Biofuels Production in South Africa

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Biofuels Production in South Africa
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Total Energy Supply
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A case for Renewables

• SA among highest emitters of carbon dioxide in
  the world
• More than 75 of primary energy requirement from
  fossil fuels
• SA ranked 14th in the world in terms of top
  emitters
• Urgent need
• Reduce fossil fuel dependency
• Reduce carbon footprint
• Diversify our energy mix and supply
• Part solution no panacea
• RENEWABLE ENERGY resources are abundant,
  sustainable have a much lower impact on the
  environment

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Renewable Energy Sources

• Biomass Solar Wind Ocean
• Natural resources
• Naturally replenished

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Renewable Energy TechnologiesCharacteristics

• Sustainable and have less impact on environment
• Short lead times and can be implemented rapidly
  in modules
• Support off-grid applications
• Can offer more work opportunities
• Resources are geographically dispersed

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Biofuels

• one most widely used renewable in the world
• offer an attractive solution to reducing the
  carbon intensity of the transport sector
• 1st Generation Biofuels still continue to grow
  strongly
• (1st Generation biofuels are biofuels made from
  sugar, starch or vegetable oil using conventional
  technology)
• Currently
• 1.5 world total transport fuels
• Crops grown for Biofuels take up less than 2 of
  world's arable land
• Concerns
• Food vs Fuel debate, Land and water use, high
  production costs (without incentives)
• Source IEA Bioenergy 2008

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South Africas Fuel needs

• South Africas demand of transport liquid fuels
  (petrol, diesel, jet fuel) in 2007 was 23 707
  million litres, according to SAPIA. Eskom gas
  turbine power plants may have consumed 600
  million litres, assuming 6hrs per day, 261 days,
  7 turbines each 150MW
• About 36 percent of total liquid fuels (petrol,
  diesel, jet fuel, paraffin, bitumen, fuel oil,
  LPG) demand is met by synthetic fuels (synfuels),
  which are produced locally, largely from coal and
  from natural gas
• The petrol/diesel price in South Africa is linked
  to the price of crude oil in international
  markets. Crude oil prices combined with the
  Rand/Dollar exchange rate therefore have a major
  impact on petrol/diesel prices
• Clear case for alternative Fuels

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Drivers in South Africa

• Climate Change
• Global warming
• CO2 emissions
• Energy supply diversification
• Imbalance of reserves
• Energy security
• National Policy
• National target Renewable Energy Production of
  10 000 GWh by 2013
• National Biofuels Industrial Strategy 2007
• Ten Year Innovation Plan (DST) 2007

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National Biofuels Industrial Strategy

• stimulate rural economy, create jobs, help reduce
  greenhouse gas-emissions and bridge gap between
  the first and second economy
• 2 penetration or 400 million litres pa by 2013
  (can be achieved without jeopardising food
  security)
• Specified energy crops to be used
• Sugar cane
• Sugar beet
• Soya beans
• Canola
• Sunflower
• Proposed fuel levies exemptions
• Biodiesel increased from 40 to 50
• 100 for bioethanol

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Biofuels Industrial Strategy Cons and Pros

• Cons
• Target will only utilise 1.4 arable land
• 14 of the arable land is underutilised (mainly
  in former homelands)
• Feedstocks specified are food crops even though
  maize and jathropha have been excluded
• No mandatory blending
• Pros
• Impetus to 2nd generation technologies (2nd
  generation biofuel production processes can use a
  variety of non-food crops) that utilise total
  plant biomass and alternative feedstocks e.g.
  triticale
• Will be reviewed in 2012

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SAs potentialRenewable biomass available

• Residues
• Agricultural subtotal 12.3 Mt/a
• Forest industry subtotal 5.0 Mt/a
• Energy crops (10 of available land) 67 Mt/a
• (Marrison and Larson, 1996)
• Invasive plant species 8.7 Mt
• Total, annual basis 93 Mt/a
• Lynd et al. 2003. Plant Biomass Conversion to
  Fuels and Commodity Chemicals in South
• Africa A Third Chapter? South African Journal of
  Science 99 499 507.

