Uganda Boosts Biofuels Blending Programme through Public-Private Partnership

Strategic Insights -

The government of Uganda has inked a Public-Private Partnership Agreement with Bukona Agro Processors Limited to enhance the country's Biofuels Blending Programme, a flagship component of the national energy strategy under the Ministry of Energy and Mineral Development (MEMD). The agreement, signed on July 18, will see over 10,000 smallholder farmers from Nwoya District supply 30,000 tonnes of maize annually to be processed into ethanol and blended with petroleum motor spirit (PMS) at Bukona Agro Processors' newly established blending depot in Malaba. This partnership aims to link national energy policy to grassroots economic development, ensuring predictable income and economic stability for farmers through a guaranteed market for maize, cassava, and sugarcane.

Key Takeaways:

  • The agreement will enable over 10,000 smallholder farmers from Nwoya District to supply 30,000 tonnes of maize annually to be processed into ethanol and blended with petroleum motor spirit (PMS) at Bukona Agro Processors' blending depot in Malaba.
  • The partnership will provide a guaranteed market for maize, cassava, and sugarcane, ensuring predictable income and economic stability for the farmers organized through Village Savings and Loan Associations (VSLAs).
  • The blending depot in Malaba will reduce transport costs associated with moving pure ethanol across the country, enabling more efficient and localized blending operations.
  • The district of Nwoya boasts over 170 registered farmer associations and more than 4,800 VSLA groups, with each parish having over 100 such groups.
  • The facility in Malaba is expected to blend about 450 million litres of petrol annually, with the demand for ethanol expected to quadruple to 88 million litres per year once the blending ratio increases to 20%.
  • The agreement is not the first partnership between Nwoya District and Bukona Agro Processors Limited, with the district having already benefited significantly from previous collaborations.

Statistics:

  • Over 10,000 smallholder farmers from Nwoya District will supply 30,000 tonnes of maize annually to be processed into ethanol.
  • The facility in Malaba will process 30,000 tonnes of maize per year, or 15,000 tonnes per season.
  • The blending depot in Malaba is expected to produce 450 million litres of petrol annually.
  • Once the blending ratio increases to 20%, the demand for ethanol is expected to quadruple to 88 million litres per year.
  • The facility in Malaba is expected to reduce transport costs associated with moving pure ethanol across the country.

Sources:

  • Ministry of Energy and Mineral Development (MEMD)
  • Bukona Agro Processors Limited
  • Nwoya District Local Government
  • Energy Minister Ruth Nankabirwa