Principle Energy to invest $250 million in Mozambique for sugarcane ethanol

In Mozambique, UK-based Principle Energy said it would invest $250 million in sugar cane ethanol at a facility along the Lucite and Buzi rivers in Mozambique.

Principle Capital Holdings said the total project will cost $597 million and includes 20,000 hectares for sugar cane cultivation. Yields are projected at 50% more than the Brazilian average, due to superior soil and climate conditions. Final approval from Mozambique is expected by next month.

Mozambique had been rapidly expanding its biofuels capability since Brazil and Mozambique signed a cooperation agreement for sharing resources in biofuels production and training.

The largest announced project is the launch of the Central African Mining and Exploration Company (CAMEC) biofuel project. CAMEC will invest US$510 million, and in produce 32 Mgy of ethanol from 30,000 hectares of sugar cane. The venture is expected to create 7,000 jobs. The plant is expected to commence operation in 2010. The financing of the plant and surrounding infrastructure was not disclosed.

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