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Tendai Mugabe Herald Reporter
Green Fuel, the joint venture company between Arda, Macdom Investments and Rating, will be able to raise US$2 million to fund the 2013/4 agricultural season if Government increases levels of mandatory blending of fuel to E15 by next month. Arda board chairperson Mr Basil Nyabadza said in an interview yesterday that Green Fuel would be able to raise more funds by selling more ethanol if the blending percentage is increased.
Government recently introduced E5 as the starting blending level, but Green Fuel, which owns the Chisumbanje Ethanol Plant in Manicaland, says it has the capacity to produce enough ethanol for E15 blending levels.
President Mugabe announced during the official opening of the Eighth Parliament on Tuesday that Government would ensure introduction of E20 by April next year.
“The President set the tone for a good off-take of the ethanol project which has the capacity to change the fortunes of farming in our economy,” said Mr Nyabadza.
“If we implement E15 by next month, our partners will be able to provide finance for the 2013/4 farming season to the tune of US$2 million. The intention is to graduate from getting money from Treasury for agriculture development.
“This option coming from a source dedicated to agriculture finance, we believe, we can restore viability to the sector and produce enough food for the country. We remain grateful to the clarity of intention by President Mugabe on the Arda/Chisumbanje ethanol project.”
Mr Nyabadza said the US$2 million facility would be managed by Agribank and CBZ.
He said the electorate was expecting practical support from Government for agriculture following Zanu-PF’s resounding victory in the July 31 harmonised elections.
“Expectations are high from the people and we should remember that we are a country that is under illegal sanctions and we should be geared to fight that illegal position,” he said.
Mr Nyabadza said traditionally, the National Budget was announced mid November when the farming season was mid-way and such a situation was not healthy for farmers who normally do their preparations between September and October.
The Chisumbanje ethanol project is a game-changer in Zimbabwe’s economy and has projected that by 2018 all vehicles should be using E85.
If that is achieved, the country will save US$450 million per annum on fuel imports, while the plant will be producing 120 megawatts of electricity.
On the completion of the project by 2018, Green Fuel will be employing 36 500 people, with the company having plans to import the first batch of trucks that run on E100 next year.
Economies such that of the United States and Brazil produce 57 billion litres and 27 billion litres of ethanol per annum for local blending, respectively.
Online Reporter