THE Chisumbanje Ethanol Plant projects to produce at least 750 000 litres of ethanol per day by June this year contributing significantly to reducing fuel imports into Zimbabwe, Green Fuel managing director Mr Graeme Smith has said.

 Mr Smith said this in a brief before a tour of the ethanol plant by visiting Botswana Defence Forces Commander Lieutenant  General Tebogo Carter Masire who is on a week-long working visit in Zimbabwe.

Zimbabwe Defence Forces Commander General Constantine Chiwenga accompanied Lt Gen Masire.

The US$600 million project is a joint venture between Arda and private investors, Macdom and Rating.

"By June this year we have projected to produce at least 750 000 litres of ethanol for blending fuel.

"We want to increase the blending from the current 10 percent to 20 percent by June this year but in the long term we want to substitute fuel and use ethanol which is environmentally friendly," Mr Smith said.Green Fuel aims to increase power production,8 million litres ethanol lie idle

He said most vehicles manufactured nowadays are able to use 85 percent of ethanol blended fuel without any modifications.

Zimbabwe, which consumes 1,4 million litres of fuel per day, requires about US$2 million per day for fuel imports.

"Through this project, we can stop fuel imports and fulfil national requirements and even look at exporting fuel in the region," he said.

Green Fuel has already started distributing ethanol for blending.

Ethanol blended fuel sells for about US$1,36 per litre compared to standard fuel prices of ranging from US$1,46 per litre.

"Motorists can save up to 10 percent on fuel and this will go a long way in even reducing prices of other commodities as fuel is a major factor," he said.

The ethanol plant has other by-products such as animal feed and electricity.

"As we speak we are generating about seven mega watts used internally to power this plant.

"However, the plant has a capacity to produce over 120 mega watts of electricity and contribute to the national power grid," he said.

There are 4 500 people directly and indirectly employed through ethanol production in Chipinge district and outlying areas.