Maputo, June 12, 2026 (Lusa) - Mozambique’s minister for mineral resources said on Friday that biofuels could help to mitigate the volatility of international fossil fuel prices, reiterating that this environmentally friendly fuel should be seen as part of the diversification of the national energy mix.
“Biofuels can help to mitigate the volatility of international fossil fuel prices, particularly when produced locally, on a competitive scale and with effective integration into national supply chains,” said Minister Estêvão Pale, in Maputo, at the opening of the National Biofuels Seminar.
The minister acknowledged that the event is taking place against a backdrop of volatility in fossil fuel prices on the international market, at a time when the country is addressing an energy challenge linked to the conflict in the Middle East, whilst also highlighting the pressure on global supply chains, exchange rate fluctuations and the country’s growing need to strengthen its energy security.
“Mozambique, which currently imports liquid fuels, is well aware of the economic impacts of this scenario and, ultimately, the effects on the lives of families.
Therefore, talking about biofuels today is not just about clean energy; it is about energy sovereignty, industrialisation, agriculture, employment, environmental preservation, foreign exchange savings and economic resilience,” he explained.
According to Estêvão Pale, despite the instability of this market, Mozambique possesses natural, agricultural and logistical conditions that place it in a favourable position to develop a national biofuel supply chain.
Recognising that biofuels will gradually replace fossil fuels, the minister pointed out that their gradual incorporation can generate real impacts, reiterating that “every percentage of ethanol blended into petrol and every percentage of biodiesel in diesel represents a lower volume of imported fossil fuel”, reducing pressure on foreign exchange reserves and promoting greater value for domestic production, as well as greater market predictability.
“Biofuels should be seen as part of a broader strategy to diversify the national energy mix. The partial replacement of fossil fuels with clean, renewable fuels can contribute to reducing emissions in the transport sector and to aligning Mozambique with international energy transition agendas,” he said.
Highlighting that biofuel production also depends on natural, economic and logistical factors, the minister expressed his certainty that the greater the national capacity to produce part of the energy it consumes, the more resilient the country will be to external market fluctuations.
Therefore, the government is drawing up an action plan for a pilot project to produce and blend biofuels into petroleum products, involving all sectors within the biofuels value chain.
Felisbela Cunhete, director of the National Directorate for Hydrocarbons and Fuels (DNHC), recalled at the time that the country began to look into biofuels in 2008, following the first fuel crisis caused by a shock to the international market.
She explained that at that time, the government also initiated drafting the regulatory framework necessary for the sector’s development.
According to the director, over time, stakeholders gradually eroded the initiative's initial momentum, and it remained on hold until renewed strategic interest in biofuels led to its resumption a few years later.
She noted that the presence of the main players in the biofuel chain at the Biofuels Seminar enables progress on practical foundations for domestic production, with a view to promoting self-sufficiency in fuels.
LCE/ADB // ADB.
Lusa
