BIO-FUEL
IN
MOZAMBIQUE
2007
Indices
INTRODUCTION ---------------------------------------------------------------------------------------------------3
MOZAMBIQUE BIO-FUEL INDUSTRIES (MBFI) -------------------------------------------------------3
BIO-ETHANOL FROM SUGAR CANE GENERATES CASH FLOW AFTER ONLY 12
MONTHS. -------------------------------------------------------------------------------------------------------------4
MOAMBA, PIONEER ON BIO-ETHANOL PRODUCTION --------------------------------------------4
DUPLICATION OF SUGAR PRODUCTION----------------------------------------------------------------5
GRYNBERG PETROLEUM COMPANY---------------------------------------------------------------------5
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Introduction
The energy is one of the factors that contribute for economic development and poverty reduction.
Mozambique has a considerable potential of energetic resources that gives to the country favourable
conditions that satisfy not only the internal demand but the energy necessity trough out the Southern
African.
The availability of energetic resources (hydro, natural gas and mineral coal) at relatively low prices,
comparing with the other options at regional level, situated the country in a privilege position.
Despite this abundance, the actual situation of the population’s access to the modern energy forms
predicts that the biomass will continue for long time to be the main source energy for the majority of
the families; at the same time actions have been taken to expand the access to electricity, liquid fuel
and renewable energies.
The national necessities and deliver options in terms of energy are elements of reflection by the
Government on the analysis of trade and export opportunity for energy in the South Africa. Major
projects are being conceived in Mozambique, and the Mepanda Uncua hydroelectric project is one of
the highlighted examples, which the implementation commenced in the beginning of 1999 and its
conclusion foreseen for the years 2007/2010.
In consideration also are the natural gas in the south and centre of the country and the coal production
revitalization, energy production and ethanol projects.
This and other development are complemented by a new legal framework already approved, namely a
new electric energy production, transportation and distribution law, a decree concerning liquid fuel,
and are underway measures relate to petroleum and electricity sectors reforms and regulations as well
as new models of biomass and electric energy supply.
Moreover the Government gives high priority to energy sector due to its major potential of revenue
and as foreign currency to the Country.
Mozambique Bio-Fuel Industries (MBFI)
Mozambique Bio-Fuel Industries (MBFI)1 and its Indian partners will invest 800 million euros to
generate power in Mozambique. Mozambique Bio-Fuel Industries planned to produce bio-fuels on 3.5
million hectares in Mozambique.
The cost to clear land, limited power capacity and the excess bio-mass forced the MBFI to consider
alternatives. And to meet Mozambique’s needs the MBFI decided to introduce many modular power
units throughout rural Mozambique, instead of one large power plant.
Mozambique Bio-Fuel Industries’ (MBFI) research leaded them to another developing country, India,
with extensive experience in modular bio-power technology.
After many visits, MBFI announced that they have signed a Memorandum of Understanding (MOU)
with Malavalli Power Plant Private Limited (MPPL)2 and CVC Infrastructure India to invest 800
million euros in Mozambique over the next ten years. The MOU provides for management and finance
of modular five-megawatt bio-power plants throughout seven of the ten Mozambican provinces.
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2
http://www.mbfimozambique.com
http://www.mpppl.com
3
In all his visits to provinces, last year, President Armando Guebuza asked the population to caltivate
jatropha and other oil producing plants. He also showed them a jatropha oil-lamp and told them how
easily it can replace the current fossil-fuel lamps used in many households, in urban areas as well as in
the rural areas.
The MBFI has 10,000 hectares of prime land, suitable for wet land crops, like paddy rice and others.
They are looking for a partner to produce crops for which there is a demand.
Bio-Ethanol from sugar cane generates cash flow after only 12 months.
As you know bio-diesel will only generate cash after 18 to 24 months. But ethanol from sugar will
reduce the time by 12 months. And ethanol will be used to manufacture bio-diesel, therefore
eliminating the need to import methanol.
Sugar production in Mozambique has risen rapidly from 39 000 tones in 1998 to about 240 000 tones
in 2005/06, largely due to improved productivity at both the farm and mill levels through a
rehabilitation programme implemented by the sub sector in 2000.
MBFI will produce Ethanol gel as a modern renewable fuel. The toxic and flammable paraffin
(kerosene) market in South Africa is 700 million litres per year. In Mozambique fossil- and solid fuels
are approximately 600 million litres per year.
Moamba, Pioneer on Bio-ethanol
Production
The District of Moamba in Maputo Province, South
of Mozambique, will produce alternative liquid fuel,
namely bio-ethanol (gasoline), from sugar cane. An
understanding protocol that formalizes this project
was signed between the Mozambique Petroleum
(PETROMOC)3 and the Mozambique/South Africa
Facilitation Committee (COFAMOSA – an
association of farmers with head office in Moamba).
Base on the same protocol, it is predict that 10.000
hectares of land administrates by the COFAMOSA
will be exploited to produce sugar cane. On the map
of Africa the dark areas represent prime Jatropha
growing regions in Africa. The Red cycle indicates
Mozambique.
Over 50% of Africa’s land has the right climate for growing Jatropha.
3
http://www.petromoc.co.mz
4
With this knowledge it is expected to produce about 220 millions litres of gasoline per year, in an
investment of 125 million UDS, subdivided in 45 millions for agriculture development project and 80
millions USD for ethanol production unit installation.
Duplication of Sugar Production
Is also expected the disbursement of 225 millions USD for infrastructures edification in Moamba
district, which includes the construction of one bridge and roadway to access the ethanol manufacture.
The effective production of this product will occur in two years times from now.
Therefore, the sugar sector in Mozambique wishes to increase its production above the actual 260
thousands tones that are produced now, to 500 thousand tones by 2012. These projections are from the
Ministry of Agriculture that counts with 300.000USD. The expansion and development plan of this
sector estimate yet product diversification with emphasis to ethanol.
However on the bio-fuel, a strategy study must be implemented to analyse the competitiveness of
different row-material potential on the market so that the bioethanol and biodiesel can be produce.
Grynberg Petroleum Company
A US company, Grynberg Petroleum Company4, despite its involvement on the petroleum field, is
interested to invest in the sugar cane sector in Mozambique. Mr Jack Grynberg, CEO of Grynberg
Petroleum Company, said to President Armando Guebuza that is company is interested to invest 900
millions USD for the construction of a manufacture of ethanol and sugar in Mozambique.
The Grynberg wishes to supply not only the internal market but export the bio-fuel to Europe and
Japan as well as China.
4 Grynberg Petroleum Co. Private Company, Headquarters Location
5299 DTC Blvd., Ste. 500, Greenwood Village CO 80111-3326, United States, (303) 850-7490, (303) 850-7498 fax,
Primary SIC: Oil & Gas Field Exploration Services, Primary NAICS: Support Activities for Oil and Gas Field Exploration,
Description: Mining: Domestic and international oil and gas exploration.
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