to-the-point: China New Energy inks govt pact on Zambian biorefinery

Bioenergy engineering firm China New Energy Ltd (LON:CNEL), or CNE, said Tuesday that an investment promotional and protection agreement (IPPA) with the Zambian government for the construction of a biorefinery has been sealed.

The pact was signed by project partner Sunbird Bioenergy Africa Ltd and the Zambian Development Agency and represents a major step towards the bioethanol project start-up. The Chinese biorefineries builder stressed that several other milestones need to be achieved before it inks a formal contract on the project with its UK-based Sunbird Bioenergy Ltd and kicks off construction works at the site.

CNE plans to design the biorefinery in Luapula province, supply the key operating technology and provide project management and support services. The project is expected to begin in 2016.

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