The Mozambican government says it approved a large biofuel project to counter the effects of rising fuel prices.
The government said Thursday that it plans to plant sugar cane on 18,000 hectares (44,500 acres) to produce ethanol in central Mozambique.
The government says the project, run by Mozambique Principle Energy, will produce 213 million liters (56 million gallons) of ethanol a year.
The project will cost US$280 million, and will create 2,650 jobs. Last year, Mozambique launched a similar project covering 30,000 hectares (74,000 acres).
Mozambique, a former Portuguese colony, is one of many countries reeling from rising fuel prices. Six people died during riots in the capital, Maputo, earlier this year.
