LANDS and Mineral Resources Minister Netani Sukanaivalu has not finalised the location of the ethanol production plant although Cabinet has agreed to spend about $50million on it.
Mr Sukanaivalu said the ethanol option was a long term plan for the benefit of Fiji.
The Department of Energy has potential sites in Naitasiri.
The interim Government is placing more emphasis on bio-fuel and renewable energy compared to previous governments.
Earlier a deal was signed between a Chinese company and the Vanua Developments Corporation Limited, the commercial arm of the NLTB, to enter into a joint venture to produce ethanol from cassava.
While there is huge prospect for Fiji, the production of raw materials remains a concern.
At a recent workshop, principle agriculture officer Aliki Turagakula said Fiji must be able to supply enough cassava to ensure the project remains viable.
Mr Turagakula said a minimum of 50,000 tonnes of ethanol per year equals 500,000 tonnes of cassava or 1500 tonnes daily. Mr Sukanaivalu, who is in Vanua Levu surveying potential sites for geo-thermal energy, said Fiji needs steam to be around 250 to 300 degrees celsius to make the geo-thermal project viable.
"Right now we're paying 40 to 50 cents per kilo watt but with geo-thermal we'll pay around 11-14 cents," Mr Sukanaivalu said.
