South African Industrial Development Corporation to invest US$437 million into biofuels projects
South Africa's biofuels developments are speeding ahead, even though criticism exists over the way the government crafted its bioenergy policy (earlier post). Environmentalists and other stakeholders felt they were left out of the discussions on the sustainability of the proposed biofuels program. This issue aside, South Africa's Industrial Development Corporation (IDC) and its partners have now announced they are looking to invest 3.2 billion Rand (€327/US$437) in two biofuels projects, with first production set for early 2009.
According to project leader Noel Kamrajh, the renewable fuel projects that are in the most advanced stage of analysis and technical study, will be near Cradock in the Eastern Cape and the other near Hoedspruit in Mpumalanga.
In total, the IDC and the Central Energy Fund (CEF) are looking to develop five such projects (see map, click to enlarge):
The funding parastatal is likely to take a 49 percent stake in both projects, whereas the CEF and outside parties will share 51 percent. 25 percent of the IDC's shares are warehoused for 'empowerment' and 'community groups':
biomass :: bioenergy :: biofuels :: energy :: sustainability :: sugarcane :: sugarbeet :: sweet sorghum :: ethanol :: South Africa ::
Virtually all of South Africa's biofuels projects adhere to 'black empowerment' and 'community involvement' standards, which most often come down to distributing some of the shareholding power to small farmers, families and their communities.
No data were released about the projected number of jobs the projects will bring, though.
Other initiatives
Earlier government-led biofuel ventures that mark South Africa's entrance into the biofuel era, are decision by the Eastern Cape province to invest 1 billion Rand (€107/US$140.6 million) into a large biodiesel and ethanol project in the Transkei region that could result in 70,000 hectares of canola (rapeseed) and sugar beet being planted. The crops will be planted on communal land. Some 21,000 direct and indirect jobs are expected from the project (earlier post).
Biofuels are a priority sector of South Africa's Accelerated and Shared Growth Initiative (Asgisa), which aims to stimulate economic growth, create a large number of new jobs and halve poverty by 2014.
Besides public-private projects, the private sector has big plans in South Africa's bioenergy sector: Ethanol Africa launched its investment into South Africa’s first large-scale bioethanol production plant in Bothaville, in the Free State, late last year. The planned R700 million (€80 million/US$ 120 million) plant is the first of eight the company intends building in South Africa (previous post).
The Coega Development Corportation in Port Elizabeth, for its part, launched 70 million Rand (€7.5/US$9.75 million) biomass pellet production project. 'Eastern Cape Biomass Fuel Pellets' will create some 100 jobs during the construction of the plant, which is currently underway, and an additional 3000 jobs for poor rural communities who will help supply the biomass. The company's aim is to supply 10000MT per month of the biofuel pellets to European countries including Scandinavian countries who already have a large domestic forest and wood products industry (earlier post).
According to project leader Noel Kamrajh, the renewable fuel projects that are in the most advanced stage of analysis and technical study, will be near Cradock in the Eastern Cape and the other near Hoedspruit in Mpumalanga.
In total, the IDC and the Central Energy Fund (CEF) are looking to develop five such projects (see map, click to enlarge):
- The Mpumalanga project is undergoing final engineering studies, expected to be finished by September. Construction of the plant is likely to start in January. The plant in Hoedspruit aims to make 100 million litres of fuel from sugar cane.
- The project in the Eastern Cape too is at the detailed engineering study level, due for completion by September. Construction here too is to start in January. The plant will utilize sugar beets to produce about 90 million litres of biofuel each year.
- The other projects are aiming to produce 150 million litres of biofuel made from sweet sorghum and sugar cane in Pondoland, which spans KwaZulu-Natal and the Eastern Cape.
The funding parastatal is likely to take a 49 percent stake in both projects, whereas the CEF and outside parties will share 51 percent. 25 percent of the IDC's shares are warehoused for 'empowerment' and 'community groups':
biomass :: bioenergy :: biofuels :: energy :: sustainability :: sugarcane :: sugarbeet :: sweet sorghum :: ethanol :: South Africa ::
Virtually all of South Africa's biofuels projects adhere to 'black empowerment' and 'community involvement' standards, which most often come down to distributing some of the shareholding power to small farmers, families and their communities.
No data were released about the projected number of jobs the projects will bring, though.
Other initiatives
Earlier government-led biofuel ventures that mark South Africa's entrance into the biofuel era, are decision by the Eastern Cape province to invest 1 billion Rand (€107/US$140.6 million) into a large biodiesel and ethanol project in the Transkei region that could result in 70,000 hectares of canola (rapeseed) and sugar beet being planted. The crops will be planted on communal land. Some 21,000 direct and indirect jobs are expected from the project (earlier post).
Biofuels are a priority sector of South Africa's Accelerated and Shared Growth Initiative (Asgisa), which aims to stimulate economic growth, create a large number of new jobs and halve poverty by 2014.
Besides public-private projects, the private sector has big plans in South Africa's bioenergy sector: Ethanol Africa launched its investment into South Africa’s first large-scale bioethanol production plant in Bothaville, in the Free State, late last year. The planned R700 million (€80 million/US$ 120 million) plant is the first of eight the company intends building in South Africa (previous post).
The Coega Development Corportation in Port Elizabeth, for its part, launched 70 million Rand (€7.5/US$9.75 million) biomass pellet production project. 'Eastern Cape Biomass Fuel Pellets' will create some 100 jobs during the construction of the plant, which is currently underway, and an additional 3000 jobs for poor rural communities who will help supply the biomass. The company's aim is to supply 10000MT per month of the biofuel pellets to European countries including Scandinavian countries who already have a large domestic forest and wood products industry (earlier post).
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home