Interest in the biofuels industry in South Africa is driven largely by high oil prices and a strain on energy resources and logistics. This report considers the development of the biofuels industry in its infancy in South Africa and the factors that need to be taken into account by the potential entrants into the market. It also considers the factors which will continue to affect the sustainability of the biofuels industry.A total of fifteen experts across the biofuels value chain as well as stakeholders, who are considered experts in their field, were approached directly to provide input into this research. Further information was gathered from three focus groups involving thirty five people, all of whom are involved in the evolving biofuels sector.The research has shown that out of a number of production factors and consumption factors identified, there a few key factors that can be seen to be largely influencing the further development of the biofuels industry. Similarly a few key factors which will influence the sustainability of the biofuels industry have been identified.