SA Heat Pump Engineers we do not gain

SA Heat Pump Engineers we do not gain contracts – we build clients Welcome Thank you for the opportunity to present our energy efficient product to you. We trust you will find it beneficial to your application. Utilising Heat Pump Technology to Save Energy – the case of : § Mining Shafts, § Gold Plants and § Hostel Change Rooms. Mr. Wicus Pretorius, SA Heat Pump Engineers

SA Heat Pump Engineers we do not gain contracts – we build clients SAHPE at a Glance Responsible Committed to ethical and responsible actions. Excellence Achieving high performance and excellent results. Innovative Being innovative to create sustainable value.

What is a Air Source Hot Water Heat Pump ? The Product A heat pump is a device that uses a small amount of energy to move heat from one location to another. A compressor, condenser and refrigerant system is used to absorb heat at one place and release it at another. Unlike conventional heaters, the power isn't converted into heat - it is only used to power the compressor and fans that circulates the liquid through the system. Energy Efficient Heat Pump Electricity Usage Old Geyser

How heat pumps achieve energy savings and CO 2 emissions reduction? The Product Heat pumps offer the most energy-efficient way to provide heating and cooling in many applications, as they can use renewable heat sources in our surroundings. Even at temperatures we consider to be cold, air, and water contain useful heat that's continuously replenished by the sun. By applying a little more energy, a heat pump can raise the temperature of this heat energy to the level needed. Similarly, heat pumps can also use waste heat sources, such as from industrial processes, cooling equipment or ventilation air extracted from buildings. A typical electrical heat pump will just need 1 k. W of power to turn 2 k. W of freely available environmental or waste heat into 3 k. W of useful heat.

Hot Water Heat Pump Performance The heat delivered by a heat pump is theoretically the sum of the heat extracted from the heat source and the energy needed to drive the cycle. The steady-state performance of an electric compression heat pump at a given set of temperature conditions is referred to as the coefficient of performance (COP). It is defined as the ratio of heat delivered by the heat pump and the electricity supplied to the compressor and fans. The Product Figure 1 shows the COP for an ideal heat pump as a function of temperature lift, where the temperature of the heat source ranges from -5 °C to +35 °C

Areas of Hot Water Heat Pump Application SA Heat Pump Engineers supplies and installs heat pumps for the purpose of generating domestic hot water for : Product Application • Mines • Hospitals • Prisons • Schools • Hotels • Hostels • Industrial change houses • Large complexes • All applications requiring hot water. The company also has a complete range of heat pumps to cater for domestic and swimming pool heating.

