Rwanda has signed a $250 million investment deal with US-based Eco Fuel Global and UK-based Eco Positive. The investment deal is for the production of green energy using biofuels.
The investment in green energy comes at a time when statistics indicate that diesel consumption in Rwanda is likely to increase to approximately 12 million tons by 2013. The deal, viewed as one of the answers to Rwanda’s energy challenge, is expected to increase fuel security and reduce fuel price risk.
Eco Fuel Global and Eco Positive will work with the Institute of Scientific and Technological Research. The Director General of the Institute of Scientific and Technological Research, Dr. Jean Baptiste Nduwayezu said that as soon as the Cabinet approves the commercial biodiesel policy, the institute will begin construction of the biodiesel plant.
Currently, the institute produces about 2,000 liters of biodiesel; once production is up and running the new biodiesel plant in Rwanda will have the capacity to produce more than 20 million liters of biofuel annually from jatropha curcas.
The Rwandan Cabinet has approved a $35 million project to grow jatropha on a large scale on 10,000 hectares under lease near Akagera National Park. Eco Fuel officials said that unlike first generation biofuels, the project does not use food products or prime agriculture land.
Rwanda will be among the first few African countries to embark on such a large scale commercial production.
Rwandan officials said that using the jathropha biofuel will lead to a 30% reduction in imports of petrol from Kenya. The country currently imports around 160 million liters per year of petrol at a cost of $287 million.