Mozambique signs ethanol mega-deal: $510 million, 30,000 hectares of sugarcane
Mozambique's Agriculture Minister has confirmed his country has signed a huge $510 (€360) million deal with London-listed Central African Mining & Exploration Company Plc (CAMEC) to establish an energy plantation and to build a plant to produce 120 million litres of ethanol per year, as well as fertilizers. The plan was described earlier (here), but there was uncertainty over its scope.
Agriculture Minister Erasmo Muhate said the deal envisages raw material for the ethanol will be sugarcane planted over an area of 30,000 hectares in the southern province of Gaza.
Joana Matidiana, spokesperson of the government of Gaza said the new employment opportunity for the people of Massingir and surrounding areas is "welcome, as it will contribute largely in the fight against poverty in Mozambique".
Mozambique has only recently begun to understand that it is a 'biofuel superpower'. Its agro-ecological resources allow for the production of a wide range of efficient energy crops, including eucalyptus, grasses, starch crops like cassava, or sugarcane and jatropha. Analysts affiliated with the International Energy Agency estimate that the country can produce around 7 Exajoules of biofuels sustainably (map, click to enlarge), that is roughly 3.1 million barrels of oil equivalent per day (earlier post):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugarcane :: energy security :: Mozambique ::
The country currently consumes around 590,000 tonnes of oil products per year, the bulk being diesel (IEA data). This equates to around 0.18EJ. Achieving full energy independence is well within reach, with capacity to spare to supply international markets.
When it comes to the availability of land for energy crops, the country currently uses around 4.3 million hectares out of a total of 63.5 million hectares of potential arable land, or 6.6 per cent. Moreover, some 41 million hectares of poor quality land are available for the production of energy crops that require few inputs and are not suitable for food production (earlier post).
Recently Mozambican scientists and researchers told an International Symposium on Tropical Roots and Tubers that they are determined to develop varieties of cassava appropriate for the production of biofuels and to use the potential of a cassava industry as a tool for poverty reduction and rural development.
Meanwhile, a host of companies has already begun investing in Mozambique's biofuel potential. Canada's Energem recently acquired a jatropha biodiesel project based on an initial 1000 hectares; it will begin planting a further 5000 hectares, and will invest in an additional 60,000 hectares over the coming years (earlier post). Chinese, Italian, Portuguese and Brazilian companies are active in the sector as well (more here).
Most recently, the government of India and Mozambique discussed the potential of the biofuel sector to alleviate poverty in the country (previous post).
Map credit: Batidzirai, B., A.P.C. Faaij, E.M.W. Smeets.
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
Biopact: Pro-Cana to invest $510 million in integrated ethanol, power, sugar and fertilizer plant in Mozambique - September 04, 2007
Biopact: Mozambique to tap its large cassava ethanol potential as a tool for poverty reduction - October 12, 2007
Biopact: Journal "Energy for Sustainable Development" focuses on international bioenergy trade - November 05, 2006
Biopact: Highlights from the International Conference on Biofuels (Day 1) - July 05, 2007
Agriculture Minister Erasmo Muhate said the deal envisages raw material for the ethanol will be sugarcane planted over an area of 30,000 hectares in the southern province of Gaza.
I hope that with this project a city emerges, and there will be more benefits for local communities, while helping to cut Mozambique's high fuel costs. - Agriculture Minister Erasmo MuhateCurrent high oil prices are catastrophic for oil importing, energy intensive developing countries, which can spend up to 15% of their GDP on importing fuels (compared to 2-3% for OECD countries). The ethanol produced in Mozambique will therefor bring major economic benefits. The fuel will be aimed at the domestic and regional markets, including the production of electricity from the cane residues (bagasse), to be used locally. The project, to be known as PROCANA, will create and estimated 7,000 jobs and generate an annual revenue of $40 (€28) million from 2010 onwards.
Joana Matidiana, spokesperson of the government of Gaza said the new employment opportunity for the people of Massingir and surrounding areas is "welcome, as it will contribute largely in the fight against poverty in Mozambique".
It is beyond any doubt that production of ethanol is one of best opportunities for the country. [...] We want to diversify our economy because we don't want [...] to depend on just four major products of export. We would like to contribute with some other products, such as alcohol. We can also contribute with the export of electricity, as the sugar mill could also generate electrical power and sell it to the domestic market. - spokesperson of Mozambique's Agrarian Promotion Centre.With the emergence of a 'biofuels city', the Mozambican government hopes to cut down number of nationals who flee poverty and illegally emigrate to South Africa, so far believed to be over a 1,000 per day. CAMEC is expected to start construction of the integrated ethanol factory within the next year, with completion after three years.
Mozambique has only recently begun to understand that it is a 'biofuel superpower'. Its agro-ecological resources allow for the production of a wide range of efficient energy crops, including eucalyptus, grasses, starch crops like cassava, or sugarcane and jatropha. Analysts affiliated with the International Energy Agency estimate that the country can produce around 7 Exajoules of biofuels sustainably (map, click to enlarge), that is roughly 3.1 million barrels of oil equivalent per day (earlier post):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugarcane :: energy security :: Mozambique ::
The country currently consumes around 590,000 tonnes of oil products per year, the bulk being diesel (IEA data). This equates to around 0.18EJ. Achieving full energy independence is well within reach, with capacity to spare to supply international markets.
When it comes to the availability of land for energy crops, the country currently uses around 4.3 million hectares out of a total of 63.5 million hectares of potential arable land, or 6.6 per cent. Moreover, some 41 million hectares of poor quality land are available for the production of energy crops that require few inputs and are not suitable for food production (earlier post).
Recently Mozambican scientists and researchers told an International Symposium on Tropical Roots and Tubers that they are determined to develop varieties of cassava appropriate for the production of biofuels and to use the potential of a cassava industry as a tool for poverty reduction and rural development.
Meanwhile, a host of companies has already begun investing in Mozambique's biofuel potential. Canada's Energem recently acquired a jatropha biodiesel project based on an initial 1000 hectares; it will begin planting a further 5000 hectares, and will invest in an additional 60,000 hectares over the coming years (earlier post). Chinese, Italian, Portuguese and Brazilian companies are active in the sector as well (more here).
Most recently, the government of India and Mozambique discussed the potential of the biofuel sector to alleviate poverty in the country (previous post).
Map credit: Batidzirai, B., A.P.C. Faaij, E.M.W. Smeets.
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
Biopact: Pro-Cana to invest $510 million in integrated ethanol, power, sugar and fertilizer plant in Mozambique - September 04, 2007
Biopact: Mozambique to tap its large cassava ethanol potential as a tool for poverty reduction - October 12, 2007
Biopact: Journal "Energy for Sustainable Development" focuses on international bioenergy trade - November 05, 2006
Biopact: Highlights from the International Conference on Biofuels (Day 1) - July 05, 2007
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