07-12-09 Rwanda has signed a $ 250 mm investment deal with US-based Eco Fuel Global and the UK's Eco Positive, to produce "green energy" using biofuel.
Consequently, Rwanda will have the capacity to produce more than 20 mm litres of biofuel annually from jatropha curcas -- making it among the first few African countries to embark on large scale commercial production of biodiesel as the world battles carbon emissions responsible for climate change. Officials say this complementary source of energy will lead to a 30 % reduction on imports of petrol-diesel from neighbouring Kenya.

Minister of State in charge of Energy and Water in the Ministry of Infrastructure Dr Albert Butare said the country has been importing about 160 mm litres of diesel every year at a cost of $ 287 mm, excluding taxes.
A study conducted recently by the Ministry of Infrastructure shows that biomass is the most important source of primary energy in the country and will still be in the medium term. The survey found out that only0.2 % of households are using kerosene, electricity or liquefied petroleum gas.

The investment in green energy comes at a time when statistics indicate that diesel consumption in Rwanda is likely to increase to approximately 12 mm tons by 2013. The deal, viewed as one of the answers to Rwanda's energy challenge, is expected to increase fuel security and reduce fuel price risk.
The country's fuel consumption is expected to rise by about 5 % in the next 10 years. The investing firms will work with the Institute of Scientific and Technological Research, which has had a major breakthrough in the production of sulphur-free environmental-friendly biodiesel.

Director General of the Institute of Scientific and Technological Research, Dr Jean Baptiste Nduwayezu, said that as soon as the Cabinet approves the commercial biodiesel policy, the institute will begin construction of the biodiesel plant. Currently, the institute produces about 2,000 litres of biodiesel from jatropha, palm oil, moringa oil, avocado seeds and animal fats.
The Cabinet has approved a $ 35 mm project to grow jatropha on large scale on leased 10,000 hectares near Akagera National Park. Eco Fuel officials said that unlike first generation biofuel, the project does not use food products or prime agriculture land. The project, according to officials will create an estimated 6,500 jobs.

Cost saving
The investment will also give landlocked Rwanda an advantage as it depends on its East African Community neighbours for transportation of petrol-diesel into the country. This is not only costly as a product but also as a factor in the economy's overall production and competitiveness.
According to Rwanda Development Board chief executive Joe Ritchie, the investment will include seed initiation and roll out of volume production through the jatropha plantations and establishment of facilities to process oil from plant seeds into biodiesel and other by-products.

The utilisation of raw vegetable oil from jatropha plantation, according to Mr Ritchie will lower Rwanda's dependence on foreign imported products.
The deal was signed at the RDB's headquarters by Mark O' Brien the CEO of Eco Fuel Global and Karl Boyce, CEO Eco-Positive on behalf of the investors and Dr Butare and Stanislas Kamanzi, the Minister of Natural Resources on behalf of Rwanda.