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Bothaville - The construction of a 158 million litre bio-ethanol plant in Bothaville from grain sorghum as a feedstock is very short-sighted as far as both the biofuels strategy of the government and its policy to develop small black farmers are concerned.
The latest paper on the South African biofuels regulatory framework for the development of the local biofuels industry was announced last week by Minister of Energy, Ben Martins, and published in the Government Gazette in terms of the National Energy Act of 2008.
Several reasons for this short-sightedness are related to the international developments that have taken place in technology, the production of feedstock and the market for biofuels.
The most important developments as far as the short-sightedness with the construction of the bio-ethanol plant in Bothaville is concerned and some specific recommendations should seriously be considered in this regard.
Production of feedstock
The most important feedstock for the manufacturing of biofuels in the world are sugarcane and maize.
Sorghum is used as a feedstock in the US, but only on a limited scale in production areas where the crop performs well on heavier clay soils as we are also experiencing it in South Africa.
Almost no sorghum is produced within a 50km radius around Bothaville.
Sorghum
The most sorghum in the Free State is produced in the north of the province (Vredefort, Koppies, Sasolburg and Heilbron).
The fact that the average yield of sorghum per hectare over the past ten years was just about half the average yield of maize, means that grain farmers will have to be offered a price at least doubled the maize price in order to plant sorghum in the Bothaville area.
The expectation that small developing black farmers will plant sorghum in this area will for the same reason not come to fruition and it could not be expected from them if it is not at least as profitable as maize.
To import sorghum from abroad and to transport it from the import harbour to Bothaville will not be logical and cost-effective at all, because then the plant should raher be built at the coast.
In the US research has already been undertaken for several years by the two biggest seed producers in the world, Pioneer and Monsanto, to develop more suitable and profitable maize cultivars with the use of genetic modification for the manufacturing of bio-ethanol.
Specifically for higher yields, disease resistance and to develop cultivars with not only the highest starch content, but also with the highest fermentable starch content to get the highest possible bio-ethanol yield.
No similar research has so far been undertaken to develop new sorghum cultivars, which means that maize is by far a much better feedstock that can be planted in the grain producing areas for the manufacturing of bio-ethanol.
Latest technology
The best technology available in the world during 2005 for the manufacturing of bio-ethanol is already outdated for quite some time.
The latest technology, which includes the very advanced fractionation process, should be used to devide a maize kernel into its different components, namely starch, protein, fibre, vegetable oil and water to add the most value to the different components through different technology processes.
This process was one of the big breakthroughs that was made in the biofuels industry and something that the best technology providers in the world during 2005 had not thought about.
This was until it was realised that it was not neccessary to put the whole maize kernel through the fermentation process, as only the starch was needed for the manufacturing of bio-ethanol.
The result was that more value could be added to the protein as food for humans rather than feed for animals.
The fibre could be used for feed, but it can also be used as part of a health food diet for humans or for the manufacturing of pressed wood that can replace natural wood products.
In the very near future it could also be used for the manufacturing of bio-ethanol from celluloses.
The vegetable oil is already used in the USA for the manufacturing of bio-diesel.
Big breakthrough
Another big breakthrough that was made after 2005 to increase the efficiency of the fermentation process, was the introduction of new enzymes.
The American company, Genencor, for example, released an enzyme, Stragen, that could be used to lower the very high temperatures in the fermentation process to much lower levels.
This resulted in a substantial increase in the net energy value of the process.
This enzyme, together with the development of new cultivars with a much higher fermentable starch content, made it possible to further ensure that the process could deliver a positive net energy value.
The technology already exists for the manufacturing of medicinal and pharmaceutical products from the casing of the maize kernel, which can further increase the added value.
Policy
During the commencement of the first actual steps to develop a biofuels strategy in 2004, two specific prerequisites were put forward for the development of a biofuels industry in South Africa.
The first one was a certain percentage mandatory blending of biofuels and secondly, an exceptable regulated price mechanism that will allow manufacturers to produce bio-ethanol profitable and sustainable.
The first prerequisite was already met with the announcement by the minister of energy in August 2012 that a 2% blending of bio-ethanol and biodiesel with petrol and diesel respectively would become mandatory from October 2015 according to a later announcement in September 2013.
The latest anouncement put a regulatory framework on the table for the first time.
This will regulate biofuel prices and provide a 15% guaranteed return on capital investment for approved and licensed biofuel plants.
A levy that will be specifically earmarked for the subsidising of the plants will be part of the general fuel levy on the national consumption of petrol and diesel.
