Sappi and Enpower Trading celebrate largest private five-year PPA to achieve Financial Close in South Africa
Graeme Wild, CEO of Sappi Southern Africa and James Beatty, CEO of Enpower Trading
Sappi Southern Africa and Enpower Trading have reached Financial Close on their groundbreaking 175 GWh per annum, five-year renewable energy Power Purchase Agreement (PPA). This milestone signals a critical step forward in the implementation of the project, which will see Sappi reduce its carbon footprint while advancing South Africa's renewable energy sector.
Reaching financial close is a significant milestone achieved by only a select few private power projects in South Africa. This achievement not only underscores the credibility and bankability of the five-year PPA but also reflects the strong confidence shown by financial institutions in Enpower Trading and Sappi's clean power solution.
By facilitating Financial Close for SolarAfrica Energy's utility-scale SunCentral 1 PV plant (valued at R1.8 billion), Enpower Trading has played a pivotal role in driving the project forward, demonstrating its commitment to advancing renewable energy solutions.
"Financial close of the Sappi PPA solidifies the foundation of this transformative agreement and underscores the strength of our innovative trading solutions," said James Beatty, CEO of Enpower Trading.
"As pioneers of the five-year PPA tenure, Enpower Trading is thrilled to lead this project, representing the largest private five-year PPA to achieve Financial Close in South Africa. This accomplishment demonstrates the viability and scalability of shorter-tenure utility scale agreements in catalysing renewable energy development."
"Reaching financial close on this agreement marks a significant milestone for our company and nation. This achievement underscores our commitment to sustainable energy solutions and highlights the remarkable progress in transforming our country's energy landscape", said Graeme Wild, CEO of Sappi Southern Africa.
"At Sappi Southern Africa, we are proud to be at the forefront of this transformative journey. We drive innovation and foster partnerships to ensure a brighter, more sustainable future for all. This agreement enables us to demonstrate leadership in sustainable business practices, reduces our reliance on fossil fuels, and supports SDG7: Clean Energy", commented Wild.
Pioneering PPA
The five-year PPA model is an alternative to traditional long-term agreements. It unlocks new opportunities for companies to purchase wheeled energy through tenure flexibility. Enpower Trading's leadership in this space has been pivotal in unlocking the potential for short-tenure PPAs to drive significant renewable energy investments.
"This milestone project illustrates the power of innovation in the energy trading sector," said Beatty. "Enpower Trading's approach to the five-year PPA model delivers further liquidity to the market by ensuring financial feasibility for developers for a much wider range of projects than traditional long-term PPAs only, alongside delivering alignment with the business needs of energy off-takers like Sappi. We believe this model is a game-changer for the South African market."
Green energy
SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. The holistic suite includes on-site solutions such as solar energy and battery storage and virtual solutions like wheeling, trading and aggregation. As part of the Starsight Energy group, SolarAfrica partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction
Private sector leadership
The power supplied through this agreement will reduce Sappi SA and Sappi Limited's Scope 1 and Scope 2 emissions by 6% and 4%, aligning with Sappi's Science-Based Target (SBTi) objectives and the broader goal of achieving net zero emissions.
The SunCentral PV project, operated by SolarAfrica Energy, is in De Aar in the Northern Cape. Phase 1, consisting of 342 MW, is currently under construction with Phases 2 and 3 bringing the project total to 1GW, making it one of the country's most significant projects of its kind. SolarAfrica reached financial close on SunCentral 1 (representing the first 114 MW of Phase 1) in December 2024.
"Private-sector innovation is critical to solving the energy challenges facing South Africa," added Beatty. "Through this partnership, we're not just providing cleaner, more affordable power—we're enabling an entire ecosystem of cleaner energy development that supports economic growth, decarbonisation, and energy reliability."
Sappi builds smart nurseries for a changing environment
Bongani Shozi the Nursery Manager welcomes the visitors to Clan Nursery
Sappi's nursery transformation began with a fundamental question: how could the company simultaneously reduce unit costs, improve productivity, increase survival rates of seedlings before and after planting, and minimise its reliance on chemicals for pests and disease control while mitigating climate change?
Wynand de Swardt, Sappi South Africa's Divisional Nursery Manager, says the answer lay in over 25 years of tree breeding at the Sappi Shaw Research Centre and a lean-driven approach to identifying areas for improvement in its four nurseries.
Extreme weather conditions and the noticeable shifting seasons with later summer rainfall are reducing or extending the planting season, depending on the location and site conditions of the plantations. Hence, there is a drive for developing drought, frost, disease tolerance, volume growth, and pulp yield.
Tree breeding
Traditionally, tree breeding programmes are initiated by making mass selections in commercial plantations. This is followed by grafting, collecting seeds, establishing provenance trials and then waiting 10 to 20 years for test data, depending on the species.
Damien Naidu, Sappi's General Manager of Research, Planning and Nurseries, says the company realised early on that the best climate change adaptation strategy is an accelerated and holistic tree breeding programme.
Molecular technology and biotechnology tools allow a breeder to recover progeny data from existing plantations, predict breeding values and identify genetically superior individuals at the initial stage of the breeding program, effectively speeding up improved growing stock by at least a decade.
Hybrids
The rapid shift from planting pure species to more productive, better adapted, and pest- and disease-resistant hybrids is transforming the profile of hardwood and softwood trees grown in Sappi's South African plantations.
