner electricity supply, the country’s gross emissions and will
eliminating 75% of Scope 1 and 2 emissions, while electrification of mobility and stationery experience key challenges in a net-zero
machinery would eliminate 15% of Scope 1 and 2 emissions. A coal phase-out would remove emissions scenario. In the long-term,
the majority of fugitive emissions, gases and vapours. demand for conventional liquid fuels
Meeting the Department of Mineral Resources and Energy (DMRE) target of 4 to 5% of will decrease through decarbonisation,
global exploration expenditure (R8-billion per annum) by 2026 is key as it would drive the particularly in the transport sector. In the
exploration of green tech commodities in South Africa. In addition, establishing the policy mid-term, South Africa will be challenged
environment and infrastructure to enable increased local beneficiation is key. by a decline in local refining capacity and
Overcoming structural issues, establishing an enabling policy environment, and setting an increasing need for fuel imports. If,
a clear path towards decarbonised operations and production of clean tech commodities however, South Africa can unlock disruptive

energize | November/December 2021 | 50