by Ismail Musa Ladu (The Monitor/All Africa) President Museveni has directed the Minister of Trade, Industry and Cooperatives, Ms Amelia Kyambadde to bring to Parliament, within six months, a law that will allow for the blending of fuel with Ethanol to cut fuel costs.
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Should the legislation sail through within the President's set deadline, oil companies in Uganda will be compelled to mix their fuel with at least 10 per cent of ethanol manufactured from among others Kakira Sugar Ltd, arguing that this will lower the pump price of fuel.
Mr Museveni said this will bring in extra funds to boost the economy as well as retain some of the much needed foreign exchange.
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"This product would help the country in the reduction of carbon emission by reducing importation of petrol and would save the country up to $20million (assuming $1.00 per litre of petrol that has been substituted).
He continued: "This product can be used to produce many different kinds of products that include sanitizers for hospitals and hotels, let alone beverages. It can also be in clean cook stoves as a substitute for charcoal. And the country cuts down about 90,000hectares of trees (2.3% of the forest covers) for fire wood and charcoal. Ethanol would alleviate deforestation."
The distillery, he said produces ethanol from molasses, a by- product of sugar processing. READ MORE