Kakira’s Ethanol Plan Takes Shape

by Isaac Khisa (The Independent) ... In the past few years, the firm (Kakira Sugar Ltd, a unit of Madhvani Group) invested heavily in expanding cane crushing and power generation. Now, the ambitious sugar plant is venturing into commercial ethanol production – a key product for energy production.

Kenneth Barungi, the assistant general manager, told The Independent that the construction of the $37million ethanol plant is on course in preparation for the production of the clean energy product starting in July. The sugar firm hopes to produce 20 million litres of ethanol using 74,000 tonnes of molasses – the by-product of sugar production - annually, hence eliminating revenue losses in the sale of raw black treacle to local dealers. Presently, the company sells molasses to local gin producers and farmers at Shs 50, 000 – Shs 500, 000 per tonne depending on the season.

With the Biofuels Bill 2014 now in the offing, Barungi says this would pave way for ethanol either being blended with gasoline to run vehicles or being sold as neutral alcohol for making other products including sanitisers.

Further, though the government and the private sector may decide to engage in second-generation biofuels that will not, in theory, compete with consumers for food stock, they will continue to face many of the same challenges as first-generation biofuels, including access to land and rising labor costs. “The commercial sustainability of advanced biofuels is still a long way off, and continued government support will be necessary for industry growth,” Martins says.

First- generation biofuels are made from the sugars and vegetable oils found in arable crops, which can be easily extracted using conventional technology.

On the other hand, second generation biofuels are made from woody crops, agricultural residues or waste, which makes it harder to extract the required fuel. READ MORE