Energem acquires jatropha biodiesel project in Mozambique
Vancouver-based Energem Resources, an Africa-focused natural resources group, announces [*.pdf] that it has acquired a 70% controlling interest in a jatropha based biodiesel venture in Mozambique, one of the emerging 'biofuel superpowers' (more here, here and especially here). Furthermore, the company has taken on a senior management team with extensive experience of plantation management and biofuels in the region. This management team will retain a 30% interest in the venture.
The venture, which was initiated some three years ago, now renamed Energem Renewable Energy Limited, forms part of Energem's recently established Biofuels division. The venture has established jatropha seedling nursery facilities, and has commenced the clearing and planting of 1000 hectares of land in Mozambique. Core to the project is three years of research and development into the use of jatropha in Mozambique as a crop to produce oil for transesterification and further refining to biodiesel.
Energem has acquired its 70% equity interest in the venture in exchange for a commitment to fund the further development of the project for an amount of up to US$5.5 million. This amount is expected to be required over the next year to fully plant the initial 1000 hectares, clear and commence planting on a further 5000 hectares, acquire additional land of up to 60,000 hectares (presently under application from the Mozambiquan Government), and produce a first crop of unrefined jatropha seed oil to confirm expected yields and oil quality.
This acquisition is consistent with Energem's recently announced, redefined strategic focus, primarily on the mid-stream oil and gas infrastructure and biofuels sectors. As part of this process, the Company has established a new operating division, Energem Biofuels, with the Kisumu Ethanol Plant in Kenya at its core.
The company believes that these core sectors have enormous potential and scalability across the African continent - an assessment echoed by, amongst others, Mozambique's Minister of Energy, Salvador Namburete (see his presentation at the landmark International Conference on Biofuels organised by the EU and held last month in Brussels). Researchers have put the country's annual sustainable biomass production potential at around 7 Exajoules (map, click to enlarge), an amount of energy roughly equivalent to around 3 million barrels of oil per day:
energy :: sustainability :: biodiesel :: biomass :: bioenergy :: biofuels :: jatropha :: Mozambique ::
Jatropha is a hardy plant which produces high yields of oil suitable for refining into biodiesel. Jatropha is not suitable for either human or animal consumption and will not compete with food crop production, as the land to be used is not suited to the growing of food crop, the company says. The land to be used does not require the clearing of any indigenous forest.
Energem Resources Inc. is a natural resources company listed on the Toronto Stock Exchange with projects in the energy and mining sectors in a number of African countries. Energem is committed to developing niche high margin natural resource projects in Africa and is currently active in 16 countries. Ventures encompass diamond mining and mineral exploration, mid- and up-stream oil and gas projects, energy and mining related manufacturing, trading and trade finance businesses operating off a common logistics platform and infrastructure. The company has offices and/or logistics and support infrastructure in Johannesburg, London, Beijing and a number of African countries.
Energem is not the first company to invest in Mozambique's biofuel potential. Others include the Dutch ESV Group (earlier post) and Chinese and Portuguese companies (previous post). Italy's ENI group is collaborating with Brazil's stat-owned oil company Petrobras in Mozambique, in a typical South-North-South type of cooperation (here).
Finally, Mozambique also signed a biofuel cooperation agreement with India, aimed at using green fuel production as a lever for poverty alleviation (more here).
References:
Salvador Namburete: Mozambique's Experience on Bio-fuels [*.pdf], Minister of Energy of the Republic of Mozambique, presentation at the International Conference on Biofuels, Brussels, July 5-6, 2007.
Batidzirai, B., A.P.C. Faaij, E.M.W. Smeets (2006), "Biomass and
bioenergy supply from Mozambique" [*abstract / *.pdf], Energy for Sustainable Development, X(1),
Pp. 54-81
Faaij, A.P.C., "Emerging international biomass markets and the potential implications for rural development" [*.pdf], Development and Climate Project Workshop: Rural development, the roles of food, water and biomass; opportunities and challenges; Dakar, Senegal, 14-16 November 2005.
