South Africa’s State-owned Central Energy Fund (CEF) has signed a memorandum of under- standing with Brazilian petrochemicals giant Petrobras to conduct a feasibility study concerning the introduction of bioethanol in South Africa.

Brazil is the largest producer of sugar and bioethanol in the world.

CEF CEO Mputumi Damane said that the CEF is interested in developing technology for the production of bioethanol from sugar cane.

It is envisaged that South Africa will introduce a biofuels-blending regime, which will make it mandatory for oil companies to blend a certain percentage of bioethenaol and biodiesel – anticipated to be 10% – into the mineral-oil-based liquid fuels supply.

Bioethanol can be blended with conventional petrol and used as an additive to boost the octane number of unleaded petrol.

Damane said that the study is part of a broader intent to develop a bioethanol industry in South Africa.

The CEF and Petrobras will cooperate in the feasibility study with the aim of commercially producing bioethanol in South Africa.

The study will also investigate the feasibility of increasing the planting of sugar cane in South Africa, with the view to provide sufficient feedstock for the production of ethanol.

Brazil’s expertise in the production of bioethanol has made its economy largely independent of mineral oil.

In July, local company Ethanol Africa started the construction of South Africa’s first large-scale bioethanol plant in Bothaville, in the Free State.

The plant will use maize primarily as a feedstock.

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