Monday, April 28, 2014

Biofuel production to commence soon
By Gift Chanda
Tue 31 Dec. 2013, 14:00 CAT

COMMERCIAL production of biofuels in Zambia is expected to commence after the government's acceptance of producer prices, industry officials have said.

Energy Regulation Board executive director, Langiwe Lungu, last week told journalists that the government had finally set the producer prices for biofuels, but declined to give details saying, "the government will soon announce."

However, officials close to the development said bio-ethanol was pegged at about K5.204 per litre while bio-diesel at about K5.895 per litre.
The Zambian government launched an ambitious programme to promote biofuels production in 2008 after revising its energy policy as part of the efforts to reverse the negative effects of depending on petroleum products.
Commercial production was, however, put on hold due to the government's delay in announcing incentives and producer prices.

Early this year the Biofuels Association of Zambia (BAZ) said producers would only engage in large-scale production after the government's announcement of the pricing of the products as it would be difficult to start production before a pricing mechanism was put in place.

"Now that the government has agreed on the prices, we expect some serious works to commence on the producers' part because this was one of their key hindrance," an ERB official said, adding that biofuels would in the long run cushion the country from high fuel prices.

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