Annual Report 2008 2009

www.saneri.org.
za
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SOUTH AFRICAN NATIONAL ENERGY RESEARCH INSTITUTE (PTY) LTD | ANNUAL REPORT 2008/09
ANNUAL
2008/09
ANNUAL REPORT
REPORT
{
vision
}
To be the pre-eminent
world class energy
research, development
and demonstration
institute
ENERGY INNOVATION FOR LIFE
#
To transform the Energy Research and Development Sector in
South Africa by ensuring a culture of innovation is maintained in the
development of technology based products and solutions and by
mission
strengthening the human capital component of the sector.
* values
Innovation
Transparency
Equity
Public Interest
Efficiency
SANERI ANNUAL REPORT 2009 ENERGY INNOVATION FOR LIFE
COMPANY INFORMATION
SANERI
Country of incorporation
South Africa
Nature of business and principle activities

To undertake research and technology development
in order to exploit and utilise the energy resources
of the Republic and Southern Africa.
Directors
Mr M Damane
Dr C Cooper
Mr J Marriot
Dr M Pyoos
Ms N Mlonzi
Ms N Magubane
Mr K Nassiep
Mr I Patel (Alternate to Dr M Pyoos)
Mr S Tyatya (Alternate to Ms N Magubane)
Registered Office
CEF House, Block C,
Upper Grayston Office Park,
152 Ann Crescent, Strathavon,
Sandton,
2031.
Johannesburg.
Business Address
CEF House, Block C,
Upper Grayston Office Park,
152 Ann Crescent, Strathavon,
Sandton,
2031.
Johannesburg Postal Address
P O Box 786141
Sandton
2146
Holding Company
CEF (Pty) Ltd
incorporated in South Africa
Auditors
Auditor-General
Company Secretary
CEF (Proprietary) Limited
Company Registration
2005/017430/07
SANERI ANNUAL REPORT 2009 1 ENERGY INNOVATION FOR LIFE

TABLE OF
CONTENTS
COMPANY INFORMATION I
BOARD OF DIRECTORS 2-3
CHAIRMAN’S REPORT 4-5
CEO’S REPORT 6 - 13
ABOUT SANERI 14 - 15
SANERI’S THEMATIC AREAS OF FOCUS 16
RESEARCH HIGHLIGHTS 17 - 33
HUMAN CAPITAL DEVELOPMENT 34 - 39
ANNUAL FINANCIAL STATEMENTS 40 - 85
ACKNOWLEDGEMENTS 86
KEY TO ABBREVIATIONS 87

LIST OF
TABLES
TABLE 1: REPRESENTATIVES ON CSC 26
TABLE 2: MASTER’S STUDENTS 37
TABLE 3: PHD STUDENTS 38
TABLE 4: POST-DOCTORAL STUDENTS 39
FIGURE 1: MANAGEMENT AND STAFF PROFILE 15
FIGURE 2: CARBON CAPTURE AND STORAGE TIMELINE 18
FIGURE 3: BRAIN CHART OF BIOFUELS COMMUNITY PROJECT 25
FIGURE 4: GREEN TRANSPORT PROGRAMME 30
FIGURE 5: BURSARIES AWARDED TO STUDENTS BY RACE AND GENDER 35
FIGURE 6: BURSARIES AWARDED TO MASTERS STUDENTS BY RACE AND GENDER 36
FIGURE 7: BURSARIES AWARDED TO PHD STUDENTS BY RACE AND GENDER 38
FIGURE 8: BURSARIES AWARDED TO POST-DOCTORAL STUDENTS BY RACE AND GENDER 39

BOARD OF
DIRECTORS
Mr M B Damane Mr K Nassiep Dr C Cooper Ms N Mlonzi

Chairman CEO non-executive
SANERI (Pty) Ltd SANERI (Pty) Ltd BProc
CIS DPHIL(Energy) LLB
BSc (CHB) Hons. in Business
BSc (Honours) Management and
Other Boards MSC Engineering (Mech)* Other Boards Administration
*current
SFF, iGAS South African National
Other Boards Energy Association Other Boards
CEF (Pty) Ltd. SA Civil Aviation

Authority, WOESA, ECON
Oil, Worthytrade, Fort Cox
College, Uvimba Finance

BOARD OF DIRECTORS
Ms N Magubane Mr J Marriot Dr M Pyoos
MBA BSc Chemical Doctorate: Technology

BSC Electrical Engineering Management
Engineering BSc Economics
Other Boards
Other Boards
Energy Frontiers
International Tshumisano Trust
South African National South African National
Science and Technology Biodiversity Institute
Forum

REPORT FROM THE
CHAIRPERSON
T
his report brings the South African National A major event that occurred during 2008 was the
Energy Research Institute (SANERI), to its third passing of the National Energy Act, 2008 (No. 34 of
year of operation. As a research organisation, 2008). This new legislation is expected to have a
one might expect the outputs of the Institute to be significant effect on SANERI. Chapter 4 of the Act
observed only over a longer period of time. However, sees the establishment of an entity designated the
tangible results can already be seen, as described in South African National Energy Development Institute
this Annual Report. (SANEDI). The function of SANEDI is to undertake

REPORT FROM THE CHAIRPERSON
work with respect to energy efficiency and energy This financial year saw the operationalising of the
research and development, which is also precisely SANERI’s first Centre of Research and Development;
SANERI’s current mandate. Moreover, section 13 of namely the Centre for Carbon Capture and Storage.
the Act provides for the staff and assets and liabilities This Centre envisions that a carbon capture and storage
of SANERI to be taken over by SANEDI once the new demonstration plant will be operational in South Africa
entity is operationalised. The Act gives a legislative by the year 2020. The mission of the Centre is therefore
mandate for energy efficiency and energy research to develop the human and technical capacity to
and development, thereby strengthening the current undertake the envisioned commercial demonstration
functionality of SANERI. The Department of Minerals plant in South Africa. The Centre is financially supported
and Energy and the Department of Science and by local industry, as well as international funding.
Technology and SANERI are currently discussing
the framework and timing for the operationalising Another fruit of SANERI’s international co-operation is
of SANEDI. In the meantime, SANERI is continuing the development of the Wind Atlas of South Africa that
its activities for the betterment of energy supply and will form a precursor to the harnessing of wind energy
demand in South Africa. in South Africa. This project is generously supported
by the Royal Danish Embassy and Global Energy
Energy demands and the environmental impact Fund, through the South African Wind Energy Project
caused by said demands, by their nature, are in co-operation with RISØ DTU, the Danish research
international matters. To this end, co-operation with institute.
other prestigious energy institutions is the subject
of the many memoranda of understandings that In the process of addressing the energy needs of South
have been signed by SANERI thus far. In this way, Africa, SANERI is scheduled to further its international
SANERI aims to stay up-to-date with the international linkages. An outward focus with an inward delivery.
norm. For example, SANERI under full membership
for the first time, attended the executive meeting of
the International Energy Agency’s Greenhouse Gas
Research Programme held in Washington during
November, 2008. As such, SANERI’s participation
at the above mentioned programme was able to
determine the direction of research important to our M Damane
specific circumstances in South Africa. SANERI is also Chairman: SANERI
in the process of making application to join three more
such International Energy Agency Implementation
Agreements.

REPORT FROM THE
CEO
The impact of the economic downturn collapse. The energy sector is certainly not immune
on R&D spending to the global recession and the evidence is seen in

the decline in investment in most areas of capital
investment, with conventional coal-fired and nuclear
The 2008/9 financial year has seen the worst financial
powered plants the worst affected. There is a noticeable
crisis hitting international markets since the 1980s and
yet limited decrease in investment in renewable energy,
if the current trend continues unabated, may yet rival
according to a UNEP-funded study in 2008. In particular,
the Great Depression of the 1920s in terms of market

REPORT FROM THE CEO
the private equity funds have largely withdrawn from

SANERI and Industry – building a
participation in large renewable energy projects.
framework for deployment of cleaner
energy technologies
South Africa is, to some extent, shielded from the full
brunt of the global recession through sound
Corporate South Africa, despite its willingness to
fiscal policy on behalf of the Ministry of Finance,
support national initiatives aimed at introducing clean
supported substantially by the National Credit
energy technologies, has been slow in taking the
Act. Regulations under this Act have limited
initiative in developing large infrastructure projects
borrowing by placing more stringent checks
in this area. A classic case in point is the proposed
and balances in place, putting the responsibility
100 MW Concentrating Solar Power plant scheduled
for debt recovery squarely on the shoulders of
for construction in Upington by Eskom. The financial
the lenders. Despite this commendable foresight on
implications of the new build programme, combined
behalf of government, the Reserve Bank has been
with lower than expected tariff increases over the past
forced to revise its GDP growth forecast from 3% to
year or so have resulted in Eskom delaying a decision
0% for the coming year. This places undue pressure on
to continue with this pilot project. The country is richly
the competitiveness of South Africa’s industrial sector,
endowed with solar energy and it is inconceivable that
the biggest contributor to GDP in the country.
South Africa has not and is not ready to implement such
promising technology to harness the power of the sun.
Where countries or companies are forced to find
SANERI has therefore entered into discussions with
savings in their operating budgets, it is usually the
Eskom regarding possible participation in this project,
R&D budget that is sacrificed first. South Africa is no
which has the potential to be a national demonstration
exception in this regard and 2008/9 saw only a 5%
project.
increase in the budget of SANERI, despite inflation in
the form of CPIX reaching 12.2% in June 2008. As a
Positive collaboration has, however, emanated from the
direct result of the limited increase in budget, SANERI
establishment of the Centre for Carbon Capture and
has had to introduce business efficiency measures
Storage. The centre aims to develop and undertake the
in order to provide the same quality of service to the
first commercial-scale pilot project of carbon capture
energy sector.
and storage in South Africa by 2020. The centre
comprises industry partners such as Anglo, Sasol
and Eskom, with Xstrata as potential partners. There
is a strong international presence in the support for

REPORT FROM THE CEO
the centre, notably from the Norwegian Government. implementing the National Energy Efficiency Strategy
The centre was launched formally by the Minister of of 2005. The dilemma with directives is that they don’t
Minerals and Energy, the Hon. Buyelwa Sonjica, M.P. have legal weight beyond the immediate scope and
and the Norwegian Ambassador to South Africa, on powers conferred by the relevant Act. A decision
the 30th March 2009. was taken in 2006 to provide a legal mandate for
the operations of SANERI and NEEA, giving rise to
Other centres, such as the Green Transport Centre the section in the National Energy Bill that made
and the Renewable Energy Centre of Research and provision for the establishment of the National Energy
Development will be accessible to the public. Industry Development Institute, SANEDI. The Act, containing
have already been approached for their support of the establishment provision, was promulgated by then
these centres. State President Kgalema Motlanthe. The process of
establishing SANEDI is expected to be concluded only
by the end of 2009/10.
The National Energy Act, 2008 (Act No.
34 of 2008) An important distinction between SANERI and SANEDI
is the envisaged attention to overcoming barriers to
SANERI was formally established by Cabinet decision commercial deployment of technologies, through
in 2003 and this decision was implemented in the demonstration and pilot projects, Public Private
form of a ministerial directive, issued by then Minister Partnerships and innovative financing mechanisms.
of Minerals and Energy, Phumzile Mlambo-Ngcuka, in Implicit in this approach is the consideration of ways
2004. The directive was issued under the legal mandate to facilitate technology transfer and development of the
provided by the CEF Act, (Act 38 of 1977). The National appropriate skills set to enhance energy R&D capacity
Energy Efficiency Agency, NEEA, was also established in the country.
by ministerial directive in 2005, as a means of

REPORT FROM THE CEO
Key Results for 2008/9 • A Corsa Lite vehicle, sponsored by General

Motors, has been converted to full electric power
and is now being tested at the University of
The Institute has continued to grow from strength to
Stellenbosch. If successful, another vehicle will
strength and now serves a wider community in terms
be retrofitted and subjected to more tests before
of its outreach. The following achievements in 2008/9
considering possible commercialisation with an
bear mentioning as they have impacted largely on the
industry partner.
area in which they were implemented.
• A revised wind atlas for South Africa has been

proposed and SANERI is now in the process
Projects
of convening all the relevant industry specialists
to support the work being done in Denmark, by
• A study focusing on promoting gender in the
Risoe National Laboratories.
biofuels sector has seen the publishing of a book,
in which guidelines are provided to women who
• The fuel spray injector system, to test various
wish to participate in this area. This work has
liquid fuels, has been purchased and is now
resulted in a pilot project in Cradock, in which an
installed at Wits University. The spray injector will
opportunity for a women-owned business has
allow for the testing and optimisation of fuel types,
been created, in partnership with CEF’s EDC
to allow for more efficient use of liquid fuels.
division.
• The Green Transport Centre has been approved

• A study on standby power losses has been
by the Board of Directors and is now under
concluded, in which the electrical losses attributed
construction at its location in Midrand. The centre
to appliances in the household being left in
will allow for the retrofit of vehicles to enable them
standby mode, have been determined. The study
to run on alternative fuel types, such as LPG, LNG,
forms an integral part of the process to develop a
bio-ethanol, biodiesel and electricity. Refuelling
strategy to reduce electricity consumption and
plants for these different fuel types will also
losses in this sector.
be installed at the centre, to provide a measure of
sustainability for the centre.
• A study on the available power from standby
diesel generators has been concluded. The study
has highlighted the location, size and availability
of the suitable generators that could be contracted
to provide power during blackouts in the future.

REPORT FROM THE CEO
• A number of business plans for the partnership

Carbon footprint for the institute
of SANERI with companies involved in the green
transport sector have been developed. The
As a responsible corporate citizen, SANERI has
projects relate to CNG, LPG and biodiesel projects
assessed its carbon footprint, based on international
and will be developed for implementation in
best practice. This involves the determination of
2009/10.
average carbon dioxide emissions from travel (local
and international), meals, stationery and energy
consumption in the office. The footprint for 2008/9 was
Human Capital Development determined to be 237 tons CO2. At a carbon price of
10 euro/ton, it translates into an offset cost of about
• Bursary support Programme R26 000 that will be spent on an emission-reducing
project in South Africa. More information on this subject
SANERI continues to support the previously
can be found on page 32 of this report.
disadvantaged students who have applied for
bursaries for postgraduate studies in line with SANERI
priorities. In 2008/9, SANERI has supported a total of
Audit Results
18 (eighteen) Masters and 6 (six) Doctoral students.
Two post-doctoral students have been supported as
I am pleased to announce that SANERI has once again,
well.
for the third consecutive year of its existence, received
a clean audit report from the Auditor General’s office.
This is indicative of the hard work on the part of staff
• Hub & Spoke Model in SANERI to ensure transparency and integrity in all
aspects of SANERI’s work.
SANERI established its Energy Efficiency and DSM
Hub in the year, at the University of Pretoria. The
This supports the Institute’s values, which incorporate
Hub, under the guidance and leadership of Prof. Xia
the abovementioned elements of transparency and
will focus on human capital development, primarily
integrity.
based on Masters and Doctoral studies in energy
efficiency and demand side management. The
As a state entity it is vital that the public and government
abovementioned hub is the second to be established,
receive the best quality service, with the optimal use
after the establishment of the Hub for Renewable and
of state funds. I am therefore pleased that the Auditor
Sustainable Energy at the University of Stellenbosch
General concurs with the internal audit function in
in 2006/7.
CEF that SANERI is indeed a responsible and well-
administered institute.

