Speaking at the 3rd Eastern Cape Energy Efficiency Conference in Port Elizabeth, Automotive Industry Development Centre Eastern Cape (AIDC EC), Supplier Development Manager Lance Schultz said, “Factors in production and energy costs ranks 4th in the barriers for entry for business in the Eastern Cape. The AIDC EC ensures that energy management and efficiency is integrated across all of our projects, we have had a 85% buy in to our Cleaner Production Programmes from the OEM’s, 1st and 2nd tier automotive manufactures and suppliers in the Eastern Cape which account for 95% of the Eastern Cape’s energy usage.”
The environment is not the only beneficiary as power intensive manufacturers have begun to reap significant financial rewards of Cleaner Production programmes, spearheaded by the AIDC Eastern Cape, a subsidiary of the Eastern Cape Provincial government mandated to assist its automotive industry become more globally competitive.
The AIDC has had a massive impact – reducing the overall energy consumption of the manufacturing centre of Nelson Mandela Bay (including Port Elizabeth, Uitenhage and Despatch), by a whopping 56.86 GWh over 3 years which is the equivalent of power supply to 4 307 households per annum.
It has also identified, through free energy audits of Tier 1, 2 and 3 suppliers during 2013, a further potential saving of 1 GWh. These projects are yet to be implemented.
Moreover the sector in that region, since 2010, has enjoyed a cumulative saving of over R30 million and AIDC Eastern Cape Supplier Development Manager, Lance Schultz points out at these are sustainable.
“The energy crisis and higher rates has forced companies to completely re-look and sometimes re-invent energy plans. Now these reformed and more carefully monitored ways of doing business is not only mitigating the high power costs, but increasingly their levels of production efficiency,” Schultz said.
“With the government having set a target of reducing greenhouse gas emission by 42% by 2025 automotive suppliers will be under constant pressure to align but much has already been achieved in a relatively short time .”
Schultz says the AIDC EC is involved in a new partnership with the National Cleaner Production Centre (NCPC) to develop and implement the ISO 50001 energy standard in various companies across the automotive sector in the Eastern Cape. It assisted Tenneco, earlier this year become the first company in South Africa to achieve the standard.
“With the implementation of ISO 50001, companies will have to monitor their energy very effectively in order to keep certification and it is just a matter of time before ISO 50001 becomes a requirement for all manufacturing businesses,” Schultz says.
Part of the Eastern Cape’s success in energy conservation stems from a dynamic partnership between the AIDC, NCPC and Eastern Cape Automotive Cluster with regional companies eligible for free energy audits.
The AIDC has also acquired an electrical power analyser to conduct these energy surveys themselves in order to engage on a higher level with the auto cluster companies. A number of these surveys have been conducted across Tier 1, 2 and 3 automotive suppliers in the Eastern Cape with savings of over 1 GWh identified.
“The Cleaner Production programme has provided very tangible results for the environment and industry and the AIDC will continue interact with as many companies possible to ensure that the auto sector supports the vision for the Province to be the capital of clean energy for the country,” Schultz said.
In the 2013/14 financial year 6 companies (Natstan Wire, Veyance Technologies, Lumotech, CRH Africa and SJM Flex) part of the AIDC Eastern Cape’s Cleaner Production Programme reduced their energy consumption by 10% and made actual and planned savings of R9.5m through energy saving projects.
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