East African Business Week

KAMPALA, UGANDA - Concerns around energy security, dependence on foreign oil, finite oil and gas resources, and the negative consequences associated with global warming due to continued greenhouse gas emissions have prompted significant interest in the development of low carbon and sustainable advance biofuels like biodiesel from nonfood feedstock.
 From algae and wood chips to grasses and solid waste, researchers are looking far and wide for the raw material that will yield a new generation of advance biofuel-a source that doesn't divert food into energy, and is abundant enough to make a significant dent in the oil market.
Bio Diesel is a substitute for, or an additive to, diesel fuel that is derived from the oils and fats of plants, like sunflower, canola or jatropha.
It is an alternative fuel that can be used in diesel engines and provides power similar to conventional diesel fuel.  
Bio Diesel is a renewable domestically produced liquid fuel that can help reduce the countries dependence on foreign oil imports.  
In Uganda, a number of companies have shown interest in producing this highly recommended source of fuel. Pegasus Investments and now African Power Initiative have both shown interest in making this diesel.
Mr. Sudhir Kumar, the Business Development Manager African Power Initiative said that the company is a renewable energy company that started planting jatropha, candle nut (Kabakanjagala), castor among others in 2008 in their own farm in the North eastern district of Nimule. Currently, 5,000 acres have already been planted.
The company also provides alternative energy sources from solarpower and hydro power and is currently putting up a 2 mega watt (MW) plant in the Eastern district of Tororo.
He also said that the company had imported a bio-diesel processing machine capable of producing 60,000 liters of diesel per day. He however noted that the machine is not fully operational because they need about 150 tons of seeds per day which they are not able to get at present.
"We therefore improvised and acquired one that processes 4000 liters per day; but also requires about 10 tons of seeds per day", said Kumar.
He also added that a warehouse and factory are already being constructed in Tororo district and by the end of next year, the company will be fully operational.
"We expect that by the end of next year, we shall be fully operational and we hope to provide employment to about 1,500 permanent employees, over 500 people will be needed for land clearing, harvesting as well as provide a source of income to many out growers", Kumar added.
Kumar said that the company has so far injected over $2m into the project.
Kumar also disclosed that the bio-diesel that the company will process will be blended with petroleum and sold at the various fuel stations.
"Government policy dictates that we sell the fuel on a 20% bio-diesel to 80% petroleum as we cannot sell it at 100%. We can only sell it to institutions and not individuals", he said.
He also added that they had signed an agreement with leading oil provider Tamoil to supply the fuel to other filling stations.
 He also added that Green Industries Uganda Limited has been contracted to manufacture soap and fertilizers out of the by-products.