The role of sugarcane in securing South Africa's aviation fuel supply
The recent disruptions in domestic air travel highlighted the strategic need for South Africa to establish diversified and sustainable local sources of aviation fuel.
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Fuel shortages
Even though the NATREF refinery recently reopened after a fire in January caused major fuel shortages, it shows that one disruptive event led to the Department of Transport scrambling to source imports from various suppliers As many airplanes at OR Tambo International Airport were grounded amidst the chaos, airlines had to implement measures such as tankering, which involved refueling at alternative airports and relying on imports from Namibia to get up and running again in the short term.
This disruption illustrated why the government should support the development of domestic sustainable aviation fuels (SAFs). Sustainable aviation fuel is an opportunity to not only be prepared for risks such as the recent shortage but could make South Africa a regional hub for international airlines seeking to lower their carbon footprint.
The shortage of domestic jet fuel supply and reliance on imported sources will only be exacerbated as the country looks to open another major airport in the Cape Winelands. Unless the Department of Mineral Resources and Energy looks at aviation and blended fuel alternatives, airport expansion plans are at risk before they get out of the starting gates.
Biofuels is a promising alternative, which along with many other benefits such as a diversified sugar industry, job creation and transformation, can supplement the current fuel shortage with blended fuels.
SAFs holds great promise for South Africa. The global aviation industry's target is net–zero carbon emissions by 2050 and SAFs, currently used in commercial aviation, can reduce such emissions by up to 80%. But, to achieve these important goals, there must be a massive increase in production of SAFs to meet this demand. Sugarcane-based ethanol can serve as a renewable fuel source and can compete with finite sources such as fossil kerosene.
Furthermore, processing plants for biofuels will require a skilled and semi-skilled workforce, creating jobs not just in farming but in manufacturing, logistics, and research and development.
The global push for SAFs is gaining momentum, presenting a crucial opportunity for South Africa to position itself as a key player in this emerging market. However, capitalising on this opportunity will require proactive policy support. The government must implement clear incentives for SAF development, including subsidies, research grants, and public-private partnerships.
Regulatory alignment with global SAF mandates—such as those set by the International Civil Aviation Organization (ICAO) and the European Union—will also be critical in ensuring that South African-produced SAFs meet international standards and attract investment.
The transition to SAFs is not a question of if, but when. Countries that move swiftly to develop domestic production capabilities will reap the economic and environmental rewards of a greener aviation industry. There is already a growing interest by South African sugarcane growers for the use of sugarcane as a feedstock for fuel. South Africa has the resources, the expertise, and the industrial base to become a leader in this space.
Right now, lessons can be learnt from India, another major sugar producer, who is the global SAF leader and has taken the initiative to tap into this new market which ensures the continued use of existing farmland while creating a new revenue stream amid declining traditional markets.
Sugarcane a catalyst
Diversifying the sugar industry by opening up new markets for sugarcane will be a catalyst in reaching long term transformation goals by creating direct and indirect jobs, providing security in a market volatile to external shocks and climate change, as well as adding valued products to the South African domestic and international markets.
South Africa’s unemployment rate sits as high as 31.9%, and it cannot be business as usual. The consistently high rate of unemployment should encourage industries to think of alternative markets for job creation.
The Department of Agriculture has reaffirmed its commitment to small-scale growers by focusing on the billion-rand Transformation Intervention Fund as an empowerment funding tool. However, the protection of small-scale growers in a truly transformed sector can only be achieved with strong policy direction and the strategic investment initiatives, such as creating new markets for sugar and sugarcane derivates. By creating a policy environment that enables investment into new end-users for sugar or sugarcane, we can help sugarcane growers with their own sustainability. SA Canegrowers represents 24,000 small-scale and 1,200 large-scale growers. Our growers are under immense pressure through various external threats, including a changing and volatile climate and job-killing policies like the sugar tax.
Small-scale growers are especially vulnerable to these pressures, and without long-term intervention into solutions to make the industry sustainable, these growers may end up out of business.
Small-scale growers provide much needed stability and employment in rural KZN and Mpumalanga – in areas where there are often very few other options.
It is vital to create and protect jobs and rural communities by keeping the sugar industry profitable and sustainable. Amidst the number of significant economic, social and climate- related challenges, the sugar cane industry needs to work with the government to diversify its value chain and keep up with global trends.
About the author
Higgins Mdluli is the chairman of SA Canegrowers.