Harare — Government has set up a team of experts to finalise modalities on full-scale commercial blending of petrol and ethanol produced from sugarcane at Triangle in Chiredzi to ease petrol importation pressures on the fiscus.

The ethanol plant at Triangle resumed production in 2008 following refurbishment and last year produced over a million litres of fuel grade ethanol.

Secretary for Energy and Power Development Mr Justin Mupamhanga said the team comprises officials from his ministry, National Oil Company of Zimbabwe and Triangle Limited.

"Triangle is now producing fuel grade ethanol and a team has already been set up to look at issues of the blending, the infrastructure and pricing.

"Last year the plant produced over one million litres of fuel grade ethanol," he said.

Ethanol production at Triangle ceased in 1992 when unblended petrol became cheaper than blended fuel.

However, acute shortages of fuel since 1999 necessitated the resumption of ethanol production in 2008.

The fuel shortages became so acute following the imposition of sanctions on the country by Britain and her allies, leading to the drying up of some lines of credit.

The resumption of ethanol production followed an agreement between the Government, Noczim, Indian technology company Praj Industries and Triangle Limited, a subsidiary of South Africa's Tongaat Hulett Sugar to install a dehydration plant to kick start ethanol production.

The installation of the dehydration cost over US$3 million.

Zimbabwe revisited the idea of blending petrol with ethanol three years ago in line with the country's import substitution and foreign currency saving strategy.

Anglo-American built the ethanol processing plant during the colonial era and uses sugar cane grown on estates in the country's hot southeastern region.

Apart from ethanol, the plant will also produce molasses, a byproduct that can be used by citrus farmers especially those in orange farming.

Molasses is used to sweeten the oranges and its shortage has been attributed to the poor quality oranges that many citrus farmers are producing.

Experts have however, said that the country had to increase sugarcane production to ensure an uninterrupted supply of the raw material to the ethanol plant.

Last week, Government in partnership with two investors embarked on a US$600 million ethanol project at the Agricultural and Rural Development Authority estates in Chisumbanje. The sugarcane will be grown in Chisumbanje and Middle Sabi.

The 10-year project between Arda and its investment partners, Rating Investment Ltd and Macdom Investments Ltd, will see the production of more than 80 percent of Zimbabwe's ethanol needs.

About 10 percent ethanol blended with petrol forms a type of fuel that produces exhaust fumes with less carbon dioxide than regular petroleum.

The project will also supply electricity to Mutare and several parts of Manicaland.