REPORT FROM THE CEO
Recognition
I would like to take the opportunity to thank the
outgoing Minister of Science and Technology, Mr.
Mosibudi Mangena, as well as the Deputy Minister of
Science and Technology, Mr. Derek Hanekom for their
inspirational leadership and guidance during the year.
The Board of Directors of SANERI, in particular its
Chairperson, Mr Mputumi Damane, are thanked for
their leadership and strategic vision that helps guide
our activities.
Lastly, I would like to thank the universities, industry

participants, donors, NGOs, government officials and
very importantly the staff of SANERI, for their efforts in
bringing modern, clean and affordable energy to the
nation’s poorest.
Thank You
KM Nassiep
Chief Executive Officer

ABOUT
SANERI
T
he South African National Energy Research Institute (SANERI) became operational during
the year 2006 through the joint efforts of the Department of Minerals and Energy and
the Department of Science and Technology. Following a Cabinet decision, SANERI was
established under a Ministerial Directive. Its objectives are:
• To increase energy research and development • Transforming the composition of energy

in South Africa researcher groups to more adequately represent
the demographic profile of the country in terms
• To increase human capacity in energy research of gender and race.
and
SANERI was established as a company in the CEF Group. The CEO, Mr Kadri Nassiep was appointed in August
2006 and Senior Managers were appointed in December of the same year. The organisation has since recruited
the staff essential to the day to day functioning of the organisation.
This Annual Report highlights SANERI’s activities for the 2008/9 financial year. By the end of the financial
year, SANERI was operating with a staff consisting of 12 members. Below is the breakdown of race profile per
employment category:

ABOUT SANERI
Figure 1: Management and staff profile
WM CM IM BM CF WF IF BF
1 EXECUTIVE MANAGEMENT
1 1 1 SENIOR MANAGEMENT 2
MANAGER: ADMINISTRATION & FINANCE 1
SYSTEM ADMINISTRATOR 1
PROJECT MANAGERS 1
RESEARCH ASSISTANTS 1 1
1 PERSONAL ASSISTANT
REFRESHMENT OFFICER 1
1 1 1
2 1
1 1
5
Participation in and the management of fifty three (53) The abovementioned is carried out with due
research projects, three (3) Hubs, 3 Spokes, three cognizance to SANERI’s nine thematic areas, which
(3) Chairs and fifty one (51) bursaries has been a were identified in the 10th order Draft National Energy
major activity, particularly in the last quarter of the R&D Strategy. The abovementioned strategy was
financial year. It goes without saying that SANERI’s developed by industrial experts, government and
participation and management in these activities will academia, under the auspices of the Department of
continue to increase with time. Science and Technology.
The exciting Green Transport Technology Programme

has been operating successfully within SANERI
following the conclusion of an agreement between
SANERI and the Department of Science and
Technology, that the Green Transport Technology
Programme will be housed and managed within
SANERI. The aim of the programme is to showcase
South Africa’s capabilities regarding the use of
alternative fuels and technologies for transport.
The priorities of SANERI are to:
• Undertake in-house energy research (primary

function) and
• Develop human capacity within this field.

SANERI’S THEMATIC
AREAS
A
lthough the draft National Energy R&D The highlights of some of the research themes are
Strategy of South Africa (2006) has not yet elaborated on in the pages to follow.
been approved by Cabinet, it clearly spells
out objectives and priorities for SANERI to focus on.
The priority areas are as follows:
• Energy Infrastructure Optimisation
• Energy Efficiency and Demand Side

Management
• Impact of Energy Use on the Environment
• Use of Energy to Stimulate Socio-

Economic Development
• Cleaner Fossil Fuel Use (including clean

coal)
• Renewable Energy
• Alternative Energy Sources (including

fuel cells and hydrogen)
• Energy Planning and Modelling
• Energy Policy Research

RESEARCH
HIGHLIGHTS
ADVANCED FOSSIL FUEL USE CARBON DIOXIDE GEOLOGICAL STORAGE

ATLAS
South Africa’s reliance on fossil fuels – especially A previous study undertaken by the CSIR for the
coal - continues. Notwithstanding the progress being Department of Minerals and Energy indicated that the
made in renewable energies and energy efficiency geological storage of carbon dioxide was feasible in
measures, we will be reliant on fossil fuels for South Africa –with there being capturable emissions
decades to come. Eskom is building two more coal and potential storage sites. During 2008, a multi-year
fired electricity stations, with a possibility of a third development of an Atlas to locate and characterise
station after their announcement to defer the next potential geological storage sites, commenced.
nuclear station. Another synfuel plant is also being PetroSA, Anglocoal, Eskom, Sasol and SANERI
investigated. The continued use of fossil fuels – until jointly finance that project. The Carbon Storage Atlas
nuclear and renewable can take over – therefore is scheduled for publication mid 2010.
needs to take into account externalities, especially
the mitigation of greenhouse gases with their
commensurate impacts on climate change. CENTRE FOR CARBON CAPTURE AND
STORAGE
CARBON CAPTURE AND STORAGE Throughout 2008, negotiations were undertaken

for a Centre for Carbon Capture and Storage
Carbon Capture and Storage comprises a portion of within SANERI. The result is that the Centre was
the menu of measures that might be utilised to mitigate operationalised on 30 March, 2009. The Centre is
the emissions of greenhouse gases as a transition a Private/International/Public Partnership financed
measure until renewable and nuclear energies can from local industry, SANERI, government and
play a leading role. As one of the major pressures international sources. Initially, the Charter under
on the use of fossil fuels relates to the emissions of which the Centre will operate will be valid for
greenhouse gases, carbon capture and storage is a a period of five years. Thereafter, the success
priority focus area for research. of the Centre will be appraised and continued
work would be the subject of a new governing
document.

RESEARCH HIGHLIGHTS
Figure 2: Carbon capture and storage timeline
2004 2010 2015 2020
{ }
Preliminary
potential
investigation
Capture technologies
Transport technologies
Done
Geological storage technologies
Monitoring & verification & remediation
Yes there is
Economics
potential
Risk assessments Objective:
Legal/Regulatory environment CCS Demo Plant
Human capacity building
Public outreach Operational
TEST CO2 INJECTION EXPERIMENT by 2020
GEO STORAGE ATLAS
GEO STORAGE ATLAS UPDATE
DEMO PLAN
The programme for the Centre (illustrated in Figure 2) addressed a mitigation ‘wedge’ of 5% of carbon
will address issues ranging from technology, dioxide - that is just over 20 million tonnes per
through regulation, to public outreach. South Africa year. The major apprehension that limited this potential
emits over 400 million tonnes of carbon dioxide value was the up-scaling of the current technology.
per year. Of those emissions, approximately
60% are capturable and therefore available for carbon Consider that 40 Mt of carbon dioxide per year
capture and storage. Within the capturable emissions, could be stored geologically in South Africa over 100
approximately 30 million tonnes per year of ~95% years. In that case a total storage capacity of 4 Gt
pure carbon dioxide is emitted by the synthetic fuel would be required. A theoretical study [M Cloete,
industry . In other words, the majority of the capture
1
CGS] has indicated an upper limit storage capacity
process – and approximately 50% of the cost – will of the order of 100 Gt could be available. Most of
already have been completed. that pertains to deep saline aquifers and was based
on preliminary calculations. This ‘back-of-the-
It is not contemplated that all of the captureable envelope’ estimate may also be supplemented by
emissions will be subject to geological storage. some extra prospects of depleted gas fields and
The International Energy Agency (IEA), estimates enhanced coal-bed methane recovery. The apparently
that 19% of mitigation ‘wedges’ could be achieved good storage capacity potential gives incentive to
by carbon capture and storage. South Africa’s proceed with the programme.
‘Long Term Mitigation Scenario’ planning exercise
1. Sasol and PetroSA

RESEARCH HIGHLIGHTS
INTERNATIONAL CO-OPERATION HIGH PRESSURE FUEL INJECTOR
Greenhouse gas emissions and climate change are A High Pressure Fuel Injector has been installed and
international matters that require an international commissioned at the University of the Witwatersrand.
solution. To this end, SANERI is participating actively The equipment enables the testing of liquid fuels
in international activities related to carbon capture and and spray injectors for internal combustion engines.
storage, including the following: The characteristics of fuel injection and the spray
patterns associated with injectors are one of the
(a) South Africa, with SANERI as the contracting party, determining factors for engine efficiencies. The
took up its seat at the International Energy Agency’s abovementioned equipment will be able to test new
Greenhouse Gas Implementing Agreement at the formulations of bio-fuels as well as mineral-based
November 2009 meeting in Washington. liquid fuels. Post-graduate students are eager to
undertake studies that make use of the facility as two
(b) SANERI participated in the formation workshop of such students have already started their research.
the International Performance Assessment Centre – a The High Pressure Fuel Injector is a strong attraction
centre based at the University of Regina, Canada. As a for students and a catalyst for decision-making
member of this organisation, SANERI will have access regarding which fields of study they will undertake.
to expertise associated with risk and performance The equipment is available to third parties – terms and
assessments for carbon dioxide geological injection conditions apply.
projects.
(c) SANERI was invited to take part in the formation

workshop of the Global Carbon Capture and Storage
Initiative – a financially supported proposal of the
Australian government to address the gap between
demonstration and implementation of carbon
capture and storage plants. SANERI is a Founding
Member of the Global Carbon Capture and Storage
Initiative and such membership will facilitate SANERI
to access expertise on carbon capture and storage
implementation.
Left. A piped gas

storage facility.
Right: A High
Pressure Fuel Injector
at the University of
Witwatersrand.

RESEARCH HIGHLIGHTS
END USE AND INFRASTRUCTURE monitored for soil and water contamination.
The project conclusions noted, are that both the cities

of Johannesburg and Cape Town have developed
THE ENVIRONMENTAL IMPACT OF ENERGY
strategies to monitor and address emissions from
USE BY THE AUTOMOBILE SECTOR: A CASE OF
vehicles. Most strategies are not yet implemented
JOHANNESBURG AND CAPE TOWN
however, Cape Town seemed to be ahead of most cities
in its efforts to build a sustainable transport system.
This project is being carried out by the CSIR. The
Significant legal, regulatory and fiscal obstacles
project aims to understand the negative environmental
need to be dealt with at national level to facilitate
impact of automotive energy use and to identify
the implementation of some strategies and more
measures that can be adopted to minimise such
stakeholder interaction to share lessons, would
impact in the South African context. The objectives
eliminate the wasteful repetition of efforts. The
of the project are to analyse the environmental effects
problem of maintenance and scrapping of old cars
of automobile energy use and supply in both
that tend to be the worst polluters, is complex and
Johannesburg and Cape Town, in order to
needs a comprehensive solution.
evaluate whether infrastructure planning
and other measures would reduce negative
During this project, student development which is also
environmental impacts, and also to evaluate the
key to the mandate of SANERI took place. The following
environmental, social and economic costs of
students were developed: Dikeledi Pitso (female,
reducing environmental impact and thereby make
black, CSIR, MSc), Kgaugelo Chiloane (female, black,
recommendations for policy makers. At the end of the
Wits, PhD), Lethabo Mosomane (female, black, CSIR,
study SANERI will receive a final report containing
Hons) and five other students under Prof Stuart Piketh
conference papers and journal articles on the
at Wits.
subject.
The abovementioned research has impacted on

The results of the project have shown that, in
South Africa as a whole through the considerable
general, pollutant concentrations recorded in
student capacity built at various levels (Honours
Johannesburg and Cape Town are not comparable
to PhD) and nurturing the students’ interest in the
(with the exception of carbon monoxide). Significantly
subject of transport and environment. A forum for
higher sulphur dioxide, hydrogen sulphide,
stakeholder interaction has been established through
nitrogen oxide, nitrogen dioxide, benzene, toluene
the two stakeholder workshops. This could continue for
and ammonia concentrations were recorded in
facilitation of broader dialogue between municipalities
Cape Town than in Johannesburg, while ozone
and the government in tackling the various issues
concentrations were lower in Cape Town. Pollutant
identified by the project. DME and DEAT participated
concentrations showed a strong correlation with
in the final policy-oriented workshop. The City of
prevailing meteorological conditions and underlying
Tshwane was also added to the group and engaged
topography, which influence the dispersion of
enthusiastically in the policy dialogue.
potential of pollutants. There were some compliance
shortcomings identified at the few service stations
From left:
Kele Pitso and Lethabo Mosomane,
student participants

RESEARCH HIGHLIGHTS
Final stakeholder
policy workshop
held at CSIR
Pretoria (photo) and
CSIR Stellenbosch
STANDBY GENERATORS - DETERMINING THE Highest density is commercial/retail buildings

POSSIBLE CONTRIBUTION TO DEMAND SIDE in Sandton. Implementation method has been
MANAGEMENT IN SOUTH AFRICA suggested.
The Energy Research Centre, at the University of The conclusion of the project is that a very good
Cape Town is responsible for the Standby Generator opportunity exists to utilize existing standby
project. The project aims to examine the conditions generators instead of building more gas turbine
under which the use of existing standby generators stations to satisfy national electricity needs. If the
may be beneficial to the South African electricity recommendation is implemented in the country, it
system, by removing load from the grid. The output will lead to a reduction of the need to build peaking
of the project will be a fully detailed report, including a stations and there could be an emergency backup to
comprehensive database of opportunities, as well as our national grid.
considerations for implementation. The results of the
study revealed that over 3500MW capacity is available
at unit size >75kVA.
Standby generators
remove the load
from the electricity
grid.

RESEARCH HIGHLIGHTS
CLEAN ENERGY SOLUTIONS

The consensus of the workshop was that the
potential resource of wave power along the
SOUTH AFRICAN OCEAN ENERGY NETWORK
South African coast could contribute between
8 000 and 10 000 MW of South Africa’s future electricity
The first South African workshop on Ocean Energy with
supply. Most of this will be along the west and south
a focus on Wave and Ocean Current Energy was held
coast of the country. Many studies have been done
in the Western Cape on Thursday, 21 February 2008 in
on wave and ocean capacity along our shores – the
the lovely settings of an African boma at the Spier
verdict is that the latent power that is available is
Conference Centre. The workshop was hosted by
promising. The main challenge is cost and finding the
the Centre for Renewable and Sustainable Energy
right technology. This potential source could go a long
Studies on behalf of the South African National
way in contributing to the Department of Minerals and
Energy Research Institute (SANERI) and Eskom’s
Energy’s Renewable Energy target of 10 000 GWh to
Research and Innovation Department (ERID). The goal
be supplied by 2013. It was estimated that by 2013 up
of the workshop was to develop a roadmap for the
to 24 MW of wave power could be installed contributing
development of an ocean energy industry in South
84 GWh of the overall target.
Africa.
Above and facing

page: Delegates
attend the
inaugural workshop
of the South
African Ocean
Energy Network

RESEARCH HIGHLIGHTS
The main barriers to harvesting the energy from the • There is a variety of data sets available in the
ocean were identified as: country at various organisations, mapping the
ocean energy resource. It was proposed that a
• The lack of financial incentives or even clarity of common, public repository of all existing ocean
who will purchase the electricity and at what price. energy data for South Africa be established by
The main mechanism to stimulate competition June 2009.
and a free market will be the introduction of a
feed in tariff aimed specifically at electricity from In general the participants expressed a concern
ocean energy resources, something Eskom and that South Africa is reactive on energy issues and
the Government have talked about but there has the exploitation of renewable energy seems to be
been no implementation to date. confronted by many obstacles. Renewable energy is
not given the priority like other energy sources. The
• The existing complex legislative framework, workshop ended on a positive note and participants
especially pertaining to ocean energy, where are optimistic that the untapped resource along our
it is not always clear which laws apply or which coastline will in future contribute significantly to the
Government departments are responsible to energy mix of the country.
issue the relevant permits.
The participants unanimously agreed on the following

short term actions:
• SANERI, through its Centre for Renewable and

Sustainable Energy Studies at Stellenbosch
University and Eskom’s Department for
Research and Innovation will champion the
interest of Ocean Energy in South Africa.
• A network of ocean energy stakeholders will be

established with ongoing communication through
a website and e-mail, with regular workshops
and conferences to interact.
• Vision and mission statements will be developed

for the role of ocean energy in South Africa.
• A base of expertise will be established to advise

government (at all levels), developers, Eskom and
financial institutions on the various aspects of
ocean energy.
• Eskom and SANERI have embarked on a joint

collaboration to promote research and
demonstration of Ocean energy technologies in
SA. This may culminate in the establishment
of a Wave Test Centre (a demonstration site in the
ocean where developers can test their wave
energy converters).

