South Africa’s Agrofuel’s Industry: A non-starter?

Agrofuels - Briefing Papers

This paper provides a brief overview of the biofuels industry in the context of the South African government’s 2008 policy. Our key finding is that the large-scale biofuels industry has stagnated almost to the point of non-existence. There is, however, a growing impetus to address the shortcomings in government policy that has held the industry back. We provide an overview of the pilot project at the Cradock Bio-Ethanol Production Facility, which requires further monitoring. We have found that the bio-ethanol industry is waiting on the finalisation of an appropriate incentive scheme, as well as for the Minister of Energy to render it mandatory for fuel companies to purchase bio-ethanol and blend it into the fuel supply.

We also canvass the possible inclusion of maize as feedstock for bio-ethanol production. While taking cognizance of the pressure by the maize industry to include maize, we have concluded that the costs associated with such inclusion, considering food security and the environment are prohibitive.

Despite the important dangers attendant upon the establishment of a biofuels industry in South Africa, authoritative research on the matter is almost non-existent in the public domain. This paper attempts to contribute to closing this knowledge gap, and call for further inter-disciplinary efforts.

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