South African sugar producers warming up to ethanol

In South Africa, the national sugarcane association says it would cost about $1.88 million to upgrade a sugar mill to also produce ethanol. Illovo and TSB say they’re waiting for the government to announce subsidies—set for decision in the next three months—before deciding to invest in ethanol production. Merrill Lynch says TSB expects to upgrade one of its four mills to produce 125 million liters of ethanol annually.