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    Through a new funding programme, the Global Environment Facility (GEF) aims to drive sustainable agrifood systems, enhancing biodiversity, water management, and food security across the continent. Photo: Supplied

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    Through a new funding programme, the Global Environment Facility (GEF) aims to drive sustainable agrifood systems, enhancing biodiversity, water management, and food security across the continent. Photo: Supplied

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Biofuel deal: Mozambique to transform vegetable oils

by Lucinda Dordley
9 March 2022
in Agri News, Innovation
Reading Time: 2 mins read
A A
Mozambique is partnering with Italian natural oil and gas company Eni to use oil seeds from the country to create natural gas. Photo: Supplied/FoodForAfrika.com

Mozambique is partnering with Italian natural oil and gas company Eni to use oil seeds from the country to create natural gas. Photo: Supplied/FoodForAfrika.com

Mozambique has signed an historic agreement with Italian oil and gas company Eni to produce oil seeds and vegetable oils that can be transformed into biofuels. Together, they will identify crops that are most suitable for this quest.
 
According to a media release, Eni and the ministry of agriculture and rural development in Mozambique will focus on areas “that would not compete with food production and taking into consideration the preservation of forests and natural ecosystems. Other initiatives include the collection and valorisation of agricultural and agro-processing residues, by-products and co-products, for production of bio feedstock and Natural Climate Solutions.”
 
The agreement builds on a 2019 memorandum of understanding between both parties. In this, they jointly defined sustainable development and decarbonisation initiatives to support Mozambique’s national and local economic and social development agenda.
 
“Also, it is in line with Eni’s commitments to accelerate the energy transition in fossil fuel producing countries,” the company added.

Mozambique is seen by analysts as one of the most promising African countries for biofuel production. Photo: Supplied/FoodForAfrika.com
Mozambique is seen by analysts as one of the most promising African countries for biofuel production. Photo: Supplied/FoodForAfrika.com

Boosting agribusiness

It foresees the integration of the African continent into the biofuel value chain through agribusiness and industrial development initiatives aimed at the production of advanced biofuel. This, it says, will aid the decarbonisation of the transport sector and promote development opportunities.
 
Meanwhile, ratings agency Fitch Solutions predicts that Mozambique’s economy will rapidly grow in 2022 as it increases investment in liquefied natural gas (LNG). It expects real GDP growth of 5% this year, up from 2.8% in 2021 and significantly higher than the 4% average from 2015 to 2019

The agency is upbeat about the future of the LNG gas production facilities that will be erected in Cabo Delgado’s northern province.

Due to ongoing terrorism, however, a project headed by TotalEnergies was declared a force majeure. The project itself was worth $20 billion in development.
 
Another project, headed by ExxonMobil, has also had its final investment decision delayed.
 
Fitch, on the other hand, highlights the improved security situation, stating: “Total indicated that it aims to commence development on the big project this year, which we believe will enhance fixed investment.”

ALSO READ: Mozambique receives $47 million grant from AfDB

Lucinda Dordley

Lucinda Dordley

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