Republic of South Africa

Summary of national biofuels policy and strategy - updated 18th July 2008

Biofuels substitution targets

Targets: 2% substitution by 2013

Date set: December 2007

Note: National policy provides tax exemption of 50% for biodiesel and a 100% exemption for ethanol. Substitution target is less than the 4.5% originally proposed in a draft plan circulated in mid 2007.

National policy and trends in biofuels crop development

The recently announced national biofuels policy excludes corn (maize) as a feedstock. Target will need to be met from soybeans, canola (rapeseed) or sunflower oils for biodiesel, or bioethanol from sugar cane or sugar beet. Exclusion of maize from the South African biofuels strategy, announced late in 2007, has caused some controversy but Minister of Trade and Industry, Mandisi Mpahlwa, speaking in mid June 2008 again ruled out the use of maize as a crop source for biofuels.

Earlier plans for bioenergy included a higher substitution target (4.5%) and large scale use of maize. National capacity for maize production is 12 million tonnes per year. Domestic consumption is approximately 9 million tonnes leaving possible spare capacity for energy generation. Exclusion of maize has raised questions about the national capacity to meet biofuel targets from other crops and also to meet land reform targets. The use of maize for biofuels had been seen as means to support rural incomes in the face of low agricultural prices.