Biopact: Journal "Energy for Sustainable Development" focuses on international bioenergy trade - November 05, 2006 (has a case study on Mozambique's potential).
The venture, which was initiated some three years ago, now renamed Energem Renewable Energy Limited, forms part of Energem's recently established Biofuels division. The venture has established jatropha seedling nursery facilities, and has commenced the clearing and planting of 1000 hectares of land in Mozambique. Core to the project is three years of research and development into the use of jatropha in Mozambique as a crop to produce oil for transesterification and further refining to biodiesel.
Energem has acquired its 70% equity interest in the venture in exchange for a commitment to fund the further development of the project for an amount of up to US$5.5 million. This amount is expected to be required over the next year to fully plant the initial 1000 hectares, clear and commence planting on a further 5000 hectares, acquire additional land of up to 60,000 hectares (presently under application from the Mozambiquan Government), and produce a first crop of unrefined jatropha seed oil to confirm expected yields and oil quality.
This acquisition is consistent with Energem's recently announced, redefined strategic focus, primarily on the mid-stream oil and gas infrastructure and biofuels sectors. As part of this process, the Company has established a new operating division, Energem Biofuels, with the Kisumu Ethanol Plant in Kenya at its core.
The company believes that these core sectors have enormous potential and scalability across the African continent - an assessment echoed by, amongst others, Mozambique's Minister of Energy, Salvador Namburete (see his presentation at the landmark International Conference on Biofuels organised by the EU and held last month in Brussels). Researchers have put the country's annual sustainable biomass production potential at around 7 Exajoules (map, click to enlarge), an amount of energy roughly equivalent to around 3 million barrels of oil per day:
energy :: sustainability :: biodiesel :: biomass :: bioenergy :: biofuels :: jatropha :: Mozambique ::
Jatropha is a hardy plant which produces high yields of oil suitable for refining into biodiesel. Jatropha is not suitable for either human or animal consumption and will not compete with food crop production, as the land to be used is not suited to the growing of food crop, the company says. The land to be used does not require the clearing of any indigenous forest.
Energem Resources Inc. is a natural resources company listed on the Toronto Stock Exchange with projects in the energy and mining sectors in a number of African countries. Energem is committed to developing niche high margin natural resource projects in Africa and is currently active in 16 countries. Ventures encompass diamond mining and mineral exploration, mid- and up-stream oil and gas projects, energy and mining related manufacturing, trading and trade finance businesses operating off a common logistics platform and infrastructure. The company has offices and/or logistics and support infrastructure in Johannesburg, London, Beijing and a number of African countries.
Energem is not the first company to invest in Mozambique's biofuel potential. Others include the Dutch ESV Group (earlier post) and Chinese and Portuguese companies (previous post). Italy's ENI group is collaborating with Brazil's stat-owned oil company Petrobras in Mozambique, in a typical South-North-South type of cooperation (here).
Finally, Mozambique also signed a biofuel cooperation agreement with India, aimed at using green fuel production as a lever for poverty alleviation (more here).
References:
Salvador Namburete: Mozambique's Experience on Bio-fuels [*.pdf], Minister of Energy of the Republic of Mozambique, presentation at the International Conference on Biofuels, Brussels, July 5-6, 2007.
Batidzirai, B., A.P.C. Faaij, E.M.W. Smeets (2006), "Biomass and
bioenergy supply from Mozambique" [*abstract / *.pdf], Energy for Sustainable Development, X(1),
Pp. 54-81
Faaij, A.P.C., "Emerging international biomass markets and the potential implications for rural development" [*.pdf], Development and Climate Project Workshop: Rural development, the roles of food, water and biomass; opportunities and challenges; Dakar, Senegal, 14-16 November 2005.
Biopact: Journal "Energy for Sustainable Development" focuses on international bioenergy trade - November 05, 2006 (has a case study on Mozambique's potential).
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