MechChem Africa March 2017

⎪ Petrochemical industries, oil and gas ⎪

Industrial gases company Afrox is partnering with biotech start-up, New Horizons Energy, to turn organic waste destined for landfills into useable products for South African industries. New biogas market on the horizon

N ew Horizons Energy will soon be turning organic waste into usable bio-methane at purity levels of over 90%. Furthermore, the addi- tion of a brand new carbon dioxide source to the Afrox portfoliowill add significant capac- ity to Afrox’ national, but more importantly Western Cape, infrastructure. The New Horizons plant is located in Athlone, near Cape Town and is expected to start generating biogas by mid-2017. Afrox will then distribute the compressed bio- methanetoitscustomerbaseasanalternative to LPG and/or diesel. Bio-methane (also known as biogas or compressed natural gas) is a proven alterna- tive toexisting fuelsusedprimarily for heating applications across amultitudeof sectors and processes ranging from food production to metal fabrication, aswell as for thegeneration of electricity. “Afrox is currently in discussions with potential customers about the advantages of a local source of bio-gas in the Western Cape,” says Afrox’s HeinrichUytenbogaardt, strategic marketing manager bulk markets. “And while compressed natural gas (CNG) is already widely used in many countries around the world, this is still a relatively underdeveloped market in South Africa and in Cape Town in particular; but one we expect to grow. “Theupgradedbio-methane fromtheNew Horizons plant in Athlone has a number of advantages over other fuel sources currently available in the Western Cape; it is cleaner burning with far lower sulphur- or nitrogen- oxide emissions, and it will have a far more consistent quality, which is especiallyvaluable in the processing industries. “In addition, the benefits to the environ- ment are worth noting, as the process elimi- nates the need to send waste to landfill and less harmful greenhouse gases are generated from the use of bio-methane versus other conventional fuels.” The carbon dioxide storage facility com- prising vessels specially designed and manu- factured for Afrox have been brought in via the Cape Town port and are awaiting commissioning of the New Horizons’ facility in Athlone. The carbon dioxide produced by the ener- gy’s plant is allocated tomeet existingmarket requirements of the Western Cape industry, agriculture and wastewater treatment cus- tomers. This is a renewableon ‘the-door-step’

The New Horizons plant in Athlone near Cape Town is expected to start generating biogas and CO 2 by mid-2017. Afrox will then distribute the gases to its customer base.

gases solution. Currently carbon dioxide for the Western Cape market is predominantly sourced fromMossel Bay, which ismore than 380 km away. “Renewable energy sources such as the NewHorizons Energyplant canmake amean- ingful contribution to South Africa’s energy needs going forward,” says Uytenbogaardt. “Taking waste organic matter, separating out the recyclable material and then digesting it to produce carbon dioxide and bio-methane will increase the contribution of renewable energy to the Western Cape’s energy mix.” Currently, SouthAfrica is reliant onmeth- ane/natural gas, supplied fromMozambique; but New Horizons Energy plans to supply

which skyrockets in winter when local stocks and availability of LPG have tended to run low or run out completely in previ- ous years.” As part of its strategic plan for LPG, Afrox has an additional import agreement with Petredec Limited, one of the larg- est global liquefied petroleum gas (LPG) traders, to ensure security of supply for existing customers nationally. These import agreements aim to ensure a steady supply of Afrox Handigas to the consumer and to promote the use of LPGas an alternative to electricityandparaffin for heating, cooking, hotwater, braaiing, camping, hikingpurpos- es and domestic LPG power generators. q local bio-methane tobusinesses across South Africa with further plans to roll out more anaerobic digestion plants to other provinces going forward; utilisingAfrox’s extensive sup- ply chain and gases expertise. Afrox entered into a long-term purchase agreementwithNewHorizonsEnergyinearly 2015, under which Afrox will purchase all carbon dioxide and compressed bio-methane gas from the Athlone plant for resale and distribution. “This is a relatively new technology for South Africa and it is exciting with respect to its growth potential and the variety of possible applications for local markets,” Uytenbogaardt concludes. q

Afrox secures Western Cape LPG stocks Consumers can expect ongoing security of supply of Handigas thanks to Afrox’s plans to import LPG through the port of Cape Town. The first 2017 stocks of LPG have docked and were off-loaded into waiting Afrox tankers from the carrier GasChem. “This shipment of LPGmarks the ongo- ing commitment by Afrox to keepWestern Cape customers fully stocked with LPG,” saysAfroxheadof LPG,MarkRadford. “The aim of importing directly into Cape Town is to ensure both domestic and industrial customers have seen the last of stock short- ages in the region.

“In particular, this has to be excellent news for consumer demand for Handigas,

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