Fuel solutions provider Masana Petroleum Solutions strongly urges companies to take advantage of the Section 12L Energy Tax Incentive, under South Africa’s Income Tax Act, before it is too late, as this opportunity is only available to 2020.
The incentive provides an allowance for businesses to implement energy efficiency savings.
Through its certified measurement and verification services, Masana says it is helping its clients in the South African mining and industrial sectors unlock tax rebate benefits by verifying the success of their energy saving initiatives.
Thanks to its partnerships with technology developer Energy & Combustion Services Technology Solutions Development (ECS), oil and gas company BP and industrial lubricants supplier Castrol, Masana has been offering the local market a range of solutions aimed at improving fuel efficiencies since 2005. Of particular relevance to the mining industry is the company’s high-performance products and fuel management systems for improved haul road efficiencies and reduced heavy equipment maintenance.
ECS operations director Peter Meyer explains that these interventions have helped mines achieve significant fuel savings, which – thanks to its association with ECS – Masana can further validate through its measurement and verification services. These services are certified by the South African National Standard for the measurement and verification of energy savings – SANS 50010-2011 – and the latest International Performance and Verification Protocol, IPMVP -2012.
With demonstrated yearly fuel consumption savings of between 5% and 12%, Masana’s clients can access the Section 12L Energy Tax Incentive, where tax rebate certificates of 95 c/kWh have been realised as a result of energy improvement projects.
Services Enhance Value
Masana is able to extend the quality of the BP and Castrol brands through its extended value service offerings, from on-site fuel management services and on-road fuel management technology to the productivity and energy management services provided by ECS.
“Understanding the significant impact of consistent, high-quality fuel supply on mining and industrial operations has been at the heart of Masana’s value proposition. “Masana’s strategic partnerships have enabled it to provide its clients with a range of products that, combined with its extended services, ensure that [the company] becomes part of their business strategy in a seamless and professional manner,” says Meyer.
He adds that Masana, enabled by ECS’s competence in energy management practice, is also well positioned to assist clients in complying with recent proposed amendments to legislation, which include new reporting requirements for diesel rebate claims and proposed mandatory energy reporting requirements for large industrial users. He highlights that, through ECS’s capabilities in this area, Masana can provide its customers with the assurance that these requirements are met and, in addition, there is the potential to identify and explore further energy saving opportunities.
“Masana’s focus will continue to be on securing product supplies for its clients, while growing its collaboration with them and its strategic partners to ensure value offers that will result in energy savings and reduce downtime.”
ECS offers professional services and technologies, as well as support, to Masana’s customers for the various steps required in implementing energy management programmes at their operations. This includes metering, measurement and data acquisition, use analysis, energy auditing, baseline energy modelling, opportunity identification, solutions development, project management and intervention tracking, monitoring and interactive reporting, performance dashboards and energy management information systems.
Meyer explains that modelling and determining baseline energy use involve identifying the parameters that impact on energy use at mines and developing performance models that characterise this energy use in the baseline period. Visualisation platforms to monitor and track energy use against baseline energy use on an ongoing basis are then developed and, in addition, specialist teams ensure the identification and quantification of special-cause variation and performance drivers and undertake to fulfil the legislative reporting requirements for diesel rebate claims and proposed mandatory energy reporting requirements for large mining and industrial energy users.
ECS and Masana can then analyse the success of projects aimed at energy conservation, comparing baseline productivity and energy use before and after an improvement measure is implemented, validating the impact.
“We also provide opportunity scoping, using our proven methodologies to identify areas where productivity and energy conservation measures can be implemented to further reduce energy use,” says Meyer. Energy planning, targeting and assistance with accurate energy budgeting based on medium- and long-term mine plans can then be implemented, based on this analysis.
“Through a collaborative approach to energy management, our customers have recorded energy and sustained efficiency improvements of between 5% and 15%.”
He stresses that ECS and Masana further aim to ensure that energy efficiency initiatives are structured, effective and sustainable through a phased solution implementation process and ongoing contract management processes and service level agreements.