Speaking at the recent Modern Silviculture Symposium: Silviculture 4.0 in Howick, KwaZulu-Natal, Wynand said, "The main objective of a nursery is to have plants ready when customers need them. A nursery is a profit centre adding value to our operations by ensuring that quality seedlings are produced efficiently, safely, cost-effectively and in time by well-trained and engaged staff".
That is easier said than done. Nurseries must be resilient to meet the demand for plants in a shorter time while the costs of resources and labour escalate. These challenges are magnified by ageing nursery infrastructure, broken process flows and increasing risks from pests and diseases driven by the changing environment and a lack of approved chemicals.
A quicker turnaround time was critical for tree breeders and planners to cope with a globalised world's dynamic challenges and demands. Something had to change because Sappi's nurseries were not meeting their customers' demands and needs.
Sappi has four nurseries, Ngodwana and Escarpment Nurseries in Mpumalanga and Richmond and Clan in KwaZulu-Natal. They produced 57.5 million seedlings in 2023 (47 million in 2017), 43 million for Sappi's plantations and 14.5 million seedlings were sold to other growers. It also significantly increased external seed sales.
Wynand said the developments at Sappi's state-of-the-art Clan nursery at Albert Falls in the KZN midlands were central to rapidly deploying improved trees into the plantations. To get to this point, he gave the attendees at the silviculture symposium a brief history of the company's nurseries and some of the operational challenges that arose.
In the beginning
In October 1988, Sappi bought the Waterton Timber Company and its nursery in KwaMbonambi, KwaZulu-Natal (KZN) in October 1988. E. grandis was the primary genotype cultivated in open hedges and tables, which exacerbated its tendency to be disease-prone. Water supply was always a challenge. The nursery was later closed.
Construction work on the Ngodwana Nursery near Machadorp in Mpumalanga commenced between 1986 and 1989, and it soon produced 18 million seedlings a year. Improvements in tree breeding and processing technologies put pressure on the Ngodwana Nursery. In 2015, Sappi rebuilt it to deliver 10 million seedlings and 7 million cuttings.
"Our focus on productivity led to clonal development and we had to adapt the nurseries from producing plants from seeds to cuttings. Changing a nursery system is a significant investment in the future and involves the whole silviculture value chain", Wynand remarked.
The Richmond Nursery was established as a cost-effective operation in 1992, with 36 permanent staff producing 16.5 million seedlings. However, it suffered severe storm damage and, with a single borehole, ran into water supply issues.
Twello Nursery was acquired in 1996 near Barberton in Mpumalanga. The open root nursery produced P. patula, P. taeda and P. elliottii from seeds. Encouraged by the results of research into pine-cutting propagation, Sappi established a one million cuttings operation at Twello.
Escarpment Nursery was next and saw several changes, enlargement, and improvements, including the growth of hedges in bags and shade-netted structures over 25 years. It had a capacity of 3.2 million pine cuttings.
Clan Nursery
Wynand said Clan Nursery's development began in 2011 as a greenfield project. "The site was carefully selected to ensure sufficient electricity and water of the required quality and, importantly, it could provide employment for people from nearby communities".
In the first phase, Clan was designed to produce 7 million GU (E. grandis x E. urophylla) seedlings. In the second phase, it expanded to produce 17 million GU, GN (E. grandis x E. nitens) and PPTL (P. patula × P. tecunumanii low elevation) seedlings.
Going lean
When it was time for phase two, Wynand explained, they formed a multi-disciplinary team led by a process engineer. They did value stream mapping, time studies, root cause analysis and fault tree analysis.
The outcomes were two main goals:
Increase rooting efficiency by 15%
Increase the survival rate of seedlings without relying on chemicals.
"Our lean team identified focus areas and developed a lean action plan. The objective was to reduce unit costs and increase revenue. Numerous time and work studies highlighted areas that would boost productivity. For example, time studies showed that it took, on average, 2,5 hours to get cuttings from the rooting hedges to propagation and into the germination tunnels".
Rooting efficiency
Wynand said, "In 2013, we engaged with Ellepot because rooting efficiency is critical", he said. Instead of planting a seedling into a plastic insert in a Unigrow tray, Ellepot is a plug wrapped in degradable paper that is not removed when planting".
An Ellepot FlexAIR propagation system was installed. The machine automatically deposits the growing medium onto the paper, encloses and glues the paper around the medium to form the pot shapes and places it into the trays reading to receive the cuttings.
The Ellepot system facilitates benefits, including an air-pruned root system and a stabilised plug that can be handled early in the nursery cycle. It is also well suited to manual and mechanised planting in the field.
Sappi and Ellepot invested months in developing a tray system for the Ellepots that met Sappi's unique requirements. Bongani Shozi, Clan's Nursery Manager, said the many benefits of the new trays include perfectly formed root architecture, ease of handling, and no time wasted searching for inserts infield and washing trays and inserts when they return from the field.
"The biggest benefit for us is that we can get the plants out of the nursery two weeks earlier than before. We have reduced the transit time and transplant shock. The less stress there is, the better the rooting and less mortality because the plants capture the pit quicker and easier", remarked Bongani.
