The Mozambican government has ordered a study for construction of a factory to produce the equivalent of 40,000 barrels of fuels and chemical sub-products per day from low grade coal mined in Tete province, the country’s Energy Minister said Monday.
During the 8th Annual Joint Consultation Meeting with donors for the sector, Minister Salvador Namburete said that the study, which began in February 2011, was at an advanced stage and that Clean Carbon Industries (CCI), the company hired for the job, had already delivered the results from the first phase of the study.
According to the Mozambican press, the banking feasibility study will be ready at the end of 2014 and all the studies are due to be completed by October 2015. Construction of the processing unit can then begin in the first quarter of 2016.
CCI has been working with the Ncondezi Coal Company to supply coal, with Lurgi GmbH (Germany) for tests on the coal and to develop technology and project configurations for the final phase of the pre-feasibility study.
The main advantages of the project are cheap raw materials, as it will consume coal that would otherwise go unused, thus reducing surpluses of this kind of coal mounting up because of mining of coking and thermal coal in the Tete basin.
The project will consume 17 million tons of coal per year and will thus have a significant effect on reducing environmental problems and costs related to coal waste in the Tete basin and, by producing fuel in Mozambique, will save millions of dollars currently spent on importing liquid fuels. (macauhub)