RESEARCH HIGHLIGHTS
A site was identified for the construction of the demonstration plant on a

plot just outside of Potchefstroom. A small building was identified as
suitable for the training. The participants from the Vyfhoek community
painted the building and also chose a name for the project. They chose to
call the project: VYFHOEK THUSANANG. It means help each other in every
possible way.
SANERI ASSOCIATE CHAIR:

The objectives for the Biofuels community project,
are skills development through training and practical
BIOFUELS COMMUNITY PROJECT
application and transfer of knowledge from the
University to the community. Research that is being
From the outset of this research initiative, a
done in the North-West University laboratories by
community project where the local community could
post-graduate students is directly applied to the
directly benefit from the Biofuels research, was
community biofuels project.
envisioned. Our rural communities have traditionally
not shared in the first economy and during the last
Initially the Biofuels community project involved an
few years the situation has worsened as municipal
integrated biofuels plant for the production
services have collapsed in many parts of the
of bio-ethanol and biodiesel from feedstock
North-West Province. Many people do not have access
provided by the community. It became clear early
to work opportunities and do not have ready access
on that a single biofuels project would not be
to electricity and clean running water. It is believed
sufficient to reach the intended objectives and
that biofuels production can be used as a vehicle
that a more holistic approach was necessary.
to empower local communities to create new work
There were already other community projects
opportunities while learning new skills and creating
being run through different departments within the
new markets for the goods they produce.

RESEARCH HIGHLIGHTS
Figure 3: Brain chart of biofuels community project
VEGETABLE Production
GARDENS strategy for Training:
starch, sugar, Oil extraction process Strategy for
and oil seed Oil refining practices collection of
production Hazop training oil seed
Training:
Crops choices
Planting practices
Harvesting practices Crop
Training: Crop rotation Production
Cactus havesting methods Marketing of
Elementary science products Training:
Measurement techniques Extraction & Algae
Hazop training Training: refining of oil farming practices
Operator training Algae collection
Energy Basic chemistry practices
& mass Materials handling
Production of integration Hazop training
Cacti strategy
cellulose based
collection
gelling agent
strategy
ETHANOL
Ethanol Biodiesel FEEDSTOCK Production
Marketing Production Production
of Algae oil
Advertising Plant Plant
distribution
strategy Ethanol gel ETHANOL
production
GLYCERINE
CO
Packaging & collection
distribution strategy
Production of Glycerine
animal feed purification
Training:
ETHANOL Soap chemistry
Strategy for Saop making
distribution of basics
DDGS to cattle
feedlots
Packaging & LIFEPLAN
Marketing distribution Soap ABET
Advertising production
strategy
North-West University and these could be used to slot West University is directly applied in the bio-ethanol
in with the biofuels project. Some of these projects are and biodiesel plants as well as the soap factory, the
LIFEPLAN (Prof Annemarie Kruger) and ABET (Adult DDGS processing and the cactus processing.
literacy).
During the first stage of the project, participants
The community project centers around an integrated from the community will start with the LIFEPLAN
bio-ethanol and biodiesel production plant (see Figure training, followed by soap making skills. During
3). Training in the different aspects of the project is this time, the different components of the
continuous and specific to the group that will be bioethanol plant will be procured, constructed and
performing a specific task in the project. The overall commissioned. During the second stage of the
project comprises an agricultural leg, a bioethanol project, participants from the community will be
plant, a biodiesel plant, a small soap factory, a trained in running the bioethanol plant, as well as taught
vegetable garden (LIFEPLAN), a small glass factory how to collect and prepare cacti for the production of
(LIFEPLAN), a small needlework factory (LIFEPLAN), gelling agent for producing ethanol gel fuel. In the third
an animal feed processing leg, a cactus processing stage of the project, the components for the biodiesel
leg and a marketing and distribution leg. The research plant will be procured, the plant will be constructed
done by the Associate chair: biofuels group at the North and commissioned and participants of the community

RESEARCH HIGHLIGHTS
Left: Participants from Vyfhoek community painting the

training hall.
Right: LIFEPLAN training for participants from Vyfhoek

community. Water and electricity have been connected
at the site. There is a piggery and a feedlot next to the
site and a pit has been prepared to collected sewage
from the feedlot and the piggery to produce biogas,
which will run the boiler for the demonstration plant.
are to be trained in running the envisioned plant. The Biofuels community project was launched
During this stage, participants will also be taught how unofficially on the 12th of November 2008 with the
to collect the oil seeds and to extract and refine the creation of a Community Steering Committee (CSC)
oil for biodiesel production purposes. It is envisioned that will drive the project and make the necessary
that the ethanol plant will be commissioned with maize decisions to enable the proper roll-out of the different
starch while the biodiesel plant will be commissioned phases of the project. The CSC members are shown
with used vegetable oil. A complete business plan in Table 1.
for procuring funds is in the process of being drawn
up by the Project Manager and the Associate Chair.
This business plan is necessary to procure funds
for the full-scale community project.
Table 1: Representatives on CSC
Member Affiliation/Role
Ben Zweli Cattle farmer, owner of Engen filling station in Ikageng. Ikageng representative
Tina Tseladimitloa Small farmer in Vyfhoek community, owner of recycling business, Vyfhoek
representative
Jan Paulsin Farm worker in Vyfhoek community, Ikageng resident, workers’ representative
Gideon Murule Farmer in North-West Province near Zeerust, NAFU NW representative
Sanette Marx SANERI Associate Chair, NWU representative
George Obiero Microbiologist, NWU representative
Gert Kruger Farmer, Agri Engineer and Project Manager/Facilitator
Hannes Smit Translator, Trainer and Farm Manager

RESEARCH HIGHLIGHTS
ENERGY, DATA
AND KNOWLEDGE
MANAGEMENT:
BIOFUELS - SANERI
RESEARCH FINDINGS
PUBLISHED AS A BOOK
In 2006/07 SANERI funded

a research project whose main
objective was to study local,
continental and international
biofuels projects. The aim
was to identify strategies that
would promote the participation
particularly of rural women in the
biofuels industry.
The primary findings of this study

together with other projects
from other countries have been
published as a book.
The book has since become a

useful resource for policy makers
and investors who have the
imperative to address specific
needs of women if the South
African government objective of
using the new biofuels industry
to close the gap between the two
economies, is to be achieved.

RESEARCH HIGHLIGHTS
From left: You can now

log onto the Energy
Technology Data
Exchange and share
knowledge with other
global users.
www.etde.org
ETDE
• Avoiding duplication of research effort and
The Government of South Africa accepted the learning from expected and unexpected results.
invitation from the Executive Committee of the IEA
Energy Technology Data Exchange Implementing • Jump – starting research at a point further along
Agreement for SANERI’s participation as a member than anticipated.
on behalf of South Africa. The participation of SANERI
in this Agreement became effective as of 5 November • Identifying which countries and people are
2008. involved in particular research areas.
The Energy Technology Data Exchange (ETDE), • Promoting international cooperation in energy
an international energy information exchange research and development.
agreement formed in 1987 under the International
Energy Agency (IEA). ETDE’s mission is “To provide • Understanding how countries deal with energy
Governments, industry and the research community related environmental and climate change
in the member countries with access to the widest issues.
range of information on energy research, science
and technology and to increase dissemination of this • Finding approaches to energy use including
information to developing countries.” policy and economic factors, alternative and
renewable energy sources and conversation
ETDE World Energy Base or ETDEWEB is the internet aspects.
tool for disseminating the energy research and
technology information that is collected and • Finding a historical perspective on energy
exchanged. It includes a federated searching option issues.
for one stop searching of related science sites. Users
in member countries and many developing countries In addition to energy research and technology
have access privileges to ETDE’s information. information from the ETDE member countries, the
database contains citations published worldwide
Some known user benefits include: regarding coal and global climate change information.
This broad coverage comes as a result of cooperation
• Staying abreast of recent developments in various with other international partners. The database also
research areas (including some basic science contains information collected by the US Department
sites). of Energy since 1974.

RESEARCH HIGHLIGHTS
Clockwise from right: Building to house project

management team, workshops, exhibition and
training, and demo vehicles for security purposes.
Space will be used to display vehicles. TSI 1 EV
sponsored by Eskom and an EV Game Viewing
Vehicle
GREEN TRANSPORT PROGRAMME Platform, SANERI is responsible for the incubation of

educational programmes such as an interdisciplinary,
inter-university, systems-oriented masters degree
The South African National Energy Research Institute
programme to deal with hydrogen, fuel cells and
(SANERI) is hosting a Green Transport Programme on
alternatives in the energy & transport sectors. Another
behalf of the Department of Science and Technology
aim of the platform is to create awareness through
(DST). SANERI is also hosting the Hydrogen
newsletters and real-life use of fuel cells.
and Fuel Cell Technologies (HYSA) Public Awareness
Platform under the Green Transport Programme.
To date, five areas have been identified for the
Regarding the Green Transport Programme,
2010 and beyond Green Transport Demonstration
SANERI’s role is to facilitate demonstration of
Programme. These focus areas are listed below, in
vehicles and demonstration refuelling stations
order of priority, viz (i) Demonstration of Compressed
based on alternatives, green fuels such as
Natural Gas powered buses and vehicles, (ii)
liquefied petroleum gas (LPG), compressed
Demonstration of electric vehicles, (iii) Demonstration
natural gas (CNG), biofuels (biodiesel and
of Biofuels powered vehicles, (iv) Demonstration of
bioethanol), electricity (via batteries), fuel cells and
Liquefied Petroleum Gas (LPG) powered vehicles, and
hydrogen. The demonstration infrastructure should
(v) Demonstration of vehicles powered by hydrogen.
be in place for the 2010 Soccer World Cup. SANERI is
Feasibility studies have been conducted and detailed
responsible for the conceptualisation, development,
demonstration plans developed and costed. This was
project management and implementation facilitation
done in collaboration and partnership with industry.
of the demonstration of alternative transport fuels
A number of private companies have committed
and vehicles. Regarding HYSA Public Awareness

RESEARCH HIGHLIGHTS
Figure 4: Green Transport Programme
ENERGY
STATIONS
HYBRID EV
SYSTEMS RENTALS
UTILITY ELECTROMOTIVE FLEET

EVs BEYOND SERVICES
CORSA
2010
KOMBIS
CITY
ENERGY
CARS &
STORAGE
DRIVE BUSES
BANTAM
KNP
SYSTEMS
B140
eBIKES
TRI 2 ENERGY
STATIONS
TRI 1 SERVICES
GAME
2009/2010
VIEWING
HYBRIDS
MOTORS BATTERIES RETROFITS
to co-funding demonstrations and associated (through exhibitions and installation of fuel cells in public
demonstration infrastructure. Demonstration plans places) and communication (through newsletters and
include the following: (i) CNG demonstration station in publication of articles). A monthly monitor is aimed at
Johannesburg, (ii) Electric charging station in Midrand, providing a critical source of information on the hydrogen
(iii) Biodiesel refuelling demonstration stations in fuel cells and alternatives relevant to researchers in
Pretoria and Cape Town, (iv) LPG station in universities, public sector research institutes, business
Johannesburg and Cape Town, (v) Mobile hydrogen across a wide range of sectors, the general public and
station, possibly based in Pretoria. policy makers in developing countries. This is being
implemented in partnership with UNU-MERIT (United
Regarding the hydrogen and fuel cell technologies Nations University in Maastricht). Recently, SANERI
platform, the focus has been on education (development participated in the annual SciFest Exhibition held in
of a Masters programme and use of educational toolkits Grahamstown as part of Hydrogen Fuel Cells public
targeting high school pupils), public engagement awareness and education.

RESEARCH HIGHLIGHTS
Beyond 2010, the centre will be used to: • Educate and promote energy efficient
transportation technologies.
• Test, evaluate and demonstrate alternative vehicles
under controlled conditions. • Provide information to policy developers.
• Test, evaluate and demonstrate the use of • Demonstrate how clean fuels and efficient
alternative fuels under controlled conditions. transport technologies could benefit millions of
people: (Health benefits, economic benefits, and
• Initiate future development, support and sustainability.)
maintenance services to developers of alternative
vehicles/fuels and the public. • Verify and demonstrate quality of fuels, reliability
of supply, safety, operating costs, etc.
• Convert petrol/diesel engines to alternative fuel
engines. • Provide an opportunity for practical skills and
human resource development in clean transport
• Test the quality of alternative fuels and technologies.
performance of alternative vehicles.
• Create awareness, visibility and acceptance
• Coordinate green transport projects beyond amongst the public, entrepreneurs and key
2010. decision makers in South Africa regarding the
operability, safety, high performance and low
• Host training and workshops for government emissions of clean transportation technologies.
officials (policy makers), students, artisans
(mechanics), engineers, scientists, municipal • Develop collaborative partnerships, locally
officials, etc. and internationally, regarding clean transportation
technologies for both skills and IP transfer.

