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to force fuel companies to blend petrol with ethanol.
In a statement, Green Fuel said exporting ethanol as suggested by Minister Mangoma will result in the reimportation of the same product at a higher price.
Green Fuel is a joint venture between Government through the Agricultural Rural Development Authority and Macdom Investments in Chisumbanje.
The $600 million Ethanol Project started operating in August last year.
Green Fuel was responding to comments made by Minister Mangoma yesterday.
He said Government had no plans to enact a legislation compelling firms to blend petrol with ethanol.
The Minister indicated that Green Fuel could export the ethanol to enhance their business.
But Green Fuel said fuel blending in South Africa was now imminent on the back of high fuel prices currently pegged at $1,60 for petrol making exporting of ethanol counter productive.
“In all likely events, this country would be reimporting ethanol blends from South Africa, as unleaded petrol, therefore buying back a locally produced product at a premium price,” said Green Fuel.
“Tests conducted by the University of Zimbabwe Chemistry Department indicate that the local fuel market is awash with foreign sourced ethanol blended fuel being sold as unleaded.”
South Africa, said Green Fuel, had limited itself to a mandatory blending policy of two percent due to limited supplies of ethanol and is currently investing billions of United States dollars in production.
The firm said they applied for mandatory blending in November 2011 and held several meetings with the Ministry and the Zimbabwe Energy Regulatory Authority but no written correspondence was made to the effect that ethanol could be exported.
“The Green Fuel ethanol project is designed for the benefit of Zimbabwe and it’s people, by creating 5 000 jobs, increasing energy security and reducing fuel prices for motorists,” the firm said.
In applying for mandatory blending, Green Fuel said it was not pursuing legislation to benefit one person as claimed by Minister Mangoma but operate in a sustainable manner while impacting on the human development factor through job creation and corporate social responsibility.
“Mandatory blending would be a way of lowering prices, increasing the fiscal liquidity through domestication of cash instead of exporting revenues to the Middle East, it would decrease Zimbabwe’s dependence on imported fuel and most importantly immunising the local economy from external fuel price manipulation,” said Green Fuel.
“This is a national project, spearheaded by Zimbabweans for fellow Zimbabweans.”
The firm noted that there had not been any technical assessment of experiences of countries like Malawi, Kenya, Brazil and the United States that have benefited from mandatory blending of ethanol.
Currently, there is blending of 10 percent ethanol and 90 percent petrol and being sold as E10.
The E10 blended petrol has been resisted by individual motorists while companies have also snubbed the product.
Green Fuel is currently sitting on over 10 million litres of ethanol.
The company has also been forced to shut down operations due to shortages of storage facilities in Zimbabwe.
Online Reporter