1. GT 2378 BUILDING MICRO-ENTERPRISES IN THE SOUTHERN CAPE – ENERGY SUBSTITUTION & PROVISIONING

2. Pamela Booth, Eden to Addo Corridor Initiative, pam@edentoaddo.co.za 082 8750342

3. April 2015 – October 2015

4. Scope and Objectives of the project: To improve and secure the ecological patterns and processes associated with watershed services in the Keurbooms river.

5. Conservation impacts achieved:

489 hectares of initial clearing and 287 hectares of follow-up completed at end September 2015; Average density 80 – 90%, mixed species including A. mearnsii, A. melanoxylon, A. Cyclops, P. pinaster, E. grandis;

Visible streamflow returns (see pictures below);

Controlled burns successfully integrated into follow-up operations;

Biological control agent Dasineura rubiformis harvested from previous release sites and redistributed in July and August 2015.

6. Project Objectives:

1. To implement an Integrated Catchment Management Programme in priority

quaternary catchment in the Keurbooms river system. 2. To explore a suite of uses for biomass waste including energy, food production

and soil amelioration as small enterprise development opportunities. 3. To secure the conservation status of the land.

7. Significant changes to the objectives during the reporting period

There have been no significant changes to the objectives in this reporting period.

8. Progress towards achievement of objectives including outputs not achieved

Objective 1: IMPLEMENTATION OF A AN ICM PROGRAMME IN PRIORITY QUATERNARYS IN THE KEURBOOMS SYSTEM

Since the 30th April a total of R512 312.53 has been spent on the combined alien clearing and value added projects. See full financial report below.

The clearing project continues to deliver catchment benefits with visible increases in streamflow in at least one of the quinary catchments draining into the Keurbooms river;

Assegaibos stream a previously dry streambed

Assegaibos valley largely cleared of alien vegetation

The integration of fire into the management of invasive plants has been very effective in the fire season that ending October 2015. Areas that have been cleared and stacked were burnt to reduce fuel load and stimulate seed germination and then followed up with a chemical treatment;

Controlled burn after clearing

The biological control programme continues to yield a noticeable reduction in seed loads in the control sites which have now expanded to include heavily infested sites outside of the management area i.e. not targeted for initial clearing in this phase of the project.

Dasineura rubiformis Aug 2015

Objective 2: SUITE OF USES FOR BIOMASS WASTE INCLUDING ENERGY, FOOD PRODUCTION AND SOIL AMELIORATION AS SMALL ENTERPRISE DEVELOPMENT

Output 1: Minimum one small/medium food, energy or soil amelioration enterprise development model for biomass in remote areas developed and implemented:

SOIL AMELIORATION:

This is a very exciting part of the project. The Green Trust has enabled us to initiate innovative and creative pilot projects in an effort to find real solutions to pressing problems like soil nutrient depletion and green house gas (GHG) emissions. The conversion of excess biomass into soil amendment products could be a win win situation and our efforts currently focus on this aspect of biomass utilization as opposed to its carbon sink value. Collaboration with organisations who lend critical technological, marketing and sales expertise enables us to concentrate on the production side of the trials. Negotiations with a potential buyer are still in the early stages but look promising.

The DEA’s recent report “Assessment of the potential to produce biochar and its application to South African soils as a mitigation measure” is evidence that we are on the right track and hi-lights the range of uses for biochar. Currently we are one of the only Landuser Incentive clearing projects actively engaged in the conversion of biomass into soil amendments.

The three products under consideration are:

1. Plain un-crushed Biochar

1200kg of biochar manufactured from cleared black wattle at end August;

Initial discussions with John Todd Ecological design for the provision of 35m³ of plain uncrushed biochar for an expanded Greywater filtration tree pit project starting early 2016;

Potential to earn R6600/ton (IBI state of the biochar industry report shows average price is R23 000/ton in the USA)

carbon sink value of the biochar is approximately R197/ton based on the proposed carbon tax laws.

Plain uncrushed biochar

2. Organic black wattle Compost

200m³ of black wattle chipped and heaped at end October;

Training of 5 staff in the operation of heavy duty chipper end August 2015;

Composting cycle to be completed early 2016.

Chipping black wattle

3. Vermichar – product has not been made yet

A combination of crushed biochar inoculated with vermileachate (worm tea) and vermicast;

Trial order negotiations with potential client for 1500 cubic decimetres of crushed inoculated biochar.

