http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.52Change: 0.03
R/$ = 12.18Change: -0.02
Au 1172.32 $/ozChange: -2.19
Pt 1083.50 $/ozChange: 4.00
 
 
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

SA biofuels industry awaits implementation of regulations

Back
Bothaville|Construction|The Bothaville|Africa|Diesel|Gas|Industrial|Ment Corporation|Petroleum|Renewable Energy|Renewable-Energy|SECURITY|Water|Africa|South Africa|Mabele Fuels Plant|Energy|Energy Security|Greenhouse-gas Emissions|Less Greenhouse-gas Emissions|Product|Renewable Energy Goals|Eastern Cape|Environmental|Water|Eastern Cape|Nala Municipality|The Government Gazette|South Africa|BIOFUELS|Diesel
Construction||Africa|Diesel|Gas|Industrial|Petroleum|Renewable Energy|Renewable-Energy|SECURITY|Water|Africa|||Energy|||Environmental|Water||||
bothaville|construction|the-bothaville|africa-company|diesel-company|gas|industrial|ment-corporation|petroleum|renewable-energy|renewable-energy-company|security|water-company|africa|south-africa|mabele-fuels-plant|energy|energy-security|greenhousegas-emissions|less-greenhouse-gas-emissions-industry-term|product|renewable-energy-goals|eastern-cape|environmental|water|eastern-cape-province-or-state|nala-municipality|the-government-gazette|south-africa-region|biofuels|diesel
© Reuse this



The lack of regulation of mandatory blending of mineral fuels with bio- fuels, the pricing structures for the sale of biofuels and the incentives for licensed producers have led to challenges in establishing the industry in South Africa, says future producer of fuel-grade bioethanol Mabele Fuels GM Asogan Moodaly.

The Department of Energy (DoE) last month published regulations regarding the mandatory blending of biofuels with petrol and diesel in the Government Gazette.

The regulations, once implemented, constituted another step towards the establishment of a biofuels industry in South Africa. Establishing the industry will also be in line with the country’s aim of moving towards using cleaner fuels that have a lower sulphur content and produce less greenhouse-gas emissions by 2017.

The regulations state that a licensed petroleum manufacturer must buy all bio- ethanol and biodiesel offered for sale by a licensed biofuels manufacturer, provided the volumes can be blended with the petro- leum manufacturer’s petrol and diesel within the minimum concentration of 5% volume per volume (v/v) biodiesel blending with diesel, and between 2% v/v and 10% v/v of bioethanol to petrol.

Besides the mandatory blending regulations, legislation on a pricing structure that will determine the delivered cost of biofuels and a government-agreed incentive for biofuels producers must also still be announced before an industry can be fully established.

“This action is a major milestone in the development of the domestic biofuels industry; however, the pricing regulations and incentives, as guided by the 2007 Biofuels Industrial Strategy compiled by the former Department of Minerals and Energy, need to be finalised and approved,” says Moodaly.

“It is our understanding that government will pronounce on the regulated price and the financial support mechanism for licensed biofuels producers shortly, as the National Treasury’s commitment to the approval and confirmation of the financial support mechanism is crucial.

“We eagerly await pronouncement on these two outstanding items, as it will complete the suite of regulations and incentives that will unlock funding for a sector that is capable of creating jobs, contributing to economic growth, improving air quality, as well as enhancing fuel security in South Africa,” he adds.

Once all the regulations have been implemented, a fully functioning biofuels industry can be established and regulated in a transparent manner, asserts Moodaly.

Biofuels Beginning
The biofuels industry was started through government’s Accelerated and Shared Growth Initiative for South Africa (AsgiSA), which was implemented in 2006.

At the time, biofuels investment was seen as a catalyst for the transformation of South Africa’s underdeveloped rural economies, a contributor to the country’s renewable energy goals and its energy security, as well as a method of reducing greenhouse-gas emissions.

