In Palma, thousands of smallholder farmers are at the heart of an agro-industrial programme that grows food and fuel side by side — starting with self-supply and before scaling it up in a second phase.
Mozambique LNG is developing a coconut-based biodiesel programme in Palma district where thousands of Mozambican smallholder farmers are at the centre of an agro-industrial programme that pairs coconut cultivation with food crops to build a domestic source of biodiesel — beginning by supplying a major local industrial operation before growing well beyond it.
The programme has already moved from plan into the field. The first coconut palms went into the ground in early 2025, a seedling nursery is running in Palma, and the planting schedule ramps from roughly 110,000 seedlings in 2025 to 126,000 in 2026 and 205,000 in 2027 — about 440,000 new palms, alongside some 200,000 existing trees. The seed stock has been selected for resistance to Lethal Yellowing, the disease that has devastated coconut plantations across the region and is grounded in an agricultural research protocol developed for the initiative with Mozambican government bodies and academic partners.
That research base matters because the ambition is staged. In its first phase, the programme targets around 5,000 tonnes of biodiesel a year for self-consumption — substituting imported diesel in the operations that anchor it. The choice is deliberate: a guaranteed offtake lets the model prove its agronomic and commercial viability before it scales. A second phase is intended to expand production beyond that initial demand, with the longer-term prospect of a Mozambican biofuel supply that reduces the country’s reliance on imported refined fuel.
Food security is built into the design rather than traded against it. More than 3,000 farmers in Palma are being supported with seedlings, technical and phytosanitary assistance and food-crop seeds, under a food-and-energy agroforestry protocol that requires coconut and food crops to be grown together — intercropped at 12-by-12 spacing in a syntropic-style system. The programme is expected to create more than 130 jobs in its deployment phase, and a comparable number once the agro-industrial operation comes on stream around 2029, while the 440,000-palm planting effort underpins its decarbonisation case.
The value chain runs from farmers — supplied with inputs and technical support — through a central agricultural hub in the Olumbe community to a coconut processing plant. Conceived as an integrated agro-industry from harvest to by-product, the plant is designed to yield not only biodiesel but activated carbon, briquettes and copra meal, giving Cabo Delgado a processing asset with several revenue streams rather than a single fuel output.
The programme is anchored by Mozambique LNG, the TotalEnergies-operated development in Area 1 of the Rovuma Basin, which provides the initial offtake for the biofuel as it resumes activity following the lifting of force majeure. The Area 1 venture also includes Mitsui & Co., Mozambique’s ENH, Bharat Petroleum, ONGC Videsh and PTTEP. For the partners, the scheme sits within a broader local-content and economic-anchoring agenda in Cabo Delgado; for Palma, it offers an agricultural base intended to outlast the construction cycle.
For now, the measure of progress is in the nurseries and the planting schedule running through 2027. But the design points further out — toward a Mozambican biofuels industry that begins in the coconut groves of Cabo Delgado.
