German investor looks into bio-fuels plant at ELIDZ

A GERMAN investor is currently in negotiations with the East London Industrial Development Zone (ELIDZ) to establish a biofuels refinery plant which will enable South Africa to export diesel to Europe. It will also involve in the region of 15 000 smallscale farmers in the Eastern Cape who will grow crops of Canola from which the diesel will be processed. The plant is estimated to cost R350 million and will enrich the farming community to the tune of R1.2 billion a year if the scheme gets under way. According to Simphiwe Kondlo, chief executive of the ELIDZ, government approval is now awaited for the proposed venture. The name of the investor can only be disclosed once this has been achieved. Canola is used mainly in the production of cooking oil but is ideally suited for diesel production. In this form it is an environmentally-friendly bio-fuel which is in major demand among EU nations. Apart from benefiting from the foreign exchange income which will flow, the farmers in the region will also have a 20% stake in the refinery, says Kondlo. The provincial government will also provide equipment, road development and other requirements to farmers involved. “If the project is given government approval, it can be up and running within the next 18 months,” he says.