The Industrial Development Corporation (IDC) has issued a call for expressions of interest (EOI) for the supply of low tannin grain sorghum feedstock for the Cradock Ethanol Project.
The Cradock Project is one of five planned biofuels projects in the Eastern Cape, three of the others being in the Coega Industrial Development Zone and one in the East London IDZ.
IDC is looking for a locally produced supply of sorghum “in the order of 261 000 tonnes a year”.
The five projects are at various stages of securing the necessary licenses for the manufacture of bio-fuels and will also use a variety of feedstock.
The R1 billion Cradock Project will produce fuel grade bioethanol as a primary product and co-products which can be sold as high-protein components into the animal feed market.
More than half of the planned bio-fuels projects are in the Eastern Cape and all are awaiting publication of the final pricing mechanism following the gazetting of draft proposals for public comment last year.
At this stage, there is no indication of when the final pricing mechanism will be published.
Regulations with regard to the mandatory blending of petrol and diesel with biofuels are scheduled to come into effect on October 1 next year.
(Source: Metro Minutes email@example.com)