RESEARCH HIGHLIGHTS
A number of private companies have pledged their • Alternative Energy sources.

support (both labour and monetary) to participate in
the 2010 demonstrations. Car manufacturers have also • Energy Efficiency and Demand Side
pledged support and interest in working with South Management.
Africa. However, car manufacturers have pointed out
that the policy environment should be favourable for • Cleaner Fossil Fuel Use.
long-term sustainability of the demonstration and
rollout opportunities. • Renewable Energy.
Successful implementation of the Green Transport • Use of Energy to Stimulate

Programme in South Africa could lead to a number Socioeconomic Development.
of benefits in the long-term. The envisaged
major benefits of the Programme are four- • Impact of Energy Use on the Environment.
fold, viz: economic, environmental, health and
sustainability. Economic benefits could include
savings on purchases of energy carriers, SANERI LEADING THE WAY IN
greater energy efficiency, employment opportunities, DISCLOSING, OFFSETTING AND
skills development and intellectual property REDUCING GREENHOUSE GAS
development and exploitation. Environmental benefits EMISSIONS
could include reductions in greenhouse gas emissions
and reductions in emissions of particulates. Health South Africa has committed itself to long-term
benefits could include lower incidences of respiratory transition to a low-carbon economy based on the Long
diseases such as tuberculosis (TB) and lower Term Mitigation Scenarios for Climate Change (LTMS)
incidences of lung cancer. Sustainability development adopted by Cabinet late in 2008. This sent a very strong
could include reduction in use of conventional fossil signal to the business community that unsustainable,
fuels, greater energy efficiency and potentially cheaper environmentally unfriendly business practices
public transport. need to change drastically as South Africa was on
a green path to sustainable economic
Among the nine (9) SANERI thematic areas, the Green development. The carbon disclosure project, led by
Transport Programme links mostly with the following: the National Business Initiative (NBI), entered its

RESEARCH HIGHLIGHTS
second year in 2008, increasing its participation from The company has no direct scope 1 emissions with a
74% of JSE’s Top 40 companies to about 60% of the large portion of its emissions being indirect scope 3
JSE Top 100. emissions. Emissions from other company wastes (e.g.
catering) and road travel from hired cars have not been
The South African Disclosure Project indicates that included. The emissions estimate from employee travel
77% of the companies participating in this initiative is a very crude estimate from “an average medium sized
disclose their greenhouse gas emissions. Companies petrol car” and the factor probably uses a different fuel
participating in this exercise include both high carbon specification from the South African one. The above
emitters such as Eskom and Sasol,and low carbon inventory was not audited.
emitters like banks and retail companies. SANERI
did not participate in the carbon disclosure project Even though SANERI is a low-carbon company
but has taken the decision to disclose its greenhouse with no direct emissions, the company will make a
gas emissions and offsetting our carbon footprint, by donation to the SOS Children’s Village ‘greening’
investing in local social or environmental programmes. initiative. SANERI will partly sponsor the golf day
Importantly the 2008/09 emissions will be used as the event for raising funding for the village’s energy efficient
base year emissions for monitoring progress of our equipment.
carbon reduction strategies.
SANERI will in 2009/10 put in place strategies to lower
The greenhouse gas emission inventory was done this base year carbon footprint.
according to the Greenhouse Gas Protocol developed
by the World Resource Institute (WRI) and the World
Business Council for Sustainable Development.
SANERI CO2 FOOTPRINT FOR THE YEAR 2008/2009

Activities Total Units for 1st Half of Emission Total CO2 Methodology
the Year Factor kg CO2/ Emission kg CO2
unit activity from activity
Quantity Units
Printing 137.25 Reams 8.4 1,152.93 Pages printed from printer counter (1
Ream = 500 sheets), Emission factor
from USA industry, SA uses 2.5.
Road Travel 200,022.00 km 0.22 44,004.84 0.22kg CO2 factor from IPCC default
(to-from of medium sized petrol car, fuel spec
might be different from SA.
Office)
Short Flights 10,344.00 km 0.18 1,861.92 Travel reconciliations for all trips,
distance in km from SA & int’l electronic
distance calculators, CO2 emitted
per kilometre from PWC Carbon
calculator.
Medium 46,628.00 km 0.13 6,061.64 Travel reconciliations for all trips,
Flights distance in km from SA & int’l electronic
calculator.
Long Flights 1,391,464.00 km 0.11 153,061.04 Travel reconciliations for all trips,
distance in km from SA & int’l electronic
calculator.
Electricity 30,768.00 kWh 1 30,760.00 Use Eskom data of CO2/kWh, than used
Consumption electrity bill from SANERI to estimate
kWh use for half year.
TOTAL 236,910.37

HUMAN CAPITAL
DEVELOPMENT
I
n order to fulfil SANERI’s objectives, human capital coordinate a postgraduate, master’s and doctoral
development is one of the key programmes of programme with associated research projects, in
SANERI’s operational strategies. order to achieve a step change in the knowledge base
on these subjects in South Africa.
HUB AND SPOKE TYPE POSTGRADUATE Within just a few months of operation, some of the
SUPPORT PROGRAMME highlights worth mentioning are:
The objective of the Hubs and Spokes Programme • The Hub has been successful with their efforts
is to assist South Africa in building on existing in ensuring that the postgraduate programmes
strengths to achieve the critical mass required for and short course training programmes were in
major research and human capital development in place to start at the beginning of 2009.
renewable energy sources. The expertise built and
acquired in these centres will then help accelerate • Their advertisements have been well received
the sustainable deployment of appropriate renewable resulting in keen interest being shown by South
energy technologies in the country. The model for African and foreign students, through the number
this programme is that research in a certain topic of enquiries received.
is coordinated at an institution appointed as a Hub
and later the research is strengthened by appointing • Numerous projects have been initiated and partial
research centres for complimentary topics in what is results have been obtained e.g.: the Control
known as the Spokes. System approach to energy optimisation
andparticularly the Model Predictive Control
approach to a class of resource programming
THE ENERGY EFFICIENCY AND DEMAND problem, which provide new insights in the energy
SIDE MANAGEMENT HUB and control fields and will have far reaching
impact in both fields.
The South African National Energy Efficiency and
Demand Side Management Hub was successfully • One senior lecturer was appointed and funded
launched on 10 June 2008 at the University of by the University of Pretoria. Three post doctoral
Pretoria. This initiative is expected to enhance researchers and three research assistants were
national capacity in energy efficiency including fuel recruited.
switching to renewable technologies and demand side • 26 bursaries were awarded to diverse groups of
management in support of accelerated and shared students.
economic growth within the bounds of environmental,
social and economic sustainability. The Hub will build • There are 16 postgraduate students in the EEDSM
human resources capacity, deepen knowledge and programme.
stimulate innovation and enterprise in the field of
energy efficiency and demand side management. • 10 subject related seminars were held thus far.
In addition to the above, the University is expected to • 28 research papers were completed of which 9
establish , develop and manage the national Hub and journal papers are published and 8 conference
its spokes for the postgraduate programme which papers are published or accepted for
would steer postgraduate teaching and research publication.
of these topics in the country. It will establish and

HUMAN CAPITAL DEVELOPMENT
• 6 short courses on energy efficiency and demand

side management topics were opened to all
engineers, managers, administrators, etc.
• Core energy efficiency and demand side

management modules have received particular
interest from postgraduates: 19 students selected
the new module Energy optimization ENO
732 while 17 students selected the module Energy
Management EES 732.
BURSARY SUPPORT PROGRAMME

The excellence of South African energy research as well
as the ability to compete on an international level, are
The Bursary Support Programme is one of the key
dependent on fostering research training and career
activities of human capital development, which is
opportunities for the brightest and best researchers
a significant factor for a developing country. The
within the energy sector. SANERI’s bursary support
purpose of the bursary support programme is to
programme plays an integral role in achieving this.
encourage research in the energy sector by providing
assistance to students wishing to undertake a
The bursaries that are awarded for Masters level of
Masters or Doctoral level of studies in a related
studies have been increased from R50 000 per year to
energy field. Preference is given to students who
R80 000 per year on a full-time basis over a period of
wish to undertake research in line with the 9 thematic
two years. Part time students will receive an amount of
areas and to research driven projects rather than
R48 000.00 per year over a period of three years. The
course work dominated studies. Preference is also
amount awarded for PhD level of studies has been
given, where necessary, to previously disadvantaged
increased from R65 000 per year to R100 000 per year
individuals and women. Annually, an amount of
on a full time basis for a period of three years. Part time
R1.5 million is available for this key activity.

doctoral students receive an amount of R62 000 per the appropriate skills where there are scarcities, for
year over a four year period. Postdoctoral students instance in fossil fuels.
receive R150 000 per year over a two year period on
a full time basis. In the 2008/9 financial year, bursaries were awarded
to 18 Masters students, 7 PhD students and 2
The bursary amounts were increased after a postdoctoral students. Race and gender of applicants
benchmarking exercise was carried out, to establish are some of the criteria that were used to evaluate the
what the appropriate market related amounts for applications.
the bursaries should be. In comparison to the
private sector, the amount that SANERI offered was The candidates and their topics of expertise are
unattractive and it was therefore difficult to draw summarized on the following page:
Figure 5: Bursaries awarded to students by gender and race group
Males
76%
Colour- Blacks Whites

eds 27% 58%
15%
Females
23%
Figure 6: Bursaries awarded to Master’s students by race and gender group
White
61%
Black Females Males

22,5% 28% 72%
Coloured
16,5%

Table 2: Master’s students
CANDIDATE INSTITUTION AREA OF RESEARCH

Bode, Chistiaan (Mr) Wits University A techno- economic feasibility study on the use of
concentrating solar power generation in urban and
industrial environments in Gauteng
Botha, Alwyn Francois (Mr) University of An investigation into nano – structured photovoltaic cells
Stellenbosch
Breet, Cornelius Francios (Mr) University of Digital Control of a solid state control
Stellenbosch
Greyling, Guillaume Hermanus (Mr) University of Investigation into the adsorption properties of crystals –
Stellenbosch Negative Thermal Expansion (NTE)
Lombard, Adrian Cornelius University of Design , implementation and testing of a low cost grid
Johannes (Mr) Stellenbosch connected sub 10 Kw Micro Hydro Power System
Madima, Takalani (Ms) University of Optimisation of pre-treatment processes for the enzymatic
Stellenbosch hydrolysis and fermentation of lignocellulose feedstocks in
Southern Africa
Mert, Marlin John (Mr) University of Construction of an S cerevisiae strain capable of growth
Stellenbosch on xylan as sole carbon source
Mhlongo, Makhosazane Princes University of Investigation of market opportunities for small scale
(Ms) Kwazulu Natal farmers producing for biofuels
Ngqongwa, Lundi Vincent (Mr) University of Development of microchannel reactors for the steam
Western Cape reforming of natural gas
Njokweni, Anathi Perserverence University of Construction of an S cerevisiae strain capable of growth
(Ms) Stellenbosch on xylan as sole carbon source
Omardien, Soraya (Ms) University of Bioprospecting for B-glucosidase and B–xylosidase for
Stellenbosch bioethanol production
Schietekat, Louis Magnus (Mr) University of Digital control of a sold state transformer
Stellenbosch
Schmulian, Rael (Mr) Wits University Linear synchronous generator for wave energy harvesting
Van Tonder, Jacomina Francina Tshwane Univeristy Sustainable Urban Living
(Ms) of Technology
Van Wijk, Johannes Hendrik (Mr) University of Electrical and Mechanical design of direct drive 300 Kw
Stellenbosch PM wind generator
Van Wyk, Ashwill Louis (Mr) University of Comparison of standard and high efficiency motors
Cape Town
Vermaak, Rieghard (Mr) University of Linear Wave Energy Converter Systems
Stellenbosch
Viktor, Marko Johann (Mr) University of Bioprospecting to support the development of an

Stellenbosch industrial raw starch–degrading yeast

Figure 7: Bursaries awarded to Phd students by race and gender group
W
h
34 ite
%
M
a
10 les
0%
Bl
a
49 c k
%
Co
lo
17 ured
%
Table 3: Phd students

Bredenkamp, Tyler Morgan (Mr) University of The synthesis of organic framework that satisfy conditions
Johannesburg for assisted acidity of both Bronsted acids and Lewis
acids to be used instead of simple acids
Davids, Moegamat Wafeeq (Mr) University of Advanced Ti based AB and AB2 Hydride Forming
Western Cape Materials
Hampton, Gary Brent (Mr) University of Determining the success of management contracts in
Cape Town electricity distribution in sub – Saharan Africa
Makgato, Seshibe Stanford (Mr) University of Optimisation of pre- treatment processes for enzymatic
Southern Africa
Mfenyana, Ciko (Mr) University of Optimisation of pre- treatment processes for enzymatic
Southern Africa
Sibanyoni, Johannes Mlandu (Mr) University of Nano – structured light weight hydrogen storage materials
Western Cape

Figure 8: Bursaries awarded to Post-doctoral students by race and gender group
Males
50%
White Females
100% 50%
Table 4: Post-doctoral students:

Fluri, Thomas Peter (Mr) University of Solar Thermal Power Generation
Stellenbosch
Radue, Chantelle (Ms) Nelson Mandela Analysis of degradation in thin forms photovoltaic modules
Metropolitan
University

ANNUAL FINANCIAL
STATEMENTS

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2009
INDEX
The reports and statements set out below comprise the annual report presented to the shareholder:
Page
Report of the Independent Auditors 42 - 46
Statement on corporate governance 47 - 49
Performance against objectives 50 - 52
Report of the board audit and risk management committee 53 - 54
Directors’ Report 55 - 59
Materiality and significant framework 60
Balance Sheet 61
Income Statement 62
Statement of Changes in Equity 63
Cash Flow Statement 64
Accounting Policies 65 - 73
Notes to the Annual Financial Statements 74 - 85

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS

AND PERFORMANCE INFORMATION OF THE SOUTH AFRICAN NATIONAL ENERGY
RESEARCH INSTITUTE (PROPRIETARY) LIMITED FOR THE YEAR ENDED 31 MARCH
2009
Report on the financial statements
Introduction
1. I have audited the accompanying financial statements of The South African National Energy Research
Institute (Proprietary) Limited which comprise the balance sheet as at 31 March 2009, and the income statement,
statement of changes in equity and the cash flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory notes, as set out on pages 55 to 85.
The accounting authority’s responsibility for the financial statements
2. The accounting authority is responsible for the preparation and fair presentation of these financial statements
in accordance with South African Statements of Generally Accepted Accounting Practice (SA Statements of
GAAP) and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA)
and the Companies Act of South Africa and for such internal control as the accounting authority determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
The Auditor-General’s responsibility
3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with section 4 of
the Public Audit Act, 2004 (Act No. 25 of 2004) (PAA) and section 300 of the Companies Act of South Africa my
responsibility is to express an opinion on these financial statements based on my audit.
4. I conducted my audit in accordance with the International Standards on Auditing read with General Notice
616 of 2008, issued in Government Gazette No. 31057 of 15 May 2008. Those standards require that I comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit
opinion.

Report on the financial statements (continued)
Opinion
7. In my opinion the financial statements present fairly, in all material respects, the financial position of The
South African National Energy Research Institute (Pty) Ltd as at 31 March 2009 and its financial performance and
its cash flows for the year then ended, in accordance with the South African Statements of Generally Accepted
Accounting Practice (SA Statements of GAAP) and in the manner required by the PFMA and the Companies Act
of South Africa.
Other matters
Without qualifying my opinion, I draw attention to the following matter that relates to my responsibilities in the
audit of the financial statements:
Governance framework
8. The governance principles that impact the auditor’s opinion on the financial statements are related to the
responsibilities and practices exercised by the accounting authority and executive management and are reflected
in the key governance responsibilities addressed below:
Key governance responsibilities
9. The PFMA tasks the accounting authority with a number of responsibilities concerning financial and risk
management and internal control. Fundamental to achieving this is the implementation of key governance
responsibilities, which I have assessed as follows:
No. Matter Y N
Clear trail of supporting documentation that is easily available and provided in a timely manner
1. No significant difficulties were experienced during the audit concerning delays or the availability of 3
requested information.
Quality of financial statements and related management information

2. The financial statements were not subject to any material amendments resulting from the audit. 3
3. The annual report was submitted for consideration prior to the tabling of the auditor’s report. 3
Timeliness of financial statements and management information

4. The annual financial statements were submitted for auditing as per the legislated deadlines as set out 3
in section 55 of the PFMA.
Availability of key officials during audit

5. Key officials were available throughout the audit process. 3

Report on the financial statements (continued)
No. Matter Y N
Development and compliance with risk management, effective internal control and governance practices
6. Audit committee
• The company had an audit committee in operation throughout the financial year. 3
• The audit committee operates in accordance with approved, written terms of reference. 3
• The audit committee substantially fulfilled its responsibilities for the year, as set out in section 77 3
of the PFMA and Treasury Regulation 27.1.8.
7. Internal audit
• The company had an internal audit function in operation throughout the financial year. 3
• The internal audit function operates in terms of an approved internal audit plan. 3
• The internal audit function substantially fulfilled its responsibilities for the year, as set out in 3
Treasury Regulation 27.2.
8. There are no significant deficiencies in the design and implementation of internal control in respect of 3
financial and risk management.
9. There are no significant deficiencies in the design and implementation of internal control in respect of 3
compliance with applicable laws and regulations.
10. The information systems were appropriate to facilitate the preparation of the financial statements. 3
11. A risk assessment was conducted on a regular basis and a risk management strategy, which includes 3
a fraud prevention plan, is documented and used as set out in Treasury Regulation 27.2.
12. Powers and duties have been assigned as set out in section 56 of the PFMA. 3
Follow-up of audit findings

13. The prior year audit findings have been substantially addressed. 3
Issues relating to the reporting of performance information

14. The information systems were appropriate to facilitate the preparation of a performance report that is 3
accurate and complete.
15. Adequate control processes and procedures are designed and implemented to ensure the accuracy 3
and completeness of reported performance information.
16. A corporate plan was prepared and approved for the financial year under review for purposes of 3
monitoring the performance in relation to the budget and delivery by The South African National Energy
Research Institute (Pty) Ltd against its mandate, predetermined objectives, outputs, indicators and
targets as set out in Treasury Regulation 29.1.
17. There is a functioning performance management system and performance bonuses are only paid after 3
proper assessment and approval by those charged with governance.
10. South African National Energy Research Institute (Proprietary) Limited has maintained satisfactory levels
of compliance with the relevant legislation relating to governance and continued to comply with good practice
principles. The result of this discipline is acceptable levels of financial and internal control management. These
practices have resulted in an unqualified audit report for the company for the financial year reviewed.
Report on other legal and regulatory requirements
Report on performance information
11. I have reviewed the performance information as set out on pages 50 to 52.