Layout & Pre-Planning Hostel Heat Pump Retrofit Gold Mining Industry The Project

Proposed Saving - Hostel Heat Pump Retrofit Hostel Weekday k. W Base The Project 1386. 623 k. W Average existing monthly k. Wh 1 415 364 k. Wh Average proposed monthly k. Wh 416 995 k. Wh Average proposed weekly k. Wh Saving 232953 k. Wh Average proposed monthly k. Wh Saving 998365 k. Wh Average 7 day profile MWh Saving 232. 95 MWh Average monthly MWh Saving 998. 37 MWh Average MW Saving for 7 day profile Installed Calorifiers Proposed Installation BWH 25 Heat Pump Proposed Saving 1018 305 712 710 853 256 597 783 613 184 429 852 912 274 638 714 768 230 537 567 683 205 478 814 826 248 578 715 693 208 485 804 573 172 401 688 206 482 622 187 436 478 143 335 758 742 223 519 689 722 216 505 341 580 174 406 853 1057 317 740 576 856 257 599 539 674 202 471 1123 1504 451 1053 882 1156 347 809 996 940 282 658 1290 1900 570 1330 1231 1472 441 1030 1056 933 280 653 2221 2256 677 1579 1733 1736 521 1215 1395 1082 325 758 2718 2505 752 1754 2052 1887 566 1321 1298 1204 361 843 3109 2588 776 1811 2255 1813 544 1269 1583 1200 360 840 2906 2720 816 1904 2199 1979 594 1385 2169 1446 434 1012 3034 2764 829 1935 2567 2144 643 1501 2552 1853 556 1297 2922 2836 851 1985 2685 2327 698 1629 2347 2039 612 1427 2842 2882 865 2017 2309 2409 723 1686 2280 2044 613 1431 2637 2827 848 1979 2325 2474 742 1732 1911 2201 660 1540 2395 1937 194 1743 2402 2450 735 1715 1839 2252 676 1576 2395 1722 172 1550 2361 2412 724 1689 1938 2325 698 1628 2499 1241 124 1117 2164 2468 740 1727 2027 2526 758 1768 2339 842 84 758 1921 2421 726 1695 2031 2371 711 1660 2491 3254 976 2278 2361 2644 793 1850 2327 2398 719 1678 2459 2989 897 2092 2303 2538 761 1777 2354 2675 803 1873 2849 855 1994 2623 787 1836 2781 834 1947 2565 2894 868 2026 2545 2751 825 1926 2582 2763 829 1934 2363 2886 866 2020 2122 2691 807 1884 2283 2719 816 1903 2121 2765 829 1935 2178 2571 771 1800 2328 2857 2000 2272 2810 843 1967 1857 2572 772 1800 2099 2677 803 1874 2491 2832 850 1983 2105 2596 779 1817 2113 2559 768 1791 3031 2902 871 2032 2709 2697 809 1888 2595 2537 761 1. 387 MW 1776 3327 3166 950 2216 3136 2811 843 1968 2843 2754 826 1927 3298 3282 985 2298 2985 2782 835 1948 2857 2407 722 1685 3385 3236 971 2265 2919 2566 770 1796 2558 2332 700 1633 3226 3108 932 2176 2852 2487 746 1741 2043 2082 625 1457 2907 3014 904 2110 2350 2407 722 1685 1877 2011 603 1407 2642 2884 865 2019 2387 2096 629 1467 1520 1928 578 1349 2694 2622 787 1835 2583 2100 630 1470 1649 2123 637 1486 2685 970 194 776 1959 1832 550 1282 1870 2141 642 1499 2726 982 196 785 2107 1937 581 1356 2158 2175 652 1522 2791 946 189 757 2229 1886 566 1320 2132 2193 658 No/ k. W Total Units input 22 34 144 3168 Output (COP 3) 1535 2590 846 169 677 2244 1524 457 1067 2036 1918 575 1343 3331 999 2331 1747 524 1223 1808 542 1265 2465 3263 979 2284 1700 1727 518 1209 2021 1568 470 1098 2241 2806 842 1964 1641 1574 472 1102 1983 1269 381 888 1833 2513 754 1759 1484 1387 416 971 1503 1087 326 761 1687 2298 689 1609 1145 1241 372 869 1069 970 291 679 1413 2022 607 1415 1082 1041 312 729 1079 776 233 543 1239 1643 493 1150 1143 884 265 619 972 665 200 30. 7 1043. 8 3131. 4 466 1153 1341 402 939 859 788 236 551 811 505 152 354 108495 106220 30 343 75 877 27 648 64 511 25 408 59 286 2497 2448 Proposed Saving Average Saving k. W Base Actual Sunday k. W 1024 728 Average 7 day profile k. W saving Installation Actual Saturday k. W 557 2337 1796 92 160 92 159 1580. 76 Proposed Saving Average Saving Kw Base Actual 656 2429 1843 85 047 84 694 1343. 99 Average Saving k. W 1235. 12 54247. 5 53109. 9 15171. 6 37938. 3 46079. 9 46079. 55 13823. 9 32255. 7 42523. 4 42347 12704. 1 29642. 9 271237 265549 75857. 9 189691

Graph Comparison - Hostel Heat Pump Retrofit Hostel Weekly Profile 4000 Demand (k. W) 3500 3000 2500 2000 Baseline 1500 1000 Proposed 500 0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748 Time (Half Hourly) 3000 2500 2000 1500 1000 500 0 Hostel Sunday Profile Baseline Proposed 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 Time (Half Hourly) Demand (k. W) Hostel Saturday Profile 3500 3000 2500 2000 1500 1000 500 0 Baseline Proposed 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 Time (Half Hourly)

Calculated Demand Saving - Hostel Heat Pump Retrofit The Project HEAT PUMP DEMAND SAVING AVG. CALCULATED / MONTH HOSTEL/SHAFT CURRENT AVG. EXPECTED ZAR PROPOSED k. Wh EXPECTED TOTAL EXISTING AVG PROPOSED AVG. PROPOSED MW COST PER MONTH COST AFTER DSM SAVING AFTER SAVE AFTER DSM k. Wh BASELINE k. Wh AFTER DSM SAVING @ ZAR 0. 38 DSM @ ZAR 0. 38 Hostel 1 413 897 R 157 280. 77 157 886 R 59 996. 49 256011 R 97 284. 28 0. 51 Hostel 2 779 434 R 296 184. 83 311 070 R 118 206. 58 468364 R 177 978. 24 0. 95 Hostel 3 1 415 364 R 537 838. 32 416 995 R 158 458. 27 998369 R 379 380. 05 1. 39 Hostel 4 998 862 R 379 567. 56 293 394 R 111 489. 83 705468 R 268 077. 73 0. 99 3 607 557 R 1 370 871. 47 1 179 345 R 448 151. 18 2 428 211 R 922 720. 29 3. 83 TOTAL