Productivity
Between September 2023 and September 2024, Clan's system changes included:
Raising the mother hedge beds to improve ergonomics for the people taking the cuttings and limit pests and diseases
Installing pad and fan heating and cooling systems in the tunnels. It consists of exhaust fans at one end of the greenhouse and a pump circulating water through and over a porous pad installed at the opposite end. This cools the environment, benefiting the plants and the cutting and setting teams to work in the greenhouse.
Moving the cuttings setting team into the hedge tunnels and installing roller conveyors to speed up the propagation process.
Improving hygiene in the rooting tunnels by replacing the pebbles with a concrete slab.
Hang insect traps to monitor the types of pests and identify changes.
Stricter quality control using sensors and seedling height measurements
Building an additional germination camp block
Wynand said the outcomes of these changes are "just a step towards sustainability".
The nursery facility now has a massive solar system with 2,5 hours of battery capacity, generators, and an upgraded pump room. Water is recycled, and the irrigation systems are optimised. Water storage was increased to five days.
The Ellepots produce 75% of the product, and the Unigrow trays and inserts are used to increase production. The changes have increased Clan's Ellepot production to 28,000 pots per hour. Wynand said Bongani and his teams had an initial target of 17 million per year, which has been pushed to 20 million.
Sappi's Escarpment and Ngodwana nursery upgrades are complete, and Richmond's is underway. Sappi's nurseries are integrated with its research and existing and new technologies to manage risk and improve silviculture practices and diversification into new processes, technologies and markets.
By Joy Crane
HOT NEWS BYTES: Innovations and inventions for next level forestry
Enpower CEO James Beatty and Sappi SA CEO Alex Thiel celebrate the solar energy deal that will reduce Sappi’s carbon footprint in South Africa.
Sappi Southern Africa has concluded a milestone 175GWh per annum renewable energy Power Purchase Agreement with Enpower Trading, a NERSA-licensed private electricity trading company, in a move to reduce its carbon footprint.
Sappi’s decision to partner with Enpower Trading aligns with its broader sustainability goals and is a significant move towards attaining its Science Based Target objectives. By implementing this renewable energy solution at its multiple South African operations, it is expected that Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions will be reduced by 6% and 4% respectively.
The power supplied to Sappi will be sourced from SolarAfrica Energy’s 1GW Sun Central PV project which is located southeast of De Aar in the Northern Cape.
Power will be supplied as from the end of December 2025. The agreement initiates a first-of-its-kind PPA in which Enpower Trading will supply Sappi with a utility-scale renewable power solution over a five-year period, paving the way for an evolving strategic partnership between Sappi and the trading company.
Trees extract air-borne micro-plastic Japanese researchers have discovered that trees can extract microplastic particles that drift around in the air we breathe. Professor Miyazaki Akane of Japan Women’s University has found that microplastic particles drifting in the air adhere to the surface of leaves of konara oak trees in Tokyo. More research is needed to gauge the full potential of how trees can serve as terrestrial sinks for airborn microplastics, but it just goes to show that we should never under-estimate the benefits that forests have on our world. Wooden wind turbine blades
German company Voodin Blade Technology has unveiled the world's first wooden wind turbine blades, which could revolutionise renewable energy technology. These innovative blades, made from sustainable laminated veneer lumber, signal a shift away from traditional fibreglass and carbon fibre blades that are notoriously difficult to recycle.
Voodin Blade Technology CEO Tom Siekmann says that most old turbine blades end up buried or burned. "That's 50 million tonnes of waste by 2050 if we don't act. Our wooden blades make green energy truly green," he said. (Source: Energy Source & Distribution)
Hot, hotter, hottest February 2024 was apparently the hottest February ever recorded globally. The EU’s Copernicus Climate Change Service showed that February 2024 was 1.77°C warmer than the pre-industrial average (1850 to 1900) for the month, and 0.81°C above the 1991-2020 average for February.
February temperatures in South Africa were also above normal in the central and eastern parts of the country, about 1°C above the 1991-2020 average and about 2°C above the 1981-2010 average.
Hot February 2024 was the culmination of the hottest 12 months ever recorded — between March 2023 and February 2024 the average temperature was 1.56°C above the pre-industrial average.
