Business has the capacity to address the relevant energy challenges, and is taking a pro-active role with particular focus on the following four areas:

1. Improving access to energy;
2. Enhancing energy efficiency;
3. Investing in renewable and advanced technologies;
4. Overarching initiatives.

The selection of case studies in this document provides examples of the ongoing contributions of business to sustainable development in the energy sector.

ACCESS TO ENERGY

Eskom: electrification program for South Africa
An ambitious plan was conceived in 1994 to connect 1.75 million South African households to the electricity network by the year 2000. The South African government, the electricity distribution industry and the South African power company Eskom, initiated the program.

WLPGA/UNDP LP Gas Rural Energy Challenge in South Africa
This public-private partnership initiative is designed to create viable and sustainable markets for LP Gas delivery and consumption as a means to deliver a wide range of productive services, contributing to sustainable energy solutions to improve peoples lives in selected developing countries.

Shell, Sri Lanka – Improving lives with the flick of a switch
It is estimated that approximately 9 million people, or million households, in Sri Lanka do not have access to the electricity grid. Shell Solar Lanka, a subsidiary of Royal Dutch/Shell, intends to target this market. Potential customers will be able to save money over the lifetime of the solar home system when moving away from the inconvenience and recurring cost of kerosene lanterns and battery charging. Better service is also part of the program. (See the CSD14 Brochure for more information and the Shell renewables websitewww.shell.com/home/Framework?siteId=rw-br)

Temasol, Morocco – Affordable solar power lights up rural households
Temasol a joint venture between Electricité de France (EDF), Tenesol and Total, specializes in solar electrification. Its innovative project in Morocco will provide solar power to more than 58,500 rural households across 24 provinces. In the first phase ( 2002 – 2005), Temasol supplied electricity to 6,000 customers across four provinces. In 2005, the company commenced a second phase to install solar power for 37,000 families in 20 regions. A further stage is planned to supply an additional 5,500 households. (See the CSD14 Brochure for more information and the EDF websitehttp://www.edf.fr/html/module_inter/en/afrique_morocco.htm)

Access to Electricity program eases poverty: ABB
ABB and WWF have teamed up to ensure the sustainable development of the Ngarambe village in Tanzania. ABB focuses on the productive use of electricity in order to generate economic growth and social progress. ABB supplied the generator, installed underground cables and low-voltage equipment, and trained local people to run the power supply. WWF provides guidance on issues ranging from reducing deforestation and sustainable forestry to healthcare and environmental education.

ABB Access to Electricity Program
The Access to Electricity program is ABBs response to the United Nations Global Compact which urged companies and organizations to provide greater assistance to least developed countries. ABB was one of the first international companies to sign on to the Global Compact after UN secretary general Kofi Annan launched it in 2000. (Case study focuses on energy issues)

Lydec (Suez): Temporary Electrification of Shantytowns (Casablanca, Morocco)
In 1997 Casablanca-based Lydec, a branch of the worldwide energy water and waste services group, Suez, was charged by the Urban Community of Casablanca with managing the Casablanca electricity, water and sewage networks.

ENHANCING ENERGY EFFICIENCY

Life cycle approach makes the aluminium industry more energy efficient
The Aluminium for Future Generations initiative is a program of continuous improvement on the part of the global aluminium industry, comprising twelve voluntary objectives, covering all key phases of the aluminium life cycle and all three dimensions of sustainability. (See the CSD14 Brochure for more information and the IAI websitewww.world-aluminium.org)

BP’s Energy Efficiency program – Energy savings reduce greenhouse gas emissions
A structured energy management program and five-year investment plan was introduced across BP in 2004. A systematic approach was taken and in 2005 BP continued to see increasing benefits from the two full years of their US$ 350 million energy efficiency program. (See the CSD14 Brochure for more information and the BP websitewww.bp.com)Eskom’s Energy Efficiency Program, South Africa – Creating energy efficiencies by tracking and influencing consumption patterns
Demand Side Management (DSM) allows Eskom to influence the electricity usage patterns of their consumers. Eskom is implementing DSM in South Africa through collaboration with the Department of Minerals and Energy and the National Electricity Regulator. Eskom’s DSM strategy comprises a dual approach: to reduce electricity demand at peak periods (07h00-10h00 and 18h00-20h00) by shifting load to off-peak periods, and through an overall reduction in electricity consumption (24-hour reduction) by installing energy efficient equipment and optimizing industrial processes.

