This plan comes in the wake of federal government formalizing the use of 10% ethanol mixed into petrol in April 2013 under the name Nile Ultra E-10.

Kenana is currently seeking machinery and equipment from Brazilian companies after the Senate gave its nod for the rescheduled debt between both countries, reported ANBN.

Under the terms of the agreement signed by the governments of both the countries, Sudan has been pardoned most of $43.5m debt that included a principal amount of $4m. The agreement provides for $4.3m payment for Sudan in 12 quarterly instalments.

Kenana Sugar Company managing director Mohamed El Mardi El Tegani stated that the agreement marks an opportunity for Brazilian companies to penetrate into Sudanese market.

Meanwhile, the company is holding discussions with a Brazilian company for the production of second generation ethanol from cellulose.

The company is planning to invest $200m towards development of these projects, including a cargo terminal, while additional $200m is expected to be invested by its shareholders, added Tegani.