Concerns over global warming and soaring fossil fuel costs are leading investors in Tanzania to turn to cleaner energy sources like biofuels.

Swedish biofuels firm Sekab plans to invest around US$300 to build a sugarcane-based ethanol plant that could help Tanzania minimize its dependence on oil, and save the country precious foreign currency.

The sugar cane harvest from Sekab’s 200 hectare farm in Bagamoyo will produce 100 million litres of Ethanol.  Tanzania’s tropical climate, unutilized land and access to water make excellent conditions for growing biomass for biofuels and electricity.

Sekab’s long term plans include development of over 400,000 hectares for bio-energy production. The first factory will be online by 2012, and the firm plans to establish more plantations over the next 15 years. The firm’s ethanol project also involves expansion of infrastructure and job creation for Tanzania.

The National Biofuels Task Force, a special organization created by the Tanzanian government to manage the budding biofuels industry expects that with today’s oil prices, the future ethanol industry in Africa will be cost competitive with petrol and diesel.
 
Sekab is a leading European supplier of renewable vehicle fuels and focuses on distribution of bio-ethanol to the northern European market.