Efficiency Improvements and Emission Reductions at E.ON, UK – How retrofitting a steam turbine could reduce coal consumption by 52,000 tons and carbon emissions by 127,000 metric tons (Case Study 26: page 51)
Deregulation of electricity markets throughout the world, growth in power demand and ever-more demanding environmental emission limits have resulted in
the need for modernization, upgrading and life extension of existing generator steam turbine systems in ageing generation plants. By upgrading two of its turbine units, E.ON UK has demonstrated a practical and cost-effective way of improving turbine efficiency and operational reliability with quantifiable economic and environmental benefits.

INVESTING IN RENEWABLE AND ADVANCED ENERGY TECHNOLOGIES

BMW Manufacturing Co., LLC’s Landfill Gas to Energy Project

This project addresses the key issue of utilizing a Renewable Energy resource. Landfill gas naturally produced by waste degradation in Waste Management’s Palmetto Landfill is collected in a series of pipes and is transferred to Ameresco’s facility located adjacent to the landfill. Ameresco filters the gas, removes excess moisture and sends the gas through its 9.5-mile pipeline to the BMW facility. BMW utilizes the landfill gas in four stationary gas turbines to generate electricity and hot water to provide a significant proportion of the plant’s total energy needs.

New Nuclear Power Plant Project by TVO, Finland - Cutting carbon emissions, reducing dependence on imported electricity and creating nuclear waste storage solutions
Finland is the only Western OECD country in which a new nuclear power plant is currently under construction. The builder is TVO-company, owned by Finnish industry, power utilities and electrical companies. The supplier is AREVAGroup (Framatome and Siemens). The plant’s size is 1,600 MW; it should come into operation in 2009 and is located in Olkiluoto on the southwest coast of Finland, the site of two existing nuclear TVO power plants. The main arguments for the project are that the new capacity partly covers growing electricity demand in Finland (1.5-2% p.a.) and it fulfills, together with renewables, its Kyoto commitments. It will further secure stable and predictable electricity prices and reduce dependence on the importation of electricity. (See the CSD14 Brochure for more information andhttp://www.tvo.fi/index_eng.shtml)

Propane distribution by VidaGas, Mozambique – Propane-driven energy for better healthcare
VidaGas is a propane distributor supporting the energy needs of a public-private partnership (PPP) between VillageReach, the Foundation for Community Development (FDC), and Mozambique’s Ministry of Health (MoH). The PPP’s mission has been to save lives and improve well-being by improving community access to healthcare and other essential services in Northern Mozambique. VillageReach and FDC established VidaGas to support the PPP’s mission. (See the VidaGas website for further detailswww.villagereach.org/vidagas)

Chevron and Hydrogen energy, USA – Creating the first hydrogen energy station to replace gasoline
Chevron is working with the Florida Department of Environmental Protection (a state agency) and Progress Energy Florida (a public utility) to develop Florida’s first hydrogen energy station, which will fuel a small fleet of hydrogen-powered shuttle buses at Orlando International Airport. All three potential partners agreed on their overriding strategic objective: to evaluate potential pathways and challenges to the emergence of hydrogen as a promising new fuel. (See the CSD14 Brochure for more information and the IPIECA Oil and Gas Industry partnership publication, 2006: To be released shortly)

Andhikhola Hydel, Nepal – Rural Electrification Scheme
With bilateral support from Norway, the Andhikhola hydropower scheme is owned and operated by the Butwal Power Company, which initiated a rural electrification program whereby local people are directly involved in developing and maintaining a local power grid. Electricity use is promoted through non-formal education, community development programs, identification of uses of electricity, and the promotion of rural economic activities, for example, replacing lighting by kerosene and rice cooking on (forest) wood stoves. Community cooperatives have been established to maintain the distribution system, install basic household wiring and collect electricity tariffs (on a commission basis). (See the CSD14 Brochure for more information and the IHA websitewww.hydropower.orgfor further information)

WEC's Performance of Generating Plant Study

Since fossil fuel combustion will remain the mainstay of world energy supply for decades to come and power stations are a major user of fossil fuels the WEC's work in the area of generating plant performance improvement can help significantly to reduce GHG emissions and other pollutants.

