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South Africa: CEF signs bioethanol deal with Brazilian giant, Petrobras

South Africa’s State-owned Central Energy Fund (CEF) has signed a memorandum of understanding with Brazilian petrochemicals giant Petrobras to conduct a feasibility study concerning the introduction of bioethanol in South Africa.

CEF CEO Mputumi Damane said that the CEF is interested in developing technology for the production of bioethanol from sugar cane.

It is envisaged that South Africa will introduce a biofuels-blending regime, which will make it mandatory for oil companies to blend a certain percentage of bioethenaol and biodiesel – anticipated to be 10% – into the mineral-oil-based liquid fuels supply.

Bioethanol can be blended with conventional petrol and used as an additive to boost the octane number of unleaded petrol.

Damane said that the study is part of a broader intent to develop a bioethanol industry in South Africa.

The CEF and Petrobras will cooperate in the feasibility study with the aim of commercially producing bioethanol in South Africa.

Additional information: See Mining Weekly for more.
News date: 08/09/2006

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