Even though the 1.5 degrees C average temperature has been exceeded for the past 12 month period and there is no denying that the climate on earth is getting hotter, it has to continue for 20 years to be regarded as permanent. Earth is expected to officially cross this 1.5 degrees C threshold by the early to mid-2030s. (Source: Daily Maverick)
Tracking logs Researchers at Fraunhofer IPM are busy developing a camera-based system that makes it possible to reliably trace cut logs back to their source. It uses the unique structures on cut surfaces like a fingerprint, matched with a unique ID stored in a Cloud-based database. This allows the tamper-proof identification of individual logs and trunk sections, even if the timber is mixed up during harvest and processing. This system will provide a fool proof method of tracking timber from forest to sawmill to secondary processing facility, thus meeting EU timber regulations and certification supply chain requirements. (Source: www.ipm.fraunhofer.de / WoodTech)
Re-cycling CCA treated timber Scientists at Scion are hard at work figuring out how to remove CCA from treated timber at the end of its life, separating it into individual elements which can then be recycled. This is essential for the realisation of a circular economy, as CCA treated timber that has reached the end of its useful life is an environmental hazard unless disposed of in specialist facilities. The elements removed from the timber could be reused in electronics or compound metals. (Source: Scion / Friday Offcuts)
Wood into batteries New Zealand-based CarbonScape is converting woody biomass like woodchips and sawdust into biographite which is used to manufacture batteries. The R&D behind this innovation is supported by Stora Enso, a leading provider of renewable products in packaging, biomaterials and wood construction. (Source: RNZ/Friday Offcuts)
The ‘cockroach’ drone Swiss researchers have developed a new drone, inspired by cockroaches, which can push away obstacles – like the leaves and branches of trees - and move past them while in flight. The drone will be used to measure biodiversity in remote areas, including beneath the canopy of forests. The problem the developers encountered was that the drones start vibrating when they brush past flexible branches and vegetation. They found a solution in the body structure of cockroaches, which is streamlined and consists of low-friction material, which gave the drones the ability to navigate inside the forest. The developers also equipped the drone with spatial intelligence throughout its body to help it navigate through dense vegetation. (Source: www.swissinfo.ch)
The drone is streamlined and made up of low-friction material, like a cockroach. (Photo courtesy www.swissinfo.ch)
Robotic micro-factories ABB Robotics is collaborating with UK-based AUAR to develop robotic micro-factories to build affordable, low energy timber homes. A robot cuts the timber into components and assembles them into units that are transported to site, enabling complete customised homes to be built in a matter of weeks. (Source: ABB Robotics)
Helicopter powered saw A specially designed tree-trimming saw powered by a helicopter has undertaken its first successful trial in New Zealand. The heli-saw, owned by Lakeview Helicopters in Taupō, was trialled by The Lines Company (TLC) in a forestry block in Kuratau.
In just over an hour the heli-saw successfully trimmed 950 metres of radiata pine along a corridor housing a 33kV network line. Trimmed material was left at the base of the trees, leaving two blocks of trees undamaged from the trimming operation.
Keeping trees clear of powerlines is a big challenge all over the world - including in South Africa - where they can pose a major fire risk. Trimming tall trees by hand is a slow and painstaking business – especially in steep terrain - and the trial showed that the heli-saw technology has great potential to boost productivity.
Trimming edge trees next to powerlines is preferable to felling them, which opens up forestry blocks to wind. (Source: The Lines Company)
The heli-saw is hitched to the helicopter in preparation for the trial. (Photo courtesy of The Lines Company)
The heli-saw in action in New Zealand. (Photo courtesy of The Lines Company)
Trees trimmed by the heli-saw to ensure the safety of the powerline. (Photo courtesy of The Lines Company)
Turning wood into animal feed
Sappi’s lignin-based Pelletin product is a key ingredient of animal feeds.
Lignin, a major component of wood and an abundant organic polymer, provides a multitude of functions especially in the industrial and agricultural sectors. Sourced from the wood pulping process as a side stream, Sappi SA uses it to produce Pelletin, a lignin-based additive in animal feed manufacturing.
Pelletin, which is produced at Sappi’s Tugela Mill, is used in the preparation of animal feeds as a binding agent that replaces oil-based binders.
Sappi has recently achieved GMP+ Feed Safety Assurance certification for Pelletin, which is an internationally recognised program for feed safety management.
Extracting valuable lignin from wood pulp.
“Sappi’s certification gives Pelletin a competitive edge in the global lignin market, as it demonstrates its compliance with the highest standards of quality assurance and risk management in the animal feed industry,” says Jason Knock, general manager, Lignin for Sappi Southern Africa. This is vital for the health and welfare of livestock and the safety of food products derived from them, as well as the issue of food security in the country, he says.
Lignin, which is recovered from the pulping process of paper and board manufacturing, is becoming an increasingly important natural alternatives for oil-based products, and is a prime example of the growing bioeconomy.
Plantation trees provide the primary resource for a growing array of wood-based products from structural timber, poles, planks and boards to clothing fabric and animal food additives.
“As a technical lignin, Pelletin primarily functions as a binder in the production of compound animal feeds and acts as a natural glue that binds the feed ingredients and additives together. This makes for a cost-effective compound feed pellet with enhanced durability and strength,” says Jason.
The combined anti-caking and dispersing properties of the product promote mixing uniformity and homogenous blending of all feed ingredients, acting as an effective lubricant reducing friction in the pelleting process, as well as reducing wear and tear on the manufacturing equipment.
Lignin is a major component of wood, extracted during the pulping process.
Finding biodiversity in timber plantations
Eucalyptus plantation set back from riparian area, Karkloof.
Finding a balance between wood fibre production while conserving biodiversity and minimising environmental impacts is the big challenge facing the forestry industry all over the world. In South Africa it has a particular significance because almost all timber production comes from planted forests established in the wetter grassland areas located along the escarpment and eastern coastal plains.
These plantations, which occupy some 1% of South Africa’s land area, play a vital role in providing the primary raw material for a wide range of products from paper and packaging to structural timber, veneers, boards, fabric and charcoal, to name but a few. The forestry and forest products industry generates 10.4% of South Africa’s agricultural GDP and 4.5% of manufacturing GDP, creating 105 600 direct jobs and 43 500 indirect jobs in the process.
Crucially, these plantations have made it possible to protect the natural forests in South Africa from over-logging by providing the wood fibre needs of the growing population. Many of the plantations in this country were established by government specifically for this purpose.
