Petromoc and agricultural cooperative invest US$125 million in biodiesel production

9 March 2006

Maputo, Mozambique, 09 March – Mozambican state oil company Petromoc and Cofasoma, an agricultural cooperative plan to invest US$125 million on a factory to produce biodiesel from sugar cane, according to local pres reports Thursday.

The agreement between the two parties, signed this week, also includes investment of some US$225 million on infrastructures in the district of Moamba, such as a road and bridge to access the factory, daily newspaper Notícias said.

Of the direct investment of US$125 million, US$45 million have been earmarked for the agricultural project and the remainder for the ethanol distillery.

The factory will have an annual production capacity of around 220 million liters of biodiesel.

In an initial stage around 10,000 hectares of land owned by Cofamosa will be used for sugar cane production, and around 29,000 hectares at a stage when the project is successfully underway.

According to the two companies, this power source could net the country some US$110 million, US$60 million of which would be from exports and the remainder saved on imports. (macauhub)