Uganda Nears 5% Ethanol Fuel Blending Goal Ahead of Schedule

Uganda is poised to achieve its goal of blending 5% ethanol into its fuel supply within the next three months. This significant progress puts the nation well ahead of the 2040 target outlined in its energy policy.

The initiative aims to reduce reliance on imported fossil fuels, conserve foreign exchange, and establish a consistent market for agricultural products such as sugarcane, maize, and cassava. Dr. Brian Isabirye, Commissioner of the Energy Resources Department at the Ministry of Energy and Mineral Development, highlighted that private sector investment has been crucial in developing the necessary blending infrastructure.

“We are going to hit the five per cent blending target in the next three months. That is not a mean achievement,” Dr. Isabirye stated, emphasizing that a public-private partnership model was adopted over direct government investment to finance facilities at key entry points.

This decentralized approach is expected to buffer Uganda against global fuel price volatility and bolster demand for agricultural output. Officials are urging farmers and the Ministry of Agriculture to boost the production of sugarcane, maize, and other feedstocks, as current supplies are insufficient to meet the growing demand.

Blending locally produced ethanol with imported petrol is also anticipated to ease pressure on foreign exchange reserves and lower the carbon footprint of the country’s fuel sector. A real-time monitoring system has been implemented to track ethanol stocks, blending levels, and logistics.

Uganda is transitioning through various blending levels, from E1 up to E10, with standards developed for each. Currently, twelve ethanol producers have been licensed, with a combined annual capacity of approximately 130 million litres, against a national petrol consumption of around 1.2 billion litres. Five producers are actively generating about 138,000 litres of ethanol daily, sufficient for an E3 blend. The government is also preparing for higher blend ratios, such as E20.

Despite the progress, inadequate supply of ethanol remains a challenge. The National Biofuels Blending Committee chairman, Daudi Migereko, urged farmers, particularly in the Busoga region, to increase sugarcane, maize, and cassava production, assuring them of a ready market for blending purposes, especially for sugarcane that may not be suitable for sugar production.

Source: https://www.monitor.co.ug/uganda/news/national/uganda-set-to-hit-5-ethanol-fuel-blending-target-within-three-months-5570132