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Country said committed to move to
bio-diesel, ethanol production due to
oil price hike

By Binyam Tamene

ADDIS ABEBA(August 2 - 3,2008) - Ethiopia reiterated to go on with its plan to shift from 'expensive' petroleum fuels to domestically produced fuels, ethanol and bio-diesel.

Apart from substituting Ethanol for domestic fuel, Minister of Mines and Energy said the produced fuel will be used for low level mix with Gasoline (Benzene) for use by vehicles at the beginning and to increase the share of Ethanol in the mix later.

State Minister Tadesse Haile, Ministry of Trade and Industry said at a Workshop on Ethanol for Household Cooking, the ethanol project was very exciting to the country, supporting development goals in several ways.

Aside from creating a nation free from disease such as the respiratory disease imminent from the burning of dirty fuels, the State Minister said the nation required the shift from imported energy, which puts it under pressure because of the ever increasing nature of its prices.

"Our foreign reserves have been put under increasing pressure from the rapidly escalating price of oil, which required a shift in the use of petroleum fuels with its own domestically produced fuels", the state minister said,

"We must do so, and replacing kerosene with ethanol is just such an opportunity," he added, on the occasion of Ashden Award celebration event which decorated Gaia Association as a winner for efforts in sustainable Energy.

According to the minister, 15% of Ethiopia's currently imported fuels, primarily use for
cooking, come as kerosene.

"Kerosene is more expensive for the nation to buy than the other petroleum fuels," he said adding it is still cross- subsidized in gasoline.

The savings achievable by this project in displacing kerosene during the first 7 years, assuming just a moderate scale-up, is in the range of 150 million birr.

"The potential earnings in carbon credits by burning bio-fuel in place of a petroleum fuel are estimated at net 1.5 million birr. These figures come from the project's business plan," he said, contemplating the quickly add up benefits associated with ethanol

Accentuating the key role of modern energy for economic and social development in the country, State Minister of Mines and Energy of Ethiopia, Sinknesh Ejigu on her part said the government has developed programs to expand the energy sector.

"Renewable energies such as bio-fuel have substantial contribution on today's countries development," she said, adding Ethiopia has favorable climatic condition and land mass for the production of bio-fuels could have many advantages in many ways.

The ministry said diversifying energy sources lowers exposure to the escalating price volatility in the international market.

"In our case it takes most of our foreign currency earnings," she highlighted as an advantage, among others.

Besides, as a result of energy situation world wide, Sinknesh said the country have developed "Bio-fuel Development and utilization strategy of Ethiopia"

"This was developed in recognition of the changing international Energy situation and Ethiopia's need both for Energy and for agricultural development, Biofuels fit neatly into Ethiopia's Agricultural Led-Industrialization (ADLI) Strategy," she said, without affecting the food security of the country as it is based on non-edible sources and waste land.

"As bio-diesel production is in the process of starting we are already producing Ethanol from a by-product of our sugar manufacturing industry from molasses," she said.

According to Sinknesh the development of Ethanol is at a far more advanced stage, especially in three sugar factories which are currently run and administered by sugar development Agency.

"These include Fincha, Metehara, and Wonji shoa. Tendaho, which is under construction and will be completed soon as a sugar factory," she said.

According to the ministry, Fincha is currently producing 8 million liters of Ethanol and the production potential will be increased in the coming years, with Metehara and Wonji are in preparation stage to produce Ethanol shortly.

Accordingly, the ministry said production of Ethanol is expected to reach about 130 million liters in 2005 Ethiopian fiscal year," she said

The ministry said the country has also planned to facilitate export market for ethanol production that is in excess of the national need.

 

 

     

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