Chisumbanje ethanol set for mandatory blending
http://www.theindependent.co.zw/
January 4, 2013 in News
THE Chisumbanje Ethanol Project is set to resume production on Monday after
the adoption of recommendations of the inter-ministerial committee chaired
by Deputy Prime Minister Arthur Mutambara.
Report by Brian Chitemba
After a series of visits and meetings, the cabinet committee finally agreed
on an adoption of mandatory blending starting with 5% and gradually moving
to 10% and 20%, paving way for the resumption of operations at the massive
project.
Sources said stocks of ethanol have been moved from Feruka in Mutare to
Msasa in Harare in preparation for mandatory blending.
The inter-ministerial committee recommended that only E5 be mandatory while
that of E10, E20, E85 and E100 blends continue as optional products on the
market for vehicles compatible with them.
The committee stated that logistics and infrastructure for all blending
levels must be developed quickly and should be done from Msasa and at oil
companies’ outlets until alternative sites are in place; in particular
modifications at Feruka.
Sources said all the necessary infrastructure and logistics were in place
for operations to resume at Chisumbanje after production stopped in February
when Green Fuel failed to get government support for the 10% mandatory
blending.
The company pinned its hopes on mandatory blending to help sell 10 million
litres of ethanol it had produced.
Repeated efforts to get a comment from Green Fuel spokesperson Lilian
Muungani were fruitless as she had not responded to questions sent to her
yesterday.
Energy minister Elton Mangoma vehemently resisted Green Fuel’s proposal for
mandatory E10 saying there was no justification in enacting a law to benefit
one private company.
The Chisumbanje project is a joint venture between private companies Macdom
Investments, Rating and the state-run Arda. It employs about 4 500 workers
who were being paid just 55% of their salaries since operations stopped last
year.
Green Fuel suspended production at Chisumbanje after finding itself stuck
with ethanol due to a low market uptake. The problem was further compounded
by the lack of additional storage for a third product in the form of E10 by
most fuel retail outlets.
Green Fuel believes the introduction of mandatory blending of ethanol and
petrol would make the project viable and help Zimbabwe cut its massive fuel
import bill. There are also concerns that the company is still to compensate
villagers who were displaced to make way for the project. Over 287 villagers
were forced to relocate to Mozambique.