South African fuels firm De Beers Fuel plans to produce 16 to 24-billion litres of biodiesel a year from algae within five years with an initial investment of R3,5-billion ($487,4-million), it said on Tuesday.
The company has bought licenses for 40 000 hectares to be developed into algae farms — for which the initial investment is targeted — and within five years from now the intention is to increase that land area to 320 000 hectares.
De Beers Fuel — which is unrelated to the world’s biggest diamond producer De Beers — said in a statement that South Africa uses about 8,1-billion litres of biodiesel yearly.
De Beers Fuel already runs a plant which produces 144 000 litres of biodiesel daily from sunflower seed oil, at Naboomspruit in the northern Limpopo province. A biodiesel algae reactor installed at the plant will be showcased to investors, experts and the media later this week.
”The project is highly capital-intensive. The first 100 acres will require about R3,5-billion, this has been sourced mainly from foreign private equity groups,” Hendy Schoombee, a senior official at De Beers Fuel said.
”We had initially intended to list the company to raise the money. We might list at a future date to raise money for further expansion,” he said.
One acre of algae can produce 92 000 litres of biodiesel, compared to 350 litres produced from one acre of a sun-flower seed farm, he added.
The company will use land that is not arable or useful for most other purposes, and will also generate electricity from waste material out of the biodiesel-making process.
Its bio-diesel will be targeted for industrial use and for future exports, and is based on technology supplied by a United States company, GreenFuel Technologies Corporation, while Green Star Products, also of the US, will build the biodiesel reactors. – Reuters