* Technical Challenges - Technology is relatively simple and has high conversion efficiency. * Cost Challenges - Despite efficiency, levelised costs are high, due to mainly 2 factors (1) the input cost of raw material is high, and (2) operating costs are high due to feedstock (methanol) and distillation operations. Selling oilcake has a significant effect on final product cost, with a 50% oilcake internal subsidy reducing the costs by R 6,500/ t (0.65 R/kWh). This would bring production cost into line with current range of diesel prices. * Environmental Challenges - Greenhouse gas savings are significant provided land use changes are carbon neutral. Limiting cultivation to subsistence cropland should assist with this goal. * Social and Institutional Challenges - Conversion of subsistence farmers in former homeland areas, with high reliance on cattle and maize, to a cash crop with side products for own consumption and cattle feed will require significant community involvement. Cooperative farming and marketing channels need to be investigated.