But the loss of biodiversity which underpins life on earth and the ecosystem services upon which we depend, is a massive red flag for every country in the world, South Africa included. As populations increase more land is transformed from its natural state, and inevitably, the biodiversity supported by those natural systems is negatively impacted.
Sappi Forests Environmental Manager Hlengiwe Ndlovu (left) leads the way across a grassland conservation area at the top of the Karkloof mountains. It is located on Sappi’s Lebanon plantation, and borders with the indigenous forest in the Karkloof Nature Reserve.
This places a heavy responsibility on land managers to proceed cautiously when biodiversity, ecosystem services and the health of the entire natural environment is at stake.
So how do we continue to provide the wood fibre raw materials that we need from alien tree plantations that have transformed natural grassland, while at the same time conserving biodiversity? This was the focus of a recent visit by key staff members from SA National Biodiversity Institute, Department Forestry, Fisheries & Environment, Forestry South Africa and Paper Manufacturers Association of South Africa, to Sappi’s plantations in the Karkloof in the KZN Midlands.
What followed was a fascinating journey from the comfort of the Karkloof Country Club (and a delicious cappuccino) to a natural grassland in the middle of Lebanon plantation at the top of the rugged Karkloof mountains; to the 160 ha Shafton-Kusane wetland surrounded by forestry, dairy and sugar farms; to the magnificent Karkloof Falls where the Karkloof river plunges 105 meters into a gorge before joining the Umgeni river which provides the primary water resource for several million people downstream.
Sappi Forests Environmental Manager Hlengiwe Ndlovu and Sappi’s former Environmental Manager (now retired) and Chairperson of the Sustainable African Forest Assurance Scheme, Dave Everard, provided fascinating insights into the company’s strategy to achieve this elusive balance.
The Karkloof falls, a popular picnic spot, is at the centre of an impressive network of mountain bike and hiking trails.
Water
The thread that stitched this journey together was the water that trickles out of the springs and seeps at the top of the catchment. It makes its merry way along countless streams, through wetlands, natural forest patches, plantations, grasslands and farms, gathering momentum as it goes before entering the mighty Umgeni River which provides life-giving water for millions of people all the way to the coast. The water’s journey serves to emphasize the connectedness of the landscape, the fact that how we use the land in one place ultimately affects the health of the land everywhere.
Key to understanding Sappi’s - and indeed much of forestry’s approach – was the patchwork nature of the landscape. From the top of the Karkloof mountain we could see that the plantations stretching across the valley below were not contiguous wall-to-wall trees. There were open grassland corridors between the tree patches, along the rivers and around the wetlands and the steep, rocky outcrops. These open areas constitute around one third of the forestry company’s landholding, and are proactively managed for conservation purposes.
The way these open, unplanted areas are connected to each other, to the wetlands, high conservation value areas and natural forest patches in the landscape, plays a crucial role in their effectiveness as biodiversity enablers. If well planned out and managed, timber estates can therefore become ‘green corridors’ that allow the free movement of plants and animals, thereby supporting biodioversity in the landscape.
The group that attended the Biodiversity in Forestry field day arranged by the Paper Manufacturers Association of SA (PAMSA) and Forestry South Africa (FSA) and hosted by Sappi Forests at their Karkloof plantations. Left to right: Dave Everard (Chairperson of the Sustainable African Forest Assurance Scheme), Hlengiwe Ndlovu (Sappi Forests Environmental Manager), Julie Borland (R & D consultant, PAMSA), Alex Marsh (SANBI), Jane Molony (Executive Director, PAMSA), Jennifer Zungu (SANBI), John Scotcher (Environmental consultant, FSA), Tshifiwa Ramatshimbila (Director Woodlands & Indigenous Forests, DFFE) and Trudy Sebelebele (Forest Certification Manager, Sappi).
Grassland
The grassland we visited at the top of the mountain was a kaleidoscope of different grasses, forbs and bulbs thanks to the fact that it has been protected from excessive livestock grazing, and periodically burnt to mimic nature and promote biodiversity. Encroaching alien vegetation has been kept at bay.
Directly below the grassland an indigenous forest blankets the steep slopes of the mountain. This forms part of the 3 275 ha Karkloof Nature Reserve which includes 198 ha of Sappi owned land, land leased out by several other private landowners as well as land purchased by Ezemvelo KZN Wildlife. Although the forest was heavily logged back in the day, it has remained undisturbed for half a century and harbours a huge array of birds and animals, plant and tree species including the magnificent yellowwoods and stinkwoods. It lies within the upper catchments of the uMgeni and uThukela rivers which are of crucial strategic importance in supplying water to millions of downstream users.
Undisturbed grassland conservation area in between Lebanon plantation and the indigenous forest of the Karkloof Nature Reserve.
Wetland
The Shafton-Kusane wetland is situated in the centre of the Karkloof valley, and fulfils a vital function of capturing, storing, filtering and slowing down the water that drains out of the mountains. It covers an area of 160 ha and was ranked as highest priority in terms of broad regional conservation priorities and opportunities for providing key goods and services. Sappi has pulled its trees back to expand and protect the wetland, and does on-going invasive alien weed control. They’re also busy upgrading all the stream crossings above the wetland to ensure the water flows freely and unimpeded.