OVERARCHING INITIATIVES

BP/Ford/Princeton Carbon Mitigation Initiative, USA – Strategic alliance to combat climate change
The Carbon Mitigation Initiative—a partnership between BP, the Ford Motor Company and Princeton University—is seeking compelling and sustainable solutions to the carbon and climate change problem through a long-term research program. In 2000, BP chose Princeton University to establish a “carbon mitigation research institute”, based on the university’s proposal and its access to key staff and resources, particularly for CO2 capture and storage technology, the hydrogen electric economy and earth system modeling. Ford Motor Company, with which BP was already developing a strategic alliance, also joined as a key partner, increasing financial support and extending involvement across the supply chain. Ford brought a useful perspective on transportation issues, along with its technical knowledge on fuel cells, fuels and efficiency and experience in product development. (See the CSD14 Brochure for more information and the IPIECA Oil and Gas Industry partnership publication, 2006: To be released shortly)

The Global Climate and Energy Project – Researching cost-effective technologies to reduce emissions and meet the world’s energy needs
The Global Climate and Energy Project (GCEP) between Stanford University in the US, ExxonMobil, General Electric, Schlumberger and Toyota has been established to investigate innovative and cost-effective technologies to reduce emissions while simultaneously meeting the world’s growing energy needs. Launched in 2002, the 10-year Global Climate and Energy Project aims to accelerate development of breakthrough leads in commercially viable technologies that are able to meet global energy demand while dramatically lowering greenhouse gas emissions. (See the CSD14 Brochure for more information and the IPIECA Oil and Gas Industry partnership publication, 2006: To be released shortly)

The Global Gas Flaring Reduction Partnership – Combating poverty and making flare elimination projects eligible for carbon
Launched at the 2002 World Summit on Sustainable Development, the Global Gas Flaring Reduction Partnership (GGFR) supports the efforts of the petroleum sector (comprising governments of oil producing countries, state-owned companies and international oil companies) to progressively reduce flaring and venting of natural gas associated with crude oil production. (See the CSD14 Brochure for more information and the IPIECA Oil and Gas Industry partnership publication, 2006: To be released shortly)

The Partnership for Clean Fuels and Vehicles – Phasing out leaded gasoline and improving air quality in developing countries
Launched at the 2002 World Summit on Sustainable Development, the global Partnership for Clean Fuels and Vehicles (PCFV) assists developing countries in phasing out leaded gasoline and taking other measures to improve air quality. The United Nations Environment Program (UNEP) hosts the partnership, and the partners comprise governments, industry, international organizations, nongovernmental organizations and academic institutions. (See the CSD14 Brochure for more information and the IPIECA Oil and Gas Industry partnership publication, 2006: To be released shortly)

FutureGen, USA – Building a zero-emissions, coal-based power plant (Case Study 11, page 35)
Using available technology and technology under development, an industry alliance and the US government plan to build a zero-emissions, coal-based power plant, known as FutureGen. FutureGen is a billion dollar, ten-year demonstration project in the US to create the world’s first coal-based, near zero-emission electricity and hydrogen plant with carbon capture and storage. FutureGen is a presidential initiative supported by a consortium of seven of the largest US electric utilities and coal companies.

OTHER RELEVANT CASE STUDIES

Anglo Coal: Water Management Initiatives in the Upper Olifants River Catchment
Anglo Coals water management initiatives have improved water quality in the Mpumalanga province and raised awareness of the need for longer-term options in mine water management.

BHP Billitons Community Development Programme
Continuous consultation between stakeholders and Rietspruit Mine Services has been an integral part of downsizing and the eventual closure of mining operations at Rietspruit.

Pacific Coals Investments in Community Development Projects
Pacific Coals community development projects aim to meet the challenges facing the communities in which they operate, by stimulating opportunities for employment and training, providing young people with skills to enhance their longterm employment prospects and supporting business initiatives that achieve these goals.

Deutsche Bank and the German Energy Agency

As a member of the Deutsche Energie-Agentur GmbH ("dena") Supervisory Board, Deutsche Bank supports stronger intensification of renewable energy projects.

dena is the German competence centre for energy efficiency and renewable energies. Its manifold objectives include the rational and at the same time environmentally friendly production, conversion and use of energy, as well as the development of sustainable energy systems with a greater emphasis on renewable energy sources.

Co-processing of Waste Materials in Cement Production

Holcim and GTZ have formed a public-private partnership (PPP) to develop solutions for integrated waste management in developing countries and countries in transition. Co-processing, which is the use of alternative fuels and raw materials in cement kilns, can - if applied properly -provide the solution to a large range of waste problems, including hazardous waste. The PPP has developed international guidelines on the co-processing of waste materials in cement production, and the application of these guidelines is being promoted in several countries.