Mozambique's biofuels projects could save $682m

In Mozambique, it is thought that more than $100 million (€73.5 million) has been invested in over 30 biofuel projects, which are currently being developed.

It is not yet known exactly how many biofuel plants are underway in the nation, but the majority are thought to be in the initial stages, with plant owners still unsure of which feedstock would be most advantageous to use.

However, it has been reported that Petromoc, a fuel company, will produce biodiesel from copra and jatropha after signing an agreement with a number of biofuel companies.

And Mozambique has a large supply of molasses, which can be used to make ethanol, due to the large number of sugar plantations at Marromeu, Mafambisse, Xinavane and Maragra.

When these projects are completed they will help meet Mozambique's biofuels blending targets, due to be enforced in 2012. Under the mandates, petrol must be blended with 10% ethanol, while 2% biodiesel will be added to conventional diesel fuel.

If all of the proposed biofuels projects reach full capacity, Mozambique's need for imported fuel will be slashed and the country is predicted to save more than $682 million a year.