Science to swell SA coffers

Science and Technology Minister Naledi Pandor unveils University of the Western Cape's hydrogen powered forklift.

Science and Technology Minister Naledi Pandor unveils University of the Western Cape's hydrogen powered forklift.

Published Apr 19, 2016

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Moves are under way to transform our resource-based economy to a knowledge-based one, writes Dr Phil Mjwara

Stagnant economic growth and persistently high unemployment in South Africa are an uncomfortable reminder that it cannot be “business as usual” in approaching economic development.

The government has already introduced the National Development Plan (NDP), which aims to radically transform the economy by putting the country on a new growth trajectory. To realise the goals of the NDP, the Nine-Point Plan, which sets out immediate actions/priorities for growing and transforming the economy, has been introduced to facilitate diversification of the economy.

A radically transformed economy encompasses new knowledge, new industries and an army of knowledge workers. This may sound like a cliché in the Department of Science and Technology (DST), but our vision of “Increased well-being and prosperity through science, technology and innovation”, is becoming a reality.

With declining commodity prices and a dwindling demand for natural resources, the DST’s work focuses on shaping a knowledge economy. The department has flagged areas where South Africa can take advantage of what it has and combine it with knowledgeto diversify its industries.

The Fluorochemical Expansion Initiative (FEI) is one of the new industry projects that DST and the Department of Trade and Industry is driving. The aim is to expand the country’s fluorochemical industry through increased local beneficiation of the country’s reserves.

South Africa has the world’s largest reserves of fluorspar, with estimated reserves of 41 million tons. The country currently supplies about 10% of the fluoride requirements to the $16 billion (R262bn) (per annum global fluorochemicals industry), but earns less than 0.5% of the revenue owing to the low levels of local beneficiation.

The FEI Research and Development (R&D) Programme is trying to address this.

About 10 years ago the DST invested to develop R&D competence with Pelchem SOC Ltd, a subsidiary of Necsa, by providing R&D funding and infrastructure. A multipurpose fluorination pilot plant was established in 2010.

Two South African research chairs in fluorine chemistry and chemical engineering were also set up to build the country’s research capacity in this area.

One is at the University of Pretoria and the other at the University of KwaZulu-Natal. The research chairs also ensure there is a pipeline of knowledge workers for this industry.

Over the past seven years. we have strengthened our R&D competencies and are now looking for partners to ensure the investment in research and technology development is translated into industrial activity. Already there is a partnership between the DST, the Department of Trade and Industry, the Industrial Development Corporation and Pelchem SOC Ltd.

The programme seeks to attract investment from multinational corporations to build a larger hydrogen fluoride plant to increase output. A German company has already expressed interest.

Successful technology development would see Pelchem’s turnover increase from R200 million a year to almost R400m per annum in 2019, and R1bn by 2025.

Another new home-grown industry is the Hydrogen Fuel Cell Technology (HFCT) Programme, which is already yielding results with the launch of prototypes using HFCT in sectors like mining.

Hydrogen South Africa (HySA) was launched in 2008. At the time we realised that Hydrogen Fuel Cell Technology was a nascent industry and that, globally, people were trying to grow knowledge in this field. It is also a source of alternative energy.

Three centres of competence (CoCs) were set up through the HySA Strategy. The first CoC was established at the University of Cape Town and Mintek to do research in catalysis. Another was set up at the University of the Western Cape, focusing on hydrogen and fuel cell system integration and technology validation, and the third is a joint CoC hosted by the CSIR and North West University, focusing on infrastructure for hydrogen production, distribution and storage.

Llike the FEI programme, it started from scratch by establishing R&D capabilities. The DST provided the infrastructure, which included supporting postgraduate students to do the research.

The second phase, from 2014-2019, focuses on technology demonstration, testing, and delivering products to the market. Creating jobs and spin-off companies is another by-product of phase two.

Already results from this phase can be seen in the mining industry. Recently DST Minister Naledi Pandor unveiled a HFCT-powered forklift and refuelling station for local industry. These technology demonstrators were launched by the DST, together with Impala Platinum in Springs and HySA Systems, based at the University of the Western Cape. Impala will use the HFCT components for all their underground utility vehicles.

The fuel cell powered forklift and the 200 bar refuelling station (comprising a compressor with a metal hydride extension tank developed by HySA Systems) has been in operation at the Impala Platinum Refinery since October 2015. The project showcases HFCT in an industrial application. The third phase will focus on sales, jobs created, export revenue and the market share created.

Research shows that the platinum-based catalyst market is expected to be worth $555m by 2020. Capturing 25% of this market will result in revenue of $139m for the country.

Initiatives like the FEI and HFCT focus on beneficiating key minerals for socio-economic impact. A similar initiative with potentially significant economic impact is the Titanium Metal Powder Project – also included under the Nine-Point Plan.

The DST’s support of the Titanium Metal Powder Project, a flagship project under the Titanium Centre of Competence, is important as the ability to produce titanium powder directly is considered a radical innovation and the process being developed will be a world first.

Titanium powder is widely used in industries such as aerospace, medical applications, transport and chemical processing to create high-performance, lightweight parts. But the titanium powder has become even more important because of its use in 3D printing, which is establishing itself as an alternative mode of manufacturing.

This project is technically very challenging and has resulted in substantial new knowledge such as patents, PhD qualifications, technology demonstrators and pilot plants. The DST is funding the CSIR on this project. The main aim of the titanium powder initiative is to demonstrate and pilot a novel and more cost-effective process for the direct production of primary titanium powder, with a particle morphology and size suitable for compaction into either semi-finished articles or near-net-shape components via 3D printing.

In addition, it is intended to be a continuous process, in contrast to the current batch-operated processes used elsewhere in the world.

A laboratory-scale pilot plant was launched in 2013. Test campaigns will commence at year-end. Following the successful laboratory scale testing and validation, an industrial pilot plant is envisaged by 2019 and a full commercial plant in 2023.

Like the FEI and HFCT initiatives, significant resources have gone into developing new technologies (and the associated knowledge workers) who will contribute to the development of new cutting-edge, globally competitive industry sectors. The project – while extremely challenging – is potentially a world-first and should continue to be supported.

Revenue of approximately $400m per annum is expected from the titanium powder production once the commercial plant is operational in 2023.These kinds of locally grown new industries hold the potential to create jobs by producing thousands of workers with postgraduate qualifications; this would have a socio-economic impact and transform South Africa from a resource economy into a knowledge economy.

Dr Mjwara is director-general of the Department of Science and Technology

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