Fiji commits $50 million towards cassava ethanol plant

In Fiji, the national government has committed $50 million towards the development of national ethanol capacity. Lands and Mineral Resources Minister Netani Sukanaivalu is expected to announce a location shortly, with sites in Natasiri mentioned by the Department of Energy. Cassava is likely to be the primary feedstock, but officials say that the country must increase cassava production to meet the 500,000 annual tons of cassava required by a 50,000 tonne ethanol plant.

Fiji background

An agreement by the national government with China to produce cassave-based ethanol has farmers scrambling to secure modern farming equipment. Currently, cassava roots are harvested by hand. “Farmers definitely cannot be using digging forks and cane knives to prepare their farms and uproot the crops because it would cause delays,” a spokesman told the Fiji Times.

The Fiji Sugar Cane Growers Council, Fiji Sugar Corporation and Sojitz (Japan) will form a joint venture to produce 5 Mgy of sugar cane ethanol, with production capacity reaching 10 Mgy at full operation. The $24 million project is expected to ultimately generate $13 million in annual revenue for the local economy.

Earlier in the spring, the Fijian Government was asked to produce a report on the progress of biofuel development. The calls were prompted by the rising costs of gasoline, and the resulting pressure on transportation prices. The price of diesel has increased 43 percent since June 2005.

Last October, Sugar Minister Mahendra Chaudhry said the country would concentrate on producing ethanol instead of making major investments in crop diversification. Recently, Citizen’s Constitutional Forum chief executive Reverend Akuila Yabaki said that “200,000 people in Fiji, depend on this industry in some way, and In the long-run, the reality is that the sugar industry will have to be phased out.”

The Sugar minister said that rising oil prices made ethanol an attractive alternative market for Fiji’s sugar industry.

Last September, US-based Avalor Capital was given the go-ahead to present financing plans for the $250 million Fiji Biofuels Project, which will develop the Fiji ethanol and biodiesel industries.