Uganda to Begin Blending Ethanol with Petrol from January

Source: Reuters, July 2, 2025 (citizen.digital) 📌 Key Facts Starting January next year, Uganda will mandate all fuel distributors to blend locally produced ethanol into petrol sold nationwide (citizen.digital). The initial blend will be 5% ethanol (E5), with plans to increase to 20% (E20) once ethanol supply can support it (ubc.go.ug). This measure aims to cut Uganda’s annual petroleum import bill (around $2 billion) and reduce carbon emissions, while bolstering local agriculture and energy security (citizen.digital). 🏛️ Government & Industry Involvement The policy was announced by the Energy Ministry, led by Minister Ruth Nankabirwa, and will be facilitated by UNOC, the Uganda National Oil Company (ubc.go.ug). Ethanol will be sourced from local feedstocks—mainly molasses from sugar production, and potentially cassava, maize, and sorghum (citizen.digital). Licensed producers like Kakira Sugar, Hoima Sugar, and Bukona Agro have a combined capacity of nearly 79 million litres/year, with blending centers being built in Busia, Malaba, Mutukula, and Entebbe (ubc.go.ug). 💡 Benefits & Objectives Economic: Reduces reliance on expensive imports, supports local farmers, and creates agribusiness jobs (newvision.co.ug). Environmental: Lower greenhouse gas emissions and improved vehicle emissions performance (allafrica.com). Energy Security: Builds resilience by tapping local resources and aligning with Uganda’s Vision 2040 and Biofuels Act 2020 (ubc.go.ug). 📆 Timeline E5 Launch: January next year for 5% blend. E20 Goal: Gradual ramp-up to 20%, guided by ethanol availability and infrastructure readiness (citizen.digital). 🔍 Outlook & Considerations Uganda’s move mirrors broader East African strategies to adopt...