To significantly enhance the macro economic development of Mozambique in the energy sector and contribute toward the sustainability of local renewable energy.
To produce Biodiesel and Biodiesel by-products on an industrial scale, creating jobs and empowering Mozambique to become a net exporter of Biodiesel and its by-products through the implementation of practical technology and locally relevant operational practices.
Ecomoz – Energias Alternativas Renováveis LDA (Ecomoz) is a joint venture established in 2006 between various parties within Mozambique who believe that Biodiesel holds great potential for Mozambique on micro and macro economic levels, not to mention the contribution to stalling climate change.
Companies involved included:
Hende Wayela Energia, LDA (Hende)
Petróleos de Moçambique, SARL (Petromoc)
Biomoz LDA, and
Bio Energia, LDA
Hende and Petromoc were the major shareholders in the Venture. During 2008, Petromoc purchased Hende’s shares to free that company up to focus on Raw material (Vegetable oil) production.
Petromoc is the National Petroleum agency of Mozambique and contributes greatly to the venture from a legal, regulatory and operational perspective. Also, the current pilot plant is situated on the Petromoc premises which they have graciously provided for this project.
Biomoz and Bio Energia include various parties with agricultural, commerce and industry and political backgrounds.
It is clear from the above that each party in the venture brings with it specific talents and benefits contributing in different ways, each forming a critical part of everyday business and long term stability in this industry.
Mozambique is a very specific market and Ecomoz believes that to function in that market a better understanding of factors such as:
Local oil quality and stability of supply;
Practical technology for the area;
Political influences and decision processes;
Work force stability;
Hidden operational costs, etc.
Need to be obtained to form a long term view and operational rollout plan. The project plan was to actually enter the market and prove the production of Biodiesel from local feed stocks. In the process the company has learned an immense amount first hand regarding the above factors which gives a competitive advantage in the market place.
In the market place there are two main options for production, these are batch processing and continuous processing. Ecomoz chose a combination of the two as the best option for the pilot study as management believed that technology is becoming viable as time goes by, and hence the plant was designed for easy adaption to technological change. Management steered away from continuous processing due to factors such as capital cost, start-up time and cost and availability of parts etc, and that has proven itself time and time again.
The pilot plant might not look the part, but currently the production capacity is around 20,000MT per annum. With 1 or two modifications still to come, the capacity will increase to approximately 40,000MT with 12 hour working days. The plant therefore has sufficient capacity installed to accommodate a 5 - 10% National blend, but that is still a ways off as local vegetable oil production needs to grow to accommodate this.
Headway sold its stake in this venture in January 2009, but still maintains a very strong working relationship with Petromoc, SARL in Mozambique. Headway assisted to secure an oil-offtake agreement between Ecomoz and Hende Wayela Energia, LDA for Coconut oil into Biodiesel. For Hende, this meant that if the bottom falls out of the Coconut oil market, all product can be sold to Ecomoz which will convert it to Biodiesel which will be consumed by Petromoc, SARL for their national consumption. This established a stable floor price for Hende’s oil production.