Sunbird to invest $200m in ethanol plant
The Herald 31 August 2017
Kudzanai Sharara Assistant Business Editor
SUNBIRD Zimbabwe, owned by Sunbird Bioenergy Africa, is set to invest a total $200 million over three years in a sustainable bio-ethanol cassava plant that will also produce power, executive chairman John Mapondera has said.
The whole project will be set up in Mushumbi Pools in Mbire District, Mashonaland Central Province.
In an interview with The Herald Business, Mr Mapondera said the project will be done in phases starting with engagement of up to 20 000 cassava outgrowers this year.
Mr Mapondera said by October next year the company would have established a $10 million cassava flower plant. “By October next year the plant will be able to produce glucose as well as 10 000 tonnes of starch per year,” said Mr Mapondera. “The starch will be used as an input for bakers, confectioners, paper, PVC plastics and textile industries locally and exports.
He said the investment will culminate in the establishment of a bio-refinery plant that will produce approximately 120 million litres of ethanol per year. The plant will use cassava as its primary raw material and feedstock to make bio-ethanol for the country’s ethanol-fuel blending programme. Mr Mapondera, however, said the company had not yet engaged ZERA for the uptake of ethanol.
“So far we have made arrangements with the National Oil Infrastructure Company of Zimbabwe,” said Mr Mapondera without elaborating on the nature of the deal.
“The plant will also produce 35MW of power. Some of the power, 3MW, will be used to run the plant while the balance of 32MW will be released into the local electrical grid,” said Mr Mapondera.
Mr Mapondera said his company is working with the Ministry of Women’s Affairs, Gender and Community Development in recruiting outgrowers.
“The Ministry of Women’s Affairs, in partnership with Ministry of Agriculture, Mechanisation and Irrigation Development’s Agritex department will facilitate the first phase of farmer recruitment. To this end, 600 out growers have since been engaged and we expect them to do between 600ha and 1 000ha.
Women’s Affairs, Gender and Community Development Minister is expected to go and meet with the local community next week Monday. At full capacity, the project will have contracted 20 000 out growers. A hectare will roughly cost $400 minus equipment.”
Lion Finance Zimbabwe, will provide funding for the out growers while Agritex will provide extension services.
“The arrangement with Lion Finance Zimbabwe does not require farmers to offer collateral as agreements are entered into with the off-taker, who will in turn pay the farmers.
Mr Mapondera said the parent company Sunbird Bioenergy Africa had launched a similar project in Zambia, which was launched by president Edgar Lungu. Sunbird Bioenergy Africa also has operations in other African countries namely Nigeria, Sierra Leone and Zambia.