VayuGrid to develop bio-fuel cluster in Ethiopia
India-based bio-fuel supply chain company VayuGrid has signed a memorandum of understanding to develop a bio-fuel cluster around its high-yield Pongamia plantation in Ethiopia.
The cluster will create a $2.5m bio-fuel investment opportunity and it is part of the government's plan to develop a bio-fuel park in the country.
Initially the plan envisages the creation of a 2,000 acre cluster under a collaborative model while the long-term goal is to create a cluster of 100,000 acres, said the company.
Commenting on the developments VayuGrid CEO Doug Peterson the clusters will ensure the supply of sustainable bio-fuel for the downstream markets and high returns for governments, land owners and investors.
"VayuGrid is bringing together local and global businesses that are dependent on crude and looking for ways to hedge against currency fluctuations while ensuring a predictable supply of green energy," added Peterson.
The proposed bio-fuel park is expected to reduce the country's dependence on and cost of importing imported crude.