The levy will, according to the latest announcement, be R1.95 per litre for bio-ethanol and R2.53 per litre for biodiesel.
The guaranteed return on investment of 15% would be a great support for the development of the biofuels industry.
It should be seen against the background of the same support that was given when the synthetic fuel industry was developed as well as the protection that the industry enjoyed until 2005 when the international oil price dropped below certain lower levels.
Final product
The manufacturing of bio-ethanol (bio-ethyl alcohol = C2H5OH) has internationaly made way for the manufacturing of biobutanol (biobutyl alcohol = C4H9OH).
In the US many of the bio-ethanol plants have already been converted to biobutyl alcohol some years ago for several good reasons.
Biobuthanol contains two addisional carbon molecules and provides more energy than bio-ethanol.
Biobutanol can also be transported by a pipeline and it is less higroscopic and flammable than bio-ethanol, which will makes the consumption of biobuthanol gel.
It is, therefore, more safe to use. Biobutanol was already tested and used successfully as a jet fuel and should, therefore, be seriously considered with the manufacturing of biofuels in South Africa.
Biobutanol can be manufactured from the same feedstock as bio-ethanol such as maize and sorghum.
Specific additional bacteria will have to be added to the fermentation process while certain adjustments will have to be made to the distillation process.
The better quality of the product will be worth the additional costs.
A very important issue that should seriously be considered in South Africa, in the light of the critical position that Escom finds itself with the sufficient supply of electricity to the country, would be the possibility to generate bio-electricity with biofuels as the energy source.
A proper and comprehensive economic feasibility study should be undertaken in this regard.
Recommendations
The government and the investors should very seriously consider the possibility to rather produce biobuthanol with the construction of the plant in Bothaville with the best available technology in the world.
This recent announcement about the regulatory framework would now make it possible to build a world class biofuels plant and the most modern plant in Africa.
The government should not be too sort-sighted not to allow the releasing of a limited volume (about 400 000 tons) of maize from the existing ban on maize for this purpose.
Especially as tax payers' money will be used to subsidise the profitability of the plant.
This tonnage would be too small to have any detrimental effect on food security and it could be to the advantage of the country and its people rather than to export the surplus maize, while at the same time creating a bigger market for small grain farmers.
The only goal that should be considered with the construction of the plant must be to improve the profitability and sustainability of grain production, which is the only way to enhance and guarantee food security inpit the long term.
* Fanie Brink is an agriculture and biofuels advisor, views expressed are his own.
The latest paper on the South African biofuels regulatory framework for the development of the local biofuels industry was announced last week by Minister of Energy, Ben Martins, and published in the Government Gazette in terms of the National Energy Act of 2008.
Several reasons for this short-sightedness are related to the international developments that have taken place in technology, the production of feedstock and the market for biofuels.
The most important developments as far as the short-sightedness with the construction of the bio-ethanol plant in Bothaville is concerned and some specific recommendations should seriously be considered in this regard.
Production of feedstock
The most important feedstock for the manufacturing of biofuels in the world are sugarcane and maize.
Sorghum is used as a feedstock in the US, but only on a limited scale in production areas where the crop performs well on heavier clay soils as we are also experiencing it in South Africa.
Almost no sorghum is produced within a 50km radius around Bothaville.
Sorghum
The most sorghum in the Free State is produced in the north of the province (Vredefort, Koppies, Sasolburg and Heilbron).
The fact that the average yield of sorghum per hectare over the past ten years was just about half the average yield of maize, means that grain farmers will have to be offered a price at least doubled the maize price in order to plant sorghum in the Bothaville area.
The expectation that small developing black farmers will plant sorghum in this area will for the same reason not come to fruition and it could not be expected from them if it is not at least as profitable as maize.
To import sorghum from abroad and to transport it from the import harbour to Bothaville will not be logical and cost-effective at all, because then the plant should raher be built at the coast.
In the US research has already been undertaken for several years by the two biggest seed producers in the world, Pioneer and Monsanto, to develop more suitable and profitable maize cultivars with the use of genetic modification for the manufacturing of bio-ethanol.
Specifically for higher yields, disease resistance and to develop cultivars with not only the highest starch content, but also with the highest fermentable starch content to get the highest possible bio-ethanol yield.
No similar research has so far been undertaken to develop new sorghum cultivars, which means that maize is by far a much better feedstock that can be planted in the grain producing areas for the manufacturing of bio-ethanol.
Latest technology
The best technology available in the world during 2005 for the manufacturing of bio-ethanol is already outdated for quite some time.
The latest technology, which includes the very advanced fractionation process, should be used to devide a maize kernel into its different components, namely starch, protein, fibre, vegetable oil and water to add the most value to the different components through different technology processes.
