R/€ = 17.88
R/$ = 15.88
Au 1237.82 $/oz
Pt 955.50 $/oz
Aug 31, 2006
SA oil majors willing to market biofuels, but caution on qualityBack
© Reuse this The South African Petroleum Industry Association (Sapia), which represented all of South Africa oil majors, supported government's strategy for the introduction of biofuels into the market, but economic realities and fuel qualities needed strong consideration, executive director Colin McClelland said in the association's 2005 report published Thursday.
He stated that several Sapia members were willing to assist in the marketing of biofuels, but that it was critical to recognise the risk posed by the “mismatch” of the costs of these fuels.
He detailed that this was based on the costs of growing the input materials and the costs of conversion, as well as the revenues based on global oil-prices and the rand-dollar exchange rate.
“Movements in these key parameters could render biofuels production to be highly profitable to highly unprofitable,” McClelland stressed.
However, he noted that, if appropriately managed, biofuels production could lead to job creation, reduce South Africa's dependence on imported fuel feedstocks, reduce greenhouse-gas emissions and improve energy security.
Sapia members are fully prepared to take up both biodiesel and bioethanol, but this would need to take place in a cost-neutral environment, as their use should not result in an increase in the production or distribution costs of the fuels, McClelland highlighted.
He also noted that government policy on biofuels currently concentrated on its use in the on-road transport market, and that the use of biofuels in the off-road and industrial sectors should not be neglected.
“They may offer more cost-effective and easier-to-achieve technical and quality standards,” McClelland said.
He went on to stress that using biofuels components in the production of petrol and diesel posed blending, distribution and usage challenges.
“Failure to properly address these challenges could have serious consequences in the market, as well as for vehicle emissions,” McClelland emphasised, adding that the problems could be overcome if they were adequately recognised and tackled appropriately.
Edited by: Matthew Hill© Reuse this
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.