Green Fuel and the Zimbabwe Energy Regulatory Authority (Zera) have described as frivolous and vexatious an application by Harare resident Tabani Mpofu challenging the mandatory blending of ethanol for use by motorists.
By Feluna Nleya Staff Reporter
Mpofu last December petitioned the Constitutional Court challenging Green Fuel’s monopoly and blending ratios. Green Fuel is the sole producer of ethanol in the country.
Mpofu is challenging the constitutionality of the company’s monopoly and blending ratios arguing they did not guarantee fair competition and was not in the interest of motorists.
This follows the introduction by government of blending ratios of E15 last November up from E5 and E10 respectively. Government is pushing for E20 by March this year.
However, Green Fuels and Zera have filed their notice of opposition.
In his opposing affidavit, Green Fuels director Paul Norman Smith said: “I wish to set out the background to this matter. This background information will illustrate that the application is frivolous, vexatious and is founded upon incorrect factual averments.”
He said the establishment of the Chisumbanje Sugar-Ethanol project followed extensive research by experts.
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“It was not established overnight,” read part of the affidavit. “As long ago as 1985 the Industrial Development Corporation of Zimbabwe undertook a feasibility study pursuant to which findings were documented. The feasibility study was conducted for and on behalf of the government of Zimbabwe.”
He said that environmental scientists equally supported the ethanol project, adding that elsewhere there had been research into the use of ethanol in blending with unleaded petrol.
“By way of an example in 2011 the National Commission for Science and Technology in Malawi published a book under the title Ethanol Driven Project — (Malawi). Assessment of the use of ethanol as an alternative vehicle fuel petrol in Malawi. The publication makes recommendations to promote increased ethanol use. A reading of the publication will confirm that E20 fuel can be used on all petrol vehicles without the need of any modification nor does it affect compatibility or the driving ability of the vehicle,” he said.
Smith said that the ethanol project had brought numerous benefits to the country and its people.
“Apart from reducing the price of fuel, the ethanol project has several other benefits. It reduces carbon emissions from vehicles — an important environmental benefit,” Smith said.
“The project has created employment for thousands of people, thereby reducing unemployment in the country. It has resulted in economic and rural development.
“Furthermore, there is fuel security and it has already saved the country thousands of dollars by reducing the fuel import bill and improving the current trade deficit and liquidity within the country.”
Zera chief executive officer Gloria Magombo in her opposing affidavit also said: “With all due respect, describing the regulations as monopolistic or restrictive is being narrow minded. The requirement for a joint venture was based on government policy and deemed to be in the national interest and security of supply.”
She said there was nothing monopolistic about requiring a licenced blender to buy from a registered producer.
