Green Fuel venture to begin ethanol production in June

Green Fuel, a joint venture of state-run ARDA and private investors, will begin ethanol production in June in Zimbabwe. When fully operational, the new US$600 million renewable energy complex could produce enough ethanol to assist with the country’s fuel shortage problems and reduce the need for imported fuel. With the assistance of U.S. investments, the new plant has been modeled after similar projects in Brazil. By December 2011, 11,500 hectares of land will be in sugarcane production, which should produce 40 million liters of ethanol. The plan is to put 50,000 hectares in production, which could supply up to three ethanol plants. Graeme Smith, General Manager for Green Fuel, said, “he will be producing ethanol at a much cheaper cost than we are currently importing petroleum products into the country.” Smith said the government of Zimbabwe has given the Green Fuel Project National Project status. But even with government support, the project is facing challenges. Smith said, “It has been a large challenge to source financing for the project since the local banks do not have the capacity while sanctions have also putt-off potential investors. At the moment, the funding is coming from our Zimbabwean shareholders.” (April 13, 2011)