Construction at the bio fuel unit which aims to produce sugarcane-based bio-fuels began in 2008.

The plant is expected to have the capacity to annually produce 25,000 litres of ethanol during the first phase of operation lasting 16 to 18 months.

The unit’s production capacity is expected to rise to 100,000 litres of ethanol, during the 35-month second phase.

The produced ethanol is expected to be exported to the European Union, according to the company.

Grown Energy company director Rademan Rensburg said a 1,300 hectare area has been cleared of which 65 already have sugarcane while the other plantation area has seed cane in a 550 hectare area.

"After these two areas, commercial cane production will begin on 3,000 hectares. To implement the project government authorities granted a total area of 24,000 hectares," Rensburg said.

The project is scheduled to be complete by late 2013, reports macauhub.com.mo.