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The move towards blended fuels

Saturday, 24 May 2008

Melis Teka aking into consideration the existing and potential resources that can be tapped to produce biofuels, the government has last year devised a biofuel development and utilization strategy, which was endorsed by the Council of Ministers last September. Consequently, a national task force comprising representatives from the Ministry of Mines and Energy, the Ministry of Trade and Industry, the Sugar Development Support Center and other stakeholder organizations was formed. The Ministry of Mines and Energy was designated to coordinate the functions of the task force. Melis Teka, the coordinator of the biofuel development and utilization with the Ministry of Mines and Energy, spoke to The Reporter's Hayal Alemayehu on the progress made towards the development and utilization of alternative fuels. Excerpts:    Will the distribution of ethanol blend fuel kick-start next month as per the schedule? The distribution is planned to start this year and work is under progress to meet the schedule. We have identified and assigned a company which will blend ethanol (produced locally by Fincha Sugar Factory) with imported benzene, while all the oil distributing companies are getting ready to distribute the blended fuel. Which oil company will be responsible for the blending?  Nile petroleum is selected to undertake the blending while all the other fuel operators and Nile Petroleum itself will distribute the blended fuel. Nile petroleum is a new entrant to the country's oil distribution market. How come it was chosen to undertake the blending? It was selected for the same reason that it was a new entrant, hence with newly erected fuel depot facilities. This makes it preferable or better equipped for undertaking the blending. However, all other fuel companies operating in the country are required to start the blending by themselves eventually. Can you tell us the proportion of the blended fuel and the distribution coverage? The plan is to distribute a five percent ethanol blended fuel. Currently, Fincha Sugar Factory produces some 6.5 million liters of ethanol, which is about five percent of the benzene consumption in Addis Ababa. Accordingly, the distribution of ethanol blended fuel will initially be limited to Addis Ababa and its environs, where benzene consumption is higher. Eventually, the distribution of blended fuel will cover the whole country with the development of resources that will boost the production of ethanol in the country. The consumption of ethanol blended fuel has long become a commonplace experience in a number of countries. Yet, it is going to be a new product for Ethiopia's market. What does the assessment with regard to the demand indicate?  What about its significance with a limited production of ethanol in the country? With the world oil price rising by the day and an increasing environmental degradation arising from the use of fossil fuels, the demand for alternatives or clean power sources is growing worldwide. Indeed, for poor and net oil importing countries like Ethiopia, the demand should be even higher because blending fuel will cut costs and save foreign currencies, as the mixing element - ethanol produced from sugarcane in case of Ethiopia and a number of other countries - is produced locally. To this end, the government had formulated a biofulel development and utilization strategy, which was endorsed by the Council of Ministers last September. The strategy comprises the development and utilization of biofuels. When we eventually raise the mixing proportion of the ethanol blend to ten percent and above as is the government's future plan, the importance will be more pronounced and magnified.    Presently, various projects, including the Tendaho Sugar Factory, are being undertaken to enhance the amount of ethanol production. In addition to that, major investments in Jatropha plantation and castor crop, plants that yield oil that can be mixed with diesel to produce biodiesel, are taking place in the country.

 

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