https://www.news24.com/fin24/companies/stop-pussyfooting-about-funding-gas-projects-says-standard-bank-chair-20240117
This is Standard Bank, they are Africa’s biggest lender by assets, making it clear how they feel about funding gas.
“I think it is time for usto stop pussyfooting about funding gas because this is one of the mostimportant levers” to address climate change and develop economies, she said.
Maybe you don’t fullyunderstand the energy crisis we have in Africa. In South Africa, I can speak about because I deal with it everyday, we are not producingenough electricity to cover our consumption, we are using more than we produce.Their solution is what they call loadshedding, it’s really just rollingblackouts. So they put your power off in your hood for 2 hours, then they putmy power off for 2 hours…and this is happening everyday across the wholecountry. And it escalates, it can go up to 4 hours, 6 hours, 8 hours.
Besides the inconvenience,there is a cost for businesses. The bigger businesses have installedgenerators.
https://www.dailymaverick.co.za/article/2023-05-04-pick-n-pay-chairperson-warns-of-possible-food-shortages-and-social-unrest-if-rolling-blackouts-escalate/
Pick & Pay, a bigretailer in South Africa, reported that they spent R60 million rands a monthburning diesel for their generators. That’s R522 million for the year. This isjust one retailer, and they are not even the biggest in South Africa. Thesegenerators are still new right now, eventually they will have to start dealingwith maintenance, and replacement costs. This company is a retailer, that istheir business, they are not interested in dealing with electricity problems.It has affected their share price, and the dividends they paid out to theirshareholders this past year.
The small retailers justclose their doors, for the 2 hours. They can’t afford UPSs and generators. I’vebeen in some bigger shopping malls during loadshedding. The power came back onand I tried to buy frozen yoghurt at a small frozen yoghurt shop, and they toldme it takes a while for the yoghurt to freeze again. So even after the 2 hoursare up, it takes a while before they can start doing sales again. And I don’tknow what effect this has on the quality of product, and wastage.
I’ve been in a steakhouseduring loadshedding, they offer a limited menu.
I read this one articlewhere this chicken farmer was complaining that his newly hatched chicks aredying because he can’t keep them warm during loadshedding.
And so I can go on, withmining, and manufacturing, where electricity is much more critical.
It affects differentbusinesses differently. But it hits them all where it hurts the most, thebottom line.
Scott does not have to golook for customers for the gas Invictus produces, he just needs to turn it intoelectricity. The customers are there, already connected to the grid…KA-CHING
What was your questionagain, WHERE IS THE MONEY?
It is there. They arespending it burning dirty diesel. But without an alternative, what choice isthere.
Whereas Invictus has acarbon offset project, and our gas produced is carbon neutral, cradle to thegrave. (Still waiting for the presentation Scott promised last year for thecarbon offset project).
