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An economic evaluation of a bio-fuels industry in South Africa

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: The adoption of the White Paper on the promotion of Renewable Energy and clean
fuels in 2003, opened the playing field for participants from other industries than the
conventional petroleum, to participate in the fuel industry in South Africa.
South Africa is a net importer of crude oil, which accounts for 92% of liquid fuels
supply in South Africa. Although the country has significant coal reserves which can
supply the country's demand for approximately 200 years, this energy source
contributes significantly to CO, emissions. South Africa's participation in the Kyoto
Protocol compels it to abide by its commitments to reduce these emissions between
2008 and 2012.
The country's dependence on energy to fuel its growing economy, and the infiationary
impact that oil imports has had on the country's economy, has prompted government
to explore alternative sources of energy to reduce its dependence on fossil fuels and
especially importing crude oil. As a result of this, and in an attempt to increase the
potential for the successful implementation of ASGISA, government is exploring the
feasibility of introducing an E10 fuel blend to the South African petrol blend.
In view of th is, government has in it Accelerated and Sustainable Growth Initiative
(ASGISA) targeted the development of the bio-fuels industry as an industrial sector
that presents opportunities to create opportunities for sustainable growth and
development.
In view of this, the fiedgling fuel-ethanol industry (which is in its construction phase at
the t ime of writing this report), faces lucrative prospects for the agricultural industry,
especially maize- and ethanol producers. It is anticipated that the fuel-ethanol
industry will create between 8000 and 10000 direct and indirect employment
opportunities per plant. This will result in significant investment in rural areas as well.
The creation of employment in the rural areas will prevent the large-scale urbanisation
that has become a phenomenon in the past decade, as a result of dwindling
agricultural industries.
The production of ethanol presents the opportunity to earn foreign exchange,
especially if the industry embarks on large scale export strategies. In addition to the
export market, the local market for ethanol consist of the possible E10 petrol-blend
and to supply Eskom with ethanol to fuel its gas turbine electricity generators at
Acacia, Port Rex, as well as the anticipated generators at Atlantis and Mossel Bay.
This document is a report on the investigation of the economic evaluation of a bio-fuel
industry in South Africa. It will explore the current outlook for fossil fuel reserves,
supplies and demand, both internationally and locally. It will report on the
phenomenon of peak oil production and some opinions thereon . An investigation into
the most probable biomass that can be used as feedstock for bio-fuel production will
conducted. In this regard, specific investigation into maize, sugar cane (for fuelethanol)
and Jatropha eureas (for bio-diesel) will be conducted.
The report will explore the most efficient ethanol production processes, for both
maize- and sugar-to-ethanol production, with the weight of the document to be
attributed to the economic impact that the adoption of the fuel-ethanol programme / AFRIKAANSE OPSOMMING: Die publisering van die Witskrif oor die promosie van hernieubare energiebronne en
skoon brandstowwe in 2003, het die speelveld vir deelname aan die brandstof
industrie oopgemaak vir rolspelers buiten die konvensionele petroleum maatskappye.
Suid-Afrika is 'n netto invoerder van ru-olie en het in 2004 ongeveer 92% van die
totale vloeibare brandstowwe ingevoer. Alhoewel die land aansienlike steenkool
reserwes het om te voorsien in die aanvraag vir die volgende ongeveer 200 jaar, dra
hierdie energiebron aansienlik by tot die koolstofdioksied vrystellings. Suid-Afrika se
deelname aan die Kyoto Protokol van 1998, dwing die land om te voldoen aan die
ondernemings wat gemaak is om hierdie koolstofdioksied vrystellings te verminder
tussen 2008 en 2012.
Die land se afhanklikheid van energiebronne om groei te stimuleer, asook die
inflasionistiese effek van olie invoere op die ekonomie, het die regering genoop om
alternatiewe bronne van energie te ondersoek sodat die afhanklikheid van olie
verminder kan word. Uiteenlopend hiervan en om die implementering van ASGISA te
stimuleer, ondersoek die regering tans die moontlikheid om 'n E10 petrol vermenging
in die petrol formule te spesifiseer.
Uit die oogpunt van ASGISA (Accelerated and Sustainable Growth Initiative) van
Suid-Afrika, het die regering die ontwikkeling van die bio-brandstowwe industrie geoormerk
om geleenthede te skep vir volhoubare ontwikkeling en groei. Met die oog
hierop, voorspel die etanol bedryf, wat ten tyde van die skryf van hierdie verslag nog
in kontruksie was, winsgewende potensiaal vir die landboubedryf, veral mielie
produsente.
Dit word verwag dat die etanol bedryf tussen ongeveer 8000 en 10000 direkte en
indirekte werksgeleenthede sal skep, veral in die landelike gebiede. Dit sal
grotendeels bydra tot die voorkoming van die voortslepende ontvolking van die
platteland wat oor die afgelope jare 'n verlammende effek op plattelandse gebiede
gehad het. Dit word ook voorsien dat daar aansienlike belegging in die platteland sal
plaasvind en al hierdie faktore sal bydra tot die voorkoming van verstedeliking .
Die etanol bedryf skep die geleentheid om buitelandse valuta te genereer, veral as die
industrie op uitvoere gaan konsentreer. Indien 'n plaaslike mark beoog word , sal die
implementering van die E10 vermenging 'n besliste mark skep. 'n Alternatiewe mark
wat ondersoek kan word, en wat groot geleentheid skep, is Eskom, wat tans
ingevoerde diesel verbruik om hul gas turbine krag opwekkers by Acacia en Port Rex
van brandstof te voorsien . Indien die beoogde turbines by Atlantis en Mosselbaai
gebou word, sal die mark vir plaaslike etanol verdubbel.
Hierdie dokument is 'n verslag oor die ondersoek wat gedoen is na die
lewensvatbaarheid van 'n brandstof etanol bedryf in Suid-Afrika. Dit berig oor die
huidige uitkyk oor die fossiel brandstof reserwes in die wereld en plaaslik. Dit opper
die vraagstuk oor piek olie produksie fenomeen wat uiteenlopende debate ontketen
het.
Die verslag dek die waarskynlike bronne van biomassa wat aangewend kan word in
die produksie van etanol, met spesifieke verwysing na mielies, suikerriet en Jatropha
curcas.
Die mees effektiewe produksie metodes word verder ondersoek wat van toepassing is
op beide mielies en suikerriet. Die mees relevante deeI van die verslag is die
ondersoek na die ekonomiese impak wat die industrie op die Suid-Afrikaanse
ekonomie mag hĂȘ, waarna die nodige gevolgtrekkings en aanbevelings gemaak sal
word.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/21979
Date12 1900
CreatorsSchuld, Renier A.
ContributorsRoux, A., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format112 p. : ill.
RightsStellenbosch University

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