Mandatory Blending of Biofuels with Petrol and Diesel

Last week the Department of Energy (South Africa) published draft regulations with regards to blending of Bioethanol with petrol/gasoline and biodiesel with diesel. This should hopefully provide security for investors as well as stimulate the local biofuels industry.

The draft deals with three issues:

1. Conditions for mandatory blending

2. Prohibition of certain actions

3. Records to be kept by licensees

With regards to mandatory blending, the draft stipulates that the minimum concentration allowed is 2% v/v bioethanol in petrol and 5% v/v biodiesel in diesel. This poses a couple of questions, the main one being, from where will South Africa source this fuel until we can produce this locally. My hope though is that this mandatory blending will encourage our local biofuels industries to quickly step up to the challenge while at the same time creating a large number of jobs (if the biofuel blending target was increased to 10%, it is estimated that 125 000 jobs could be created directly).

Check out the draft at http://www.info.gov.za/view/DownloadFileAction?id=150835

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: