China New Energy Ltd (CNEL), a bioenergy engineering firm, has signed an investment promotional and protection agreement (IPPA) with the Zambian government for the development of the Zambian biorefinery project.
The deal was signed by project partner Sunbird Bioenergy Africa Ltd and the Zambian Development Agency. CNEL notes, however, that there are a number of other project milestones which need to be concluded prior to it entering into a formal agreement with Sunbird to commence construction of the Zambian project.
CNEL will develop the new biorefinery in Luapula province in the north of Zambia. The company will also supply the key operating technology for the facility. Construction works are scheduled to start this year.
CNEL has developed more than 100 bioethanol and biobutanol plants for a total production capacity of more than 10 million tons per year.