Industry welcomes draft biofuel strategy

THE South African biofuels industry yesterday welcomed government’s approval of a draft biofuel strategy, to be fine-tuned in consultation with the industry.

“This is an enormously positive step for the development of a local renewable fuel industry which is welcomed by all involved role players,” said Fanie Brink, managing director of Biofuels Industry Development. “It is in the best long term interests of South Africa, especially in terms of a larger market for all grain and oil seed producers and specifically the development of emerging producers.”Brink said in a statement that Cabinet had approved the draft biofuels strategy in December 2006.A biofuels task team was expected to report back to Cabinet in May on the outcome of consultations with industry.Brink said the strategy would enable South Africa to reduce dependence on imported crude oil, and to combat global warming.He said the proposed mandatory blending of biofuels with petroleum fuels to establish a local market for biofuels was one of the most crucial components in the biofuels strategy, and was in line with international developments.”The draft strategy proposes a 4,5 per cent biofuels industry development in South Africa and this will achieve 75 per cent of the country’s renewable energy target of over a billion litres of biofuels by 2013.”Brink said the strategy was based on the national blending specifications of eight percent ethanol (E8) with petrol, and two percent biodiesel (B2) with diesel.The biofuels industry could develop into a multi-billion rand industry and contribute to economic growth.Earlier, the Department of Minerals and Energy said consultation on the “Draft Biofuels Industry Strategy” would involve workshops and meetings with organised industry, farmers, communities, non-governmental organisations and provincial government departments.The industry welcomed the introduction of a tax rebate on bio-ethanol of 40 per cent, the same as for biodiesel, and the establishment of an equalisation fund to protect biofuel projects from low international crude oil prices.Nampa-Sapa”It is in the best long term interests of South Africa, especially in terms of a larger market for all grain and oil seed producers and specifically the development of emerging producers.”Brink said in a statement that Cabinet had approved the draft biofuels strategy in December 2006.A biofuels task team was expected to report back to Cabinet in May on the outcome of consultations with industry.Brink said the strategy would enable South Africa to reduce dependence on imported crude oil, and to combat global warming.He said the proposed mandatory blending of biofuels with petroleum fuels to establish a local market for biofuels was one of the most crucial components in the biofuels strategy, and was in line with international developments.”The draft strategy proposes a 4,5 per cent biofuels industry development in South Africa and this will achieve 75 per cent of the country’s renewable energy target of over a billion litres of biofuels by 2013.”Brink said the strategy was based on the national blending specifications of eight percent ethanol (E8) with petrol, and two percent biodiesel (B2) with diesel.The biofuels industry could develop into a multi-billion rand industry and contribute to economic growth.Earlier, the Department of Minerals and Energy said consultation on the “Draft Biofuels Industry Strategy” would involve workshops and meetings with organised industry, farmers, communities, non-governmental organisations and provincial government departments.The industry welcomed the introduction of a tax rebate on bio-ethanol of 40 per cent, the same as for biodiesel, and the establishment of an equalisation fund to protect biofuel projects from low international crude oil prices.Nampa-Sapa