R1.5 billion investment for Jozini

BRAZILIAN investors have eyed the Zululand outskirts of Jozini for a proposed biofuel ethanol plant, set to create about 6 000 direct and indirect jobs.

A foreign delegation of experts visiting the Zululand Observer last week, outlined the R1.5-billion project, which is expected to get off the ground in the latter half of this year.

The Brazilian-based company, SilvaPen Group, which has an industrial unit in Jozini, intends to produce ethanol from the milling and fermentation of cane sugar harvested by small local growers. Ethanol is also combined with gasoline to produce environmentally friendly fuel, ensuring a cleaner and renewable energy matrix.

‘South Africa will blend 2% ethanol into fuel from 15 October 2015,’ CEO of SilvaPen Group, Penalto Miguel, told the Zululand Observer.

‘Our capacity will be 125 million litres per annum of biofuel ethanol which will be utilised in the local petroleum industry. We are also working with the local government to co-generate electricity. The company will have a total installed capacity of 48 megawatts. This potential represents an annual market power sufficient to supplying, for example, a city of 5 000 inhabitants,’ said Miguel.

Bioelectricity is generated from the use of by-products of cane sugar, bagasse, straw and leaves – waste generated from the production of sugar and ethanol.

‘The volume of electricity generated will cause the production unit in Jozini to be self-sufficient in energy,’ said Head Industrial Engineer, Pedro Collegari.

‘The power generation offers the proper disposal of waste ethanol and further reduces the CO2 emissions from the burning of these materials in the field. In addition to these benefits, the generation of energy from biomass will help South Africa face the future challenges in the energy sector.’

The agricultural area for small sugar cane growers will span 15 000 hectares, while the plant will be situated on a 30 hectare portion of land.

The refinery’s footprint will penetrate Jozini and surrounds over a 40km radius with a technical college, medical clinic as well as environmental and educational projects on the cards.

‘Every distillery built in Brazil has had a major impact on the surrounding community in terms of improved health, educational and economic benefits,’ said Head: Social Development and Wellbeing, Dr Erlon Tostes.

‘There will also be a major skills transfer as 60 Brazilian families will reside here for 10 years to educate local people on the new technology, refinery and industry as a whole.’