South Africa Approves Biofuels Plan: 2% by 2013

South Africa has approved its long awaited biofuels plan. The country will aim to have biofuels account for 2 percent of its total fuel production by 2013 but will exclude the staple maize as a source......

South Africa has approved its long awaited biofuels plan. The country will aim to have biofuels account for 2 percent of its total fuel production by 2013 but will exclude the staple maize as a source largely due to food security concerns,probable price rise and the fact that maize is a staple food source for the majority of the poor in the country.

As an incentive, the fuel levy exemption on bio-diesel will increase from 40 to 50 percent, while bio-ethanol will enjoy a 100 percent exemption, said the Minerals and Energy Minister Buyelwa Sonjica.

The biofuel strategy, she added, was developed in response to concerns over fuel supply security and volatile international crude oil prices.

"It also seeks to promote renewable fuels and to contribute to the reduction of emissions, helping to mitigate ... climate change."

South Africa meets about 36 percent of domestic liquid fuels demand by the production of synthetic fuels, largely from coal and natural gas.The remaining 64 percent is refined locally from imported crude oil

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