The Karkloof river meanders through the 160 ha Shafton-Kusane wetland before plunging over the Karkloof falls.
Karkloof trails
Below the wetland the river enters forest land again, and then plunges over the spectacular Karkloof waterfall. Here we encounter a different side of forestry. This is the focal point of one of the country’s best known trail networks. There are 250 kms of carefully curated single track trails and forestry roads snaking through plantations, grassland corridors and conservation areas, used by mountain bikers, runners and hikers from far and wide who come here to savour what the beautiful KZN midlands has to offer. There is also a well-kept picnic area for day visitors who just want to unwind and enjoy the scenery.
Providing safe public access to these forests and trails is part of Sappi’s social commitment to promote eco-tourism and the local economy.
In the midst of all this, Sappi needs to operate an efficient and productive forestry operation that sustains jobs and keeps shareholders and stakeholders happy.
The Biodiversity field trip ended at the picturesque picnic spot located in the middle of a Sappi plantation, with the magnificent Karkloof Falls as the backdrop.
Biodiversity
Sappi has partnered with organisations such as the SA National Biodiversity Institute and WWF, as well as other plantation owners through Forestry South Arica, to mainstream biodiversity into the forest sector. This includes ambitious catchment management projects that extend beyond their own borders as well as the stewardship programme which facilitates the proclamation of nature reserves and protected areas on forestry land.
Sappi maintains 160 important conservation areas, including seven nature reserves, on its plantation lands in South Africa.
This work includes on-going water quality assessments and monitoring, integrated weed management plans and maintaining and enhancing soil function, a crucial component of sustainable forest management.
Forestry in South Africa is regarded as a streamflow reduction activity, and is regulated and controlled by a raft of legislation. New afforestation is restricted to catchments where spare water is available. The total planted forestry area has actually shrunk over the past 10 years or so, and is unlikely to be expanded in the foreseeable future. Plantations range in size from several thousand-hectare estates all the way down to tiny, one or two hectare plots grown by small-scale farmers located in tribal areas.
Like any crop, growing trees use water, but they use it efficiently in the production of wood fibre, a key natural resource that is renewable, sequesters carbon from the atmosphere and – unlike a material like plastic - leaves behind zero waste. Commercial forestry plantations in South Africa account for some 3% of total water use, according to an Overview of the SA Water Sector, published by the Department of Water & Sanitation. Plantations are not irrigated – they only intercept rainfall, which reduces runoff into rivers and streams. By way of comparison, agriculture/irrigation utilises 60% of total water resources in South Africa.
View of the Karkloof valley from the top of the mountains showing patches of indigenous forest, farm land and plantations.
Moreover the forest sector uses very little chemical weedicides and pesticides, the use of which are also heavily regulated by certification bodies.
So how much biodiversity can thrive in this typical patchwork plantation environment?
During 10 birding events held on Sappi plantation land in the KZN midlands between 1997 and 2007, a total of 455 bird species were recorded. A camera trap survey during the same period yielded 30 mammal species. These included jackal, caracal, civet, genet, serval, porcupine, mongoose, aardwolf, badger, otter, samango monkey, baboon, warthog, bushpig, reedbuck, bushbuck and duiker. Several sightings of leopard have also been recorded in plantations around KZN and Mpumalanga.
These sightings indicate that timber plantations – when properly managed – can play an important role in protecting and enhancing biodiversity.
A trickle of water threads through Shafton plantation at the picnic spot above the Karkloof Falls.
Last word
“Given that plantations are effectively green corridors that facilitate movement throughout the region, it is entirely possible that a land-sparing approach combining large patches of grassland in a mosaic with intensively used plantation patches provides the best compromise to produce the required volumes of wood while preserving meaningful biodiversity outside of formally protected areas.” This summation was provided by Michelle Pretorius and Justin O’Riain of the Department of Biological Sciences at the University of Cape Town, and Kirsten Wimberger of the Wild Bird Trust, in an article titled ‘Preserving large tracts of natural grassland promotes mammal species richness and occurrence in afforested areas’, published in the Forest Ecology & Management journal.
Hlengiwe Ndlovu, Divisional Environmental Manager for Sappi Forests, proudly displays the PEFC-endorsed Sappi Group Scheme certificate for small scale growers.
Five small scale timber growers in KwaZulu-Natal have become the first participants in the award-winning Sappi Khulisa programme to achieve forest certification through the Programme for the Endorsement of Forest Certification (PEFC) in the Sappi Group Scheme for small scale growers.
The five timber growers, with a total 8,143 hectares of timber area between them, have been successfully audited and awarded a PEFC Group Scheme certificate. The recipients of this significant milestone, and founding members of the Sappi PEFC Group Scheme, are:-
• iMfume Cluster, consisting of more than 20l individual small growers from the Mfume district near Scottburgh, • Sobengwe Trading, Ixopo, • MG Farming, Richmond, • Mclean M, Underberg, • Braecroft Timbers (Pty) Ltd, Underberg.
This follows years of intensive efforts by Sappi - working together with other stakeholders in the forestry industry - in addressing the barriers to certification experienced by small-scale growers in South Africa. PEFC is an internationally recognised certification system that provides assurance to end-use consumers of wood products that the raw material is sourced from sustainably managed forests.
