Coega Biofuels Investments A Step Closer

SEPTEMBER 18, 2014

The three biofuels projects planned for the Coega Industrial Development Zone (IDZ) are a step closer to construction, with the Department of Trade and Industry saying it plans to have the draft criteria for qualification for a biofuels subsidy finalised by the end of this month.

The commitment is contained in the Progress Report on the Industrial Policy Action Plan (IPAP) tabled in Parliament.

The Report states that the Biofuel Incentive Guidelines were published in the Government Gazette in January for public comment.

There had also been ongoing stakeholder consultation led by the Department of Energy.

The Report states that it is planned to finalise the consultations by the end of this month, adding that the reason for the delay in doing so was that there was a “need to accommodate other crops, particularly sugar cane, instead of only having sorghum as a reference crop in the model”.

It adds that the initial intention had been to publish the final Biofuel Incentive Guidelines in the third quarter of the last financial year.

The Biofuel Incentive Programme would have then been launched in the fourth quarter.

Finalisation of the incentives and the pricing mechanism will allow the five biofuels projects planned for the Eastern Cape to go ahead.

Three of the projects are planned for the Coega IDZ, one at Berlin, which is part of the East London IDZ and one that has now been in the pipeline for more than a decade, for Cradock.

The projects will use a variety of feedstock including sorghum, sugar beet and used vegetable oils.- MetroMinutes.


Photo courtesy of