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Sunday, April 16, 2006

Ethanol to reduce Ethiopia's foreign exchange costs

Addis Ababa

Ethiopia may soon introduce blended petrol in their local market to reduce imports.

The government has tasked experts to study whether the blended product, a mixture of benzene and ethanol, would be viable.

The Fincha Sugar Factory currently manufactures large amounts of ethanol. The company is working with the Ethiopian Petroleum Enterprise (EPE) to see if a blend of 40 percent ethanol and 60 percent benzene will work.

This would require certain motor adjustments, but Brazil has shown that this is possible. If 10 percent ethanol is used, no adjustments will be needed, however, the aim of the exercise is to drastically reduce the cost of foreign exchange.

Ethiopia spends over $230mn annually on petroleum imports and using a high ratio of ethanol will help the government reduce foreign spending.

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1 comment:

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