Bio Energy Production and Distribution in Cabo Delgado Province

Client – SEKAB
Location – Cabo Delgado – Mozambique
Year – 2006 – 2010
Time – 8 years

Verde Azul provided management support and technical support for the development of an agro-energy investment project for a consortium of private investors that are linked to sugar production in southern Africa, as well as to the biofuels market in Sweden and other countries Europeans.

The project involved the strategic analysis of the various production opportunities in the country, establishment of production tests to select the varieties with the best performance, design of bankable projects and start of commercial operations. In the first phase, a sugar factory was set up to produce and market organically raw, unrefined and certified sugar, and commercially fair for Cabo Delgado Province.

The country’s coastal zone was digitized in five strategic areas with the potential to produce a critical mass of agricultural products and presented to the Board of Directors.

A 4-year research project was implemented in collaboration with ICRISAT and IIAM.

The EIA had its social and community and stakeholder base in an established network. Pre-certification by RSB and ECOCERT was prepared and granted to the project.

The pre-commercial phase included the mobilization of the team for the project (+/- 40 people), Environmental and Social License and authorization, and water license, land use, agricultural development, industrial processing export approvals and import. It also involved obtaining a permanent land use title (DUAT) in favor of the project, authorization from the CPI and community institutions, as well as from interested parties through regular community consultations.

It also involved mapping and resettling 600 families of self-subsistence farmers, using the principle of prior and free consent and the IFC manual for rural resettlements.

Commercial operations started in June 2012. Verde Azul supervised the team’s performance and are involved in requesting financing and purchase and sale contracts for the production of sugar. Verde Azul will start planning a second phase of bio ethanol production to mix with gasoline for the northern region (domestic supply).