South Africa to initiate sorghum biofuel programme

The South African government shows support for Mabele Fuels' biofuel programme with a potential investment.

Mabele Fuels, a clean energy company, has been awaiting subsidy approval from the government to build South Africa's largest biofuels refinery.

Ben Martins, the South African minister of energy, reports that the final biofuels position paper will be published in May 2014.

A 2% blend of bioethanol and petrol has been proposed, with investors expecting the biofuels project to be worth 2.5 billion rand (€170 million).

Waheed Patel, managing director of political consulting firm, Ethicore, says: 'Finalising the subsidising framework from the government was the concern for our investors, as they need financial returns on their investments. The investors are ready to set up refineries and work the ground.'

'Grain sorghum production will increase from less than 50,000 tonnes per annum to 150,000 tonnes of grain sorghum,' adds Patel.

'The opportunity for biofuels is to unlock future energy security.'

The Biofuels Industrial Strategy was approved by the South African government in December 2007.