Zera says door open for ethanol licences


THE Zimbabwe Energy Regulatory Authority (Zera) has said players who have the capacity to do mandatory blending should apply for licences, as the regulations were open for more players.


Zera chief executive officer, Gloria Magombo said the regulator has not barred any player from applying for a licence.

“We do not go to Hippo Valley and say you have got the capacity to produce, so come and apply for a licence I am just giving you an example,” she said.

“If there is anyone who has the capacity, they should come and apply to the authority and we will consider that application accordingly. There is no one who has been stopped or told not to apply for a licence.”

Magorimbo’s remarks came after the Zimbabwe Energy Council (ZEC) amplified its voice for the opening up of the mandatory blending of ethanol sector, saying it had been approached by a wide-spectrum of its members on the matter.

ZEC executive director, Panganayi Sithole said early this month that Statutory Instrument 17 of 2013 was very restrictive to who should participate in the sector in spite of government indications that the sector was open to any interested investors.

But Magombo said she was “wondering where the comments are coming from”.

“I am trying to understand what is the basis of the comments are because we have never stopped anyone from coming to apply for an ethanol production licence,” she said.

Magombo said ZEC could propose amendments to be considered on Statutory Instrument 17 of 2013.

Currently, only Green Fuels Private Limited and Triangle Limited have mandatory blending production licences in the country. ZEC said there are more players capable of doing mandatory blending.

ZEC cited the capacity of Hippo Valley to produce ethanol, but did not have a licence despite the fact as an example of the limited space within the mandatory blending of the ethanol sector.

However, Hippo Valley is working with Triangle Limited to produce ethanol in that they provide the molasses used in the production process to the latter, according to Zera.

Magombo said those who have the “capacity are licensed, both Greenfuel and Triangle so that is why we are wondering who else does not have a licence that should be licensed”.