http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.68Change: -0.03
R/$ = 12.40Change: -0.09
Au 1165.28 $/ozChange: -3.52
Pt 1053.00 $/ozChange: -29.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 21, 2012

DoE’s mandatory blending regulations welcomed by grain producers

Back
Bothaville|Natal|Africa|Diesel|Grain SA|Industrial|Industrial Development Corporation|Mabele Fuels|Pannar|SECURITY|Sustainable|System|Testing|Africa|Australia|South Africa|Energy|Equipment|Food|Food Security|Fuel-grade Ethanol Manufacturer|Eastern Cape|Dipuo Peters|Dries Booyens|Jannie De Villiers|Wessel Lemmer|Eastern Cape|The Government Gazette|BIOFUELS|Diesel
|Africa|Diesel|Industrial|SECURITY|Sustainable|System|Testing|Africa||Energy|Equipment||||||
bothaville|natal|africa-company|diesel-company|grain-sa|industrial|industrial-development-corporation|mabele-fuels|pannar|security|sustainable|system|testing|africa|australia-country|south-africa|energy|equipment|food|food-security|fuel-grade-ethanol-manufacturer|eastern-cape|dipuo-peters|dries-booyens|jannie-de-villiers|wessel-lemmer|eastern-cape-province-or-state|the-government-gazette|biofuels|diesel
© Reuse this



South African grain producers association, Grain SA, has welcomed the Department of Energy’s (DoE’s) publication of the Mandatory Blending of Biofuel with Petrol and Diesel regulations in the Government Gazette last month.

“These regulations are set to re-establish the grain sorghum market in South Africa and provide a much-needed boost for this declining market,” says Grain SA market research senior economist Wessel Lemmer.

He points out, however, that the implementation date of the blending regulations must still be determined by Energy Minister Dipuo Peters.

The regulations stipulate that the minimum concentration of biodiesel blending in diesel is 5% volume per volume (v/v), with the permitted range for bioethanol blending in petrol ranging between 2% v/v and 10% v/v.

The Biofuels Industrial Strategy, released by the former Department of Minerals and Energy in 2007, states that, given South Africa’s climatic conditions, agricultural potential, land availability and food security, the country can consider biofuel production.

Since the publication of the strategy in 2007, industry patiently expected the announcement of the regulations on the mandatory blending and administered pricing of biofuels to retain the investment and business confidence of investors, financiers and producers to establish a biofuels industry.

The implementation of these regulations and other government incentives should not be delayed any further, asserts Lemmer.

The strategy, which excluded maize as a biofuel feedstock, owing to food security concerns, identified grain sorghum, sugar cane and sugar beet as possible feedstocks for bioethanol production.

Lemmer says grain sorghum is the better-positioned crop for South African bioethanol production, as sugar cane is mostly limited to high rainfall areas, such as KwaZulu-Natal.

Grain sorghum is drought tolerant and adaptable to the drier climates and production conditions found throughout the rest of the country, owing to its root system.

It can also be grown on land where maize cannot be grown. This enables producers to use underutilised land to grow sorghum.

Grain SA’s latest grain sorghum pro- jections for the 2012/13 financial year indicate that 137 000 t of sorghum was produced locally, while 85 000 t of sorghum was imported.

Further, statistics indicate that 49 000 ha of grain sorghum were planted with a yield of 2.82 t of sorghum for each hectare.

Total grain sorghum demand was recorded at 226 000 t, with 80 000 t for the malting industry and 105 000 t for the meal industry.

The 2% minimum concentration of bio- ethanol blending in petrol stipulated in the blending regulations will require 600 000 t/y of grain sorghum, says Lemmer.

It is estimated that 600 000 t/y of grain sorghum will be sufficient for the needs of the country’s two major bioethanol plants, which are to be built by the Industrial Development Corporation in Cradock, in the Eastern Cape, and by fuel-grade ethanol manufacturer Mabele Fuels in Bothaville, in the Free State.

“This means that total local grain sorghum demand is set to rise from 226 000 t/y to 826 000 t/y as a result of bioethanol pro- duction,” notes Lemmer.

Grain Sorghum Cultivars
Between 12 000 and 15 000 25 kg bags of grain sorghum seed is currently supplied to the market each year, says Pannar sorghum research manager Dries Booyens.

“The grain sorghum seed industry will increase to between 60 000 and 70 000 25 kg bags of seed a year, with an addi- tional 240 000 ha being planted to meet the increased demand for the crop from the biofuels sector if both the Cradock- and Bothaville-based bioethanol plants are in operation,” he says.

