US Government awards R10m grant to grow cleaner energy in Western Cape

The Western Cape Government’s bid to secure cleaner forms of energy received a boost due to a R10 million grant from the United States Government through its Trade and Development Agency (USTDA).

Liquefied Natural Gas (LNG) is a key component of a lowest cost energy scenario for the country. This USTDA grant will further develop the opportunity for LNG in the province through a feasibility study on the demand and potential impact of LNG importation at Saldanha Bay. The study will also provide a preferred model for the importation of LNG for gas-to-power electricity generation capacity and for industrial, transportation, commercial, and domestic uses. The grant will be administered through GreenCape who will select a US firm (as required by USTDA) to complete the study.

Minister Winde said: “I would like to commend the USTDA for funding this initiative. We must reduce our reliance on coal and make better decisions for our environment, and our economic future. Natural gas has the potential to play a key role in our plan to grow our alternative energy sources and this study supports the Western Cape’s objective to secure a reliable and affordable energy supply. This is also why we are prioritising the growth of our oil and gas sector as part of our Project Khulisa strategy. We are also immensely proud of GreenCape for securing this vital piece of work. Their reputation as South Africa’s leading energy advisory and support body is growing from strength to strength.”

According to Lida Fitts, USTDA’s Regional Director for Sub-Saharan Africa: “USTDA is pleased to support this project, which will help increase access to affordable, reliable energy in South Africa. At the same time, this project will create opportunities for U.S. businesses in one of South Africa’s growing sectors.”

Mike Mulcahy, CEO of GreenCape, added: “Natural gas has a critical complementary role to renewable energy for power generation in a lowest cost, low carbon, energy future for South Africa. GreenCape is grateful to USTDA for their support in exploring and unlocking these opportunities.” 

The study is set to commence in early 2018 with details on the feasibility study available at https://www.ustda.gov/business-opportunities.