Maputo, Mozambique, 17 July – The government of Mozambique has approved a sugar cane plantation project for ethanol production in Dombe, Manica province, the spokesman for the Council of Ministers, Luís Covane said Wednesday in Maputo.
The project, estimated to cost US$280 million, was presented by the Mozambique Principle Energy company which, according to Covane, has Mozambican and Mauritian shareholders, despite being owned by Principle Capital, which is based in London.
The aim of Principle Energy is the production of 213 million litres of ethanol per year, as of 2013, which requires production of 2.5 million tonnes of sugar cane per year, or 12,000 tonnes per hectare of land.
The project also includes production of 82.2 megawatts of energy, as of 2012, with the company consuming 20 percent in ethanol production and selling the remainder to the national grid.
The Mozambican government hopes this project will be a big contributor to tax revenues and expects a total of US$57 million in 2012 and US$144 million the following year.
Principle Capital announced the launch of Principle Energy in December 2007 when it said it had funding for the first phase of the Dombe project, specifically US$70 million. At the time it also said that it planned ot obtain a further US$90 million, potential through an initial public offering (IPO), with the remainder accessed via a bank loan.
In 2007 the Mozambican government approved Procana, a large ethanol production project based in the district of Massingir, belonging to London-based Central African Mining and Exploration Company (CAMEC). (macauhub)