South Africa goes for green fuels
Shaun Benton
13 February 2006
The South African Department of Minerals and Energy is leading a revolutionary approach to energy supplies in a move to promote the production of environment-friendly biodiesel and bioethanol - fuels manufactured from crops such as maize.
On Friday Minerals and Energy Minister Lindiwe Hendricks announced that "we are looking at creating a value chain for biodiesel and bioethanol that would result in significant job creation opportunities".
"Most of these jobs could be realised in the second economy, which would assist government in meeting its objective of bridging the gap between the first and the second economies and halving unemployment by 2014."
Other advantages of biofuels are protection from volatile oil prices and less damage to the environment.
"South Africa imports about 60% of its crude oil requirements, which has economic implications in terms of balance of payments as well as vulnerability to rising crude oil prices,"
Hendricks said.
Increasing the use of biodiesel and the volumes of ethanol in petrol "would have macroeconomic benefits for the country".
"Converting sustenance farmers into cash crop producers to supply the crops or inputs into biofuel will start to address the high level of unemployment in the country, particularly in rural areas."
New job opportunities will also be created in refining, blending and distributing the biofuels, she said.
Biofuels task team
In December the South African Cabinet announced a task team to develop a biofuel production strategy by the fourth quarter of 2006.
The task team will identify the resources needed - such as land, crops, incentives and human capital - as well as conduct feasibility studies on plant construction, long-term feedstock supply contracts and farmer outreach activities.
It will also look at cost-benefit analyses to determine optimal use of land and water, how to move
farmers from subsistence to commercial crop production, the issues of land tenure, reform and use and, finally, how to protect farmers from food price volatility, oil price drops and currency fluctuation.
The team, led by the Department of Minerals and Energy, will include representatives from the departments of Water Affairs and Forestry, Science and Technology, Trade and Industry, Transport, Agriculture and Land Affairs, the National Treasury and the Presidency.
A pilot biofuels project has already been set up in Cradock in the Eastern Cape, close to the refining capacity at nearby Mossel Bay.
Source: BuaNews
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