The Government of Uganda has officially launched the Biofuels Blending Programme, marking a major milestone in the country’s transition toward cleaner, locally sourced energy solutions.

The programme was launched by Hon. Ruth Nankabirwa Ssentamu, Minister for Energy and Mineral Development, at the Uganda Media Centre on Tuesday. It will initially involve blending Petroleum Motor Spirit (PMS), commonly known as petrol, with 5% ethanol (E5).

“This initiative strengthens our energy security, advances environmental sustainability, and empowers farmers by opening new market opportunities. It reflects the President’s vision for a sustainable, integrated, and self-reliant economy,” said Hon. Nankabirwa.

The programme is anchored in national development frameworks, including Vision 2040, the National Energy Policy 2023, the Biofuels Act 2020, and the Biofuels (Licensing) Regulations 2022.

Key Objectives of the Biofuels Blending Programme:

1. Enhance Energy Security: Reduce reliance on imported fossil fuels and mitigate price volatility.
2. Promote Environmental Sustainability: Reduce greenhouse gas emissions and improve air quality.
3. Drive Economic Growth: Create stable markets for crops like maize, cassava, and sugarcane, spurring job creation across the value chain.
4. Attract Investment and Innovation: Open the sector to new investors; several have already shown interest.
5. Tap into Export Markets: Position Uganda to supply regional and international markets, including the EU, where ethanol blending in aviation fuel is increasing.

Implementation Highlights:

• Initial Blending Ratio: Starts with 5% ethanol (E5), with a phased increase to 20% as stipulated in the Biofuels Act.
• Six-Month Incubation Period: Ending by December 31, 2025, to allow for full operational readiness and stakeholder sensitization.
• Local Ethanol Sourcing: Over 78.5 million litres of ethanol already licensed from local producers such as Kakira Sugar Ltd, Hoima Sugar Ltd, and Bukona Agro-Processors. Additional capacity of 110 million litres is expected in coming years.
• Strategic Blending Facilities:
  • Modern Energy Ltd (Busia) – 49 million litres/month by mid-July 2025.
  • Bukona Agro Processors Ltd (Malaba) – 48 million litres/month by end of July 2025.
  • Afro-Kai Ltd (Mutukula) – 6–8 million litres/month by August 2025.
  • Lake Victoria Logistics (Kawuku, Entebbe) – 10 million litres/month.

Combined, these facilities will blend approximately 110 million litres of PMS annually.

The government has also exempted denatured ethanol from taxes, making it more affordable for both fuel and cooking applications. The Ministry, in collaboration with UNBS, has finalized national standards for ethanol and blended fuels, alongside robust quality assurance measures to prevent fuel adulteration.

Hon. Nankabirwa called on Oil Marketing Companies to fast-track their readiness and urged the public to embrace this cleaner, high-performance fuel alternative.

“This programme is a clear signal of our commitment to a sustainable and energy-secure Uganda,” she said, adding that the formal launch is scheduled for August 2025.

She concluded by thanking the media, technical staff at the Ministry, and the National Biofuels Committee for their dedication to reaching this milestone.