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ethanol, a Cabinet Minister said yesterday.
Energy and Power Development Minister Elton Mangoma, said players in the Green Fuel project in
Chisumbanje were free to export their product to maximise on profits. Government through the Agricultural Rural Development Authority entered into a joint venture with Macdom Investments, a private firm in a US$600 million ethanol project in Chisumbanje.
Minister Mangoma’s remarks are expected to rile stakeholders in the fuel industry who have been calling for compulsory blending of ethanol with petrol in line with international trends.
Several countries including South Africa, Brazil among others have since started working on such a legal instrument. But Minister Mangoma said licensing of the Green Fuel was enough support given to the project, which many people have touted as a national project and a panacea to Zimbabwe’s fuel challenges.
“We cannot have legislation for individuals, because that would set a bad precedent.
“It is like compelling people to buy The Herald,” said Minister Mangoma.
He said Green Fuels proprietors were free to export their product as part of measurers to boost their coffers.
“We have already licensed them (Green Fuels), they are already on the market selling their fuel. I have not followed to see the volume which they are selling. Let’s not create a problem which is not there.
“They are already licensed; they are free to export their product,” he said.
Currently, there is blending of 10 percent ethanol and 90 percent petrol being sold as E10. There has been a low uptake of the product with motorists either saying they feared that the product would damage their engines or the price of around US1,39 was not enticing enough. However, the price has since gone up. Green-Fuel has since suspended production as it ran out of storage space after it reached the full stock of 10 million litres.
Online Reporter