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BIOFUELS
SADC free-trade zone could benefit biofuels development
 
31st March 2009
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An energy mix was the best precondition for energy supply security, energy price stability and structural flexibility, Southern African Biofuels Association CEO Erhard Seiler said during the second day of the African Biofuels conference, in Midrand, on Tuesday.

He stated that African countries would have to use a variety of fuels, as both biofuels and fossil fuels had advantages and limitations. He added that a portion of certain fuels could easily be substituted by biofuels.

Seiler highlighted that the association was in favour of a free-trade zone being established in the Southern African Development Community region, as this would be positive for the development of the biofuels sector.

However, the region would need to agree on a homogenised standards system for biofuels.

Meanwhile, biofuels producer Biodiesel Centre GM Neville Murray commented that there was a lot of activity in the biofuels sector in Africa, with projects worth between R8-billion and R10-billion being reported in the media.

He noted that there had been a rapid development in technology, stating that this was not the region’s biggest challenge.

Securing adequate and appropriate feedstock for biofuels projects would be a big challenge going forward.

Murray said that there were a lot of similarities between Africa and Brazil, which produced about 45% of its fuel requirements, adding that the continent could learn from Brazil.

For instance, the Brazilian government had set funding aside for biofuels projects, allowing developers to access the funding if their business cases were right.

Brazil was set to run out of oil reserves by 2024, while the world’s reserves were reportedly going to run out by 2064, said Murray, who stated that economic, social and environmental pressures would accelerate biofuels production across the world and in Africa, going forward.

Edited by: Mariaan Webb

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