R/€ = 14.15
R/$ = 10.32
Au 1230.27 $/oz
Pt 1359.50 $/oz
Aug 31, 2006
SA oil majors willing to market biofuels, but caution on qualityBack
South Africa|Energy Security|Greenhouse-gas Emissions|Oil Majors|Oil-prices|Transport|South African Petroleum Industry Association|Colin McClelland|BIOFUELS
© 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 Comment Guidelines
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 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.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Mitsubishi Motors South Africa (MMSA) has introduced a 4x2 derivative of its Pajero Sport sports-utility vehicle (SUV), which will give it access to a substantial slice of the full-size SUV market, where it will compete with the likes of the Ford Everest, Chevrolet...
South African Energy Minister Ben Martins has affirmed that the government wants the country to be globally competitive in the nuclear sector. "Our responsibility has always been ... to ensure that, in nuclear energy, South Africa can compete with the rest of the...
Mercedes-Benz South Africa (MBSA) president and CEO Dr Martin Zimmermann describes the new S-Class as “a special place to be”, with the car creating a sense of “wellness” once you are seated inside the German brand’s flagship model. It is difficult to argue...
Water scarcity and water-quality issues are broadly recognised and understood in most political, business and civil organisations in South Africa, but solving water issues will require wide and continuous action in catchments and municipalities by organisations and...
Work is well under way on the R212-million Imvutshane dam, 30 km north-west of Stanger, in KwaZulu-Natal, which is a key link in supplying people in rural Maphumulo with a reliable source of safe drinking water.