The agricultural sector could play an essential role in energy security by supplying feedstock to source fuel.
South Africa remains heavily dependent on imported refined petroleum products following the closure of major refineries including Sapref, Engen Refinery, and PetroSA, among others.
The Localisation Support Fund (LSF) said the country’s shift from a domestic refining base to a greater reliance on imported finished fuels has increased its exposure to international prices and geopolitical disruptions.
Middle East conflict pushes up Brent Crude oil
The country has experienced higher fuel prices and Brent Crude oil prices continue to surge due to the Middle East conflict, which has disrupted the world’s most critical oil transit chokepoint, Strait of Hormuz. This has fueled expectations of further increases in domestic fuel prices.
Since September 2, 95-grade petrol increased to R26.92 a litre, while wholesale diesel increased by at least R3.15 a litre.
Against this backdrop, sorghum and sugarcane are emerging as potentially viable feedstocks for local bioethanol industry, offering an opportunity to turn agricultural capacity into a domestic source of transport fuel.
READ: Sharp diesel, paraffin price hikes overshadow petrol, LP gas relief
Sugarcane and Sorghum can produce local energy
Nanda Chanda, Novonesis South Africa country manager, said grain-sorghum ethanol plant could generate positive operating earnings before interest, tax, depreciation and amortisation (EBITDA), with additional value coming from by-products such as distillers dried grains with solubles (SSGS), an animal feed product, and captured carbon dioxide.
“Energy security is ultimately about resilience and resilience starts at home. South Africa has significant agricultural capacity and an opportunity to explore how biology can help can create more value from the resources already available to the country.
“The opportunity is not simply to produce biofuels, but to build a more resilient system connecting farmers, industry, energy, energy and the broader economy,” said Chanda.
He said a mandatory 10% ethanol blend could create domestic market approaching one billion litres of bioethanol a year. He said this would not eliminate South Africa’s exposure to crude oil prices but could introduce domestically produced component into the fuel mix while keeping more economic activity within the country.
READ: Fuel prices drop sharply in July as petrol, diesel costs fall
Chanda said South Africa has significant agricultural capacity and an opportunity to use biological solutions to extract more value from resources already available in the country.
The company estimates that South Africa produces 600 to 800 tonnes of used cooking oil a day, which could provide a feedstock for biodiesel. Agricultural residues and organic waste could similarly be processed into biogas and other forms of renewable fuel.
- South Africa is heavily reliant on imported refined petroleum products after the closure of major refineries like Sapref, Engen, and PetroSA.
- The Middle East conflict has caused Brent Crude oil prices to surge, pushing South African 95-grade petrol prices to R26.92 per litre and wholesale diesel prices up by at least R3.15 per litre.
- Sorghum and sugarcane are identified as viable feedstocks for a local bioethanol industry, potentially producing a domestic source of transport fuel.
- A mandatory 10% ethanol blend could create a local bioethanol market of nearly one billion litres annually, contributing to energy security and economic activity within South Africa.
- South Africa produces 600 to 800 tonnes of used cooking oil daily, which, along with agricultural residues and organic waste, could be used to produce biodiesel and biogas as renewable fuels.
The agricultural sector could play an essential role in energy security by supplying feedstock to source fuel.
South Africa remains heavily dependent on imported refined petroleum products following the closure of major refineries including Sapref, Engen Refinery, and PetroSA, among others.
The Localisation Support Fund (LSF) said the country’s shift from a domestic refining base to a greater reliance on imported finished fuels has increased its exposure to international prices and geopolitical disruptions.
The country has experienced higher fuel prices and Brent Crude oil prices continue to surge due to the Middle East conflict, which has disrupted the world's most critical oil transit chokepoint, Strait of Hormuz. This has fueled expectations of further increases in domestic fuel prices.
Since September 2, 95-grade petrol increased to R26.92 a litre, while wholesale diesel increased by at least R3.15 a litre.
Against this backdrop, sorghum and sugarcane are emerging as potentially viable feedstocks for local bioethanol industry, offering an opportunity to turn agricultural capacity into a domestic source of transport fuel.
READ: Sharp diesel, paraffin price hikes overshadow petrol, LP gas relief
Nanda Chanda, Novonesis South Africa country manager, said grain-sorghum ethanol plant could generate positive operating earnings before interest, tax, depreciation and amortisation (EBITDA), with additional value coming from by-products such as distillers dried grains with solubles (SSGS), an animal feed product, and captured carbon dioxide.
“Energy security is ultimately about resilience and resilience starts at home. South Africa has significant agricultural capacity and an opportunity to explore how biology can help can create more value from the resources already available to the country.
“The opportunity is not simply to produce biofuels, but to build a more resilient system connecting farmers, industry, energy, energy and the broader economy,” said Chanda.
He said a mandatory 10% ethanol blend could create domestic market approaching one billion litres of bioethanol a year. He said this would not eliminate South Africa’s exposure to crude oil prices but could introduce domestically produced component into the fuel mix while keeping more economic activity within the country.
READ: Fuel prices drop sharply in July as petrol, diesel costs fall
Chanda said South Africa has significant agricultural capacity and an opportunity to use biological solutions to extract more value from resources already available in the country.
The company estimates that South Africa produces 600 to 800 tonnes of used cooking oil a day, which could provide a feedstock for biodiesel. Agricultural residues and organic waste could similarly be processed into biogas and other forms of renewable fuel.