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Agro processing sector

• is the second largest employer in SA ( 11)
• had a huge structural and technological
  development in the past 15 years
• 500 000 jobs lost
• bio energy offers the largest stable market for
  Agriculture
• 1st generation of technologies produce in average
  30 fuel / 70 animal feed (which represents 50
  of Agricultural production )
• Available agricultural land underutilized,
• 
  
  Source SABA

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Barriers to Rapid Deployment

• RE target in place since 2003 and Biofuels
  Industrial Strategy in 2007 but investments in
  biofuels in South Africa have been very modest
• So whats the problem???
• Land and water use concerns of land use and
  water availability
• Policy and regulatory framework
• Financial instruments- conditions precedent for
  financing of projects remain onerous, even though
  number of financing institutions have developed
  green financing options

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SA Biofuels Challenges

• Impact on food supply and food prices, land use
  change, competition for water supply water and
  possibly impacts on biodiversity
• Incentives to boost the incipient biofuels
  industry not enough and no mandatory blending.
• Managing logistical complexities around
  integration of agricultural supply chain with oil
  supply chain. Understanding how costs along the
  supply chain varies and costs change with time.
• There are many different routes to blend biofuels
  into petroleum products is the government and
  oil industry aligned?
• Has key infrastructure challenges been
  identified? Logistics, SME farmer involvement
  (training, financing of operations and equipment,
  other incentives)

Food versus Fuel
Incentives
Supply Chain Management
Alignment with Oil Industry
Establishing the appropriate infrastructure
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Key Elements to a successful Biofuels Industry
Source Accenture Biofuels
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Market Understanding
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2
Supporting Policies
Marketing/ Customers
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3
How to successfully establish a Biofuels
Industry?
Supply Demand
Emissions/ Co2 Trading
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4
Organizational Requirements
Feedstock Situation
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Production Economics
Technology Development
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Oil Supply Chain Integration

• Having a view on all of these areas will enable
  government to successfully establish a biofuels
  industry

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Actions to scale up use

• Create supportive policy and institutional
  frameworks
• Identify and utilise programs that can minimise
  economic risk to the investor
• Blending mandates
• Tax incentives and subsidies
• Increased public sector funding for R, D D
  (need to bring down cost of 2nd Gen and
  demonstrate technologies)
• Promote private sector involvement
• Public private partnerships
• Innovative financing mechanisms
• Create micro-enterprise (support income
  generating uses)
• Promote regional cooperation (combining
  agricultural strengths of SADC countries with
  market opportunities in SA)
• So, what is SANERI doing?

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SANERI

• State-funded Research Institute focusing on
  Public Interest non-nuclear Energy RD
• Established under Ministerial Directive in
  October 2004, as a company wholly owned by CEF,
  fully operational in 2007
• SANERI has mandate to conduct own research or
  solicit work from external parties
• SANERIs research priorities are guided by
• the draft national energy RD research strategy
  (developed by DME, DST and stakeholders)
• the DST 10 Year Innovation Plan.
• SANERI strategic plan stakeholder workshop of
  2007.
• Supports the membership of SA to various
  international bodies such as
• IEA Implementing Agreements
• Carbon Sequestration Leadership Forum (CSLF)
• Renewable Energy and Energy Efficiency
  Partnership (REEEP)
• European Commission Framework Programme

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SANERIs core activities

• Human Capital Development
• This is focused on developing skills for
  non-nuclear energy through postgraduate training
  and consists of the following programmes
• Bursary Support Scheme
• Chairs of Energy Research Programme
• Hub and Spokes of Energy Programme
• Energy Research Programme
• SANERI financially supports basic and applied
  research in institutions of higher learning,
  research centres, private companies and
  individuals. The research has to be in line with
  SANERIs thematic areas and short term research
  priorities
• Cooperative RD Activities
• One of SANERIs objective is to create local and
  international partnership to leverage funding,
  research facilities and share knowledge to
  accelerate technology development and innovation
  in the thematic areas.

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Research Areas

• Senior and Associate Chairs Biofuels and
  Alternative Energy and various projects at
  different institutions
• Alternative Feedstock
• Triticale, cassava, eucalyptus
• Conversion Technologies (2nd Generation
  Technologies)
• Biochemical Technologies
• Yeast
• Enzymes
• Bacteria
• Thermochemical Technologies
• Fast Pyrolysis
• Gasification

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Research Areas

• Develop integrated pre-treatment-hydrolysis
  fermentation processes
• Process modeling and the development of
  bio-refinery concepts
• Techno-economic and life cycle analysis of the
  above feedstocks.
• Algae Research (very important carbon dioxide
  sink)
• collection, identification, screening and
  selection of optimum microalgae strains suitable
  for biodiesel production
• determination of efficient extraction techniques
• reactor design and optimisation
• Major aim is to accelerate 2nd Gen to
  market from bench to pilot to demonstration

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Thank You!thembakazim_at_saneri.org.zawww.san
eri.org.za