Report on other legal and regulatory requirements (continued)
The accounting authority’s responsibility for the performance information
12. The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure
that the annual report and audited financial statements fairly present the performance against predetermined
objectives of the public entity.
The Auditor-General’s responsibility
13. I conducted my engagement in accordance with section 13 of the PAA read with General Notice 616 of 2008,
issued in Government Gazette No. 31057 of 15 May 2008.
14. In terms of the foregoing my engagement included performing procedures of an audit nature to obtain sufficient
appropriate evidence about the performance information and related systems, processes and procedures. The
procedures selected depend on the auditor’s judgement.
15. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the findings
reported below.
Usefulness and reliability of reported performance information
16. The following criteria were used to assess the usefulness and reliability of the information on the entity’s
performance with respect to the objectives in its corporate plan:
• Consistency: Has the entity reported on its performance with regard to its objectives, indicators and targets
in its approved corporate plan?
• Relevance: Is the performance information as reflected in the indicators and targets clearly linked to the
predetermined objectives and mandate. Is this specific and measurable, and is the time period or deadline
for delivery specified?
• Reliability: Can the reported performance information be traced back to the source data or documentation
and is the reported performance information accurate and complete in relation to the source data or
documentation?
The following audit findings relate to the above criteria:
Reported performance information not relevant
17. The targets with regard to Energy Research & Development Agenda and Hydrogen Economy and Green
Transport Programme objective were not:
• specific in clearly identifying the nature and the required level of performance; and
• measurable in identifying the required performance.

Report on other legal and regulatory requirements (continued)
18. This is illustrated by the target “Comprehensive data on stand-by generators” and “Consultations with
Department of Transport, Department of Minerals and Energy and Department of Science and Technology” is
general in nature and does not adequately define the nature and the required level of performance therefore the
actual level of performance cannot be assessed.
Reported performance information not reliable
Source information not accurate and complete
19. The evidence provided to support the reported performance information with regard to the Administration
of the Institute objective did not adequately support the accuracy and completeness of the facts.
20. This is illustrated by the indicator was “Staffing of Institute” and the target was “>75% approved/budgeted
post for 2008/09 filled”. Of the seven vacancies identified in the Corporate Plan only one vacancy has been filled
for the year.
Appreciation
21. The assistance rendered by the staff of The South African National Energy Research Institute (Pty) Ltd during
the audit is sincerely appreciated.
Pretoria
31 July 2009

STATEMENT ON CORPORATE GOVERNANCE
1. Introduction
South African National Energy Research Institute (Proprietary) Limited (SANERI) ensures that its processes and
practices are reviewed on an ongoing basis in order to ensure adherence to good corporate governance practices,
which are continually benchmarked against best market practices.
The board of directors believe that the entity has substantially applied and complied with the principles incorporated
in the Code of Corporate Practices and Conduct as set out in the King Report on Corporate Governance for South
Africa 2002 (King II) and has endeavoured to comply with the principles incorporated in the Code of Corporate
Practices and Conduct.
2. Governing bodies
Board of directors
SANERI has a unitary board structure made up of executive and non executive directors, appointed by the
shareholder. The board of directors (the board) meets at least once every quarter, and executive managers attend
by invitation. The board charges executive management with regard to the day to day running of business, with the
board addressing a range of key issues to ensure that it retains the strategic direction of, and proper control over,
the entity. The non executive directors are appointed on a three year cycle and reappointment is not automatic.
The offices of chairperson and chief executive officer are separated.
In accordance with the Public Finance Management Act (Act No 1 of 1999) the board is the accounting authority
of the entity. In keeping with the recommendations of the King Report, the board adopted a board charter which
sets out the role of the board as follows.
The Board’s primary responsibilities include the appointment of the CEO, determining the entity’s objectives
and values and giving strategic direction to the entity, taking effective and appropriate steps to ensure that key
risk areas and key performance indicators of the entity’s business are identified, monitoring the performance of
the entity against agreed objectives, advising on significant financial matters and reviewing the performance of
executive management against defined objectives and applicable industry standards, as well as:
3 Approving key policies, investments, risk management and relevant transactions that exceed managements’
levels of authority;
3 Reviewing and approving the entityís strategy, objectives, and plans;
3 Considering and approving annual financial statements and submissions to the shareholder;
3 Ensuring adherence to good corporate governance and ethics;
3 Monitoring and directing triple bottom line performance; and
3 Reviewing effectiveness of controls.

Company secretary
The company secretary provides the board of directors with guidance and advice on matters of business ethics
and good governance, as well as on the nature and extent of their duties and responsibilities and how such duties
and responsibilities should be properly discharged.
Each of the Directors has unrestricted access to the advise and services of the Company Secretary, entity
information, and is entitled to seek independent professional advice, at the entity’s expense in pursuance of their
duties as a director.
Board audit and risk management committee
The board audit and risk management committee consists of non executive members appointed by the board
of directors. This committee meets at least four times per year and is chaired by an independent non executive
member who is not the chairperson of the board. The Auditor General, and Chief Audit Executive have unrestricted
access to the committee and attend board audit and risk management committee meetings. Appropriate
executive managers, including those responsible for finance and internal audit attend these meetings by invitation.
The board audit and risk management committee reviews the adequacy and effectiveness of internal controls
of the entity with special reference to the findings of both internal and external auditors. Other areas covered
include the review of important accounting and control issues, material pending litigation, specific disclosures in
the annual financial statements, and a review of the performance of the Internal Audit function.
3. Materiality and significant framework
A materiality and significant framework is in place. Its purpose is to regulate disclosure of material facts to the
Minister of Minerals and Energy, disclosure in the entity annual financial statements and approval from the Minister
of Minerals and Energy for participation in certain transactions.
4. Directors’ responsibility for the annual financial statements
The directors of the entity are responsible for the entity’s annual financial statements and other information
presented in the annual financial statements. The Auditor General is responsible for performing an independent
audit of the annual financial statements.
The annual financial statements and notes thereto are prepared in accordance with South African Statements
of Generally Accepted Accounting Practice (GAAP). Accounting policies are consistently applied except where
otherwise stated, in which case full disclosure of changes is made.
The directors believe that the entity will continue as a going concern in the year ahead.
5. Internal audit
South African National Energy Research Institute (Proprietary) Limited use the service of the Group internal audit
function that has the support and cooperation of both the board and management. The internal audit function

has a written terms of reference, approved by the board of directors annually. The internal audit function is under
the control and direction of the board audit and risk management committee.
The internal audit function carries out its work in terms of a work plan based on the risk framework. The annual
work plan is approved by the board audit and risk management committee. The head of the internal audit
function has full access to the chairpersons of the board of directors and of the board audit and risk management
committee.
The objective of the Internal Audit function is to determine whether the organisation’s network of risk management,
control and governance processes, as designed and represented by management, are adequate and functioning
in a manner to ensure that:
3 Risks are appropriately identified and managed;

3 Good corporate governance is achieved;
3 Significant financial, managerial and operating information is accurate, reliable and timely;
3 Employees’ actions are in compliance with policies, standards, procedures and applicable laws and
regulations;
3 Resources are acquired economically, used efficiently and adequately protected; and
3 Programmes, plans and objectives are achieved.
The Internal Audit function adopted a quality assessment review program that includes a day to day quality review
by supervisors, periodic internal quality assessments and periodic external quality assessments.
The purpose for the quality assessment program is to ensure that the internal audit function conforms with the
definition of Internal Auditing, the code of ethics and furthermore that the internal audit functions operate in
accordance with the terms of reference, plans, policies, procedures, practices and applicable legislation and
regulatory requirements. The Internal Audit function was reviewed by an external reviewer (every 5 years) and
received the highest level of compliance, namely General Conformance on two occasions.

PERFORMANCE AGAINST OBJECTIVES
Note Objective Target Weight Achieved

1. Administration of the Institute 30.0 27.0
Percentage overheads / administration A maximum of 20% spent on 10.0 7.0
out of total budget overheads
Percentage spent( committed or >90% committed or disbursed 10.0 10.0
disbursed)
Staffing of Institute >75% approved/budgeted post for 5.0 5.0
2008/9 filled
Percentage BEE procurement (capital Minimum of 25% of non research 5.0 5.0
equipment) consumables and non services, consumables budget spent
university research contractors) on entities with greater than or equal
to 75% BBBEE status.
Energy Research & Development A prototype low cost commercial 1.0 1.0
Agenda electro mechanical battery
Contribution of SANERI's flagship 50% of carbon storage atlas 1.0 0.7
projects to knowledge in the energy developed
sector
2. Energy Research & Development Agenda 25.0 20.5
Contribution of SANERI’s flagship A prototype low cost commercial 1.0 1.0
projects to knowledge in the energy electro mechanical battery
sector
50% of carbon storage atlas 1.0 1.0
developed
Operationalisation of high pressure 1.0 1.0
fuel injector
50% of wind atlas developed 1.0 0.7
A prototype of a modular mobile mini 1.0 1.0
hybrid RE generator developed
A multi feedstock reactor for 1.0 1.0
biofuels designed and constructed
75% energy data and modelling 1.0 0.9
system form JHB, Ekurhuleni and
Tshwane developed
High integrity electrical machine 1.0 0.9
(motor) developed
50% of integrated mass transit 1.0 1.0
solution for SA developed
Comprehensive data on stand by 1.0 1.0
generators
Increase in South Africa’s research SANERI funded research projects 5.0 5.0
outputs findings delivered at two local and
two international conferences
Four Publications of SANERI 5.0 3.5
funded projects in international peer
reviewed academic journals
Knowledge repository for energy SANERI’s information and knowledge 5.0 2.5
research management system operational

PERFORMANCE AGAINST OBJECTIVES (continued)

Note Objective Target Weight Achieved
3. Hydrogen Economy and Green Transport Programme 10.0 8.20
Facilitation and coordination of the Prepare and present LPG refuelling 2.0 1.8
demonstration for SA’s Hydrogen and station proposals to three potential
Green Transport investors
Consultations with Dept of Transport, 2.0 1.6
Dept of Minerals and Energy and
Dept of Science and Technology
Prepare and present Electric vehicles 2.0 1.6
charging station and demonstration
proposals to three potential partners
Prepare and present Bio fuels re 2.0 1.4
fuelling station proposals to three
potential investors
Prepare and present re fuelling 2.0 1.8
Hydrogen station proposals to three
potential investors
4. Human Capital Development 20.0 20.0
Number of new MOU’s established for 3 MOU’s completed 10.0 10.0
Chairs/Centres/Hubs
Bursaries awarded >75% of budget for bursaries 10.0 10.0
allocated
5. Corporate Research Activities 15.0 15.0
New Strategic Alliances forged with At least 2 MOU’s in place an 5.0 5.0
internationally recognised Public internationally recognised agency/
Interest Energy Research and institute
Development centres
Jointly funded research project with At least R2 R4 million external 10.0 10.0
industry or international organisations. funding for SANERI flagship projects
from industry or international
organisations
Total 100.0 100.0
Reasons for variances:
1. Target: A maximum of 20% spent on overheads
SANERI spent 23% because the budget allocation was increased only by 5% yet all expenditure increased by
CPIX.
2. Target: 50% of Wind atlas developed
Due to the number of institutions involved, the signing of the contracts took longer than anticipated.
- Target: 75% of Energy data and modelling system for JHB , Ekurhuleni and Tshwane
The target was achieved (3) as per KPA measurement but since the model was 100% complete (instead of the 75%
target), the score given was therefore higher than 3 but not a full 5 score since the data was not fully collected,
hence the 4 score.

PERFORMANCE AGAINST OBJECTIVES (continued)
- Target : High integrity electrical machine (motor) developed

The final testing still needs to be done as the battery pack exploded and caused delays in the testing; the project
was therefore deemed 90% complete pending the finalisation of test on receipt of a replacement battery.
- Target: 4 Publications of SANERI funded projects in international peer reviewed academic journals
The publications are submitted to local journals first and then for international peer review. The process of
submitting first to local journals for review is time consuming. This time lag impacts on the international submission
as this can only be done when the local approval and recommendation is received. Even though the publications
were submitted in the 08/09 financial year, the approvals were only received after year end.
- Target: SANERI’s information and knowledge management system operational

The contractor who was appointed underestimated the scope and failed to deliver. With the enactment of the
Energy Act (Nov. 2008), which makes provision for the establishment of SANEDI, the scope and the requirements
for the system changed and it was best to put it on hold until further clarity about operationalisation of SANEDI
was obtained from the DoE.
3. Target : Prepare and present LPG refuelling station proposals to 3 potential investors
The target was to prepare and present LPG refuelling station proposals to 3 potential investors. Although the
submission of proposals to the investors was delayed, the target was reached within the financial year. It was
anticipated to exceed the target and the reason for the underscore is that the target was not exceeded.
- Target: Consultations with Dept of Transport , Dept of Minerals and Energy and Dept of Science and
Technology
Consultations with the Department of Transport, Department of Minerals and Energy and Department of Science
and Technology took place as expected. Due to the fact that this target was not exceeded hence the score of
1.6.
- Prepare and present Electric vehicles charging station and demonstration proposals to 3 potential
partners
The target was to prepare and present electric vehicles charging station and demonstration proposals to 3 potential
investors. Although the proposal to the investors was delayed, the target was reached within the financial year. It
was anticipated to exceed the target .The reason for the underscore is that the target was not exceeded.
- Prepare and present Bio-fuels re fuelling proposals to 3 potential investors

The target was to prepare and present biofuels re fuelling proposals to 3 potential investors. Although the
submission of proposal to the investors was delayed, the target was reached within the financial year. It was
anticipated to exceed the target and the reason for the underscore is that the target was not exceeded.
- Prepare and present re fuelling Hydrogen station proposals to 3 potential investors

The target was to prepare and present re fuelling hydrogen station proposals to 3 potential investors. Although
the proposal presentations to the investors were delayed, the target was reached within the financial year. It was
anticipated to exceed the target .The reason for the underscore is that the target was not exceeded.

