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The purpose of this study was to assess the bio-energy sector in Tanzania and to critically inquire the threats, benefits and opportunities to smallscale producers and sustainable environment management. Based on the terms of references this study focused on areas where land is earmarked or already in use for production of biofuels in Tanzania for both large and small-scale firms. The development of policy of liquid biofuels and other policies in general were examined. The roles NGOs on small producers of biofuel and the roles of financial intermediaries to small producers were also studied. During the field research, the study covered both local and foreign companies engaged in production of biofuels with the intention to assess viability of biofuels projects and lay out the basis for liquid biofuel policy in Tanzania
