South Africa: Sasol Reviews Plans for Biofuel Plant
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Monday, 16 June 2008 |
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Sasol is reviewing plans to build a soya-to-motor fuels plant because it is dissatisfied with government support.
"By September or October we'll decide whether we want to continue in a
different form," Brian Tait, Sasol's Johannesburg-based alternative
energy manager, said. Sasol had planned annual biodiesel output of 100 000 tons.
Sasol said a government proposal to lift biodiesel-producer exemptions
on payments to a national fuel levy to 50 percent from 40 percent, was
not enough to make the project viable.
The government wants to encourage biofuels investment of R5 billion
within five years to combat record oil prices. "You need government
incentives," Tait said. That exemption level was
"certainly not enough in terms of the current cost of feedstock", he
added.
PetrolWorld 140608
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