This process was one of the big breakthroughs that was made in the biofuels industry and something that the best technology providers in the world during 2005 had not thought about.
This was until it was realised that it was not neccessary to put the whole maize kernel through the fermentation process, as only the starch was needed for the manufacturing of bio-ethanol.
The result was that more value could be added to the protein as food for humans rather than feed for animals.
The fibre could be used for feed, but it can also be used as part of a health food diet for humans or for the manufacturing of pressed wood that can replace natural wood products.
In the very near future it could also be used for the manufacturing of bio-ethanol from celluloses.
The vegetable oil is already used in the USA for the manufacturing of bio-diesel.
Big breakthrough
Another big breakthrough that was made after 2005 to increase the efficiency of the fermentation process, was the introduction of new enzymes.
The American company, Genencor, for example, released an enzyme, Stragen, that could be used to lower the very high temperatures in the fermentation process to much lower levels.
This resulted in a substantial increase in the net energy value of the process.
This enzyme, together with the development of new cultivars with a much higher fermentable starch content, made it possible to further ensure that the process could deliver a positive net energy value.
The technology already exists for the manufacturing of medicinal and pharmaceutical products from the casing of the maize kernel, which can further increase the added value.
Policy
During the commencement of the first actual steps to develop a biofuels strategy in 2004, two specific prerequisites were put forward for the development of a biofuels industry in South Africa.
The first one was a certain percentage mandatory blending of biofuels and secondly, an exceptable regulated price mechanism that will allow manufacturers to produce bio-ethanol profitable and sustainable.
The first prerequisite was already met with the announcement by the minister of energy in August 2012 that a 2% blending of bio-ethanol and biodiesel with petrol and diesel respectively would become mandatory from October 2015 according to a later announcement in September 2013.
The latest anouncement put a regulatory framework on the table for the first time.
This will regulate biofuel prices and provide a 15% guaranteed return on capital investment for approved and licensed biofuel plants.
A levy that will be specifically earmarked for the subsidising of the plants will be part of the general fuel levy on the national consumption of petrol and diesel.
The levy will, according to the latest announcement, be R1.95 per litre for bio-ethanol and R2.53 per litre for biodiesel.
The guaranteed return on investment of 15% would be a great support for the development of the biofuels industry.
It should be seen against the background of the same support that was given when the synthetic fuel industry was developed as well as the protection that the industry enjoyed until 2005 when the international oil price dropped below certain lower levels.
Final product
The manufacturing of bio-ethanol (bio-ethyl alcohol = C2H5OH) has internationaly made way for the manufacturing of biobutanol (biobutyl alcohol = C4H9OH).
In the US many of the bio-ethanol plants have already been converted to biobutyl alcohol some years ago for several good reasons.
Biobuthanol contains two addisional carbon molecules and provides more energy than bio-ethanol.
Biobutanol can also be transported by a pipeline and it is less higroscopic and flammable than bio-ethanol, which will makes the consumption of biobuthanol gel.
It is, therefore, more safe to use. Biobutanol was already tested and used successfully as a jet fuel and should, therefore, be seriously considered with the manufacturing of biofuels in South Africa.
Biobutanol can be manufactured from the same feedstock as bio-ethanol such as maize and sorghum.
Specific additional bacteria will have to be added to the fermentation process while certain adjustments will have to be made to the distillation process.
The better quality of the product will be worth the additional costs.
A very important issue that should seriously be considered in South Africa, in the light of the critical position that Escom finds itself with the sufficient supply of electricity to the country, would be the possibility to generate bio-electricity with biofuels as the energy source.
A proper and comprehensive economic feasibility study should be undertaken in this regard.
Recommendations
The government and the investors should very seriously consider the possibility to rather produce biobuthanol with the construction of the plant in Bothaville with the best available technology in the world.
This recent announcement about the regulatory framework would now make it possible to build a world class biofuels plant and the most modern plant in Africa.
The government should not be too sort-sighted not to allow the releasing of a limited volume (about 400 000 tons) of maize from the existing ban on maize for this purpose.
Especially as tax payers' money will be used to subsidise the profitability of the plant.
This tonnage would be too small to have any detrimental effect on food security and it could be to the advantage of the country and its people rather than to export the surplus maize, while at the same time creating a bigger market for small grain farmers.
The only goal that should be considered with the construction of the plant must be to improve the profitability and sustainability of grain production, which is the only way to enhance and guarantee food security inpit the long term.
* Fanie Brink is an agriculture and biofuels advisor, views expressed are his own.
