Venezuela, Guatemala, South Africa discuss biofuels policy

Three countries attempted yesterday to clarify goals and timelines for their biofuels policy.

Venezuelan President Chavez said that Venezuela would establish an E7 national ethanol target, and that his government is not against the use of ethanol, but opposes the use of foodstocks such as corn to produce it. He said his government supports the use of sugarcane to produce ethanol. He also suggested that for each acre planted to grow sugarcane for biofuels, his government would plant two acres for food production. President Chavez and Fidel Castro have been vocal critics of using food stocks for ethanol fuel, but Chavez’s statement clarifies that he believes that sugar is not a food stock in the sense that corn is.

It is not clear the extent to which this represents a statement of support for Brazilian ethanol, or an indication that Venezuela will enter the biofuels business.

In Guatemala, presidential candidates agreed that private sector must play a part in developing Guatemala’s energy sector. The Guatemalan government established a national biofuels commission this year, to coordinate expansion of the biofuels industry which produces 74 Mgy of ethanol.

In South Africa, Department of Minerals and Energy Chief Director of Clean Energy, Sandile Tyatya, said that South Africa’s national biofuels policy document should be ready in October. Development in South Africa has been slowed by the delays in releasing the document, with Sasol stating that the biofuel industry must receive subsidies to incentivize industry to proceed with development.

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