Govt, UK firm sign $150m bio-energy MoA

Innocent Ruwende Senior Reporter
Government has signed a Memorandum of Agreement with a British Company (Sunbird Bio Energy) for the establishment of a $150 million sustainable bio-ethanol plant expected to produce 120 million litres of ethanol a year and 33 megawatts of electricity.

The United Kingdom described the partnership as a positive step in strengthening UK-Zimbabwe trade and investment relations. The deal, a culmination of the business delegation that came to Zimbabwe in February, is expected to increase fuel blending to E20.

Government will initially have a 10 percent stake which will be increased progressively over 10 years to 51 percent.

The plant will be established in the Mushumbi Pools area in Mashonaland Central early next year.

Ethanol will be produced from cassava and electricity from biomass.

The MOA was signed by the ministries of Energy and Power Development, Agriculture, Mechanisation and Irrigation Development and Sunbird.

Energy and Power Development Minister Dr Samuel Undenge was upbeat about the deal.

“It shall also adhere to environmental safety standards and will also provide support to training and research institutions. This project will, therefore, benefit investors, Government and the local population in Mashonaland Central.

“Although Government is starting with a 10 percent stake, this will progressively increase to 51 percent in 10 years’ time. Government, therefore, urges all parties to run with the project as quickly as possible,” he said.

The proposed venture, which is in line with Government’s economic blueprint Zim-Asset, would spur development in a number of areas that include energy and agricultural production.

Dr Undenge said Zimbabwe was blending petrol at E15 due to constraints in the supply of ethanol.

The area of cultivation will total 40 000 hectares, with 20 000 ha each for the plant and for the out-growers that would be engaged.

In a message read on her behalf, British Ambassador to Zimbabwe, Ms Catriona Laing, said the partnership was a step in the right direction.

“As you know the signing of this deal is a follow up to the UK trade delegation that came to Zimbabwe in February of this year.

“With the right policies, trade mission visits can translate to tangible investment for Zimbabwe,” she said.

Sunbird Bio Energy chief executive Mr Richard Bennet, said this would be the company’s third project in Africa.

“We have carried out a lot of projects especially in Asia and Europe and our ambition has been Africa. We carried out such a project in Thailand in 18 months and we hope to do the same in Zimbabwe.

“We hope this project will exceed the Government ambition of blending E20. We will encourage small scale farmers to grow cassava. Our ambition is to have 20 000 small scale farmers involved,” he said.

He said they would bring proven technology into the country.

Mr Bennet said $60 million would be invested into the plant while $90 million would be allocated towards working capital for the agriculture development programme.

Secretary for Agriculture, Mechanisation and Irrigation Development Mr Ringson Chitsiko said the ethanol would go a long way in reducing fuel costs while giving income to small scale farmers in the rural areas.