Mozambique to produce 5,000 tons of coconut biodiesel annually for LNG operations

In Mozambique, the Diario Economico reports the consortium responsible for the Mozambique LNG project intends to install, in the district of Palma, in Cabo Delgado, an industrial unit with capacity to produce about 5,000 metric tons of coconut biodiesel per year, intended for the supply of liquefied natural gas operations.

The initiative integrates the decarbonization strategy of TotalEnergies EP Mozambique Area 1 (TEPMA1), operator of Mozambique LNG, and foresees the creation of a local low-carbon biofuel production chain from coconut supplied by farmers in the region, according to documentation of the recently published competition.

To move forward with the project, TEPMA1 launched an expression of interest aimed at the selection of companies, investors or consortiums that should finance, design, build, detain and operate the industrial unit through the “Finance-Build-Own-Operate” model.

The future infrastructure is expected to have nominal capacity to produce approximately 5,000 tons of biodiesel B100 annually and include plant oil extraction and refining units, raw material collection centres and a network of local aggregators. Mozambique LNG is expected to function as an anchor buyer of production, through a long-term procurement contract, a mechanism that aims to ensure the commercial viability of the initiative and the sustainability of the coconut value chain.

Tags: biodiesel, Mozambique

Category: Fuels