The South African Cabinet approved the draft Biofuels Industrial Strategy for the Republic yesterday (6th December). In a statement the government said that the country has the potential to produce biofuels which could contribute up to 75% of its renewable energy by 2013 without negatively impacting on food security or requiring excessive support.

This will be achieved, said the statement, by using excess crop production and expanding production on under-utilised arable land, particularly that of emerging farmers. The biofuels industry has the potential to create 55 000 agricultural jobs and will contribute to reducing greenhouse gases and promote a cleaner environment.

The required capital investment will be approximately R6 billion which will come from both public and private sectors. A task team has been set up to do further work on the strategy and to consult with the relevant stakeholders. The matter will be brought back to Cabinet in May 2007 for finalisation.