Los Angeles-based clean tech fund Craton Equity Partners announced its plans last month to invest $10 million in biofuel developer Principle Energy Ltd. (PEL) for sugarcane-based ethanol production in Mozambique.
The African biofuel company will have the capacity to produce 60 million gallons a year of the ethanol after the project comes online.
"The PEL model demonstrates the next generation of biofuel development, using one of the most efficient sources of ethanol – sugarcane – to produce badly needed fuel for the European Union and the United States,” Tom Soto, a Craton managing partner said.
Craton’s investment will give the ethanol producer the working capital it needs for the Dombe project, including construction of the ethanol production facility, cultivation of 18,000 hectares of sugarcane feedstock, and the expansion of housing, clinics, and schools for local residents.
“The project ensures that only a small percentage of the country’s arable land is used for biofuel production, with the balance used for agriculture," said Bob MacDonald, another managing partner at Craton.