Mozambique plans jatropha biofuel strategy

Mozambique has drafted a strategy for the production of biofuels from the drought-resistant jatropha crop, which contains up to 40% oil, its energy minister said.

"We hope the biofuels project will be approved despite the fluctuation of oil prices on the international market," Salvador Namburete told a briefing. "We have conditions to proceed with production in Mozambique given the vast potential."

Jatropha is a non-food crop whose oil can be used to produce biodiesel. It can be grown on semi-arid land and so poses less of a threat to food production than other biofuel feedstocks such as grains and vegetable oils, supporters argue.

Namburete said the state has also received requests to open up more than five-million hectares of land for the production of bio-diesel, with coconuts, sunflowers and the weed-like jatropha plant being tested as possible feedstock.

In 2007, the government approved a $510-million project by the British-based Central African Mining and Exploration Company (Camec) to produce ethanol from sugarcane in southern Gaza province.

Principle Energy - a renewable energy company in which London-listed fund manager Principle Capital has a significant undisclosed stake - said it will build a $290-million bio-ethanol plant in Mozambique this year.

Mozambique's energy projects will not be hurt by the downturn in the global economy, the minister added.

"All energy projects in Mozambique will not be affected by the current global crunch, because...we don't have an indication of any investor in this sector giving up," Namburete said.

"The $3 billion Moatize Thermal power station, the $8-billion OilMoz refinery in southern Maputo and the $2-billion Mpanda Nkuwa and the $5 billion Nacala refinery will go ahead."

Edited by: Reuters