US firm to produce ethanol in Tanzania
Tanzania's president Jakaya Kikwete's recent visit to the US is beginning to pay off. During his trip, Kikwete stressed that his country has a large potential for the production of biofuels, both for the domestic market as well as for exports. He added that Tanzania is currently facing a fuel crisis, and that high oil prices are a burden on the developing country's economy.
A quick look at some facts about Tanzania's potential:
Nonetheless, in principle Tanzania could become a biofuels superpower and begin to leapfrog into a post-petroleum era (earlier post). US company Renew Energy listened to the president, was clearly interested in his country's biofuels potential, and has meanwhile arrived in Dar Es Salaam to carry out a feasibility study that will probably lead to actual production of ethanol within two years.
The firm specialises in the production of ethanol fuel made from sugarcane, according to Mr Robert Welch, chief consultant. He said that if the deal materialises, his company would need to acquire at least 10,000 hectares (25,000 acres) of land to grow sugarcane, the raw materials for production of the biofuel. Most likely, the province of Morogoro (see map) will be chosen. "If things work out as planned, we will establish the industry in one or two years' time," he added.
He said the fuel produced will be used for local consumption with the excess to be exported to US where demand is big and growing:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: sugar cane :: land :: rural poverty :: social development :: jobs :: ethanol exports :: Tanzania ::
Mr Welch said their focus was to have the sugarcane plantation in the Morogoro region while looking for other regions to start the farms. Mr Welch described biofuel which is usually used by vehicles and running of machines, as a cheaper product compared to petrol, saying its local price will be 30 per cent less than that of petrol and that he was expecting to meet 10 per cent of the country's demand for petrol. Currently the price of petrol ranges between 1,290/- and 1,300/- per litre. He said that the biofuel can be mixed with petrol in a ratio of 25 per cent of biofuel to 75 per cent of petrol. (Note: ethanol's energy content is some 30% below that of gasoline, which has to be taken into account when talking about price differences).
Currently the country's demand for petrol is about 1.5 billion liters, meaning that the Tanzania could make up to 10% savings on its fuel import bill.
Apart from biofuel production, Mr Welch said that his company would be using a sugarcane byproduct (bagasse) for the productio of electricity.
The Deputy Minister for Industry, Trade and Marketing, Mr David Mathayo, confirmed that the Renew Energy Company had indicated interests to invest in the ethanol production and that the investor has already met the Minister for Energy and Minerals Mr Nazir Karamagi and the Director of Tanzania Investment Centre (TIC), Mr Emmanuel Ole Naiko. If the project takes off, it is expected to ease Tanzania's fuel crisis as well as stimulate business and economic growth through direct and indirect employment.
A quick look at some facts about Tanzania's potential:
- a potential arable land base of 67.2 million hectares of arable land, of which 5.2% is currently used (see the FAO's Terrastat database)
- very high land suitability for starch crops (mainly maize, cassava) and a relatively high suitability for sugar cane (see the FAO's land suitability maps for rainfed cropping)
- low land prices, estimated to be below US$ 100 per hectare (earlier post)
- a large rural population in desperate need of jobs and additional incomes; some 80% of Tanzania's labor force makes a living off the land
Nonetheless, in principle Tanzania could become a biofuels superpower and begin to leapfrog into a post-petroleum era (earlier post). US company Renew Energy listened to the president, was clearly interested in his country's biofuels potential, and has meanwhile arrived in Dar Es Salaam to carry out a feasibility study that will probably lead to actual production of ethanol within two years.
The firm specialises in the production of ethanol fuel made from sugarcane, according to Mr Robert Welch, chief consultant. He said that if the deal materialises, his company would need to acquire at least 10,000 hectares (25,000 acres) of land to grow sugarcane, the raw materials for production of the biofuel. Most likely, the province of Morogoro (see map) will be chosen. "If things work out as planned, we will establish the industry in one or two years' time," he added.
He said the fuel produced will be used for local consumption with the excess to be exported to US where demand is big and growing:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: sugar cane :: land :: rural poverty :: social development :: jobs :: ethanol exports :: Tanzania ::
Mr Welch said their focus was to have the sugarcane plantation in the Morogoro region while looking for other regions to start the farms. Mr Welch described biofuel which is usually used by vehicles and running of machines, as a cheaper product compared to petrol, saying its local price will be 30 per cent less than that of petrol and that he was expecting to meet 10 per cent of the country's demand for petrol. Currently the price of petrol ranges between 1,290/- and 1,300/- per litre. He said that the biofuel can be mixed with petrol in a ratio of 25 per cent of biofuel to 75 per cent of petrol. (Note: ethanol's energy content is some 30% below that of gasoline, which has to be taken into account when talking about price differences).
Currently the country's demand for petrol is about 1.5 billion liters, meaning that the Tanzania could make up to 10% savings on its fuel import bill.
Apart from biofuel production, Mr Welch said that his company would be using a sugarcane byproduct (bagasse) for the productio of electricity.
The Deputy Minister for Industry, Trade and Marketing, Mr David Mathayo, confirmed that the Renew Energy Company had indicated interests to invest in the ethanol production and that the investor has already met the Minister for Energy and Minerals Mr Nazir Karamagi and the Director of Tanzania Investment Centre (TIC), Mr Emmanuel Ole Naiko. If the project takes off, it is expected to ease Tanzania's fuel crisis as well as stimulate business and economic growth through direct and indirect employment.
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