REPORT OF THE BOARD AUDIT AND RISK MANAGEMENT COMMITTEE

We are pleased to present our report for the financial year ended 31 March 2009.
1. Audit committee responsibility
The audit committee has complied with its responsibilities arising from Section 51(1)(a) of the Public Finance
Management Act and Section 27 of Treasury Regulations. The audit committee has adopted a formal terms of
reference and complied with its charter, and has discharged its responsibilities as contained therein. Committee
has adopted appropriate formal terms of reference, which have been confirmed by the board, and has performed
its responsibilities as set out in the terms of reference.
2. The effectiveness of internal control
During the year under review internal audit performed certain assignments. Reports presented to management
highlighted that the internal control systems were partially adequate and partially effective. Management
acknowledged the findings and continues to implement the recommendations made in an attempt to enhance
the internal control environment.
The internal audit function operates within a formal charter and performs its function within the standards of the
Institiute of Internal auditors. The audit committee is satisfied that the internal audit function operated effectively
and efficiently during the year under review
3. Governance
Risk Management
An annual risk review was undertaken and approved risk management strategy and fraud prevention plan in place
and is being implemented.
4. Submission of in year management and monthly/quarterly reports in terms of the PFMA and
the Division of Revenue Act
We have been presented with the In Year Monitoring reports for the period under review. It is to be noted that
internal audit performed reviews on the format, content and quality of these submissions. Accordingly, these
reports substantially complied with the requirements of the PFMA and the Treasury Regulations.
5. Evaluation of annual financial statements
The audit committee concurs and accepts the Auditor General’s conclusions on the annual financial statements
and is of the opinion that the audited annual financial statements be accepted and read together with the report
of the Auditor General.

REPORT OF THE BOARD AUDIT AND RISK MANAGEMENT COMMITTEE (continued)
The committee expresses its sincere appreciation to the management, staff and the Auditor General.
Mr VG Magan
Chairperson
30 June 2009
Board audit committee members:
Mr D Hensman
Ms M Nyathi
Ms A Thomani

DIRECTORS’ REPORT
The directors present their annual financial statement that forms part of the audited annual financial statements
for the entity for the year ended 31 March 2009.
South African National Energy Research Institute (Proprietary) Limited is incorporated as a private entity in South
Africa in terms of the Companies Act, 1973, as amended, and is listed as a national public entity in schedule 2 of
the Public Finance Management Act, 1999, as amended.
The board of directors acts as the accounting authority in terms of the PFMA.
1. Directors
The directors of the company during the year and to the date of this report are as follows:
Name Appointed
Mr MB Damane 1 April 2006
Ms N Magubane 1 April 2006
Dr C Cooper 1 April 2006
Mr J Marriott 1 April 2006
Ms M Pyoos 1 April 2006
Mr K Nassiep 1 April 2006
Mr I Patel (Alternate to Ms M Pyoos) 25 October 2006
Mr S Tyatya (Alternate to Ms N Magubane) 18 April 2006
Ms N Mlonzi 1 April 2006
Attendance at meetings:
Name 23/04/2008 27/06/2008 21/10/2008 03/02/2009

Mr MB Damane Y Y Y Y
Ms N Magubane N N N N
Dr C Cooper Y N N Y
Ms N Mlonzi Y Y Y N
Mr J Marriot N N Y Y
Ms M Pyoos N N N N
Mr K Nassiep Y Y Y Y
Mr I Patel (Alternate to Ms M Pyoos) N N N N
Mr S Tyatya (Alternate to Ms N Magubane) N N N N
Y = Attended meeting
N = Apology received

DIRECTORS’ REPORT (continued)

Board audit and risk management committee
The sub committee consists of the following non executive members:
Name Appointed
Mr VG Magan Non executive Chairperson 1 January 2008
Mr D Hensman Non executive 1 January 2008
Ms A Thomani Non executive 1 January 2008
Ms M Nyathi Non executive 1 January 2008
Name 22/04/2008 25/06/2008 14/10/2008 27/01/2009

Mr VG Magan Y Y Y Y
Mr D Hensman Y Y Y Y
Ms A Thomani Y Y N Y
Ms M Nyathi Y Y Y N
Y = Attended meeting
N = Did not attend meeting
All of these members are independent non executive members.
The board audit and risk management committee meets on a minimum of four occasions per annum. The Chief
Audit Executive, the external auditors and such members of management as are deemed necessary also attend
these meetings. The board audit and risk management committee is responsible for the internal controls and risk
management of the entity delegated to it by the board of directors. In order to meet its requirements it reviews
the findings of both internal and external auditors. In addition it reviews important accounting issues, material
pending litigation if applicable, entity insurance, risk management and disclosure requirements in the annual
financial statements.
The responsibilities of this sub committee of the board of directors are set out in the report of the board audit
and risk management committee which forms part of these annual financial statements.
2. Company Secretary
The secretary of the company is CEF (Proprietary) Limited and the business and postal addresses are as
follows:
Business Address Postal Address

CEF House, Block C, P O Box 786141
Upper Grayston Office Park, Sandton
152 Ann Crescent, Strathavon, 2146
Sandton,
2031. Johannesburg.


3. Nature of business
Main business and operations

The current and future business of SANERI is to accomplish the following through research and development:
• cost effective and efficient energy generation, transformation, transport, end use and decision support
technologies and;
• energy technology innovation;
• sustainable energy development and utilisation of energy resources;
• improvement of the quality of life of the people of South Africa;
• promotion of knowledge development and training of researchers and
• commercialisation of energy technologies resulting from its research, development and innovation
programmes.
Principal activities of the entity
The principal activity of SANERI are as outlined below:
• undertake research and technology development;

• register patents and intellectual property in its name resulting from its activities;
• issue licenses to other persons to use its patents and intellectual property;
• utilise its technological expertise in its possession or make such expertise specifically or generally
available
• provide bursaries and educational loans for the development of knowledge in the energy sector;
• commission energy related research, development and innovation programmes in any other research
institutions;
• establish facilities for the collection and dissemination of information in connection with research, development
and innovation;
• establish and control facilities in those fields of research that the Board may from time to time approve;
• promote cooperation between South Africa and other countries in matters relating to energy research,
development and innovation;
• undertake any other technology development related activity as directed by the Minister of Minerals and
Energy in concurrence with the Minister of Science and Technology.
4. Review of financial position
The entity’s business and operations and the results thereof are clearly reflected in the attached financial
statements. No material fact or circumstance has occurred between the accounting date and the date of this
report.
The was no major change in the nature of the business.


5. Authorised and issued share capital
There were no changes in the authorised or issued share capital of the entity during the year under review.
6. Significant changes in assets/investments
There was no significant increase in property, plant and equipment during the financial year ended 31 March
2009.
7. Dividends
No dividends were declared or paid to the shareholder during the year.
8. Going concern
The directors believe that the entity will continue as a going concern in the year ahead.
9. Review of operations
SANERI has five main research and human capital development programmes being:
• The SANERI Bursary Programme
• The SANERI Energy Research Programme
• The Hub and Spokes Programme
• The Chairs of Energy Research Programme
• The Green Transport Programme
Under these programmes, the highlights are:
• In 2008/2009, SANERI awarded 17 Master’s bursaries, 6 PhD bursaries and 2 post doctoral bursaries. The
bursary amount for Masters students were increased from R50 000 per year to R80 000 per year. The amount
allocated to PhD students also increased from R65 000 per year to R100 000 per year. The increase in the
bursary levels were carried after a benchmarking exercise was done and tabled at the SANERI Board. It
was the first time bursaries were awarded to post doctoral students. Post doctoral students received a
bursary of R150 000 per year.
• In June 2008, the SANERI Board approved the establishment of a Centre for Carbon Capture and Storage.
SANERI sees carbon capture and storage research as a priority for clean coal technologies. The establishment
of the Centre is aimed at reducing South Africa’s greenhouse gas emissions. Several parties including the
Norwegian Government have pledged support to the research and development that will be conducted by
the Centre for the next five years. The signing ceremony of the Charter took place on 27th March 2009 at the
CEF (Proprietary) Limited offices in Sandton and was attended by the Minister of Minerals and Energy,

officials from the Norwegian Government as well as industry. Partners who signed the Charter were SANERI,
Sasol, Eskom, the British High Commission, AngloCoal, Exxaro, Xstrata Coal, Schlumberger and the
Norwegian Government.
• The Renewable Energy and Energy Efficiency Partnership (REEEP) is an international NGO with an objective
to reduce policy, regulatory and financial barriers for the uptake of renewable energy and energy efficiency
technologies. The REEEP head office is in Vienna. REEEP objectives and programmes are run through
networks coordinated by the international office together with eight regional secretariats and two local focal
points. In September 2008, SANERI was awarded the bid to host the South African Regional Office with effect
from 1 October 2008 to 31 March 2009. The award maybe renewed for a full year thereafter. The host function
entailed that SANERI coordinate the REEEP activities in South Africa, Botswana, Lesotho, Malawi,
Mozambique, Swaziland and Angola. REEEP provided 35 000 euros for the regional REEEP activities.
• SANERI identified energy efficiency and demand side management as a key research and development
theme for South Africa. The University of Pretoria was awarded the bid to host the Hub of Energy Efficiency
and Demand Side Management. The Hub was successfully launched on 10th June 2008. The responsibility
of the Hub is to develop and enhance national capacity in energy efficiency, including fuel switching
to renewable technologies and demand side management . The Hub will build human resources capacity,
deepen knowledge and stimulate innovation and enterprise in the field of energy efficiency and demand side
management.
10. Post balance sheet events
The directors are not aware of any matters or circumstances arising since the end of the financial year, not
otherwise dealt with in the annual financial statements which significantly affect the financial position of the entity
or the results of the operations.
11. Shareholder
The entity is a wholly owned subsidiary of CEF (Proprietary) Limited.
The annual report set out on pages 55 to 85, which have been prepared on the going concern basis, were approved
by the board of directors on 30 June 2009 and were signed on its behalf by:
Mr MB Damane Dr C Cooper
Sandton
30 June 2009

MATERIALITY AND SIGNIFICANT FRAMEWORK

For purposes of materiality (as per PFMA sections 50(1) and 55 (2)) and significant (as per PFMA sections 54(2))
framework) the following acceptable levels were agreed with the Executive Authority in consultation with the
Auditor General:
• Section 50(1) Material facts to be disclosed to the Minister of Minerals and Energy are considered to be facts
that may influence the decisions or actions of the Stakeholders of the Public Entity or the Group of
companies.
• Section 55(2) Disclosure of material losses in the annual financial statements will be for all losses through
criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during
the year.
• Section 54(2) The criteria to determine the level of significance was based upon the guiding principles
as set out in the “Practice Note on applications under Section 54 of the PFMA no.1 of 1999 (as amended)
by Public Entities” as published by National Treasury during 2006 subject to adjustments for any Section
54(4) exemptions.
The significant Rand level was determined as being 2% of Total Assets as follows:
APPROVAL LEVELS IN TERMS OF SECTION 54

SANERI’s board approval levels < R1 million
Approval level of the CEF Board in terms of subsidiary > R1 million and < R500 million
companies
Obtain DME approval and inform National Treasury via the top > R500 million
most holding company

BALANCE SHEET AS AT 31 MARCH 2009
Note(s) 2009 2008

R ‘000 R ‘000
Assets
Non Current Assets

Property, plant and equipment 2 296 785
Intangible assets 3 310 582
Deferred tax 201 -
807 1 367
Current Assets
Current tax receivable 4 579 -
Trade and other receivables 5 2 202 36
Cash and cash equivalents 6 29 952 21 561
32 733 21 597
33 540 22 964
Total Assets

Equity and Liabilities

Equity - -
Share capital 2 660 2 659
Retained income 7 2 660 2 659
Liabilities
Current Liabilities
Third party funds 8 16 472 -
Current tax payable 4 - 657
Trade and other payables 9 13 265 17 837
Deferred income 10 1 143 1 811
30 880 20 305
Total Equity and Liabilities 33 540 22 964

INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2009
Note(s) 2009 2008

R ‘000 R ‘000
Other income 50 187 43 188

Operating expenses (52 748) (43 236)
Operating loss 11 (2 561) (48)
Investment revenue 13 2 847 1 668
Finance costs 14 (285) -
Profit before taxation 1 1 620
Taxation 4 - (898)
Profit for the year 1 722


STATEMENT OF CHANGES IN EQUITY AS AT 31 MARCH 2009
Share Retained Total

capital income Equity
R ‘000 R ‘000 R ‘000
Balance at 01 April 2007 - 1 937 1 937
Changes in equity
Profit for the year - 722 722

Total changes - 722 722
Balance at 01 April 2008 - 2 659 2 659

Changes in equity
Profit for the year - 1 1

Total changes - 1 1
Balance at 31 March 2009 - 2 660 2 660
Note(s) 7

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009
Note(s) 2009 2008

R ‘000 R ‘000
Cash flows from operating activities 47 749 43 170
Cash receipts from customers 16 (56 822) (78 036)

Cash paid to suppliers and employees 17 (9 073) (34 866)

Cash used in operations 18 2 847 1 668
Interest income (285) -
Finance costs (1 437) -
Tax paid 19 (7 948) (33 198)
Net cash from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment 2 (86) (58)

Sale of property, plant and equipment 2 16 -
Purchase of other intangible assets 3 (63) (612)
Net cash from investing activities (133) (670)
Cash flows from financing activities
External funding received 16 472 -

Net cash from financing activities 16 472 -
Total cash movement for the year 8 391 (33 868)

Cash at the beginning of the year 21 561 55 429
Total cash at end of the year 6 29 952 21 561

ACCOUNTING POLICIES
1. Presentation of Annual Report
1.1. Basis of preparation
Accounting Framework
The annual financial statements are prepared in accordance with South African Statements of Generally Accepted
Accounting Practice, and the Companies Act of South Africa.
The annual report is prepared on the historical cost basis.
These annual report are presented in South African Rands. Rounding is to the nearest Rand in Thousands.
1.2. Property, plant and equipment
Property, plant and equipment represents tangible items that are held for use in the production or supply of
goods or services, for rental to others, or for administrative purposes and are expected to be used during more
than one period.
Carrying amounts
All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment.
Impairment
The carrying amounts of property, plant and equipment are reviewed annually for impairment. If such indication
exists and where the carrying amount exceeds the estimated recoverable amount, the assets are written down
to their recoverable amount. Impairment losses are recognised in the profit and loss.
The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell or value in
use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
For an asset that does not generate largely independent cash flows, the recoverable amount is determined for
the cash generating unit to which the asset belongs.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (cash generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately,
unless the relevant asset is carried at a revalued amount under another standard, in which case the reversal of
the impairment loss is treated as a revaluation increase under that other standard.

ACCOUNTING POLICIES (CONTINUED)

1.2. Property, plant and equipment (continued)
Disposals
Gains or losses on disposal of property, plant and equipment are determined as the difference between sale
proceeds and the carrying amount of the asset, and is recognised in profit and loss.
Depreciation
Depreciation is charged so as to write off the depreciable amount of the assets, other than land, over their
estimated useful lives to estimated residual values, using the straight line method to write off the cost of each
asset that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by
the entity.
The method of depreciation, useful lives and residual values are reviewed annually. The following methods and
rates were used during the year to depreciate property, plant and equipment to estimated residual values:
Item Average useful life

Furniture, fittings and communication equipment 5 - 10 years
1.3. Comparative figures
Comparative figures are restated in the event of a change in accounting policy or prior period error.
1.4. Intangible assets
The amortisation period and the amortisation method for intangible assets are reviewed annually.
An intangible asset is an identifiable non monetary asset without physical substance.
Intangible assets are initially recognised at cost if acquired separately or internally generated or at fair value if
acquired as part of a business combination. If assessed as having an indefinite useful life, the intangible asset is
not amortised but tested for impairment annually and impaired if necessary. If assessed as having a finite useful
life, it is amortised over its useful life using a straight line basis and tested for impairment if there is an indication
that it may be impaired.
Research costs are recognised in profit or loss when incurred.
Development costs are capitalised only if they result in an asset that can be identified, it is probable that the
asset will generate future economic benefits and the development cost can be reliably measured. Otherwise it
is recognised in profit or loss.


