Mozambique’s Ministry of Energy and Clean Carbon Industries (CCI) signed an agreement to undertake a feasibility study for the development of a coal-to-liquid (CTL) plant in the Tete province. The planned plant would have a capacity of 40 000 bbl/d of transport fuel and chemical by-products from up to 17 Mt/year of low-grade, nonexportable and nonsaleable coal.
The first 20 000 bbl/d would be allocated to Mozambique, which was estimated to consume 17 000 bbl/d. The excess fuel would be converted to chemical feedstock for export or exported directly to neighbouring countries, such as Tanzania, Malawi, Zambia, Botswana or other regional Southern African Development Community countries, which would reduce the transportation cost of fuel to these markets, owing to its close proximity. A pipeline could be developed from Tete to Savane, north of Beira, extending to existing port fuel-handling facilities in Pemba, Beira, Quelimane and Maputo.
The feasibility study is expected to be completed by the end of 2014, to start the construction of the plant during the first quarter of 2016.