Sunbird Bioenergy Africa pushes ahead Zambian bioethanol project plans
Sunbird Bioenergy Africa, a biofuels producer which develops projects in Sub-Saharan Africa, is expected to sign an Investment Promotional and Protection Agreement (IPPA) on or around 30 June, 2016, in order to push ahead with its Zambian bioethanol project.
An IPPA is an international agreement between governments for the promotion and protection of investments made by investors of one contracting party in the area of the other contracting party.
The news was published by renewable energy technology provider China New Energy – Sunbird’s partner in the project.
China New Energy noted that, whilst it is unable to advise further on the expected timing of the formal contract, it remains the intention to enter into a contract and commence the project in Zambia this year.
In May, China New Energy said Sunbird was close to securing an IPPA for the bioethanol project.
The Zambian Development Agency issues the IPPA – a key milestone in the commencement of the project.
In a statement, China New Energy said it expected to provide a further update in due course.
‘Chronic energy and job shortage’
In a statement made in December, China New Energy said: “Zambia has a chronic energy and job shortage and the parties have all indicated that they would like the development of the project to commence in 2016, with commercial operations starting in 2017, to help mitigate these effects. It should again be noted that a number of project milestones need to be completed including a feasibility study, the design specifications and an environmental impact assessment in order to achieve financial closure.”
China New Energy chairman Mr Yu said: "We maintain our view that Africa provides a long-term opportunity for CNE as the development of its bioenergy industry helps African governments deliver on their goals of energy security, job creation and economic empowerment of rural communities."