-- Japan's Ministry of Economy, Trade and Industry will provide 4 billion yen or $25.2 million in subsidies to support a large-scale marine biofuel pilot initiative in Mozambique and Ghana, according to a Nikkei report on Tuesday.
The funding is aimed at covering startup costs until the project becomes profitable, with the dual objective of diversifying energy sources while aiding the environment and local farmers, the publication said.
The initiative, led by Tokyo-based Nippon Biofuel, will cultivate jatropha. This hardy plant grows in poor soil and produces oil-rich seeds without straining food supplies, unlike corn or other biofuel crops, the news daily said.
Fuel production facilities will be built in both countries, where local workers will be employed to handle all stages from cultivation to manufacturing, the report said.
The resulting biofuel is expected to power domestic Japanese cargo vessels, Africa-bound freight ships, and commercial boats based in Singapore, offering a solution to multiple challenges, it added.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)