Some projects are already testing field production – with jatropha, coconut, and cassava. Will the energy transition bring opportunities for ethanol and biodiesel projects in Mozambique?
The production of ethanol (which is blended with gasoline) and biodiesel (combined with diesel) has been globally recognized as an urgent need to facilitate the transition to cleaner, more sustainable energy sources. Countries like Brazil and the United States continue to lead global ethanol production, using primarily sugarcane and corn, respectively. In Europe, there is growing interest in using agricultural waste and oilseeds as biodiesel sources, particularly in response to the Paris Agreement goals to curb global warming and to meet carbon neutrality commitments by mid-century.
In Mozambique, a country among those most at risk from climate change, the trend also appears to be gaining ground, with the emergence of new initiatives and the Government’s intention to regulate the sector. The country has strong potential in this area, as it possesses viable raw materials for the production of biodiesel and ethanol. Its competitive advantage lies in the availability of arable land, favorable weather conditions, and abundant rural labor.
A local solution to a global problem
During a meeting held in May between the National Institute for Standardization and Quality (INNOQ), the Ministry of Mineral Resources and Energy, and private entities, Boris Atanassov, director of Greenlight — one of the companies active in Mozambique’s renewable energy sector — detailed the organization’s involvement in developing biofuel projects. The company operates on several fronts: from design and research to financial and technical feasibility studies. Greenlight also participates directly in the implementation of biodiesel production projects and is preparing to begin bioethanol production on a national scale.
“Biofuels represent a local solution to a global problem. They can be used in cars, planes, boats, and even in home kitchens, replacing charcoal and firewood, which are harmful to both health and the environment,” Atanassov explained.
According to him, Mozambican bioethanol can be produced from sugarcane, cassava — the latter having great potential in various provinces — and other crops. Biodiesel, meanwhile, can be obtained from coconut, jatropha, and other oilseeds.
“We are working across three time horizons: in the short term, we are focusing on regulations and studies, in partnership with the Office for the Promotion of Economic Acceleration (PAE); in the medium term, we will build factories and introduce agricultural crops; and in the long term, we aim to implement mandatory blends as provided for in national legislation,” said the Greenlight director.
Investment and partnerships are key
According to Atanassov, investments vary by scale: micro-projects may cost less than 1 million USD (64 million meticais), while industrial-scale projects may exceed 20 million USD (1.28 billion meticais).
“Greenlight is part of a consortium of companies that will lead both the agricultural production and the installation of processing units. However, we can’t go far on our own. Public-private partnerships are essential for the sustainable success of these projects,” he added.
Government updates legislation and restructures industry
José Muhai, Deputy National Director of Hydrocarbons and Fuels at the Ministry of Mineral Resources and Energy, stated that the Government updated the biofuels legislation and strategy in 2023, aligning them with the latest standards and focusing on energy security.
“We aim to start with mandatory blends: 10% ethanol in gasoline and 3% biodiesel in diesel. This measure will allow for a significant reduction in imports — about 50,000 cubic meters of gasoline and 45,000 cubic meters of diesel per year,” he said.
The measure also seeks to enhance agricultural production, enabling small-scale farmers to integrate into the value chain. Decentralized and local biofuel production could drive rural development and reduce environmental pressure.
Muhai explained that the country intends to leverage existing by-products — such as molasses, a thick and dark liquid from sugarcane processing — and crops adapted to different agro-ecological zones. The government, in coordination with private companies, is conducting studies in regions like Inhambane and Zambézia, where the viability of producing coconut and jatropha oil is being assessed.
Lessons from the past and a new approach
Mozambique’s first biofuel projects date back to 2008, when oil prices reached historic highs, with a barrel priced around 150 USD (9600 meticais at current rates). However, many of these projects failed due to lack of experience and institutional maturity.
“It was the first time the country embarked on such an initiative. Now, we are better prepared. The industry is aligned, legislation has been adjusted, and stakeholders are motivated,” said José Muhai.
Several projects are currently in the feasibility study phase. Some are already testing field production, particularly with jatropha, coconut, and cassava. Rather than focusing exclusively on a single crop, the strategy is to adapt to each region’s potential, taking agronomic, social, and economic factors into account.
The expansion of biofuels is expected to have a positive impact on several levels. Besides reducing greenhouse gas emissions, the projects foster rural entrepreneurship, create jobs, and promote the transition to cleaner energy sources. The domestic use of bioethanol, for instance, can reduce reliance on firewood and charcoal, combat deforestation, and improve public health.
What are mandatory blends?
Mandatory blends of biodiesel (or bioethanol) in fossil fuels refer, globally, to the minimum amount of biofuels that must be legally incorporated into traditional fuels — such as diesel and gasoline — before they are sold.
This partial substitution of fossil fuels with biofuels is identified at fuel stations:
- A B3 diesel contains 3% biodiesel and 97% fossil-origin diesel and is typically used in the early stages of biofuel introduction. As the process evolves, the percentage tends to increase.
- An E10 gasoline contains 10% bioethanol and 90% traditional gasoline.
These blends are an energy and environmental policy tool with several goals:
- To reduce greenhouse gas emissions;
- To decrease dependency on imported fossil fuels;
- To promote the use of renewable sources;
- To stimulate the agricultural and waste sectors by using vegetable oils, used fats, or non-food cereals.
Text: Nário Sixpene
