Sep 09, 2011
Financier moves ahead with biofuels projectBack
Construction|SECURITY|Africa|Cogeneration|Components|Industrial|Industrial Development Corporation|PROJECT|Projects|Renewable Energy|Renewable-Energy|Security|Waste|Africa|South Africa|Security|Cogeneration|Energy|Manufacturing|Security|Eastern Cape|Cogeneration|Noel Kamrajh|Security|Van Tonder|Waste|Eastern Cape|BIOFUELS
© Reuse this
“The IDC has earmarked the Craddock Bioethanol project, in the Eastern Cape, to take through to production to show government that the industry can be developed sustainably. “The remaining two projects will be put on hold until further progress has been made by government on biofuels policies,” says the IDC head of green industries Rentia van Tonder.
IDC industry champion of green industries Noel Kamrajh says the IDC hopes to start construction early next year, with first production expected by 2014. The Craddock bioethanol production plant is expected to produce 300 000 ℓ/d and 100-million litres a year of bioethanol.
The output of the plant, which will process grain sorghum and produce dehydrated bioethanol, is intended to offset 2% of the country’s fuel imports. Ethanol acts as an oxygenated additive and adds volume to fuel, while eliminating the addition of methyl tertiary-butyl ether currently found in fuel developed by some refiners.
“The project aims to resolve the key challenges and potential regulatory bottlenecks that could be faced by the new industry. “As other commercial investors start to develop biofuels projects, they will be spared these challenges that the IDC has and is experiencing during the implementation of its Craddock project,” says Kamrajh.
Van Tonder adds the IDC believes that, if successfully developed, the bioethanol project can place more pressure on government to fast-track its biofuels regulations and policies.
Financiers or developers may not be in a position to develop their own biofuels plants owing to the risks and challenges associated with developing an early project, where security of strong offtakes is lacking and a long-term enabling environment, in which government supports certain security on revenues, has not been established.
“Biofuels are still in the early phases of development in this country and the opportunity exists to develop projects into a sustainable industry,” says Van Tonder.
The IDC’s long-term aim is to develop all three of its projects to produce 300-million litres a year of South Africa’s required 400-million litres a year of biofuels.
The initiation of biofuels projects has been slow moving; however, the past six months has seen increased interest and positive action in developing the industry, she says.
“At the end of last year, government appointed consultants to investigate the feasibility of a mandated upliftment in the industry and the threshold of pricing to make investments in biofuels feasible and provide an economic return for potential investors,” Kamrajh explains.
The outcomes of one of the two completed studies were presented to the biofuels steering committee in June, while the blending margin study is scheduled for completion this month. The Department of Energy and the National Treasury are to consider these proposals before passing the regulations.
The IDC has allocated R25-billion for investments into green industries over the next five years. Of this, R2.6-billion will be spent on the manufacturing of green components, such as wind blades and solar panels. A further R14-billion to R15-billion will be invested in the renewable-energy industry and the remaining R6-billion to R8-billion will be shared between fuel-based energy initiatives, such as waste-to-energy, cogeneration and biofuels, and pollution and emission management.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Biofuels News
Updated 1 hour 50 minutes ago For two years, Italy-based industrial research and development company Sunchem have been working on producing jet fuel using a tobacco crop project in Marble Hall, Limpopo, which has proved to be successful in the small-scale trials, says Sunchem SA MD Joost van...
Updated 1 hour 50 minutes ago Cape Town-based industrial boilers designer and manufacturer John Thompson developed the MicroGen watertube boiler – launched this year – to cater for increasing demand for small, medium-pressure power boilers that are particularly suited to applications in fibrous...
Updated 1 hour 50 minutes ago Development financier the Eastern Cape Development Corporation (ECDC) signed a cooperation agreement with Argentina-based consortium A & G International in July, which will lead to the production of 25 000 ha of soybeans and other grains for biofuels, human...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
Updated 1 hour 32 minutes ago While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Updated 1 hour 32 minutes ago Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
Updated 1 hour 32 minutes ago To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Updated 1 hour 32 minutes ago Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Updated 1 hour 32 minutes ago Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...