By Kaleyesus Bekele

Petroleum companies are to build their own ethanol-petrol blending plants here in Addis Ababa.

In October last year, the government of Ethiopia launched the use of blended fuel (5 percent ethanol and 95 percent petrol) in Addis Ababa. The Sudanese company, Nile petroleum, has been blending the fuel at its plant at Sululta, on the outskirt of Addis Ababa. Nile Petroleum entered into an agreement with the Ethiopian Ministry of Mines and Energy (MME) to be the sole blending agent for three years. The contract would terminate by next year.

Ephrem Hassen, bio-fuel development co-ordination core process owner at the MME, told The Reporter that the four petroleum companies -NOC, Oil Libya, Kobil and Yetebaberut - will build their own ethanol blending facilities. Ephrem said by 2012 the companies would start blending ethanol and petrol at their own blending plant. MME plans to increase the amount of ethanol in the blended fuel to 10 by 2012, 15 percent by 2013, 20 percent by 2014 and to 25 percent by 2015. MME would introduce the use of blended fuel in the regional states by 2012 with 10 percent ethanol and 90 percent ethanol mixture.

In the past year the country saved 5.4 million dollars by using the blended fuel only in Addis Ababa. There are three sugar factories in Ethiopia - Wonji, Metehara and Fincha - and so far Fincha is the only factory that produces ethanol. Fincha has an annual production capacity of eight million liters. Methara and Wonji will start producing ethanol by next year. Tendaho, the biggest sugar factory under construction, is expected to start production by 2014.

Hassan said that the ministry also plans to introduce the use of bio diesel (ten percent bio fuel and 90 percent diesel) by 2012 and to increase it to 20 percent 2015.

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