Ethanol plant resumes production in Zimbabwe

Production at a Green Fuel-owned ethanol plant in Zimbabwe has resumed after the company entered a 49-51% joint venture with the government.

The plant stopped production after Green Fuel failed to get government approval for mandatory ethanol blending within the country, plus the government had other concerns including the company’s shareholding structure.

It is believed foreign companies, under legislation, are required to transfer a minimum of 51% of local operations to Zimbabweans.  Despite Green Fuel promoting its joint venture between two private firms and the Agricultural and Rural Development Authority as local, the government wanted it to fall in with its indigenisation laws.

‘We have resumed the production of anhydrous ethanol for the blending with unleaded petrol and the company has agreed with the Zimbabwe government to form the joint venture adhering to local indigenisation and economic empowerment laws,’ a Green Fuels statement read.

The fuels business is now confident the government will endorse mandatory petrol blending which could help the country reduce its imported fuel costs by around $120 million (€89.8 million).