At the cost of almost $30 million this is a waste of valuable resources for a country that doesn't have many to begin with. Yet another example of misaligned government priorities.
One of the biggest reasons for biofuels not taking off in Africa, despite immense potential, is the lack of demand side development. The smallholders can grow the crops but they don't have the ability to sell them to European refineries. A local refinery has always been necessary but no one has been willing to invest in one without first ensuring that the supply side is guaranteed -- which is often difficult when you are looking to deal with potentially thousands of smallholder farmers to supply you with the feedstock.
Given that, government investment in a refinery is probably how one would need to proceed and this a great first step.
Principle says its funds have incurred substantial losses on their 18m investment in the biodiesel company.
With 27.55% of the issued share capital, it says it has the ability to block all special resolutions of the company and intends to do so until the board agress to discuss its requests.
These are that D1 ceases all but essential cash expenditure immediately and begins talks for the acquisition of Principle Energy Limited and an associated fundraising.
Principle is resolved 'to fulfil its duties to its underlying investors by ensuring that what it considers to be fruitless expenditure is halted'.
Story provided by Business Financial Newswire
Brian Myerson brings significant leadership to D1 Oils--a company that has probably done more harm than good to the sector with its unsubstantiated claims. There was a time when D1 Oils was widely expected to be a leader in the biofuel sector. Today, it is a sorry tale of poor planning. Can Principle change the trends?
Masdar, Abu Dhabi’s multi-faceted future energy initiative wholly owned by the Mubadala Development Company, and the Seychelles Government announced they will be carrying out a wind resource assessment study for the proposed wind power project on the island of Mahe. http://www.zawya.com/story.cfm/sidZAWYA20091028113540
Masdar City is an ambitious project and Masdar is a renewable energy company that can be Middle East first true foray in the renewable and green energy space. Now the wind project in Africa takes Masdar into the global arena and one step closer to becoming something more than a national or regional force.
Engineering News reports that the financial crisis is hindering African biofuels exports, said Hart Energy Consulting Global Biofuels Center (GBC) biofuels director Maelle Soares Pinto. GBC sees a overcapacity in the European Union (EU), the most likely market for biofuels exports from Africa. Pinto also said several African countries benefit from special tariffs in the case of ethanol exports to the EU. Hart’s GBC executive director Tammy Klein adds that, as yet, there is still not a demand driver in the African marketplace.
Europe doesn't have enough land to grow its own biofuels, and the continent needs to increase its biofuel consumption at least five to six times to meet EU targets. Most European countries are increasingly looking towards African lands for production of biofuels. This is partially due to familiarity--most of these lands were governed by European nations until a few decades ago--and partially because of how much unused land is available in Africa.
This poses a number of challenges to the African governments. They need to balance their food and fuel production; find a way to increase their share of the value chain; and ensure that their own energy consumptions costs go down. Most importantly, they need to make sure that someone will buy the biofuels produced by their farmers--and the recession is turning many of them away.
