More detail emerge on Mozambique’s CAMEC project: 32 Mgy ethanol from $510 million investment

In Mozambique, more details emerged regarding the launch of the Central African Mining and Exploration Company (CAMEC) biofuel project. CAMEC will invest US$510 million, and in produce 32 Mgy of ethanol from 30,000 hectares of sugar cane. The venture is expected to create 7,000 jobs.

The plant is expected to commence operation in 2010. The financing of the plant and surrounding infrastructure was not disclosed.

“Mozambique can probably finance its [biofuels] goals,” said Nik Kornaros, CEO of North State Group, a communications company that works extensively in the region. “However it begs the question if this is an optimal use of the national resources. My concern would be that this is an effort to gain a national presence internationally as a country moving forward. Will this investment make them constrained to have to provide the agricultural base to support a plant as opposed to having the flexibility to address some newer direction that agriculture might lead them?”

Last month, Brazil and Mozambique signed a cooperation agreement for sharing resources in biofuels production and training.

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