EU funds SA biofuels-strategy task team

1 November 2006

The European Union (EU) is funding the establishment of a biofuels task team in South Africa, to draw up a strategy to take to Cabinet at its next economic cluster meeting, Department of Minerals and Energy Minister Buyelwa Sonjica said this week.

Speaking at a function in Johannesburg, she said that the country had been working together with Brazil, the EU and the British government in establishing this task force. "We are looking at implementing the strategy by early next year," Sonjica highlighted, adding that the department hoped that the strategy would be approved so that it could be rolled out.

The South African government, led by President Thabo Mbeki, is keen to fast-track the development of the local biofuels industry.

Southern African Biofuels Association (Saba) president and Absa bank agribusiness GM Andrew Makenete previously told Engineering News that Mbeki had instructed the biofuels task team and Cabinet to have the national biofuels strategy ready for publication before the end of the year.

Previously, the intention was to announce a draft of the strategy in October, after which a relatively lengthy process would have been followed to obtain feedback and finalise the plan of action.

The development of the biofuels industry was one of three key priority sectors of the government's Accelerated and Shared Growth Initiative for South Africa (Asgisa).

Asgisa aims to halve unemployment and poverty by 2014 by stimulating economic growth.

The national biofuels strategy would provide a blueprint for the development of the South African biofuels industry, and will spell out, besides other things, government policy on mandatory blending, procurement as well as the national interventions and incentives needed to support the industry.

Makenete said that the strategy would provide the impetus required to kick-start the large-scale production of biofuels in South Africa.

He reported that Mbeki's response to a presentation delivered by the Agricultural CEO's Forum - which is part of the biofuels task team - has been "overwhelmingly positive".

Source: Engineering News Online