The East London Industrial Development Zone (Elidz) has secured a contract to supply biodiesel to Germany, according to a report on Business Day.

The industrial zone has secured a long-term contract to export between 70% and 90% of the total output from a planned biodiesel plant in the Eastern Cape to Germany.

Elidz expects the project, which will be located in the IDZ area, to generate about 17,000 jobs through both commercial and small-scale farming in the Eastern Cape.

Msokoli Ntombana, Elidz business development manager, added that an environmental impact assessment (EIA) was already being undertaken, with production expected to begin next year.

The feedstock for the plant will be canola, as the product meets the strict European Union quality specifications.

Elidz is partnering with the Eastern Cape Development Corporation, Asgi-SA Eastern Cape and the Department of Agriculture for the project.