Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » VW to take its huge Uitenhage plant off the Eskom grid

    VW to take its huge Uitenhage plant off the Eskom grid

    By Roy Cokayne24 October 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Volkswagen Group South Africa (VWSA) is poised to implement a plan to move its manufacturing plant in Uitenhage, plus some of its component suppliers in an adjacent supplier park, off the national electricity grid.

    Thomas Schaefer, chair and MD of VWSA, has confirmed that a planned project for the company to invest in a biogas facility that uses organic waste to produce electricity is in its final phase and that the Uitenhage plant would be off the electricity grid within the next two to three years.

    Schaefer says an entire biogas facility, including a waste separation setup, would cost about R3.5-billion, but usually achieves break-even after 28 months — and would create about a thousand jobs.

    We are spending a fortune on inverters that keep the spikes out of the system but we can only do so much

    He says VWSA already has approval from its German parent company for the project, which would see it getting a company to operate and manage the biogas facility that will feed electricity directly into its plant.

    Schaefer says the company has almost completed the analysis of the project, with the funding package expected to be completed by early next year. He says it will take about 18 months to build the biogas plant.

    Once operational, the plant will also produce fertiliser — some 600kg per ton of organic waste used — which could be sold for up to US$400/ton.

    “We are thinking of investing in it rather than going to get the World Bank to do it and get an off-take agreement,” says Schaefer. “We think it’s quite a cool idea that we spend a couple of million and be a shareholder in it, but have somebody else running it.”

    Sign-off

    Schaefer confirms that VWSA will need sign-off from the minister of energy as well as a permit for the project, but is confident that approval will be forthcoming because electricity supply in Uitenhage is a problem.

    He says there is a sustainable supply of organic waste for the facility from the abattoirs and chicken and fish farms in the area, together with the organic waste generated by food companies.

    Many businesses in the Nelson Mandela Bay Metro have been experiencing problems with the supply of electricity from Eskom.

    “The robots are in the welding process, which takes about 30 seconds. If you get a spike in between, the robot forgets where it is. It’s an immediate shock and everything comes to a standstill.

    “For safety reasons, you have to bring everything back into zero position but have potentially lost all the bodies in the body shop that are half welded or damaged, which is a complete disaster.

    “The spikes happen at least once a week,” he adds. “The cost of these lost bodies is easily into the double-digit million rand and impacts our profit margins. We are spending a fortune on inverters that keep the spikes out of the system but we can only do so much.”

    Attempts to obtain comment from the Nelson Mandela Bay Business Chamber on the electricity problems in the region were unsuccessful.

    If more of this nonsense happens, you lose the volumes so quickly. We need a fully utilised factory to compete

    Schaefer says a further problem is that Volkswagen allocates production volumes according to the cost per car. The exact cost per vehicle from the Uitenhage plant is tightly tracked every month and compared to producing the same car in the group’s plant in Pamplona in Spain.

    “If the cost is not favourable, the next volume from sales gets allocated to Spain,” he says.

    With government’s Automotive Production and Development Programme and VWSA’s own cost-saving measures, its cost per vehicle is currently 2% below that of the plant in Spain, says Schaefer.

    “This is great, and explains why we are chock-a-block, with 160 000 (cars in annual production). But if more of this nonsense happens, you lose the volumes so quickly,” he says. “We need a fully utilised factory to compete.”

    Footsteps

    If the biogas project comes to fruition, VWSA will be following in the footsteps of BMW South Africa, which in October 2015 started receiving power from biogas renewable energy company Bio2Watt from its first plant at a Beefcor feedlot in Bronkhorstspruit.

    At the time this was the first viable commercial biogas project in South Africa.

    The bulk of the power produced by Bio2Watt went to BMW SA for use in its production plant in Rosslyn in Pretoria in terms of a 10-year off-take power purchasing agreement signed in 2014.

    • This article was originally published on Moneyweb and is used here with permission


    Eskom Thomas Schaefer top Volkswagen VW
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWith Huawei banned, Nokia has zero excuse for failing
    Next Article Brett and Mark Levy quit Cell C board

    Related Posts

    Eskom targets 2027 approval for new 5.2GW nuclear facility

    Eskom targets 2027 approval for new 5.2GW nuclear facility

    2 December 2025
    Eskom profit surges 37% as load shedding virtually vanishes

    Eskom profit surges 37% as load shedding virtually vanishes

    28 November 2025
    Big step forward in opening South Africa's electricity market - NTCSA

    Big step forward in opening South Africa’s electricity market

    28 November 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}