1.4. Intangible assets (continued)
Amortisation shall begin when the asset is available for use and shall cease at the earlier of the date that the asset
is classified as held for sale or the date that the asset is derecognised.
An intangible asset shall be derecognised:
• On disposal; or
• When no future economic benefits are expected from its use or disposal.
The gain or loss arising from derecognition from an intangible asset shall be determined as the difference between
the net disposal proceeds, if any, and the carrying amount of the asset. It shall be recognised in profit or loss
when the asset is derecognised. Gains shall not be classified as revenue.
Amortisation is recognised in profit and loss, on a straight line basis, to their residual values as follows:
Item Useful life

Computer software 2 years
1.5. Post balance sheet events
Recognised amounts in the annual financial statements are adjusted to reflect events arising after the balance
sheet date that provide evidence of conditions that existed at the balance sheet date. Events after the balance
sheet that are indicative of conditions that arose after the balance sheet date are dealt with by way of a note.
1.6. Leases
Classification
Leases are classified as operating leases at the inception of the lease. The entity does not have any finance
leases.
Operating lease
Operating lease payments are recognised in profit or loss on a straight line basis over the term of the relevant
lease except where another systematic basis is more representative of the time pattern of the user’s benefit.
Contingent rentals are recognised in profit or loss as they accrue.


1.7. Tax
Current tax assets and liabilities
The charge for current tax is based on the results for the year as adjusted for income that is exempt and expenses
that are not deductible using tax rates that are applicable to the taxable income.
Deferred tax is recognised for all temporary differences, unless specifically exempt, at the tax rates that have
been enacted or substantially enacted at the balance sheet date.
1.8. Financial instruments
Categories of financial assets and financial liabilities
The carrying amounts of each of the following categories presented either on the face of the balance sheet or
in the notes:
• Financial assets at fair value through profit or loss
• Loans and receivables
• Financial liabilities measured at amortised cost
Recognition
Derivatives are entered into for the primary purpose of reducing exposure to fluctuations in foreign exchange rates.
Financial instruments recognised on the balance sheet include cash and cash equivalents, trade receivables,
investments, trade payables. These instruments are recognised at fair value.
Financial instruments at fair value through profit or loss
The entity and entity have designated financial assets and liabilities at fair value through profit or loss when
either:
• the assets or liabilities are managed, evaluated and reported internally on a fair value basis;
• the designation eliminates or significantly reduces an accounting mismatch which would otherwise arise;
or
• the assets or liabilities contain an embedded derivative that significantly modifies the cash flows that would
otherwise be required under the contract and has to be separately disclosed and fair valued through profit
or loss.
All of the entity’s financial instruments designated as fair value through profit or loss were designated as such,
as it is believed that the designation significantly reduces an accounting mismatch which would otherwise arise.
Financial assets and financial liabilities are recognised on the entity’s balance sheet when the entity becomes a
party to the contractual provisions of the instrument.
Financial assets and liabilities as a result of firm commitments are only recognised when one of the parties has
performed under the contract.


1.8. Financial instruments (continued)
Financial instruments recognised on the balance sheet include cash and cash equivalents, trade receivables,
investments, trade payables, and borrowings.
Measurement
Financial assets and liabilities are initially measured at fair value, plus transaction costs. However transaction
costs of financial assets and liabilities classified as fair value through profit or loss are expensed. Subsequent
measurement will depend on the classification of the financial instrument as detailed below.
Financial assets
The entity’s principal financial assets are investments, accounts receivable and cash and cash equivalents.
Trade and other receivables
Trade and other receivables, are classified as receivables and are subsequently measured at amortised cost less
provision for doubtful debts. Write down of these assets are expensed in profit or loss.
Trade and other receivables are classified as loans and receivables and are subsequently measured at amortised
cost, less an allowance for any uncollectable amounts. An estimate for impairment is made when objective
evidence is available that indicates the collection of any amount outstanding is no longer probable.Bad debts
are written off when identified.
Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise of cash on hand, deposits held
on call, and investments in money market instruments, net of bank overdrafts, all of which are available for use
by entity unless otherwise stated. The carrying amount of these assets approximate their fair value.
For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts, all of which are available for use by the entity unless otherwise
stated.
Cash and cash equivalents comprise cash at bank and on hand and instruments which are readily convertible to
known amounts of cash and are subject to an insignificant risk of change in value.
Financial liabilities
The company’s principal financial liabilities are interest bearing borrowings and accounts payable.


Trade and other payables
All financial liabilities are measured at amortised cost, comprising original debt less principal payments and
amortisation’s.
Impairment and uncollectability of financial assets
An assessment is made at each balance sheet date to determine whether there is objective evidence that a financial
asset or entity of financial assets may be impaired. If such evidence exists, the estimated recoverable amount of
that asset is determined and an impairment loss is recognised for the difference between the recoverable amount
and the carrying amount as follows:
For financial assets held at either cost or amortised cost the carrying amount of the asset is reduced to its
undiscounted estimated recoverable amount either directly or through the use of an allowance account and the
amount of the loss is recognised in the income statement for the period; and
For financial assets at fair value where a loss has been recognised directly in equity as a result of the write down
of the asset to recoverable amount, the cumulative net loss recognised in equity is transferred to the income
statement for the period.
Derecognition
Financial assets or parts thereof are derecognised when the contractual rights to receive cash flows have been
transferred or have expired or if substantially all the risks and rewards of ownership have passed. Where all the
risks and rewards of ownership have not been transferred or retained, the financial assets are derecognised if
they are no longer controlled. However, if control in this situation is retained, the financial assets are recognised
only to the extent of the continuing involvement in those assets.
All other assets are derecognised on disposal or when no future economic benefits are expected from their use
or on disposal.
Financial liabilities are derecognised when the relevant obligation has either been discharged or cancelled, or has
expired. On derecognition, the difference between the carrying amount of the financial liability, including related
unamortised costs, and the amount paid for it is included in net profit or loss for the period.
A financial asset or part thereof is derecognised when the entity realises the contractual rights to the benefits
specified in the contract, the rights expire, the entity surrenders those rights or otherwise loses control of the
contractual rights that comprise the financial asset. On derecognition, the difference between the carrying amount
of the financial asset and the sum of the proceeds receivable and any prior adjustment to reflect the fair value of
the asset that had been reported in equity is included in net profit or loss for the period.
A financial liability or a part thereof is derecognised when the obligation specified in the contract is discharged,
cancelled, or expires. On derecognition, the difference between the carrying amount of the financial liability,
including related unamortised costs, and the amount paid for it is included in net profit or loss for the period.

Fair value considerations
The fair values at which financial instruments are carried at the balance sheet date have been determined using
available market prices. Where market values are not available, fair values have been calculated by discounting
expected future cash flows at prevailing interest rates. The fair values have been estimated using available market
information and appropriate valuation methodologies. The carrying amounts of financial assets and financial
liabilities with a maturity of less than one year are assumed to approximate their fair values due to the short term
trading cycle of these items.
Offsetting
Financial assets and financial liabilities are offset if there is an intention to either net the asset and liability or to
realise the asset and settle the liability simultaneously and a legally enforceable right to set off exists.
1.9. Post employment benefit costs
Defined contribution costs
Contributions to a defined contribution plan in respect of service in a particular period are recognised as an
expense in that period. The entity contributes to a defined contribution benefit plan for its staff.
1.10. Government grants
When the conditions attaching to government grants have been met and have been received, they are recognised
in profit or loss on a systematic basis over the periods necessary to match them with the related costs. When they
are for expenses or losses already incurred, they are recognised in profit or loss immediately. The unrecognised
portion at the balance sheet date is presented as deferred income. No value is recognised for government
assistance.
1.11. Irregular and fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement
of any applicable legislation, including
3 the PFMA, or
3 Any provisional legislation providing for procurement procedures in that provincial government.
Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had
reasonable care been exercised.
Any irregular and fruitless and wasteful expenditure is charged against income in the period in which it is
incurred.


1.12. Key assumptions made by management in applying accounting policies
The following key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance sheet date, may have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year if the assumption or estimation changes significantly:
Going concern
Management considers key financial metrics and loan covenant compliance in its approved medium term budgets,
together with its existing term facilities, to conclude that the going concern assumption used in the compiling of
its annual financial statements, is relevant.
1.13. Adoption of South African Standards
Standards, amendments and interpretations to existing standards that are not yet effective and have not been
adopted early by the entity.
IAS 1 (Revised). Presentation of annual financial statements (effective from financial year beginning 1 January
2009). The revised standard will prohibit the presentation of items of income and expenses (that is, ‘non owner
changes in equity’) in the statement of changes in equity, requiring ‘non owner changes in equity’ to be presentation
separately from owner changes in equity. All non owner changes in equity will be required to be shown in a
performance statement, but entities can choose whether to present one performance statement (the statement
of comprehensive income) or two statements (the income statement and statement of comprehensive income).
Where entities restate or reclassify comprehensive information, they will be required to present a restated balance
sheet as at the beginning comparative period in addition to the current requirement to present balance sheets at
the end of the current period and comparative period. It is likely that both the income statement and statement
of comprehensive income will be presented as performance statements.
IAS 23 Borrowing costs (effective from financial year beginning 1 January 2009) The amendment requires the entity
to capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The
option of immediately expensing those borrowing costs will be removed. The entity will apply IAS 23 retrospectively
from 1 January 2009 but is currently not applicable to the company as there are no qualifying assets.
IAS 36 (Amendment), ‘Impairment of assets’ (effective from financial year beginning 1 January 2009) The
amendment is part of the IASB’s annual improvements projects published in May 2008. Where fair value less
costs to sell is calculated on the basis of discounted cash flows, disclosures equivalent to those for value in use
calculations should be made. The entity will apply the IAS 36 (Amendment) and provide the required disclosure
where applicable for impairment tests from 1 January 2009.
IAS 38 (Amendment), ‘Intangible assets’ (effective from financial year beginning 1 January 2009) The amendment
is part of the IASB’s annual improvement project published in May 2008. A prepayment may only be recognised in
the event that the payment has been made in advance of obtaining right if access to goods or receipts of services.
The entity will apply IAS 38 (Amendment) from 1 January 2009.


1.13. Adoption of South African Standards (continued)
IAS 39 (Amendment), ‘Financial instruments: Recognition and measurement’ (effective from financial year
beginning 1 January 2009) The amendment is part of the IASB’s annual improvements project published in May
2008. This amendment clarifies that it is possible for there to be movements into and out of the fair value through
profit or loss category where a derivative commences or ceases to qualify as a hedging instrument in cash flow
or net investment hedge.
When remeasuring the carrying amount of a debt instrument on cessation of fair value hedge accounting, the
amendment clarifies that a revised effective interest rate (calculated at the date fair value hedge accounting
ceases) is used.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2009 2008
Cost / Accumulated Carrying Cost / Accumulated Carrying
Valuation depreciation value Valuation depreciation value
2. Property, plant and equipment

Furniture and fixtures 291 (133) 158 827 (268) 559
IT equipment 388 (250) 138 360 (134) 226
Total 679 (383) 296 1 187 (402) 785
Reconciliation of property, plant and equipment – 2009
Opening
Balance Additions Disposals Depreciation Total

Furniture and fixtures 559 33 (275) (159) 158
IT equipment 226 53 (13) (128) 138
785 86 (288) (287) 296
Reconciliation of property, plant and equipment – 2008

Opening
Balance Additions Depreciation Total

Furniture and fixtures 700 17 (158) 559
IT equipment 292 41 (107) 226
992 58 (265) 785
2009 2008
Cost / Accumulated Carrying Cost / Accumulated Carrying
Valuation depreciation value Valuation depreciation value
3. Intangible assets

Software 725 (415) 310 661 (79) 582
Reconciliation of intangible assets – 2009

Opening
Balance Additions Amortisation Total

Software 582 63 (335) 310
Reconciliation of intangible assets – 2008

Opening
Balance Additions Amortisation Total

Software 49 612 (79) 582

2009 2008
R ‘000 R ‘000
4. Taxation
Major components of the tax expense
Current
Local income tax - current period 201 898
Deferred
Originating and reversing temporary differences (201) -
- 898
Reconciliation of the tax expense
Reconciliation between accounting profit and tax expense. 1 1 620
Accounting profit - 470
Tax at the applicable tax rate of 28% (2008: 29%)
Tax effect of adjustments on taxable income - 428

Prior year underprovision - 898
SARS for income tax

Opening balance 657 (241)
Income tax for the year - 397
Adjustment - 501
Payment made (1 236) -
Balance due to/(from) SARS (579) 657
5. Trade and other receivables
Trade receivables 2 136 -

Prepayments 66 35
Sundry receivables - 1
2 202 36
6. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and balances

with banks and investments in money market instruments. Cash
and cash equivalents included in the balance sheet comprise
the following:
Short term investments in money market and cash on hand 29 952 21 561

2009 2008
R ‘000 R ‘000
7. Share capital
Authorised
1000 Ordinary par value shares of R1 each 1 1
Issued
100 Ordinary par value shares of R 1 each - -
8. Third party funds
Total 16 472 -
Funding: received in respect of the following projects:

- REEEP
- SA Carbon Capture and Storage
- Wind Resource Mapping
- Centre of Energy Systems Analysis & Research
- NEEA
This money can only be used for the specific projects, once the
project has been commissioned.
Current liabilities
Projects 16 472 -
9. Trade and other payables
Trade payables 3 167 12 939

Other payables 10 098 4 898
13 265 17 837
10. Deferred income
Opening balance 1 811 -

Costs incurred during the year (44 745) (41 522)
Costs incurred during the year that relates to Green Transport (5 192) (1 667)
Grant received from the Department of Science and Technology 44 269 45 000
Grant for Green transport 5 000 -
1 143 1 811

2009 2008
R ‘000 R ‘000
11. Operating loss
Income
Grants received 49 937 43 188
Operating lease charges

Premises
• Contractual amounts 249 185
Equipment
• Contractual amounts 112 101
361 286
Loss on sale of property, plant and equipment 272 -

Amortisation on intangible assets 336 79
Depreciation on property, plant and equipment 287 265
Employee costs 11 324 6 273
Research and development 30 369 32 941
12. Auditors’ remuneration
Fees 151 107
13. Investment revenue
Interest revenue
Bank 1 -
Interest from funds held by holding company 2 846 1 668
2 847 1 668
14. Finance costs
Other interest paid 285 -
15. Employee benefits

It is the policy of the entity to provide retirement benefits for all
of its eligible permanent employees.

