- The Ugandan government has established a legal framework to begin blending Premium Motor Spirit (PMS) with bioethanol at an E1 blend ratio with Mahathi Infra Uganda Limited.
- The initial target for blending PMS with bioethanol at an E1 ratio was July 1, 2024, but this was delayed due to challenges in feedstock supply, infrastructure, and the need to license key value chain players.
The Ugandan government has established a legal framework to begin blending Premium Motor Spirit (PMS) with bioethanol at an E1 blend ratio, with Mahathi Infra Uganda Limited (MIUL) set to become the first blending facility at the Kawuku terminal in Wakiso District by July 1.
Biofuels are produced rapidly from biomass, such as sugar cane, molasses, and corn, unlike fossil fuels like oil, which form over long periods.
Mr Hatimu Muyanja, Energy Officer in the Renewable Energy Department, stated that the Ministry of Energy and Mineral Development (MEMD) is engaging key stakeholders to ensure preparedness for the blending process. Full enforcement of the Biofuels Legal Framework, which includes the Biofuels Act (2020) and the Biofuels (Licensing) Regulations (2022), is expected by January 2026.
These regulations are designed to promote and regulate the production, storage, transportation, and blending of biofuels with fossil fuels, aiming to support the sustainable development of the biofuels industry.
The initial target for blending PMS with bioethanol at an E1 ratio was July 1, 2024, but this was delayed due to challenges in feedstock supply, infrastructure, and the need to license key value chain players.
“Since then, the Ministry has made significant progress. Five biofuels production licenses have been issued, representing a combined annual production capacity of 34.5 million litres, which are sufficient for the national E1 blend requirement,” Mr Muyanja said on March 9.
The licensed producers include Hoima Sugar in Hoima District (6 million liters), Smart Start Industries (EA) Limited in Masindi District (4.5 million liters), Bukona Agro Processors in Nwoya District (6 million litres), Kakira Sugar Limited in Jinja District (10 million litres), and GM Sugar Limited in Buikwe District (8 million litres).
Mr Muyanja also noted that the licensing of Mahathi Infra Uganda Limited (MIUL) and Bukona Agro Processors Limited (BAPUL) as Biofuels Transport, Storage, and Blending facilities on February 18 marked an important step forward for Uganda’s sustainable energy future.
“MIUL’s facility has a current storage capacity of 200 cubic metres, with expansion potential to 600 cubic metres. It is designed to handle 400,000 litres of ethanol monthly or 4.8 million litres annually), with the potential to increase blending up to E5,” he said.
Mr Jim Kabeho, Chairperson of the Uganda Sugar Manufacturers’ Association and Executive Director of Madhvani Group, confirmed that a Biofuels Committee, which sits under the MEMD, is overseeing the project.
“Kakira is ready. It actually started making that many years ago, but diverted it to spirits and distillery. The fuel is coming in from Malaba, Busia and Entebbe by ship; infrastructure has to be set up to accommodate all and the preparation is still ongoing,” he added.
The company’s Managing Director, Mr Palvin Kekal, said they have made adjustments at the existing plant and are awaiting the importation of certain chemicals as they follow guidance from the ministry. “This is a great milestone as there will be additional demand for fuel and raw materials in the market.”