Installation of ethanol factory in Mozambique may cost US$500 million

29 June 2011

Rio de Janeiro, Brazil, 29 June – construction of an ethanol factory in Mozambique with capacity to grind 3 million tons of sugar cane per year may cost US$500 million taking into account the agricultural, industrial and construction phases of the project, according to Cleber Guarany, an official from FGV Projectos.

According to the Brazilian press, FGV (Getúlio Vargas Foundation) Projectos is involved in the agreement between Brazil, the European Union and Mozambique to carry out joint studies on Mozambique’s potential to produce biofuels and food products, which was signed on 25 February, 2011 in Maputo.

The first phase of the studies, which will be carried out by the Getúlio Vargas Foundation and financed by mining group Vale, and results are scheduled to be presented in September.

The work has been split into four stages and the initial stage involves the technical, economic and financial feasibility study, and at later stages potential business models will be built for biofuel and food production and those that will best attract private investors will then be selected.

As well as having specialised technical staff with extensive experience in Latin America and Africa, FGV Projectos also cooperates with Brazilian and international bodies such as Embrapa (Brazilian Agri-livestock Research Company) and UNEP (United Nations Environmental Program), which ensures that best practices are followed in developing the projects. (macauhub)