Pro-Cana to invest $510 million in integrated ethanol, power, sugar and fertilizer plant in Mozambique

The Agencia de Informação de Moçambique announces that Pro-Cana, a private company with British interests, is set to invest US$510/€375 million for the construction of new plant for the production ethanol, sugar, electricity and fertilizers in the district of Massingir, in Mozambique's southern province of Gaza. The announcement comes after the recent news that the country's state-run oil company Petromoc is to invest an equally large amount into the biofuel sector (previous post).

Joana Matidiana, spokesperson of the government of Gaza, said that in the first stage, the project will generate at least 7,000 new jobs for the people of Massingir and surrounding areas, and "therefore it 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.

The owners of the company, the first to build a large integrated fuel-food-fertilizer plant in Africa, also own an ethanol plant in Brazil. The project in Massingir involves the establishment of 30,000 hectares of sugar cane, besides other infrastructures that will benefit the local communities. The proponents of the project are planning to develop pastures in the same area for cattle belonging to the local communities, as Massingir is one of the major beef producing districts in Gaza.

In the short term, the province as a whole is expected to be able to support the production of around 220 Petajoules of biomass energy in a sustainable way (i.e. without deforestation and without impacting local food, fuel, fodder and fibre supplies; map, click to enlarge):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: sugarcane :: bagasse :: ethanol :: electricity :: fertilizer :: poverty alleviation :: Mozambique ::

Besides biofuels and sugar, the new plant will generate electricity from bagasse, a byproduct of sugarcane. This would enable to decrease the consumption of power generated at the Cahora Bassa Dam, which could eventually be exported to other countries in the region such as Zimbabwe, South Africa, Swaziland, Malawi and Botswana, said the same source who asked not to be named.

"We are already working with the Ministries of Energy, Industry and Trade Ministry and Agriculture. The Energy Ministry has already established a task force to work on that area of ethanol, to evaluate the possibility to generate electricity", said the spokesperson.

The government believes that this "is an opportunity and that it must work fast, other wise it will run away to other countries".

Currently, the Mozambican authorities are in the process of expanding the sugar industry in Mozambique to diversify country's economy. In 2006, the Mozambican sugar industry achieved the highest production of the last 30 years, by producing 300.000 tons in the existing four plants currently operating in the country, namely Marromeu and Mafambisse, in the central province of Sofala and Maragra and Xinavane, in the southern province of Maputo.

The highest production ever reported in Mozambique was in 1972, when there were six factories operating in Mozambique.

Mozambique is seen by analysts as one of the African countries that contribute considerably to the continent's large biofuel production potential. Researchers affiliated with the International Energy Agency estimate that Mozambique can produce around 7 Exajoules of biofuels sustainably (earlier post; map, click to enlarge). 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, 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 (FAO). 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).

A host of companies are 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:
Biopact: Mozambique's Petromoc seeks to invest $408 million in biofuels - August 30, 2007

References:
Agencia de Informaçao de Moçambique (via AllAfrica): British Company to Invest U.S. $510 Million in Sugar And Ethanol Plant - August 30, 2007.

Agencia de Informaçao de Moçambique: Petromoc Seeks Funding to Produce Bio-Fuels - 29 August 2007

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: Mozambique-India partnership: biofuels for poverty alleviation - July 03, 2007

Biopact: Energem acquires jatropha biodiesel project in MozambiqueAugust 02, 2007

Biopact: Journal "Energy for Sustainable Development" focuses on international bioenergy trade - November 05, 2006

Biopact: Lusophone world and China join forces to produce biofuels in Mozambique - May 19, 2007