CNE's Sunbird Energy signs agreement on Zambian project

China New Energy (CNE) announced that Sunbird Bioenergy Africa and the Zambian Development Agency signed the investment promotional and protection agreement needed in order to start work on its energy project in that country.

The AIM-listed company said the agreement was the first milestone in the Zambian project but that there were a number of other milestones which still needed to be reached with Sunbird before construction could start.

The Zambia bioenergy project on the Leuna Farm block in Luapula province is to develop a biorefinery to deal with the country’s chronic energy shortage and lack of jobs.

CNE was also developing a biorefinery with Sunbird in Zimbabwe.

Shares in China New Energy closed 17.39% lower to 1.43p.