Government approves biofuel project.

21 Jul, 2008

The government has given its backing to a $280 million project to produce ethanol from sugar cane. The initiative involves the cultivation of approximately 18,000 hectares of land in the Dombe municipality in the central Manica province. If all goes to plan the project is expected to generate 2.5 million tonnes of sugar cane and 213 million litres of biofuel annually starting in 2012 and create around 2,668 jobs. It will be managed by Mozambican-Mauritian firm Principle Energy, which also plans to build a hydroelectric power plant in the same area.