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Tuesday, 8 October 2013

Mandatory blending of biofuels in South Africa

Mandatory blending of biofuels with petrol and diesel for South Africa will come into effect from October 1 2015, energy minister Ben Martins said. The regulation is in line with the cabinet decision taken in 2007 to use biofuels as a means of diversifying the country’s energy supplies. A five-year pilot project was envisaged with the aim of achieving a 2% biofuels penetration into the national liquid fuels pool.

According to the department of energy, cabinet-approved incentives such as a 50% rebate on the general fuel levy for biodiesel manufacturers and a three-year accelerated depreciation on the investment had failed to attract investors, and so a more effective regulatory support was needed. The date for the start of the blending has taken into consideration the time needed to finalise the biofuels pricing framework, which will happen before the end of this year.