Principle Capital Holdings Biofuel project in Dombe, Mozambique

<div class="horipane"><div class="title active">Description</div><div class="content"><table class="table"><tbody><tr><td class="fld"></td><td class="columns">In 2007, Principle, which is listed on the London stock exchange and backed by a group of hedge funds, began a project to develop a sugar-cane plantation on more than 20,000 ha in the Dombe District of central Mozambique. The project is overseen by Principle Energy Ltd, a group company of Principle Capital Holding, and will provide feedstock for what it says will be one of the worlds five largest ethanol plants and will produce the cheapest bio-fuel on the market. Principle Energy Ltd holds a 5-year contract with Principle Energy Management Services Limited, also a subsidiary of Principle Capital Holding. The contract was approved in 2008, construction was to start in 2010 and conclude by 2013, but by 2011 sugar cane production had not yet reached a level to warrant the start of construction. In September of 2013 the company's website listed the factory site as 'cleared and leveled'. Shareholders of Principle include Nicholas Trust (Australia), Jupiter (UK), Deutsche Bank (Germany) and SVM Asset Management (UK). <br/><br/></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Basic Data</div><div class="content"><table class="table"><tbody><tr><td class="fld">Name</td><td>Principle Capital Holdings Biofuel project in Dombe, Mozambique</td></tr><tr><td class="fld">Country</td><td><a href="/country/mozambique">Mozambique</a></td></tr><tr><td class="fld">Province</td><td>Manica province</td></tr><tr><td class="fld">Site</td><td>Dombe District</td></tr><tr><td class="fld">Accuracy of Location</td><td>HIGH local level</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Source of Conflict</div><div class="content"><table class="table"><tbody><tr><td class="fld">Type of Conflict (1st level)</td><td>Biomass and Land Conflicts (Forests, Agriculture and Livestock Management)</td></tr><tr><td class="fld">Type of Conflict (2nd level)</td><td>Agro-fuels and biomass energy plants<br /> Land acquisition conflicts</td></tr><tr><td class="fld">Specific Commodities</td><td><a href='/commodity/ethanol'>Ethanol</a><br /><a href='/commodity/sugar'>Sugar</a><br /><a href='/commodity/land'>Land</a><br /></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Project Details and Actors</div><div class="content"><table class="table"><tbody><tr><td class="fld">Project Details</td><td class="columns">The plant will produce 100 million liters of bioethanol annually, and was initially expected to create 2500 – 4000 jobs, but the company’s website currently cites 1600 at completion. The biofuel will be exported to Europe and North America via oil company Shell. According to the company’s website, as of 2013 only 1000 ha were cleared, 307 ha prepared for planting, and 136 ha actually planted. 17 km of the 126 km road was completed and the dam and irrigation network is 75% complete. <br/><br/></td></tr><tr><td class="fld">Project Area (in hectares)</td><td>23000</td></tr><tr><td class="fld">Level of Investment (in USD)</td><td>290,000,000</td></tr><tr><td class="fld">Type of Population</td><td>Semi-urban</td></tr><tr><td class="fld">Company Names or State Enterprises</td><td><a href='/company/principle-energy-ltd'>Principle Energy Ltd <small>(PEMS)</small></a> - <small> Group company of Principle Capital Holdings</small><br /><a href='/company/nicholas-trust'>Nicholas Trust</a> from <a href='/country-of-company/australia'><small>Australia</small></a><br /><a href='/company/jupiter'>Jupiter S.O.M</a> from <a href='/country-of-company/canada'><small>Canada</small></a><br /><a href='/company/deutsche-bank'>Deutsche Bank</a> from <a href='/country-of-company/germany'><small>Germany</small></a><br /><a href='/company/svm-asset-management'>SVM Asset Management</a></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">The Conflict and the Mobilization</div><div class="content"><table class="table"><tbody><tr><td class="fld">Intensity of Conflict (at highest level)</td><td>LATENT (no visible organising at the moment)</td></tr><tr><td class="fld">When did the mobilization begin</td><td>UNKNOWN</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Outcome</div><div class="content"><table class="table"><tbody><tr><td class="fld">Project Status</td><td>Stopped</td></tr><tr><td class="fld">Pathways for conflict outcome / response</td><td>Withdrawal of company/investment<br /> Project temporarily suspended<br /> Project stalled</td></tr><tr><td class="fld">Do you consider this as a success?</td><td>Not Sure</td></tr><tr><td class="fld">Why? Explain briefly.</td><td>The status of the project is unknown, but at last mention it was stalled due to financial issues.</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Sources and Materials</div><div class="content"><table class="table"><tbody><tr><td class="fld">Links</td><td><table><tr><td><p> AgriIQ, 'Mozambique Sugar Cane Project'<br/><a class="refanch small" href="http://www.agri-iq.com/pages/38949_mozambiquesugarcaneproject.htm" target="_blank">[click to view]</a></p></td></tr><tr><td><p> <a class="refanch small" href="http://news.mongabay.com/bioenergy/2007/12/principle-capital-raises-70-million-for.html" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Macauhub, 'Project to build ethanol factory in Mozambique at a standstill'<br/><a class="refanch small" href="http://www.macauhub.com.mo/en/2011/09/07/project-to-build-ethanol-factory-in-mozambique-at-a-standstill/" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Principle Energy, 'Projects Overview',<br/><a class="refanch small" href="http://www.prinenergy.com/output/page185.asp" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Biopact, 'Principle Capital raises $70 million for sugarcane ethanol plant in ‘biofuel superpower' Mozambique<br/></p></td></tr></table></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Meta Information</div><div class="content"><table class="table"><tbody><tr><td class="fld">Contributor</td><td>Aliza Tuttle</td></tr><tr><td class="fld">Last update</td><td>24/06/2014</td></tr></tbody></table></div></div>
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