Ethanol expansion sparks hope for cheaper fuel

GOVERNMENT is set to ramp up ethanol production to sustain an E20 blending ratio throughout the year, a move expected to cut the national fuel import bill and lower pump prices by 18 cents, The Manica Post has learnt.
Currently, Zimbabwe operates at an E5 blending ratio due to seasonal fluctuations in sugarcane crushing capacity.
Fuel prices surged on Wednesday, driven by reduced global supplies linked to the ongoing Middle East conflict.
Speaking during a tour of GreenFuel (Pvt) Ltd in Chisumbanje yesterday (Thursday), Vice President Constantino Chiwenga reaffirmed Government’s commitment to boosting ethanol output as a strategic measure to cushion the economy against external shocks.
“These are the discussions that we had this morning. Since their establishment during the First Republic, they have developed so much. They have modified and improved their mills, and that means they are now going to crush more sugarcane.
“With the 40 million litres storage capacity they have, the expansion plans they have will enable them to produce more ethanol. The Minister of Energy and Power Development, Honourable July Moyo is here so that they discuss issues related to expansion modalities with Government assisting in creating easy-of-doing business for the investors. They (GreenFuel) are not going to be alone in this.
“We have asked them to coordinate with other producers, such as Tongaat Hullett, to increase ethanol production. This is Zimbabwe’s direction – we want to sustain ourselves amidst current challenges. It is now a matter of coordination and collaboration between Government, GreenFuel, and other stakeholders in the fuel industry,” he said.
VP Chiwenga added that Government will explore ways to increase sugarcane production for ethanol in other areas across the country.
“We will explore ways to increase sugarcane production to secure more raw material for ethanol production. We must invest in sugarcane production in areas like Zambezi, Runde, and others with potential,” said VP Chiwenga.
In a separate interview, GreenFuel general manager, Mr Conrad Rautenbach, said the company aims to expand its ethanol storage capacity to 120 million litres.
Mr Rautenbach said E20 blending capacity translates into an 18-cent fuel cost reduction.
“As a company, we have been upscaling and upgrading throughout the year. We did not predict the crisis in the Middle East, but it is a call to improve self-reliance as a company and as a country. This is why we have been expanding our sugarcane production, factory capacity, and storage. We are moving quickly to produce 120 million litres per year. With improved storage capacity, we should be able to return to E20 blending. If there was an E20 blending ratio now, there will be a saving of 18 cents, and that will be quite significant,” said Mr Rautenbach.-herald