Tender Summary: Hemp and Cannabis Beneficiation Through Biotechnology

Objectives

The primary objective is to support Eastern Cape-based enterprises, innovators, and entrepreneurs in advancing hemp and cannabis biomass into value-added biofuels (including biodiesel and biogas) and bio-based materials. The programme aims to transition viable product prototypes through pilot, demonstration, and commercial-scale development while fostering regional industrialisation, job creation, skills development, and inclusive economic participation within the province's emerging bioeconomy.

Scope

This procurement is an Expression of Interest (EOI) seeking qualified entities to participate in a structured support initiative at the ELIDZ Science & Technology Park. The scope encompasses product and process development, enterprise mentoring, compliance testing, and commercialisation assistance for hemp and cannabis value chains. Importantly, this phase exclusively covers prototype development; actual manufacturing contracts or operational awards will be issued in subsequent stages. Preference is explicitly given to Small and Medium-sized Enterprises (SMMEs) with lower annual turnovers.

Technical Requirements

• Technology Maturity: Applicants must demonstrate a minimum Technology Readiness Level (TRL) 3, supported by documented evidence of analytical/experimental proof of concept and early laboratory validation.
• Submission Documentation: Required deliverables include a project concept note/business proposal, relevant regulatory licences or permits, detailed team CVs with verifiable references, proof of current development stage, a fully completed application form outlining milestones and costing, and sworn declarations confirming no duplicate public or private funding for the proposed activities.
• Evaluation Framework: Proposals are scored using a Technical Functionality Matrix (maximum 100 points) across six weighted criteria: TRL and innovation (25%), commercialisation potential (20%), local beneficiation impact (20%), scalability and sustainability (20%), economic development and job creation (10%), and implementation capacity (5%). A minimum functionality threshold of 70% is mandatory to qualify for further evaluation.

Skills Requirements

Applicants must demonstrate proven technical expertise in biotechnology, biomass conversion methodologies, and biofuel/biomaterial engineering. The core team must exhibit strong project management capabilities, operational execution readiness, and robust governance structures. Essential competencies include navigating national and international regulatory frameworks, developing clear market-entry and revenue-generation strategies, securing off-take agreements, and managing intellectual property rights. Collaborative experience with provincial universities, incubators, or technology stations is highly valued to ensure local knowledge transfer and long-term project viability.

Key Terms & Definitions

• Technology Readiness Level (TRL): A nine-stage industry standard used to measure technology maturity. TRL 3 indicates that analytical and experimental proof of concept has been successfully validated in a laboratory environment. This tender requires applicants to be at TRL 3 or higher before qualifying for support.
• Beneficiation: The industrial process of adding value to raw agricultural or mineral feedstocks through local processing, refining, or manufacturing, rather than exporting or selling them in their unprocessed state. In this context, it refers to transforming hemp/cannabis biomass into commercial biofuels and biomaterials.
• Broad-Based Black Economic Empowerment (B-BBEE): A South African policy framework designed to promote economic transformation and redress historical inequalities. Procurement preferences are applied based on company turnover thresholds and black ownership percentages, with Exempted Micro Enterprises (annual turnover under R10 million) receiving automatic rating benefits depending on ownership structure.