(2011-06-11) Mixing fossil fuels with biofuels will be obligatory in Mozambique as of 2012, and the government expects the measure to reduce the cost of importing oil derivatives, specifically gasoline and diesel, Mozambican newspaper Notícias reported.

The regulation recently approved by the government sets a mixture of 3 percent biodiesel with 97 percent diesel. These percentages were based on installed capacity for production of these fuels in Mozambique, according to the Energy minister, Salvador Namburete.

With this measure the government expects in 2012 to save around US$22 million on its fossil fuel import bill that is currently estimated at US$500 million per year.

In less than a year the price of oil has risen from just over US$90 to US$120 and currently stands at around US$114 per barrel.

In order to structure the program better the government launched a database at the beginning of this year about the potential for sustainable production of biofuels, an initiative that is expected to be concluded over the next three to four years.

The initiative, which involves Brazil and the European Union (EU), is expected to cost US$800,000 and includes four phases. By the end it is expected to provide detailed information about the conditions for growing the necessary crops.