SAfrica scheme to ‘boost Africa biofuels industry’

14 December 2006 14:15  [Source: ICIS news]

JOHANNESBURG (ICIS news)--The South African government’s decision to back the country’s emerging biofuels market will help kickstart the industry across Africa, two industry organisations said on Thursday.

 

Both biofuels firm Ethanol Africa and policy group Renewable Energy and Energy Efficiency Partnership (REEEP) supported the government’s decision, announced this month, to approve a draft biofuels industrial strategy for the country, which could see 75% of its renewable energy needs met by biofuels by 2013.

 

A final plan, based on capital investment of South African rand (R) 6bn ($857mn), will go before cabinet in May 2007.

 

“Biofuels have the potential to become one of the most important drivers of the South African economy in the very near future,” said Annelie Coleman, spokeswoman for Ethanol Africa.

 

Ethanol Africa is planning to build its first grain-based ethanol production plant at a cost of R700m, the first of eight similar plants.

 

Each plant will have the capacity to produce 473,000 litres/day of ethanol, consuming 1,150 tonnes/day of maize.

 

The firm plans to produce 1.24bn litresyear of bioethanol from 3m tonnes/year of maize, satisfying 80% of the biofuels required in the current South African E10 fuels program.

 

“South Africa has the capacity to play a leading role in the development of biofuels industries in sub-Saharan Africa and the South African government’s support of biofuels will therefore have a marked influence on the rest of the continent,” Coleman said.

 

“The biofuel industry holds a host of benefits for the country such as job creation and major developments in the rural areas,” she added.

 

“The expansion of the biofuels market in the region will not only reduce South Africa’s current dependence on external sources of energy but will create much needed employment and improve energy security,” said REEEP spokeswoman Carmen Armstrong.

 

REEEP said it is backed by more than 200 national governments, businesses, development banks and NGOs (non-governmental organisations).

 

The biofuels industry has struggled to get off the ground in South Africa because of a lack of fiscal and other regulatory support.

 

Biodiesel schemes have been frustrated by the government’s decision to block the local planting of jatropha on environmental grounds and by the rising import costs of vegetable oils.

 

($1 = 7 rand)

By: Harry Timpson
+44 20 8652 3214

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