Capitalising on SA's biofuel potential

THERE are enormous opportunities for South Africa’s economy in the diversification efforts of the sugar industry, in the recent South Africa-European Union (EU) Summit, the EU committed €4.7 billion (R92.6 billion) support to South Africa, in all of, amongst other things, green technology such as Sustainable Aviation Fuels (SAFs).

- THOMAS FUNKE

This Global Gateway Investment Package offers South Africa a unique opportunity to integrate itself into the global biofuel value chain.

The EU’s commitment to supporting biofuels, and particularly SAF, is a prime example of a technology that will open up a new sector that will support economic growth, resilience and job creation. And it can do this while potentially reducing reliance on government subsidies which contributes to an already overburdened fiscus.

Through strategic policy reform and investment incentives, South Africa can position itself as a key supplier of fuel ethanol to global airlines. It is imperative for the industry that crop-based ethanol (sugar cane ethanol) can be included in the SAF mix that could supply the EU market.

Should South Africa take a considered policy approach to this opportunity, it could ensure further capital investment and ensure long-term viability for sugar cane-based ethanol, which is used to manufacture aviation fuel.