Southern hemisphere's largest charcoal factory under construction

The first sod is turned at the launch of the construction of the new charcoal manufacturing plant.
From the left is the programme director Marcus Mlungu, mayor Tijmen van Essen,
Phillip Mulungo CEO of Toronto Group, Andre Serdyn, who is a group shareholder,
and Francis Carruthers CEO of Lesedi.

Construction of the largest charcoal production facility in the southern hemisphere will begin in mid-September near the Swartland town of Wellington in the Western Cape.

The Toronto Group's first-of-a-kind charcoal manufacturing plant aims to produce 10 000 tonnes per year of export-grade charcoal from biomass from invasive alien vegetation. The raw material will mostly come from the government's Working for Water Programme that clears riparian zones to enhance the flow of water. The invasive alien species include Eucalyptus (blue gum) and Acacia (black wattle).

Phillip Mulungo, the CEO of the Toronto Group, says construction of the 3 040 m2 manufacturing plant is expected to take about eight months, with production starting in the first quarter of 2021. The group's lump wood charcoal will be exported to regions such as the UK and Europe.

Fines are an inevitable by-product of charcoal production, and Mulungo says it will be supplied as bio-char to the Western Cape's important agricultural sector. It improves the carbon content of soil and acts as a long-term carbon store.

FSC certification

"Toronto group complies with the Forest Stewardship Council (FSC) regulations, which governs the Chain of Custody and Controlled Wood to ensure traceable wood sources," explains Mulungo. "Our FSC certification will ensure that we supply our markets with the best quality products from traceable and trusted sources. We will foster sustainable development without damage to the environment."

The charcoal plant will draw the power required for the process from a solar PV and battery system mounted on its roof. A larger solar PV power plant will be developed in the future on adjacent land to supply power to surrounding farmers.

Engineering, procurement, construction and maintenance (EPCM) company Lesedi was appointed in January to design, project-manage, commission and fully integrate the production facility. A pilot plant was commissioned to verify the quality of the end product and the capability of the plant.

Francis Carruthers, CEO for Lesedi Nuclear Services and a board member of the Toronto Group, says "Lesedi is pleased to be selected as the EPMC representative for Toronto. We look forward to this challenge and have full confidence in the expertise of our experienced teams to deliver this exciting project."

According to Mulungo, the group would like to expand its activities into other parts of South Africa, and in time, into Africa. "Charcoal is still an important household fuel in Africa, but is generally produced very inefficiently, resulting in widespread deforestation."

Support for black industrialists

Fikile Majola, deputy minister in the Department of Trade, Industry and Competition (dtic), officiated the soil-turning ceremony. He said the department would continue providing non-financial support to the Toronto Group in addition to the R50-million capital supplement. 

"It is through proper coordination and collaboration that service delivery will be improved, and our people will begin to have better access to social and economic opportunities and choices," he said.

Majola added that, despite the weak economic outlook brought about by the Covid-19 pandemic, government's reconstruction and recovery plan is a priority. It is focused on saving as many companies and jobs as possible, while also identifying new opportunities and addressing economic inclusion with greater urgency.

"Government will continue to unlock the potential of black industrialists such as the Toronto Group through initiatives like the Black Industrialists Programme and its subsidiary, the Black Industrialists Scheme (BIS)."

Toronto Group has so far created five direct jobs. It expects to create 90 jobs by December, plus additional indirect job opportunities through its sourcing of raw materials from local suppliers. The facility will create about 150 direct and 75 indirect job opportunities through the value chain.

In 2018, following a severe three-year drought, Cape Town faced the possibility of running out of water. It developed a Cape Town Water Strategy to improve the city's water resilience in the face of climate change. The clearing of invasive alien vegetation is an intervention in the strategy.

Swartland Municipality executive mayor, Tijmen van Essen also spoke during the ceremony. He pointed out that "Clearing invasive alien plants in the catchment areas of the major dams supplying Cape Town offers multiple social, economic and environmental benefits. We are proud to form part of the Western Cape's solution for future water resilience and contributing to job creation in the Swartland municipality."

NEMA compliant

Some residents in the Wellington area are concerned about the environmental impact the plant will have, particularly the noxious fumes emitted during the production of charcoal.

Mulungo responded by saying: "Emissions from the carboniser are compliant with the National Environmental Management Act (Nema) regulations. The emissions will be tested regularly to ensure compliance and that it has a zero-net release of greenhouse gases such as methane and nitrous oxide.

"The Laboratory of Air Quality Studies (LAQS) is of the firm opinion that emissions from the proposed plant operations will have a negligible impact on the air quality at the nearest residential area and the surrounding agricultural land. The low score achieved in the risk assessment is proof of the air quality assessment," Mulungo assured the concerned citizens.

Source: Toronto Group