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Tanzania: Sun Biofuels to invest $20 million in biofuel processing project

Sun Biofuels, a UK-based producer of biodiesel, has invested $20 million (€14.5 million) into a biofuel processing project in Tanzania, called Sun Biofuels Tanzania, in which Sun Biofuels owns an 88% stake.
The project involves large-scale planting of jatropha oilseed crops for the production and distribution of crude and refined products. It has applied for 9,000 hectares of land in the Kisarawe district in the Coast region.

Sun Biofuels had applied for 20,000 hectares in 2005, but authorities were able to offer just 9,000.

The process of land acquisition for the project is at an advanced stage, awaiting President Jakaya Kikwete’s agreement. The acquisition means that 11 villages in one of the oldest districts in Tanzania must relinquish land to the investor.

Apart from Sun Biofuels’ 88%, share holders in Sun Biofuels Tanzania include the British national Julian Ozanne (10%) and Daudi Makobore and Herbert Marwa, Tanzanian nationals, who own 1% each.

The annual yield per hectare is up to 8 tonnes of jatropha seed, which contain over 30% oil. At $320 per tonne, this will translate into production of jatropha crude oil worth $768 a hectare a year.


Additional information: Sun Biofuels
News date: 07/08/2007

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