The National Oil and Infrastructure Company of Zimbabwe (NOIC) will soon float a tender for the construction of its 3 million litre ethanol storage and handling facility in Harare.
The state-owned company, which started operations in 2011, after being unbundled from the National Oil Company of Zimbabwe, indicated that that facility is part of the three major projects the company is in the process of rolling out.
Mr. Wilfried Matukeni, the Chief Executive Officer confirmed the $6 million ethanol facility will be constructed at Mabvuku Depot and will significantly raise its capacity.
He confirmed that the tendering processes have commenced for the construction of the ethanol storage and handling facility.
They completed the installation of the Mabvuku loading gantry, last year, at a cost of $12 million. The facility is a public private partnership with Sakunda Energy Private Limited. NOIC is planning to invest about $20 million over the next one and a half years.
NOIC will also construct a 2000 tonnes LPG gas facility in Ruwa and a Jet A1 refuelling storage and handling facility at the Harare Airport. Mr. Matukeni highlighted that the two projects were still work in process, but plans were well under way.
Zimbabwe has over the last three months been producing an average of 6 million litres of blending ethanol through sole licensed supplier, Greenfuel.
Government had to stock up ethanol this year to cater for supply deficits, usually caused by rainy season disruption of production.
Government had to revise its 15 percent mandatory ethanol blending threshold due to supply challenges.
Government has plans to gradually increase the blending threshold in a development expected to significantly bring down Zimbabwe’s fuel import bill.
Energy and Power Development Minister Dr. Samuel Undenge has also called for creation of buffer stocks to cover production or plant induced shortages.