ENERGY:

Biomass that is too far away from the chipper or the kilns for processing is turned into firewood by the clearing teams. They work weekends and overtime to split and bag the firewood which is sold to two Shell petrol stations in Knysna and Sedgefield for R10/bag. The team leader is saving to buy a car.

Although this was not the intention of the ‘energy’ aspect of the project it has turned into a low cost source of additional income that is fairly consistent and enthusiastically supported by local retailers.

EXPENDITURE ON THE BIOCHAR/COMPOST PROJECTS:

Up to end September R124 293 has been spent on the biochar and compost projects combined. This includes training, wages, PPE, equipment and running costs.

Objective 3: TO SECURE THE CONSERVATION STATUS OF THE LAND

Although CapeNature’s capacity constraints have not been alleviated, the recent declaration of a Protected Environment gazetted September 5th shows that a formal protected area status can indeed be negotiated by an NGO or an individual as provided for by the law. This

provides a slightly more optimistic outlook than the previous report since Eden to Addo have now proved they are capable of doing it.

Output 2: Protected Environment or similar formal conservation status implemented by March 2017:

As above, this is proving a challenge but Eden to Addo are committed to negotiating strongest possible conservation status for the land. This objective will be pursued throughout the lifespan of the project.

Output 3: In January and February 2015 conduct a compost test run using 90pdays:

The compost test run started in August with the loan of a chipper from the Department of Environmental affairs. Currently approximately 250m³ have been chipped and heaped and the team will start turning the heaps shortly and adding water, cow manure and crushed biochar. So far approximately 480 pdays have been used to produce the biochar and the compost.

Output 4: Based on lessons from the test run, use approx 270 pdays in the first quarter and then based on production plan for the rest of year 2 and year 3:

9. Constraints that may have affected progress and measures taken to address them. The main constraint suffered in the last quarter appears to have been dealt with. The herbicide for the entire year is arriving shortly and follow-up operations, although behind schedule, can resume in full.

Although encouraging, the achievement of a PE by Eden to Addo does not translate automatically into the same for the current property. This will require a firm commitment and resources from CapeNature and may only be achievable once the clearing project reaches maintenance level.

10. Explain any variances between budget and actual expenditure, relating them to the

progress of the project.

The variance for this reporting period remains minimal - approximately +R1700. The budget for the year: April 2015 to end March 2016 is R955 800. The line items for this total have changed since the project started. Capital expenditure has been reduced while Travel and subsistence and Operating expenses have both increased. The reduction in Capital expenditure is largely due to the loan of a chipper from the DEA at a saving of approximately R100 000. The increase in the Operating expenses and travel and subsistence are due to project related vehicle maintenance and running costs. The compost and biochar project gained a dedicated vehicle and the Project managers running costs have been higher than expected (the terrain is very hard on project vehicles). These changes are reflected in the financial report table below.

11. Planned activities for the next reporting period:

Complete chipping for the compost project

Conduct analyses of compost and possibly biochar if cost is not prohibitive

Prepare two of the soil amendment products described above

Conclude at least one deal with a potential buyer for at least one of the products

Continue to support the firewood project

Run a trial with goats to see if follow up operations can be augmented using herbivores, if costs are not prohibitive

Acknowledgement of the WWF Nedbank Green Trust.

The nature of the project dictated that co-funding had to be sourced in order to leverage core funding from the DEA. The WWF Nedbank Green Trust is the major co-funder of this project but this is a technicality in comparison to the freedom the GT funds afford us in pursuing innovative uses for biomass. Biochar is one such innovation and with the publication of the DEA/UK Aid report:”Assessment of the potential to produce biochar and its application to South African soils as a mitigation measure” our suspicions that we are on the right track have been confirmed.

Amount (R)

Code Item Budget for whole year

Budget for April - Oct

Actual Expenditure

Variance

01 Salaries

Project Management 209 000 120000 120000

02 Temporary Staff

Continuity bonus and raises (paid out for first time May 2015)

386400 220000 219347.87

+652.13

04 Travel and Subsistence

Vehicle running costs

35000 52600

53276.86

-676.86

05 Capital Expenditure

Value added enterprise-Equipment

294000 23000 23547.54 -547.54

06 Operating expenses 59800 95000 96140.26 -1140.26

Total 955800 510600 512312.53 1712.53

Total for Project lifespan R2,230,000