http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.07Change: 0.09
R/$ = 11.57Change: 0.01
Au 1256.90 $/ozChange: -29.05
Pt 1217.50 $/ozChange: -42.00
 
 
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  
 
 
Jul 06, 2007

Government to finalise fuel support strategy next month

Back
Engineering|Africa|Sustainable|Africa|South Africa|Greenhouse Gas Emissions|Products|Cornelis Van Der Waal|BIOFUELS
Engineering|Africa|Sustainable|Africa||Products||
engineering|africa-company|sustainable|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
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Article contains comments
Solaris nicotine-free tobacco plants
As project Solaris gains traction, South African Airways (SAA) has made headway on its journey to becoming a biofueled airliner by 2020 through the conversion of nicotine-free Solaris tobacco plants into more environment-friendly jet fuel. SAA is currently preparing...
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...
More
 
 
Latest News
Updated 1 hour 9 minutes ago Foreign direct investment (FDI) inflows to Africa fell by 3% to around $55-billion in 2014, amid an 8% fall in global inflows to an estimated $1.26-trillion, from $1.36-trillion in 2013. In its Global Investment Trends Monitor, the United Nations Conference on Trade...
Updated 3 hours ago A trading demonstration has showcased the applicability, functionality, utility and readiness of the well-established, commercial and financial electronic infrastructure provided by private-sector commodity registry Silocerts and the JSE as a potential platform for...
Updated 3 hours ago While South African consumers will get a reprieve on the back of a lower oil price, all the potential benefits could be overshadowed by the nation’s ongoing electricity shortages. A surprise cut to below $50/bl for crude oil would soften the blow of rising costs on...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
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.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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