In response to the mandatory blending levels, seed producers are encouraged to start increasing their output now, says Lemmer.

“For the seed multiplication to occur, seed breeders will have to contract producers before the end of September to multiply the seed for the 2014 crop, after which the biofuel plants are expected to be ready for intake,” he explains.

Pannar supplies four grain sorghum hybrids to the market, namely PAN 8816, a tannin-free sorghum that is currently used by 85% of the market owing to its good yield and stability, as well as malting and milling capabilities; and PAN 8625, a tannin grain sorghum with good adaption, yield and malting quality.

Pannar also supplies PAN 8909 and PAN 8906, which are new hard-seeded hybrids that are suitable for milling and ethanol production.

Booyens is of the opinion that culivars that have good malting qualities will most likely be suitable for the production of higher extractable starches.

Booyens reports that the hybrids mar- keted by Pannar have been sent for testing to determine the extractable starch content of the seeds, with the data expected to be available within the next month.

Seed companies are encouraged to invest in researching which hybrids will produce the highest extractable starches for bio- ethanol production.

Advantages
A larger grain sorghum market in South Africa will result in more sorghum being produced for the production of meal and bioethanol.

This could, therefore, also manifest in not having to import grain sorghum from Australia and even in exporting any excess sorghum, says Lemmer.

Meanwhile, expanding the grain sorghum market, specifically as a feedstock for bio- ethanol production, has enabled the development of new sorghum producers.

The Grain SA Farmer Development Programme is committed to developing capacitated, sustainable, black commercial producers, he notes.

Challenges, such as the nonprofitability of grain production; a lack of knowledge, skills and experience; as well as a lack of production credit, adequate equipment and land access are being dealt with through the programme.

This will increasingly enable small-scale black producers to become commercial sorghum producers and, in turn, increase skills and job creation in the rural areas that are suitable for sorghum production.

Grain SA says it has assisted government in making this initiative a success.


“Producers were trained and partnership agreements were signed with the Department of Rural Development and Land Reform to recapitalise farms in the Free State, North West and Mpumalanga to produce additional tons of feedstock for bioethanol production,” the association says.


Grain SA says it is very important for the private sector, however, that Minister Peters announces the implementation date of the regulations and the administered prices of biofuels as soon as possible, as very little work can be done to establish a biofuels industry before that is confirmed.

“A greener future will benefit everybody and the jobs that will be created will benefit not only South Africa but also the rural areas where the grain and biofuel will be produced,” concludes Grain SA CEO Jannie de Villiers.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Biofuels News
Article contains comments
Illovo MD Gavin Dalgleish
Sugar producer Illovo says there is a major opportunity to alleviate South Africa’s immediate power crisis and reduce rural poverty by more fully exploiting the industry’s electricity cogeneration potential. But MD Gavin Dalgleish says this potential will only be...
Article contains comments
Eskom’s group executive for generation, Mongezi Ntsokolo, was at pains to assure South Africans that the utility was working hard to sort out the country's shortage in electricity supply, when addressing delegates at an African Utility Week panel discussion on...
ANAEROBIC MEMBRANE BIOREACTOR Sasol’s 20 000 ℓ pilot scale plant was completed in 2013 following a 12-month construction period
Petrochemicals group Sasol will finalise the conceptual design of a 60 Mℓ anaerobic membrane bioreactor (AnMBR) at the end of this year, which is expected to generate 40 MW of electricity by treating a gas-to-liquids (GTL) plant’s industrial effluent to produce...
Article contains comments
More
 
 
Latest News
Updated 45 minutes ago Residents of Victory Park, Linden, Bryanston South and Blairgowrie have selected Vumatel to establish fibre-to-the-home (FTTH) networks in their suburbs. “Together with [these] suburbs, this brings the tally to 11 confirmed ‘fibrehoods’ within the relatively short...
Updated 1 hour 17 minutes ago While acknowledging that its inherent proclivity for the shift of freight from road to rail is owing largely to environmental considerations, World Wide Fund for Nature South Africa (WWF-SA) believes this trend is only likely to strengthen if supported by a strong...
Updated 1 hour 20 minutes ago Ahmad Farroukh will step down as CEO of MTN South Africa on July 31. A successor would be announced as soon as a new appointment was finalised. “This was a difficult decision to take for Ahmad, but unavoidable due to personal and family reasons.   “On behalf of the...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96