Mozambique President sets biofuels objectives: no diversion of food production, all refining in Mozambique

January 29, 2008

In Mozambique, President Armando Guebuza said that biofuel development will not dislodge Mozambican farmers from their lands. He said that government policy would require the use of underutilized or empty lands, would avoid using lands used for food production, and that Mozambique will refine its own raw materials.

Mozambique has been rapidly expanding its biofuels capabilities and plans 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.

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. Also, 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.

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Written by Jim Lane · Filed Under International, Policy, Producer News