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August 22, 2009

Mozambique government approves investments in biofuel production

The Mozambican Government has approved two biofuel production projects for the province of Sofala, central Mozambique, as part of a strategy top reduce the country’s energy dependence.

The Zambeze Grown Energy Limited consortium, with private Mozambican, Asian and South African capital, won a concession on 15,000 hectares of land, in Chemba district, Sofala province, with the aim of producing sugar cane for biofuel production, said the spokesman for the Mozambican Council of Ministers, Luís Covane.

The consortium aims to produce 100 million litres of ethanol per year, in an estimated investment of over US$224 million.

“Of the 100 million litres of ethanol produced each year, 10 percent will be sold to the domestic market and the remainder to Europe, the United States and Japan, whilst the energy produced will be introduced into the national grid,” Covane added.

The Council of Ministers also approved a concession for Enerterra, a company made up of private Mozambican and Portuguese investors, of 18,920 hectares in the district of Cheringoma, Sofala provine, for jatropha production.

Enerterra plans to invest US$53 million in biofuel production, 90 percent of which will be exported to Europe and 10 percent sold in Mozambique.

With the authorisation granted to the two companies there are now 14 companies involved in biofuel production in Mozambique.


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