Under AsgiSA, a feasibility study into the development of a biofuels industry in South Africa was undertaken, which indicated that the industry represented a great opportunity for rural development.

The feasibility study culminated in the release of a draft strategy, followed by the release of the Biofuels Industrial Strategy.

As a result of the strategy not favouring mandatory blending at a regulated price and delays in the implementation of the incentive, four of the six bioethanol plants that were in the process of being developed at the time, have been put on hold, says Moodaly.

Only two of the plants remained going concerns, namely the Industrial Develop- ment Corporation’s plant, in Cradock, in the Eastern Cape, and Mabele Fuels, in Bothaville, in the Free State.

Mabele Fuels Plant
The Bothaville-based producer has, to date, acquired 30 ha of land from the Nala Municipality that has been rezoned for the construction of the bioethanol plant and an environmental-impact assessment has been completed with a record of decision granted. However, construction cannot start until the regulatory framework is finalised, says Moodaly.

He says Mabele Fuels hopes the pricing and incentive regulations will be imple- mented before the end of the year.

Once complete, the plant will produce 150 000 m3 of bioethanol each year from a blend of different grain sorghum cultivars, which are dependent on the different price points and production efficiencies of each cultivar.


The grain sorghum market, which produced about 511 000 t of grain sorghum in the 1988/89 financial year and about 280 000 t in the 2009/10 financial year, currently produces about 137 000 t/y, as shrinking demand has resulted in reduced sorghum production, says Moodaly.

The traditional sorghum beer market has diminished to such an extent that farmers have resorted to producing other crops instead, he says.

The biofuels market, however, does not need a high-specification sorghum and may, once again, promote the production of sorghum, says Moodaly.

What makes grain sorghum to bioethanol production advantageous in South Africa is that grain sorghum is a less water-intensive feedstock crop than sugar cane, is the least capital-intensive feedstock to process and will, as a result, require the smallest incentive from government for greenfield production.

Further, Dried Distillers Grains with Solubles (DDGS), which is a medium-protein animal-feed component, is produced as a by-product of grain sorghum-to-ethanol production.

The DDGS will, to some extent, add to South Africa’s food security and lessen the country’s prevailing need for imported soya meal, states Moodaly.

The DDGS will further incentivise the production of grain sorghum for farmers, as the by-product can also be sold to the local feed market.

Depending on the type of grain sorghum used, a typical bioethanol plant will produce 1 m3 or 1 000 of bioethanol, 0.7 t to 0.8 t of DDGS and about 0.7 t to 0.8 t of carbon dioxide (CO2) from about 2.4 t of grain sorghum.

Moodaly notes that only one-third of a bioethanol plant’s product is used as fuel, while the CO2 can be sold to the speciality chemicals and gases industries for use in the beverage market and the DDGS can be used in animal feed.

Based on this, it is Mabele Fuel’s view that the use of underused land to produce raw materials for a bioethanol plant will improve food security, as about two-thirds of the processed grain enters the food and beverage market.

Mabele Fuels commends the DoE on the work it has done in terms of the regu- lations to date and looks forward to a South African biofuels industry finally being realised, says Moodaly.

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 57 minutes ago The seasonally adjusted manufacturing Purchasing Managers’ Index, compiled by the Bureau for Economic Research (BER), ticked up by 0.6 index points to 51.4 in June. This brought the average for the second quarter to 49.2 index points, slightly below the average of...
Trade and Industry Deputy Minister Mzwandile Masina
Updated 1 hour 22 minutes ago The first leg of one of South Africa’s largest equity equivalent investment programmes (EEIP) aimed at bringing a research hub to the nation’s shores along with enterprise and deep skills development was officially implemented on Wednesday. The launch of an...
Updated 1 hour 51 minutes ago Bus operator AutoPax was unable to start its engines on its first day in Mamelodi amid protests from taxi operators in a move that left scores of commuters stranded across the sprawling township. Autopax buses took over Putco routes after the latter’s decision not to...
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
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
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