By Deep Earth
Fuel distributors in Uganda will soon start blending all petrol sold with 5% fuel-grade ethanol (E5), in a bid to “decarbonize the transport sector”. In subsequent years, the ethanol ratio will regularly be increased up to the 20% target set by the Biofuels Act 2020.
Blended fuel refers to a mixture of two or more fuel types, often combining conventional fossil fuels with renewable additives like ethanol. This process is used to enhance fuel quality, reduce harmful emissions, and potentially lower costs.
When launching the blending program yesterday, Ruth Nankabirwa, the Minister for Energy and Mineral Development called it a significant milestone in Uganda’s energy transition journey.
“This step reinforces our continued commitment to strengthening energy security, advancing environmental sustainability, decarbonizing the transport sector, and empowering farmers and agro-processing businesses by creating alternative market opportunities, and ultimately supporting Uganda’s socio-economic transformation,” she said.
Bioethanol, also known as ethyl alcohol, is a renewable fuel produced by fermenting sugars derived from plant material like maize (corn), sugarcane, or cellulose and starch-containing materials (such as corn, cassava and sorghum).
Ethanol has a higher octane number compared to petrol which improves engine power and performance and significantly reduces pollutants in vehicle exhaust when compared with fossil fuels on combustion.
Nankabirwa noted that her ministry had licensed ethanol producers with an annual capacity of 78.5 million litres, including Pro Industries, Kakira Sugar, G.M. Sugar, Hoima Sugar, Bukona Agro Processors and others. An additional 110 million litres would be added in the coming years, she added.
Incorporated in 2015, Bukona Agro Processors has been running a 40,000 litre per day ethanol distillery plant in Nwoya district since December 2019.
“We were specifically into producing ethanol for cooking but since we were licensed to add petrol blending ethanol to our production line, we have since modified and re-fit the plant for this as well,” said Praviin Kekal, Managing Director, Bukona.
Bukona is also one of the companies licensed to set up one of four blending facilities that will be strategically located at key border entry points to ensure blended fuel supply.
Nankabirwa (C, front row) is joined by Ministry officials and ethanol producers
Kekal says the construction of the company’s blending plant at the Malaba border point will be completed by the end of August; with the fuel blending operations kick starting immediately. It will handle at least 48 million litres of petrol per month.
Modern Energy’s facility, will be set-up at Busia – dealing with 49 million litres per month, while Afro-Kai will operate the Mutukula facility that will handle 6-8 million litres.
Mahathi Infra also known as Lake Victoria Logistics will in the meantime blend 10 million litres per month at Kawuku, Entebbe.
Uganda’s oil marketing companies (OMCs) will be expected to deliver their petrol to the blending facilities, where they will purchase the ethanol at rates set by the ministry to ensure the price of blended fuel does not exceed that of unblended fuels.
“The government has exempted denatured ethanol from taxes, making it more affordable. This includes ethanol for both blending and cooking. We are confident that blending will help reduce overall fuel costs, aligning with the government’s ongoing efforts to lower energy prices,” said Nankabirwa.
Anhydrous ethanol at 99.8% purity is used for blending with petrol (also known as Petroleum Motor Spirit – PMS), as transportation fuel; yet the 96.4% purity, extra neutral alcohol is used by the beverage industry to produce spirits while the 84% ethanol is used as clean cooking fuel. Ethanol is also used for potable (drinkable) purposes, as a feedstock for the pharmaceutical, beverage, and chemical Industries.
Daudi Migereko, the chairman of the National Biofuels Committee (NBC) allayed fears of food shortages as a result of ethanol production, instead noting that farmers will now have a bigger market for their produce.
“We have severally experienced overproduction of maize, cassava and sugarcane over the years. But going forward the excess production will be distilled into ethanol for the automobile industry. This will enhance household income for Ugandan farmers to unprecedented levels,” he said.
Nankabirwa noted that while the blending program will formally be launched next month in August, a six-month incubation period that will end on December 31, 2025, has commenced during which the industry is expected to achieve full operational readiness.
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