Maravi

Proceed with biofuel plans, BAZ urges govt business

Proceed with biofuel plans, BAZ urges govt business
Written by Nchima Nchito
Thursday, November 27, 2008 12:01:19 PM

BIOFUELS Association of Zambia (BAZ) chairman Professor Thomson Sinkala has urged the government to proceed with the biofuel production plans despite falling prices of oil on international markets.

In an interview, Prof Sinkala said this was the best time for Zambia to attract investments in biofuel production when oil prices had tumbled.

“If anything, development of biofuels should be treated as an urgent matter now because of the current reductions in oil prices,” Prof Sinkala said.

He cited countries like the United States that were now looking towards biofuel production as good examples for Zambia.

“The President-elect of the US recently announced how his government will use biofuels and education to create 2.5 million jobs by 2011. Now the US is one of the biggest consumers of oil and I feel we can learn from their decision to develop biofuels,” he said.

When asked whether the reduction of crude oil prices was not a positive development as it would mean reduced pump prices of fuel on the local market, Prof Sinkala said it was important to look at both sides of an issue.

“It’s good yes, those prices have gone down but we have to understand the issues at hand. Oil is a non-renewable resource, meaning it will run out one day and the only way to keep it in supply is by discovering new oil deposits,” he said.

“Oil explorations are expensive to carry out and according to what I have been made to understand, for an exploration to be financially feasible, oil has to cost in the range of US $100 a barrel.”

Prof Sinkala added that because of the current low prices of oil, there was a possibility that exploration projects would be put on hold till the prices of oil stabilised.

“With this happening, it may in turn lead to shortages, hence pushing the prices of oil back up again. All in all, what I’m saying is that there is no reason for us to relax in our quest to develop biofuels” said Prof Sinkala.

Labels: BIOFUELS, BIOFUELS ASSOCIATION OF ZAMBIA, FUEL, OIL, THOMSON SINKALA

posted by MrK @ 12:04 PM