Uganda: Country to Blend Fuel With Ethanol

[Haleemah]

The East African (Nairobi)

September 26, 2006
Posted to the web September 26, 2006

Michael Wakabi, Special Correspondent
Nairobi

Uganda will soon make it compulsory for oil companies to blend petroleum with a variety of bio-fuels as the country tries to beat rising oil prices by reducing dependence on petroleum, a senior government official said last week.

The Ministry of Energy says it has completed development of a policy on a renewable energy that will make in compulsory for oil companies to blend fuel.

Energy Minister Daudi Migereko says the policy, which covers ethanol, bio-fuel, wind and solar, is essentially ready and will require oil companies to blend petroleum with ethanol to a maximum ratio of 20 per cent.

Uganda's sugar industry produces large quantities of ethanol but oil companies have been reluctant to blend it with petroleum, arguing that the majority of motor engines in the country not optimised to burn on ethanol and will suffer corrosion.

But with oil prices currently at an unprecedented peak, the government is taking a keener interest in fuel alternatives.

"The ratios for bio-fuel are still being worked out, but given the rate at which oil prices are rising and the fact that the cost of ethanol and bio-fuel is now lower, it is in our interest to diversify the energy mix in order to reduce dependence," said Mr Migereko.

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