China New Energy (LON:CNE) has signed an outline deal to provide its expertise in the development of two African biorefineries: one in Zimbabwe, the other in neighbouring Zambia.
The shares, up almost 300% in the year to date, added a further 0.45p to 4.6p.
It will be working with Sunbird Bioenergy, a specialist in the field.
The plan is provide its expertise in the pre-treatment of feedstock, fermentation, distillation and dehydration, as well as project management and support services.
The Zimbabwe project will draws upon CNE's experience at the Ubon Bioethanol plant in Thailand.
It is expected to use mixed feed stocks including cassava (a root vegetable) and molasses that will be sourced through an out-grower programme.
Ubon cost in the region of US$50 million over the two-year development period, earning CNE revenues of US$30mln. Zambia is expected to follow a very similar blueprint.