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Thursday, November 28, 2013

Bio-fuel ratios expected in December

In 2012, microbiologist Gemma Reguera (right) at the Michigan State University announced a new biofuel production process that uses bacteria to eat agricultural wastes like bagasse and excrete biofuel and hydrogen.
THE Free State’s grain farmers are in the same boat as sugar farmers in KZN and Mpumalanga, anxiously awaiting news of how much biofuel government will require refineries to mix into diesel and petrol by 2015.
Construction at South Africa’s most modern biofuel plant at Botha­ville in the Free State could start in June 2014 if the government confirms the concept policy that all fuel must contain at least two percent bio-ethanol.
Acting chief executive officer of Mabele Fuel Philip Bouwer told grain farmers at a congress at Nampopark near Bothaville they expected government would announce at least a two percent ratio for the bio:traditional fuel mix.
This after Energy Minister Ben Martins announced that from October 1, 2015, fuel producers would have to blend into their petrol and diesel biofuel that had been distilled from “under utilised” crops, such as sugar cane, sugar beet, canola and sunflower.
Energy’s chief director for clean energy Mokgadi Modise told Parliament that these crops exclude maize.
An implementation committee is already working on resolving the operational aspects of blending biofuels with mineral petrol and diesel, and the committee plans to present a biofuels pricing framework before year end.
Witness Wheels reported in October that Illovu and Tongaat Hullet are keen to recycle their bagasse into fuel, rather than burning most of the crushed cane as is currently the case.
But earlier this year, director of industrial affairs at the South African Cane Growers’ Association, Thomas Funke. said the sugar cane industry would require at least a 10% biofuel mix to make it viable to convert the mills into plants that produce sugar and ethanol.
Bouwer told the maize farmers the R1,7 billion Mabele Fuel was licensed to make biofuel from sorghum, but the project was not being funded through the Industry Development Corporation, but by the South African banks and other private institutions.
It will take 24 months to complete the sorghum to fuel plant, which can turn any type of sorghum into ethanol, although the the producers prefer grain with a high tannin content.
Bouwer said the plan will require 400 000 tons of sorghum, of which a quarter will be delivered by emerging farmers, to supply the expected bio:traditional fuel ratio of two percent.

Another proposal at the conference, which might also affect sugar cane farmers, is that the grain farmers want the price of sorghum to be determined by the annual production costs, and not be pegged at Safex prices.