http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: -0.02
R/$ = 10.69Change: -0.05
Au 1277.48 $/ozChange: -15.66
Pt 1419.50 $/ozChange: -8.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 06, 2007

Government to finalise fuel support strategy next month

Back
Engineering|Africa|Gas|Africa|South Africa|Greenhouse Gas Emissions|Products|Cornelis Van Der Waal|BIOFUELS
Engineering|Africa|Gas|Africa||Products||
engineering|africa-company|gas-company|africa|south-africa|greenhouse-gas-emissions|products|cornelis-van-der-waal|biofuels
© Reuse this The biofuels industry in South Africa is currently at the forefront of exciting growth. Under the Kyoto Protocol, the government is committed to reducing greenhouse gas emissions, with one of the most important ways of achieving the targets being to boost biofuels production and consumption.

However, the industry is currently waiting for government to finalise its fuel support strategy which will be released in August this year. "This will give a strong indication to farmers and fuel producers about the financial support they will receive from government to get the industry up to the standard where it can compete with the established fossil fuel industry," Frost & Sullivan industry analyst Cornelis van der Waal tells Engineering News.

He states that the technology used in the industry is mainly based on European and American technology but it is expected that the cost of technology will decrease significantly over the next ten years. However, producers will have to develop the local market, and will have to invest in the available technology at current prices.

Van der Waal says that the biofuels industry is currently stagnant, but considerable investment is being planned and will commence as soon as government unveils its fuel support strategy.

"The aim is to substitute at least 4,5% of all fuels consumed by 2010," explains Van der Waal. He adds that additional production will have a number of positive spin-offs for the country. "The first is increased employment in the agricultural and biofuels industry. The second is the retention of valuable currency that would have been spent on acquiring crude oil products. This, in turn, should have a positive influence on the overall economy," he says.

There are a number of challenges currently facing the biofuels industry. Van der Waal says these include the lack of certainty regarding subsidies as well as the lack of guaranteed offset markets. He says the challenge of skills development is also an important aspect to consider in the industry, as well as the challenges being faced in sufficient feedstock production, without affecting food production.

But, the production of bioethanol and biodiesel for local consumption and even for export purposes, is the biggest potential for growth in the industry.

The development of this market is a direct result of the increased fossil fuel prices experienced over the last three years. The technology used for biofuels has been around for many years but as a result of relatively low fossil fuel costs the biofuels industry was not competitive with traditional fuel production processes. The main challenge will be to develop an industry that is sustainable even when the price of crude oil drops to levels of about $40 to $50 a barrel.

Frost & Sullivan is currently participating in a study on the Southern African biofuels market which will provide a clear indication of the state of the industry, concludes van der Waal.
Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Biofuels News
Anaerobic Digestion produces a renewable biogas and digestate, a soil improver that can replace traditional fertilisers
While solar and wind energy tend to attract the most attention in the renewable energy space in South Africa, developments in biogas could make it an increasingly viable option.  With the help of an international partner, South African waste management company...
Article contains comments
Solaris plants
South African Airways (SAA) and US aircraft manufacturer Boeing announced on Wednesday the latest development in their partnership (launched in October last year) to establish a sustainable aviation biofuel supply chain in Southern Africa. The two groups have...
The long-running and highly contested Economic Partnership Agreement (EPA) negotiations between seven Southern African countries and the European Union (EU) have been concluded, with South Africa insisting that the new deal preserves coherence within the Southern...
Article contains comments
More
 
 
Latest News
Updated 1 hour ago Construction, mining, development and engineering group Basil Read on Thursday announced that it expected a loss a share for the six months ended June 30, of between 131.18c and 160.33c, compared with the 198.28c earnings a share in the prior corresponding period....
Updated 1 hour 1 minute ago JSE-listed Group Five on Thursday said it had secured a three-year R4-billion engineering, procurement and construction contract for the design and build of a 350 MW gas- and oil-fired combined cycle power plant in Ghana. Ghana-based Cenpower Generation would issue...
Phumulo Masualle and Naledi Pandor
Updated 1 hour 17 minutes ago The East London industrial development zone (Elidz) on Thursday afternoon officially launched its Science and Technology Park (STP), which is aimed at speeding up the pace of economic development in the Eastern Cape. The STP’s location within the Elidz was expected...
More
 
 
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...
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
The Built Environment unit at the Council for Scientific and Industrial Research (CSIR) has developed a cost-competitive ultrathin concrete pavement surface that, for the upgrading of unpaved roads to paved roads, is more durable than many other pavement alternatives...
The Southern African Large Telescope (SALT), based at Sutherland in the Karoo region in the Northern Cape province, is promising to become an important instrument for research into dark matter. "SALT is shaping up to be very important for answering questions about...
HENK SNYMAN TDM supports broader industrial activity that has a multiplier-effect on the potential to beneficiate raw materials in many industries
The South African tool, die and mouldmaking (TDM) industry is being revitalised to locally produce the tools, dies, moulds and fixtures required by the manufacturing sector. Local TDM capability is key to enable the manufacturing industry to remain competitive, says...
Misfortune often finds its roots in the smallest of things. Such as a centimetre or two. Or is that in inch? Perhaps a foot? Swedish or Dutch? The French had reason to blush in May as it became apparent that national rail operator SNCF had ordered 2 000 trains that...
The repositioning of the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) and its business processes will ensure improved performance in reaching strategic targets and in providing customer service.
 
 
 
 
 
 
 
 
 
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