Cost Analysis - Hostel Heat Pump Retrofit The Project HEAT PUMP DSM PROJECTED COST ANALYSIS PER SHAFT HOSTEL Hostel MATERIAL UNITS INSRUMENT INSTL/LABR TRANSPORT ACCOM CONSULTING TOTALS Hostel 1 20 R 6 077 200. 00 Hostel 2 27 R 8 204 220. 00 Hostel 3 34 R 10 331 240. 00 Hostel 4 27 R 8 204 220. 00 108 R 32 816 880. 00 Totals VAT TOTAL R 4 594 363. 20 R 37 411 243. 20

Payback Period - Hostel Heat Pump Retrofit SAVING ENERGY PROJECTED YEARLY MONETARY SAVING AS PER ESKOM EXPECTED TARIFF INCREASE SAVINGS TOTAL k. Wh YEARLY SAVINGS / SAVINGS MONTH ZAR @ 24. 8 % ZAR @ 20% ZAR @ 10% PRODUCT INCREASE HEAT PUMPS 0. 38 0. 46 0. 55 0. 66 BWH SERIES Jun-10 2011 2012 2013 k. Wh Savings / Month 2 428 211. 29 Savings ZA Rand R 11 072 643 R 13 403 726 R 16 026 195 R 19 231 433 Proposed avg Saving (0 -24) MW/Month 3. 83 Rate of Return Full Project Cost R 32 816 880. 00 Savings 2010 + 2011 ÷ 24 = R 1 019 848. 74 Payback Months = Rate of Return Eskom Project Cost R 32 816 880. 00 DSM Contribution R 5. 2 m/MW R 19 926 746. 59 Savings 2010 + 2011 ÷ 24 = R 1 019 848. 74 Payback Months = 19. 54 32. 18 Rate of Return Gold Mine Project Cost R 32 816 880. 00 Project Cost - DSM Funding R 19 926 746. 59 Gold Mine Contribution R 12 890 133. 41 Savings 2010 + 2011 ÷ 24 = R 1 019 848. 74 Payback Months = 12. 64

Hostel Heat Pump Retrofit Gold Mining Industry The Project Actual Rm/ Project cost elements Amount [R] MW MW 25 645 680. 00 3. 83 R 6 692 388. 81 Labour / Installation / Tpt. / Accom. 5 983 200. 00 3. 83 R 1 561 350. 71 Other – Project Management 1 188 000. 00 3. 83 R 310 015. 48 32 816 880. 00 3. 83 R 8 563 755. 01 Capex Product & Instrumentation Total Cost Excl. VAT

Environmental Contribution The Project DSM RESOURCES / EMISSIONS IMPACT SAVINGS ON HEAT PUMP INSTALLATION Item /Kwh Kwh's Total / month Total / Year Liters Water Saved 1. 35 2 428 211 3 278 085 39 337 023 Kg. Coal Savings 0. 55 2 428 211 1 335 516 16 026 195 Ash Reduced / Gram 157 2 428 211 381 229 173 4 574 750 070 SO₂ in Grams 8. 6 2 428 211 20 882 617 250 591 405 NOx in Grams 4. 26 2 216 885 9 443 930 113 327 159 CO₂ in Kg. 0. 96 2 428 211 2 331 083 27 972 994

Summary Project Cost Excl. Eskom Contribution @ R 5. 2 M/MW Client Contribution Payback Period Client k. Wh Retrofit Summary Retrofit Monetary Summary 29, 138, 532 14, 152, 140 OLD RETROFIT SAVED ZA RANDS 43, 290, 684 k. Wh 50000000 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 R 32 816 880. 00 R 19 926 746. 00 R 12 890 134. 00 12. 64 Months R 18, 000 R 16, 000 R 14, 000 R 12, 000 R 10, 000 R 8, 000 R 6, 000 R 4, 000 R 2, 000 R 0 R 16, 450, 452 R 11, 072, 643 R 5, 377, 812 OLD RETROFIT SAVED

Conclusion In conclusion, the mine required : 1. A cheaper alternative to the current conventional high demand costly calorifier systems. 2. A low noise system that guarantee a reliable hot water supply in all conditions as to ensure maximum comfort to mining personnel. 3. A system that would be environmental friendly as it would be installed in living quarters. 4. A compact unit with a small footprint due to space constraints. The large potential of heat pumps and it’s present environmental advantages was realised, and it would fulfil in requirements expected, with the additional benefit of saving large amounts of money that complimented their bottom line generously. Heat pumps is the obvious choice in hot water supply, this is an invitation for all to invest in heat pump technology and to reduce CO 2 emissions in an economical way.

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