South African biodiesel producer recognized for ethical practices

Based on its recent analysis of the biofuels market, Frost & Sullivan recognizes Biogreen Diesel with the 2016 South Africa Company of the Year Award. Biogreen has risen to eminence in the biodiesel industry for pioneering a closed-loop system wherein cooking oils no longer fit for human consumption are removed from the food cycle and converted to quality biodiesel. The company began by processing 3,000 to 5,000 liters (793 to 1,321 gallons) monthly in Cape Town, and now processes 20,000 to 25,000 liters (5,283 to 6,604 gallons) per month. With new operations soon set to launch in Johannesburg and Durban, its combined output will be more than 300,000 liters (79,252 gallons) per month. 

Biogreen was established when South African restaurateur Roy de Gouveia recognized a paucity of biodiesel producers that addressed domestic needs. De Gouveia set up his own biodiesel production facility that not only met the needs of consumers in South Africa, but also ensured that waste cooking oils were not recycled and sold to poorer communities.

“Receiving the Frost & Sullivan Award is a great milestone in our journey,” said de Gouveia. “We are humbled and honored to receive the award. We strive daily to better the processes of eradicating waste oil being resold into poorer communities, as well as being exported...”

Although margins in the recycling business tend to be thin, Biogreen has grown strongly and will continue to do so once its franchises begin operations. As feedstock tends to account for 75 percent of a product’s price, the company’s use of waste cooking oil as raw material makes its biodiesel extremely affordable. Biogreen adheres to motor vehicle manufacturers’ recommended biodiesel blend, which can range from 5 to 100 percent in more industrial motors.

“Under a license agreement, Biogreen uses locally developed and patented jet reactor technology to make SANS1935 specification biodiesel,” said Frost & Sullivan Industry Analyst Constance Nyambayo. “While the standard transesterification process is conducted at 60 degrees Celsius, Biogreen’s technology allows it to run its processes at 45 degrees Celsius. It uses 16 percent methanol, which is lower than what other reactors use, making it even more environmentally friendly. Furthermore, its biodiesel is of higher quality and requires less time for conversion.”

Unlike its peer suppliers that operate solely for profit by entering the market when oil prices peak, and exiting when they drop, Biogreen offers suppliers and customers set contracts that are independent of oil prices. Biogreen provides end-to-end services for select customers, supplying new oil and collecting used oil from their premises.

In South Africa, Biogreen has earned a reputation for delivering high-quality biodiesels that are sourced ethically and manufactured using the industry-best standards. Its reliability and product quality has won it an enviable clientele that includes Woolworths Food, Pick ‘n Pay, Burger King, and Boxer Stores.

“Biogreen enables customers to bolster their brand and corporate image by marketing their use of sustainable fuels,” Nyambayo said. “This visionary leadership, exemplified by its focus on driving business performance by innovating for the future, has made Biogreen a worthy recipient of Frost & Sullivan’s honor.”

Each year, Frost & Sullivan presents this award to the company that has demonstrated excellence in terms of growth strategy and implementation. The award recognizes a high degree of innovation with products and technologies and the resulting leadership in terms of customer value and market penetration.

Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.