http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.71Change: -0.01
R/$ = 10.95Change: 0.07
Au 1198.45 $/ozChange: 0.29
Pt 1229.00 $/ozChange: 6.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 06, 2007

Government to finalise fuel support strategy next month

Back
Engineering|Africa|Africa|South Africa|Greenhouse Gas Emissions|Products|Cornelis Van Der Waal|BIOFUELS
Engineering|Africa|Africa||Products||
engineering|africa-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 Energy News
Updated 1 hour 27 minutes ago South Africa will know by mid-December whether it would get a new independently owned and operated liquid fuels storage and distribution facility at the Eastern Mole of the Port of Cape Town. The National Energy Regulator of South Africa (Nersa) was currently mulling...
Article contains comments
Lethabo power station
Updated 2 hours 3 minutes ago State-owned power utility Eskom on Wednesday said its Lethabo power station, in the Free State, was experiencing “very high emissions” on four of its six units as a result of the failure of ash plant equipment.  The utility explained that the failure of equipment...
South Africa has dropped four places to rank eighty-third in the World Energy Council’s 2014 Energy Trilemma Index as the country’s performance remained stagnant, while other countries such as China and Nigeria improved their rankings. The WEC Energy Trilemma Index...
Article contains comments
More
 
 
Latest News
Updated 1 hour 16 minutes ago A Spoor & Fisher partner on Wednesday called on the Department of Trade and Industry (DTI) to finalise its proposed policy for Intellectual Property (IP). The policy, which had not been drafted in consultation with IP law experts, was published in September 2013,...
Auditor-General Kimi Makwetu
Updated 1 hour 26 minutes ago Auditor-General Kimi Makwetu has called on all government leaders to play a crucial role in ensuring that government departments and entities improve their audit outcomes. He has raised concerns over irregular expenditure, non-compliance with legislation, auditees...
Updated 1 hour 42 minutes ago The Somalia Stock Exchange expects seven companies in the telecoms, financial services and transport sectors to list their shares when the bourse is set up in 2015, its founder said. Somalia's economy is slowly recovering from more than two decades of conflict,...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
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