|Unblended fuel faces ban|
|Friday, 21 September 2012 00:18|
Tendai Mugabe Senior Reporter
This follows Cabinet approval on Tuesday to introduce mandatory blending of fuel with ethanol, starting with E-5.
“All the fuel will be blended with ethanol. As a starting point, the mandatory blending should be at five percent level.
DPM Mutambara said the mandatory use of E-5 would however, be a success if Government and Green Fuel agreed on negotiations to change ownership structure of the ethanol plant in Chisumbanje from a Build-Operate-and-Transfer arrangement to a Joint Venture.
Cabinet directed that its recommendations on the conversion of Green Fuel from BOT to a JV and subsequent adoption of E-5 should be done in two months.
He said the Ian Smith regime introduced it during the colonial era and it was even used after independence.
“E-5 is also the ideal starting point because none of the car manufacturers and sellers has a problem with that level of ethanol, whereas there were complaints about certain vehicles’ compatibility with E-10.”
DPM Mutambara said the E-5 mandatory blending level would boost sales of ethanol from the 0,6 million litres to 2,3 million litres per day.
He said blend was fast becoming the fuel of choice the world over.
“In some other countries they have even gone further and they are now blending diesel (with ethanol),” said the source.
Arda chairman Mr Basil Nyabadza hailed Cabinet for coming up with a way forward on the Chisumbanje Ethanol Project.
“The details of the Cabinet report are what have to be pursued. Dialogue between DPM Mutambara and his team and other relevant stakeholders must be pursued immediately,” he said.
The Chisumbanje Ethanol Plant stopped operations in February after exhausting its storage capacity of 10 million litres.