2009 2008
R ‘000 R ‘000
16. Cash receipts from customers
Other revenue 50 187 43 188

Profit and loss on sale of assets and liabilities (272) -
Movement in trade and other receivables (2 166) (18)
47 749 43 170
17. Cash paid to suppliers and employees
Operating costs 52 476 43 236

Movement in trade and other payables 4 572 36 953
Non cash items (226) (2 153)
56 822 78 036
18. Cash used in operations
Profit before taxation 1 1 620

Adjustments for:
Depreciation and amortisation 287 265
Loss on sale of assets 272 -
Interest received (2 847) (1 668)
Finance costs 285 -
Impairment loss 336 79
Other non cash items (1) (2)
Changes in working capital:
Trade and other receivables (2 166) (18)
Trade and other payables (4 572) (36 953)
Deferred income (668) 1 811
(9 073) (34 866)
19. Tax paid
Balance at beginning of the year (657) 241

Current tax for the year recognised in income statement (201) (898)
Balance at end of the year (579) 657
(1 437) -



20. Directors’ emoluments
SANERI
Year ended 31 March 2009
Salary/Fee Bonuses Salary/Fee Bonuses Other con- Expense Other Total*

and per- and per- tributions allow-
formance formance ances
payments payments

Non-Executive
Directors: - - -
Mr MB Damane 70 - - - - - - -
Mr J Marriot 70 - - - - - - 70
Ms N Mlonzi 49 - - - - - - 70
Dr C Cooper* - - - - - - - 49
Ms N Magubane - - - - - - - -
Ms M Pyoos 189 - - - - - - -
Total - - - - 189
Board audit &

risk management
committee: 27 - -
Mr D Hensman 33 - - - - - - 27
Mr VG Magan 16 - - - - - - 33
Ms A Thomani 16 - - - - - - 16
Ms N Nyathi 92 - - - - - - 16
Total - - - - 92
Executive Members: 1 048 - -

Mr K Nassiep 255 - - 30 1 333
* Relates to the 2009 financial year.


20. Directors’ emoluments (continued)
SANERI
Year ended 31 March 2008
Salary/Fee Bonuses Salary/Fee Bonuses Other con- Expense Other Total*

and per- and per- tributions allow-
formance formance ances
payments payments

Non-Executive
Directors: - - -
Mr MB Damane 62 - - - - - - -
Mr J Marriot 50 - - - - 3 - 65
Ms N Mlonzi 92 - - - - 54 - 104
Dr C Cooper* - - - - - - - 92
Ms N Magubane - - - - - - - -
Ms M Pyoos 204 - - - - - - -
Total - - 57 - 261
Board audit &

risk management
committee: 8 - -
Mr D Hensman* 11 - - - - - - 8
Mr VG Magan* 5 - - - - - - 11
Ms A Thomani* 5 - - - - - - 5
Ms N Nyathi* 29 - - - - - - 5
Total - - - - 29
Executive Members: 1 023 - -

Mr K Nassiep 68 - - - 1 091
* Not for a full year

2009 2008
R ‘000 R ‘000
21. Related parties

Related party transactions
CEF (Pty) Ltd

Interest received 2 846 1 668
Amounts owed by related parties 29 952 21 561
Services rendered from related parties 850 433
Amounts owed to related parties 183 87
Department of Science and Technology

Grants / interest received 45 000 42 000
Key management personnel refer to note 20.
The above transactions were carried out on commercial terms and conditions.
22. Financial instruments
Risk profile
The entity has a risk management and a treasury department in CEF (Proprietary) Limited, that manages the
financial risks relating to the entity’s operations. The entity’s liquidity, credit, foreign exchange, and interest rate
are monitored continually. Approved policies exist for managing these risks.
In the course of the entity’s business operations it is exposed to liquidity, credit, foreign exchange and interest
rate risk. The risk management policy of the entity relating to each of these risks is discussed below.
Risk management objectives and policies
The entity’s objective in using financial instruments is to reduce the uncertainty over future cash flows arising from
movements in foreign exchange and interest rates. Throughout the year under review it has been, and remains,
the entity’s policy that no speculative trading in derivative instruments be undertaken.
Credit risk
Financial assets, which potentially subject the entity to the risk of non performance by counterparties and thereby
subject the entity to concentrations of credit risk, consist primarily of cash and cash equivalents, short term
investments, trade receivables and derivatives. The entity’s cash equivalents and short term deposits are placed


22. Financial instruments (continued)
with high credit quality financial institutions. These institutions are reviewed by the CEF (Proprietary) Limited
board of directors on a quarterly basis.
The entity’s exposure and the credit ratings of its treasury counter parties are continuously monitored and the
aggregate value of transactions concluded is spread amongst approved counter parties. The entity does not
expect to incur any losses as a result of non performance by these counterparties.
The carrying amounts of financial assets included in the balance sheet represent the entity’s exposure to credit
risk in relation to these assets. The credit exposure of forward exchange contracts is represented by the net
market value of the contracts as disclosed.
Financial assets, which potentially subject the entity to concentrations of credit risk, pertain principally to trade
receivables and investments in the South African money market. Trade receivables are presented net of the
allowance for doubtful debts.
The entity manages counter party exposures arising from money market and derivative instruments by only
dealing with well established financial institutions of a high credit rating. Losses are not expected as a result of
non performance by these counter parties.
Credit limits with financial institutions are revised and approved by the board quarterly.
Fair value
The entity’s financial instruments consist mainly of cash and cash equivalents, trade receivables, investments
and trade payables.
As at 31 March 2009 no financial asset was carried at an amount in excess of its fair value.
The following methods and assumptions are used to determine the fair value of each class of financial
instrument:
Cash and cash equivalents
The carrying amounts of cash and cash equivalents approximates fair value due to the relatively short term
maturity of these financial assets.
Trade receivables
The carrying amounts of trade receivables net of provision for bad debt, approximates fair value due to the
relatively short term maturity of this financial asset.


Investments
The carrying amounts of short term investments approximates fair value due to the relatively short term maturity
of these assets. The fair values of other long term investments are not materially different from the carrying
amounts.
Trade payables
The carrying amounts of trade payables approximates fair value due to the relatively short term maturity of these
liabilities.
Maturity profile
At least half or more of long term finance, i.e. more than 3 years (or less in more volatile environments) should
be at fixed rates of interest, even though such long term rates are usually higher than the short term rates ruling
at the time that the long term rates are negotiated. In mitigating the volatility risk, therefore, at least half of term
finance is raised at fixed rates and other commitments will, if strong volatility threatens, be mitigated by the use
of forward rate agreements, futures, interest rate options, interest rate swaps, caps, floors and collars.
The maturity profiles of financial assets and liabilities at balance sheet date are as follows:
At 31 March 2009
Assets
Less than Between Over 5 Non Total
1 year 1 and 5 years interest
years bearing
Cash 29 952 - - - 29 952

Trade receivables 2 126 - - - 2 126
Total financial assets 32 078 - - - 32 078
Liabilities
Trade payables 13 265 - - - 13 265

At 31 March 2008
Assets
Less than Between Over 5 Non Total
1 year 1 and 5 years interest
years bearing
Cash 21 561 - - - 21 561

Trade receivables 1 - - - 1
Total financial assets 21 562 - - - 21 562
Liabilities
Trade payables 17 837 - - - 17 837
Interest on financial instruments classified as floating rate is repriced at intervals of less than one year. Interest on
financial instruments classified as fixed rate is fixed until maturity of the instrument. The other financial instruments
of the entity that are not included in the above tables are non interest bearing and are therefore not subject to
interest rate risk.
Liquidity risk
The entity manages liquidity risk through proper management of working capital, capital expenditure and actual
vs. forecasted cash flows. Adequate reserves and liquid resources are also maintained.
The entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash resources
are available to meet cash commitments.
Interest rate risk
The entity is exposed to interest rate risk as entities in the entity borrow funds at fixed and floating interest rate.
The risk is managed by the entity by maintaining an appropriate mix between fixed and floating rate borrowings,
by the use of interest rate swaps contracts.
Exposure to interest rate risk on liabilities and investments is monitored on a proactive basis. The financing of the
entity is structured on a combination of floating and fixed interest rates.
The following table sets out the carrying amount, by maturity, of the entity’s financial instruments that are exposed
to interest rate risk and the effective interest rates applicable:

2009 2008
R ‘000 R ‘000

23. Commitments
Operating lease commitments
Leases the office space at 158 Jan Smuts Avenue, 4th floor, office 22 23 & 28, 29 and 31 for a period of 4 years
from Gensec Property Services Limited. The lease will expire on the 31 March 2010. Furthermore SANERI has
another lease with Holding 16 properties that is used as a showroom for Green Transport, the lease is for three
months starting from 1 March 2009 with options to renew it on a month to month basis.
Future minimum rentals receivable under operating leases are as follows as of 31 March:
Operating lease as lessee

212 258
– within one year
- 136
– in second to fifth year inclusive
212 394

ANNUAL REPORT
ACKNOWLEDGEMENTS
A
part from being very challenging, 2008/9 has The Board of Directors, SANERI
indeed also been a very exciting year for the
company. This excitement is largely due to The Chairman and Committee Members of the Board
SANERI’s performance rating standing at between 90 Audit Committee
and 100 percent for the third successive year.
The Acting General Operations Manager of NEEA:
Research and technology accounts for a large portion Mr Barry Bredenkamp
of a country’s economic growth and has a positive
influence on the quality of life of all its citizens. The supporting officials at the Departments of Science
The establishment of SANERI has resulted in an and Technology; and Minerals and Energy as well as
increase in the number of bursars and researchers, CEF (Pty) Ltd.
thus making a positive contribution to human
capital development, which is directly linked to the The researchers and students who have worked with
achievement of Government’s broader social and us – thank you for your important contribution to
economic objectives. research in South Africa, and therefore to a BETTER
LIFE FOR ALL!
The following individuals are duly noted and thanked
for their efforts in supporting and assisting SANERI in The success of SANERI is undeniably due to the hard
our various operations: work, dedication and loyalty of its donors, NGOs’,
industry participants, and most importantly, the staff
The former Minister of Science and Technology: at SANERI – THANK YOU – your contribution is truly
Mr Mosibudi Mangena appreciated.
The former Minister of Minerals and Energy:

Ms Sonjica Buyelwa
Chairman of the Board of Directors of SANERI:

Mr Mputumi Damane

KEY TO
ABET
ABBREVIATIONS
Adult Basic Education and Training
CEF CEF group of companies formerly known as Central Energy Fund
CEO Chief Executive Officer
CGS Carbon Gas Storage
CNG Compressed Natural Gas
CO2 Carbon Dioxide
CPIX Consumer Price Index
CSIR Council for Scientific Research
CSC Community Steering Committee
DDGS Distillers Dried Grains with Solubles
DEAT Department of Environmental Affairs and Tourism
DME Department of Minerals and Energy
DSM Demand Side Management
DST Department of Science and Technology
EDC Energy Development Corporation
ETDE Energy Technology Data Exchange
ERID Eskom’s Research and Innovation Department
GDP Gross Domestic Profit
Gt Gigatonne
GWh Gigawatt Hour
HySA Hydrogen South Africa
IEA International Energy Agency
IP Internet Protocol
JSE Johannesburg Stock Exchange
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
LTMS Long Term Mitigation Scenarios for Climate Change
MW Mega Watt
MP Minister for Parliament
Mt Megatonne
NAFU National African Farmers Union
NBI National Business Initiative
NEEA National Energy Efficiency Agency
NWU North West University
PDI Previously Disadvantaged Individual
R&D Research and Development
SANEDI South African National Energy Development Institute
SANERI South African National Energy Research Institute
UCT University of Cape Town
UJ University of Johannesburg
US United States of America
UKZN University of Kwazulu Natal
UNEP United Nations Energy Planning
UNU United Nations University
UP University of Pretoria
UWC University of the Western Cape
TB Tuberculosis
TUT Tshwane University of Technology
WRI World Resource Institute

{
vision
}
To be the pre-eminent
world class energy
research, development
and demonstration
institute
ENERGY INNOVATION FOR LIFE
www.saneri.org.za
0355
SOUTH AFRICAN NATIONAL ENERGY RESEARCH INSTITUTE (PTY) LTD | ANNUAL REPORT 2008/09
ANNUAL
2008/09
ANNUAL REPORT
REPORT

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www.saneri.org.

Nature of business and principle activities

SANERI ANNUAL REPORT 2009 1 ENERGY INNOVATION FOR LIFE

BOARD OF DIRECTORS 2-3

CHAIRMAN’S REPORT 4-5

SANERI’S THEMATIC AREAS OF FOCUS 16

HUMAN CAPITAL DEVELOPMENT 34 - 39

ANNUAL FINANCIAL STATEMENTS 40 - 85

SANERI ANNUAL REPORT 2009 2 ENERGY INNOVATION FOR LIFE

TABLE 1: REPRESENTATIVES ON CSC 26

TABLE 2: MASTER’S STUDENTS 37

TABLE 3: PHD STUDENTS 38

TABLE 4: POST-DOCTORAL STUDENTS 39

FIGURE 1: MANAGEMENT AND STAFF PROFILE 15

FIGURE 2: CARBON CAPTURE AND STORAGE TIMELINE 18

FIGURE 3: BRAIN CHART OF BIOFUELS COMMUNITY PROJECT 25

FIGURE 4: GREEN TRANSPORT PROGRAMME 30

FIGURE 5: BURSARIES AWARDED TO STUDENTS BY RACE AND GENDER 35

FIGURE 6: BURSARIES AWARDED TO MASTERS STUDENTS BY RACE AND GENDER 36

FIGURE 7: BURSARIES AWARDED TO PHD STUDENTS BY RACE AND GENDER 38

FIGURE 8: BURSARIES AWARDED TO POST-DOCTORAL STUDENTS BY RACE AND GENDER 39

SANERI ANNUAL REPORT 2009 3 ENERGY INNOVATION FOR LIFE

Mr M B Damane Mr K Nassiep Dr C Cooper Ms N Mlonzi

CEF (Pty) Ltd. SA Civil Aviation

SANERI ANNUAL REPORT 2009 4 ENERGY INNOVATION FOR LIFE

Ms N Magubane Mr J Marriot Dr M Pyoos

MBA BSc Chemical Doctorate: Technology

SANERI ANNUAL REPORT 2009 5 ENERGY INNOVATION FOR LIFE

SANERI ANNUAL REPORT 2009 6 ENERGY INNOVATION FOR LIFE

SANERI ANNUAL REPORT 2009 7 ENERGY INNOVATION FOR LIFE

on R&D spending to the global recession and the evidence is seen in

SANERI ANNUAL REPORT 2009 8 ENERGY INNOVATION FOR LIFE

the private equity funds have largely withdrawn from

SANERI ANNUAL REPORT 2009 9 ENERGY INNOVATION FOR LIFE

SANERI ANNUAL REPORT 2009 10 ENERGY INNOVATION FOR LIFE

Key Results for 2008/9 • A Corsa Lite vehicle, sponsored by General

• A revised wind atlas for South Africa has been

• The Green Transport Centre has been approved

SANERI ANNUAL REPORT 2009 11 ENERGY INNOVATION FOR LIFE

• A number of business plans for the partnership

SANERI ANNUAL REPORT 2009 12 ENERGY INNOVATION FOR LIFE

Lastly, I would like to thank the universities, industry

SANERI ANNUAL REPORT 2009 13 ENERGY INNOVATION FOR LIFE

• To increase energy research and development • Transforming the composition of energy

SANERI ANNUAL REPORT 2009 14 ENERGY INNOVATION FOR LIFE

Figure 1: Management and staff profile

MANAGER: ADMINISTRATION & FINANCE 1

The exciting Green Transport Technology Programme

The priorities of SANERI are to:

• Undertake in-house energy research (primary

• Develop human capacity within this field.

SANERI ANNUAL REPORT 2009 15 ENERGY INNOVATION FOR LIFE

• Energy Infrastructure Optimisation

• Energy Efficiency and Demand Side

• Impact of Energy Use on the Environment

• Use of Energy to Stimulate Socio-

• Cleaner Fossil Fuel Use (including clean

• Alternative Energy Sources (including

• Energy Planning and Modelling

• Energy Policy Research

SANERI ANNUAL REPORT 2009 16 ENERGY INNOVATION FOR LIFE

ADVANCED FOSSIL FUEL USE CARBON DIOXIDE GEOLOGICAL STORAGE

CARBON CAPTURE AND STORAGE Throughout 2008, negotiations were undertaken