The science of true growth

Support for research is laying the foundation for a thriving knowledge economy, writes Phil Mjwara.

A stagnant economy and persistently high unemployment are uncomfortable reminders that there cannot be a business-as-usual approach to economic development.

The National Development Plan (NDP) is intended to transform the economy, putting it on a growth trajectory.

The Nine-Point Plan, setting out immediate steps or priorities, has been introduced to help achieve the aims of the NDP.

These steps include beneficiation, which could facilitate the diversification of our resource-based economy.

A radically transformed economy encompasses new knowledge, new industries, and an army of knowledge workers.

In the Department of Science and Technology, our vision of “increased well-being and prosperity through science, technology and innovation” is becoming a reality.

With commodity prices and the demand for natural resources declining, the department is focusing on shaping a knowledge economy.

It has identified research and development-driven industries that are new to South Africa.

The department has flagged areas in which South Africa could take advantage of what it has and combine it with knowledge to diversify its industries.

The Fluorochemical Expansion Initiative is among the projects the department is driving in conjunction with the Department of Trade and Industry. The aim is to expand the fluorochemical industry through greater beneficiation of the country’s reserves.

South Africa has the world’s largest reserves of fluorspar, an estimated 41 million tons.

It supplies about 10 percent of the requirements of the world’s $16 billion-a-year fluorochemicals industry, but because of its low beneficiation levels, it earns less than 0.5 percent of the revenue.

About 10 years ago, the Department of Science and Technology worked with Pelchem, a subsidiary of the SA Nuclear Energy Corporation, providing research and development funding and infrastructure. A multipurpose fluorination pilot plant was established in 2010.

Two research chairs in fluorine chemistry and chemical engineering were established, one at the University of KwaZulu-Natal and the other at the University of Pretoria.

We have strengthened our research and development competencies and are looking for partners to ensure investment in this area is translated into industrial activity.

The fluorochemical initiative seeks to attract investment from multinational corporations to build a larger hydrogen fluoride plant. A German company has expressed interest and plans are under way to visit it.

Successful technology development would increase Pelchem’s turnover from R200 million to almost R400m a year in 2019 and to R1 billion by 2025.

The department is also enthusiastic about the Hydrogen Fuel Cell Technology Programme. Launched in 2008, it is yielding exciting results, with the launch of prototypes for use in such sectors as mining.

Three centres of competence were established through the cabinet-approved HySA Strategy, to drive research and development in this field.

The first was established at the University of Cape Town and Mintek, in Randburg, to carry out research in catalysis, and the second at the University of the Western Cape, focusing on hydrogen and fuel cell system integration and technology validation.

The third, hosted by the CSIR and North-West University, focuses on infrastructure for hydrogen production, distribution and storage. This is a three-phase programme, with the first phase establishing research and development capabilities. The department provided the infrastructure as well as funding for postgraduate students to do the research.

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

Two weeks ago, Minister of Science and Technology Naledi Pandor unveiled a hydrogen fuel cell-powered forklift and a 200-bar refuelling station.

Impala Platinum in Springs is to use the hydrogen fuel cell components for its underground utility vehicles.

The fuel cell-powered forklift and the refuelling station - which comprises a compressor and a metal hydride extension tank developed by HySA Systems - have been in use at the Impala Platinum Refinery since October.

The metal hydride compressor and direct hydrogen feed make this a unique system, which could be replicated in other materials-handling industries

The above-mentioned developments are exciting and bode well for the future, particularly since the third phase will focus on sales, the number of jobs created, export revenue and the market share created.

Research suggests the platinum catalyst market could bring in $139m (R2bn) for the country.

The ultimate aim is to achieve socio-economic impact.

These kinds of new industries have the potential to create jobs by producing thousands of knowledge workers with postgraduate qualifications.

This would not only have a socio-economic impact, but begin to transform South Africa’s resource economy into a knowledge economy.

* Mjwara is director-general of the Department of Science and Technology.

** The views expressed here are not necessarily those of Independent Media.

Source by : http://www.iol.co.za/sundayindependent/the-science-of-true-growth-2010620