Ricochet News

Finalisation of biofuels regulatory and incentive framework delayed

Nov 19, 2014
Finalisation of biofuels regulatory and incentive framework delayed

Finalisation of the biofuels regulatory and incentive framework has been delayed, Trade and Industry Minister Rob Davies has told the National Assembly.

Replying to a written question, the Minister said the target for completion of the project had not been met “due to delays in intra-governmental coordination and stakeholder consultation”.

More than half the planned biofuels projects are in the Eastern Cape, three at Coega, one in the East London Industrial Development Zone and the other at Cradock.

Former Energy Minister Ben Martins acknowledged that it was the absence of the required framework that had resulted in none of the planned biofuels plants being constructed or commissioned.

The Industrial Development Corporation recently issued a request for proposals for the supply of feedstock for the Cradock project. Davies also revealed that the Special Economic Zone (SEZ) regulatory framework and guidelines had also been delayed for the same reason.

The Eastern Cape has applied to have an SEZ declared around Mthatha while the existing IDZs at Coega and East London will also fall under the SEZ regime once finalised. Davies said he expected that the delay would not be longer than one quarter.

With regard to research projects, The Minister said that a study on downstream gas and oil localisation opportunities had also not met the stipulated timeframe because the scope of the research required had “exceeded initial projections”. - metrominutes


IMAGE sourced from sites.duke.edu