LONDON (Alliance News) - China New Energy Ltd said Friday that it plans to enter into a non-binding memorandum of understanding with Sunbird Bioenergy Africa Ltd to develop a cassava to bioethanol plant in Zimbabwe in December.
The company said it plans to travel to Zimbabwe and attend the Forum on China-Africa Cooperation summit in Johannesburg in December, and will enter the MOU during this period.
The company originally announced it would sign a new deal with its partner, Sunbird, for the venture in October.
Cassava, also known as tapioca or arrowroot, is a woody shrub found in tropical climates that can be converted into bioethanol, which is principally used as a substitute for petrol.
Shares in China New Energy were up 38% at 1.90 pence following the announcement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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