Minister of Energy Samuel Undenge
HIPPO Valley Estates says it is engaging authorities to acquire requisite licensing to fully enter into the ethanol market.
Chief executive officer Sydney Mtsambiwa told journalists after the company’s annual general meeting that the company has installed ethanol production capacity of 41 million litres per annum and has so far been producing sufficient to meet local requirements.
“But we have challenges in terms of licences to enter into the fuel ethanol market and we are busy engaging authorities to get the requisite licensing to proceed,” he said.
Currently the blending ratio is at 15 percent ethanol content (E15), when the country consumes about 50 million litres of petrol per month.
Mtsambiwa said that ratio presents an opportunity to fully participate in the ethanol market.
“These are only issues of procedures, so we are engaging and waiting to see how far they go. We cannot give certain timeframes as to when we get the license since the authorities are the ones conducting the adjudication process,” he said.
There has been consensus among motorists that at E15 blend, petrol should be cheaper than unleaded fuel.
E15 is going for between US$1, 40 and US$1, 53 per litre at service stations in Zimbabwe, which is far more expensive than several countries in the region using unleaded fuel.
Meanwhile, Mtsambiwa said under a programme dubbed Successful Rural Communities, a total of 12 500 hectares have been planted out of the targeted 15 000 ha.
Hippo Valley Estates together with Triangle Sugar Company are subsidiaries of South African firm, Tongaat Hulett.
Meanwhile, at the AGM auditors fees were approved at US$185 505 while directors fees at US$12 224 per each director. FinX