Members of the Sobengwe Trading forestry team, Ixopo. Certification provides small-scale growers with access to international markets and assures consumers that wood-based products are responsibly sourced from sustainable forestry operations.
Sappi was the first grower company in South Africa to achieve PEFC certification through the Sustainable African Forest Assurance Scheme (SAFAS) in 2021, after starting with the process in 2015. This involved participation in the development of a Forest Management Standard for South Africa, the development of mechanisms to support certification requirements and, in 2018, the endorsement of the standard and certification procedures. A certification tool was developed by the SAFAS team to assess plantations, based on several factors including environmental, social and economic conditions specific to South Africa.
“After years of collaboration and dedicated commitment to developing a forest certification standard for South Africa, this achievement marks a historical moment in our long journey to support and make forest certification more accessible to the small landowners that participate in our supplier programmes,” commented Duane Roothman, Vice-President of Sappi Forests.
Forest certification is used as a tool to ensure that responsible forest management practices are implemented in the forest, and that wood from certified forests can be identified throughout the supply chain. It enables conscious consumers to choose responsibly sourced wood-based products, and gives consumers the assurance that the woodfibre used to manufacture the products they are buying has been legally harvested in accordance with sound environmental practices, and that social aspects, such as indigenous rights, have been taken into account.
Forest certification and other voluntary codes of conduct are key tools for promoting sustainable consumption and production, and for combating deforestation, forest degradation and illegal logging by providing proof of legality and responsible management, harvesting and manufacturing practices.
That’s the uMkhomazi river, a strategic water resource that rises in the southern Drakensberg mountains and serves thousands of downstream users, including the Sappi-Saiccor mill on the south coast. In the foreground are cleared alien wattles.
The Sappi/WWF Water Stewardship Partnership is making a difference in the uMkhomazi catchment, a strategic water resource area serving a myriad of downstream users …
There are no plantations here - except for the remains of a rogue black wattle jungle that has been cleared from the banks of the river - as we follow a well used footpath down into the uMkhomazi valley. This is tribal land used by the Nzinga people who live in a sprawling rural settlement a little way upstream from Impendle. They graze their cattle here on these grassy slopes, but over the years a combination of over-grazing, uncontrolled wildfires and encroaching alien vegetation has taken its toll on the landscape which has been losing its capacity to support the livestock upon which they depend for survival.
This is a familiar scenario in rural South Africa, where land degradation and deepening rural poverty go hand in hand. This process has significant negative impacts on the water quality that runs off the catchment and ends up in one of KwaZulu-Natal’s major rivers that serves a myriad of downstream water users.
But now things are changing in this section of the valley which has become a focus of attention following a ground-breaking Water Stewardship Partnership between Sappi and WWF-SA (the World Wide Fund for Nature South Africa) that was launched in 2021. The alien wattle trees are gone, the cattle are being moved around in camps by local ‘eco-rangers’, wildfires are being kept out and the grasslands are beginning to show signs of recovery.
The eco-rangers move the community’s cattle into camps at night to stimulate the soil and encourage the natural grass cover to return on the bare patches of ground where alien wattle was cleared.
The Sappi/WWF team has engaged the Institute of Natural Resources (INR) to organise and support the local farmers to rehabilitate their rangelands and improve their herds so that they can earn a better living off their cattle. INR facilitated the clearing of alien wattle as well as the training of the farmers and the ‘eco-rangers’ who watch over the cattle, move them from camp to camp, keep wildfires and stock thieves at bay and engage in land restoration work.
The eco-rangers are managed by the local cattle owners who have joined the project. They have received training through Meat Naturally in regenerative grazing techniques, rangeland restoration and livestock management. Meat Naturally has also organised a mobile auction to enable the famers to sell their cattle and access new markets.
Mthobisi Gwala of the Institute of Natural Resources (left) and local cattle farmer Nkosi Nxamalala are engaged in a project to improve the rangelands and restore the health of the natural ecosystems in the uMkhomazi catchment.
One of the cattle farmers, Nkosi Nxamalala, was sitting on the hillside watching his cattle graze in the valley below, and accompanied us on our walk. He told us that 40 farmers from his community have joined the programme. They own 700 head of cattle between them, and they are starting to see how the improved grazing is benefitting them. He was especially thankful for the training he has received in animal health which has helped him to maintain a healthy herd.
Lower down in the valley where the wattle jungle has been cleared, the wattle slash has been used to create berms to prevent soil erosion on the bare patches of soil that have been left behind. Various techniques are being trialled to find the best way of encouraging the natural grass cover to grow back on these bare patches, including camping the cattle overnight so that their dung and the action of their hooves can stimulate and promote soil health and get the natural grasses to grow back.
According to Mthobisi Gwala of INR, many cattle farmers in neighbouring communities are beginning to see how good range management is benefitting the Nzinga farmers and are lining up to join the programme. He says INR is also busy implementing a similar programme with cattle farmers from the Ekukhanyeni community, located a little downstream from the Nzinga.
Local people were employed to clear alien wattle which had invaded the Nzinga’s traditional rangelands in the uMkhomazi valley, negatively impacting their cattle businesses as well as the health of the catchment. (Photo: Wanika Davids, WWF SA)
These berms constructed from wattle slash are used to prevent soil erosion on the bare patches of soil left behind after the alien wattle was cleared from the banks of the uMkhomazi river.
