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As a result, Green Fuel suspended operations last month, citing an over-supply of its product in the market.
At the time, the company said it was sitting on millions of litres of ethanol which the market was not taking up, resulting in storage difficulties.
Green Fuel general manager Mr Graeme Smith confirmed the company had failed to pay its workers full salaries, blaming this on tight cash flows as a result of market resistance to ethanol.
But he said the company would soon clear the salary arrears, possibly as early as this week.
Green Fuel is seeking Government support to make it mandatory for oil companies to blend imported petrol with ethanol, something that will not only lower fuel prices, but also ensure the survival of the $600 million project.
“Our liquidity is tied to the millions of ethanol in stock. We have communicated with Government and it is our sincere hope that the current processes being undertaken by relevant authorities through the Ministry of Energy will yield the desired legislative results,” Mr Smith said.
“More fuel distributors have come on board to purchase ethanol but sales volumes are being undermined by logistical issues of storage at the service stations.
“We aim to have fully serviced our salary bill by this week,” he said.
The ethanol project is a partnership between government through the Agricultural and Rural Development Authority (Arda) and Macdom Investments.
Before its closure, the plant was producing 150 000 litres of ethanol daily, and was due to double to 350 000 by July this year.
Blending has the potential of cutting the fuel import bill by $120 million per annum. — New Ziana.
Online Reporter