LONDON, June 9, 2016 /PRNewswire/ -- Analysis of Cogeneration (Cogen) in the South African Mineral Processing Industry : Cogen is the First Step Towards Weaning Smelters Off the Grid
The cogeneration industry in South Africa is still in a nascent stage of development in South Africa. The addressable market is estimated at 1,277 megawatts. Further penetration of the market will be driven by the rising costs of electricity, environmental concerns, and energy securities. Moreover, the changing business model in the mineral processing sector will impact how original equipment manufacturers and engineering companies approach their equipment designs. Engineering companies are starting to design furnaces that incorporate cogeneration systems. This study will focus on mineral processing facilities, as electricity accounts for approximately 30% of operational costs.
The cogeneration (cogen) industry in South Africa is still in the early stages of development. The addressable market is estimated at MW. Further penetration of the market will be driven by rising electricity costs, environmental concerns, and energy securities.
Engineering Companies and OEMs
Changing business models in the mineral processing sector will have an impact on how Original Equipment Manufacturers (OEMs) and engineering companies approach equipment design. Engineering companies are starting to design furnaces that incorporate cogen systems.
New Business Model
Investors value smelters based less on what they mine and process and rather more on how efficiently they do so. The effective use of energy and reduction of emissions will be critical for companies to remain cost effective and competitive in the future global market.
The COFIT will drive development funding towards the Cogen industry; this will create an opportunity for smelters to diversify into the energy sector.
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