Water stewardship
What does all of this have to do with ‘water stewardship’ you may ask?
Well, an important component of improving the land management within the catchment involves engaging with local communities that occupy and utilise the land and providing them with the tools and the skills to turn things around and restore the health of the natural ecosystems. Healthy wetlands and grasslands store moisture, releasing it slowly downstream while protecting the soil from erosion, providing a healthy habitat for wild flora and fauna and better grazing for livestock which in turn benefits the communities. An added benefit is that healthy soils and grasslands store more carbon than degraded landscapes, thus mitigating the effects of climate change as well.
This is just one aspect of the Sappi WWF-SA programme that aims to improve water security in the uMkhomazi catchment. It is an ambitious and complex undertaking involving multiple stakeholders. The uMkhomazi is one of KwaZulu-Natal’s most strategic river catchment systems that extends all the way from the southern Drakensberg mountains to the sea.
Along the way the river provides the primary water resource for many rural communities such as the Nzinga, extensive commercial agriculture and forestry operations, as well as manufacturing businesses, peri-urban settlements and towns all the way to the coast.
The village of the Nzinga … many of the community members rely on cattle farming for their livelihoods.
Invested in the catchment
Sappi is heavily invested in this catchment with some 42 000 ha of plantation forestry spread across its upper reaches, while Sappi-Saiccor mill – one of the biggest dissolving pulp mills in the world – is situated on the banks of the river less than one km from its mouth where it enters the Indian Ocean.
According to Sappi’s Biodiversity Engagement Specialist, Craig Daniel, water security has been identified as a key risk for Sappi, with both their pulp manufacturing operation and the forestry lands being dependent upon a healthy catchment, viable communities and good quality water. It’s not surprising therefore that Sappi has joined forces with WWF-SA, one of the world’s leading conservation organisations, to address the challenges.
Beginning in 2021, Sappi and WWF have been collaborating with many other partners to achieve the objectives of the Water Stewardship Programme, which has four main focus areas:- • To improve water governance through multi-stakeholder engagement; • To promote efficient water-use; • To remove alien invasive plants and rehabilitate wetlands and riparian areas; • To strengthen the capacity of local communities in natural resource management.
Krelyne Andrew, GM Sustainability Dissolving Pulp at Sappi-Saiccor, says: “Sappi has prioritised Sustainable Development Goal (SDG) 6 – the right to clean water and sanitation – as part of its business strategy.” This stewardship project is putting that promise into practice, she says.
The Sappi-Saiccor pulp mill is situated at the end of the uMkhomazi catchment just upstream from the river mouth.
Strategic water source areas
With water use having grown at more than twice the rate of population increase in the last century and with South Africa being a water-scarce country, WWF-SA has chosen to focus many of its portfolio of projects on securing South Africa’s Strategic Water Source Areas. These are the areas that deliver over 50% of South Africa’s freshwater to downstream economies, while only making up 10% of the country’s land cover. The uMkhomazi catchment is one of these strategic water source areas.
To achieve its objectives, WWF-SA is pro-actively mobilising water stewardship partnerships throughout the country to bring together communities, corporations, government, and non-profit organisations to tackle the water challenges in the Strategic Water Source Areas. The Sappi WWF uMkhomazi Water Stewardship Programme is one such partnership.
“Our partnership with Sappi is crucial, as WWF cannot work on its own to secure these important Strategic Water Source Areas,” commented David Lindley of WWF.
Left to right: Dr Dave Everard, Mthobisi Gwala (INR) and Craig Daniel (Sappi) visiting the Nzinga tribal rangelands in the uMkhomazi valley upstream from Impendle.
Water governance challenges
Dr Dave Everard, former Sappi Forests Environmental Manager (recently retired) who has been involved in setting up the programme, said that a key aspect of the work of the project team is to address water governance issues. Dave said there are huge challenges out there that impact on water security, and the project has provided the team with an opportunity to engage with the many levels of stakeholders involved in water governance and usage. These range from the Department of Water and Sanitation, to local authorities, water boards, farmer associations, communities and other water users.
The Sappi team is all too aware that their own forestry operations can have an impact on the catchment
Commented Hlengiwe Ndlovu, Divisional Environmental Manager for Sappi Forests: “We recognise the impact our plantations can have in the uMkhomazi catchment and on freshwater ecosystems, such as wetlands and rivers, and the importance of these being well managed. So, we promote water stewardship as a key part of our forestry management and make every effort to reduce the impacts of our forestry activities on water resources.
“The opportunity for green jobs through the partnership’s focus on alien invasive plant clearing is also fully aligned with Sappi’s commitment to Enterprise and Supplier Development that promotes sustainable livelihoods through capacity building of small and medium-sized enterprises,” said Hlengiwe.
A thorough review of the first phase of the project has been done, and the good news is that both Sappi and WWF have expressed their satisfaction with the platform that has been established in Phase One, and have committed to continue with the programme for another four year cycle, ending in September 2027. In addition to the freshwater work, the partnership will explore the integration of biodiversity stewardship and sustainable financing initiatives during Phase Two.
The cattle are camped at night to help restore soil fertility and grass cover, while during the day they are moved around the communal lands to give the grass time to recover and prevent over-grazing. (Photo: Wanika Davids, WWF SA)