Brazilian biofuel company Petrobras Biocombustível is currently receiving price quotes for equipment it plans to install in it ethanol factory due to be built in Mozambique, the chairman of the company, Miguel Rosseto said Thursday.
The chairman of Petrobras Biocombustível also said it would initially invest US$20 million and planned to produce 20,000 cubic metres (20 million litres) per year to supply the Mozambican market.
“We already produce sugar in Mozambique and will now start producing ethanol from molasses,” said Rosseto at a meeting organised by Brazilian state development bank Banco Nacional de Desenvolvimento Económico e Social (BNDES) to support Brazilian investments in Africa.
Rosseto also said that investments would be made via Guarani, a company associated to Petrobras Biocombustível, in which oil group Petrobras has a 45.7 percent stake since its acquisition in 2010.
Rosseto noted that the Mozambican government in 2011 approved a measure that requires a mixture of 10 percent methanol in gasoline, and that the company was waiting for regulatory rulings to be published about the structure for distribution, the responsibility for adding the methanol and prices. (macauhub)