A senior official with EPE told The Reporter that as of October 2007 the fuel stations in Addis Ababa will start selling the blended fuel to motorists. The official said at the initial phase the blended fuel will consist of five percent ethanol and 95 percent benzene (petrol). He said the amount of ethanol in the blended fuel will be increased to ten percent later on. Addis Ababa will be the first city to receive the blended fuel but gradually the fuel stations in the regional towns will also start to sell the same product.

Ethanol, which consists of 98 percent alcohol, is produced from molasses, a byproduct of sugar. Ethanol can be used to power stoves, cars and to make liquors. It can also be used as disinfectant. In Ethiopia, there are three sugar factories: Wonji, Metahara and Fintchaa. The largest sugar factory, Fintchaa is the only sugar factory that produces ethanol so far. Fintchaa has the capacity to produce eight million liters of ethanol per year. The factory exports the ethanol to Italy. The state-owned factory plans to double its production by next year.

The increasing price of crude oil in the global market prompted the Ethiopian government to introduce blended fuel. Petroleum import is draining the country’s foreign currency reserve. Ethiopia’s annual petroleum import is about 1.5 million tons valued at two billion birr. The country’s demand for benzene is about 140 million liters and the retail price of one liter of benzene is 7.77 birr. The price of ethanol is 3.74 birr per liter. Ethanol is environment friendly as it does not emit pollutants such as carbon monoxide.

By substituting benzene with ethanol the government anticipates to reduce petroleum expenditure and emissions. Experts of EPE and the Ministry of Trade and Industry have been working on the fuel blending program. A team of experts drawn from the two institutions visited Brazil last year. The experts visited ethanol manufacturing plants and fuel blending sites in Brazil, the country known for using blended fuel. Brazilians use up to 40 percent of ethanol in their blended fuel.

EPE and the Ministry of Trade and Industry consulted the oil companies operating in Ethiopia on the fuel blending program. Yetebaberut Petroleum, National Oil Company (NOC), Total and Shell have agreed to sell blended fuel.

However, the current ethanol production of Fintchaa (8 million liters per annum) is not enough to satisfy the demand. Fincha has a commitment to export six million liters of ethanol to Italy. The factory is planning to increase its annual production to 17 million liters by the 2008/09 fiscal year.

Wonji and Metehara sugar factories are expected to start producing ethanol in the near future. Wonji plans to start production in the 2007/08 fiscal year. At the initial phase, the factory will produce 12.2 million liters of ethanol per year. The factory plans to increase the production to 25.1 million by the year 2010/11. Metahara sugar factory also plans to launch ethanol production in the 2009/10 fiscal year. In the initial phase, Metahara will produce 17.6 million liters. But the factory hopes to increase production to 24.4 million litters.

Tendaho Sugar Factory, the biggest sugar factory under construction, is expected to start producing ethanol in the 2009/10 fiscal year. At the beginning, it would produce 47.5 million liters per year. It will increase its annual production to 60 million liters the following years. Experts in the field said the country’s total ethanol production will be 128 million liters per year by 2011/12. According to experts, the gasoline blending project can absorb 30 million liters of ethanol, 20 percent of the projected ethanol supply. And 97 million liters of ethanol would be available for cookin

PIN/ALLAFRICA.COM