Who should pay for bio-oil?
Sasol says that a bio-diesel pland in SA would not be economically viable without government support.
Because current oilseed production is consumed locally, vegetable oil would have to be imported at a cost of about R5000 per ton, or new plantings should be grown. Brian Tait, manager of alternative energy for the world’s biggest producer of liquid fuels from coal, believes that the government should offer fuel tax exemptions, subsidies and capital investment support in order to encourage a bio-diesel industry. He also added that Sasol is expected to decide whether or not they are going to build a $30-million plant fed by soya beans. This plant would deliver 100 000 ton/year.
With the consumers having to cough up even more for fuel, government could force oil companies to add bio-diesel to fuel. The consumers will have to pay more for fuel, should they choose to take this route.
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