South Africa circulates draft national biofuels policy as tussle continues over government funding of projects for capital-intensive industry

In South Africa, draft national biofuels policy documents have been circulated with a goal for South Africa of producing 75 percent of its renewable energy needs from biofuels by 2013.

The Southern African Biofuels Association says it needs between $293 million and $734 million in capital funding from the government to jump-start the industry, but Mosibudi Mangena, Minister of Science and Technology said in July the government was unlikely to be able to meet such demands.

Groups such as Sasol have indicated they will move into biofuel development only after the announcement of government policy, and contingent on government capital spending support or other forms of assistance such as subsidies.

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