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Nwoya, Uganda | THE INDEPENDENT | The Ministry of Energy and Mineral Development has signed a Public-Private Partnership Agreement (PPPA) with Bukona Agro Processors Limited and the Nwoya District Local Government to implement the National Biofuels Blending Programme, officially launched by the government this month.
The initiative aims to reduce Uganda’s dependence on imported fossil fuels by blending locally produced ethanol with petrol. This transition to cleaner energy is expected to support environmental sustainability, create rural jobs, and provide a stable market for agricultural produce such as sugarcane, cassava, and maize.
The new blending facility, valued at over UGX 2 billion, is being established by Bukona Agro Processors Limited on 8.5 acres of land in Asinge Ward, Malaba Town Council, Tororo District.
Speaking during the signing ceremony on Thursday, July 17, 2025, Energy Officer Hatimu Muyanja, who represented the Ministry’s Permanent Secretary, Eng. Irene Pauline Bateebe said the project signifies a major milestone in Uganda’s journey toward energy self-sufficiency and climate resilience.
“Blending and blended products provide a robust and predictable environment for the energy industry to thrive,” said Muyanja. “Bioethanol derived from renewable sources offers a cleaner-burning alternative to conventional petrol, and contributes significantly to reducing greenhouse gas emissions, improving air quality, and aligning with Uganda’s climate action goals.”
In a message delivered on her behalf, Eng. Bateebe emphasised that the programme aligns with national policy frameworks such as Uganda’s Vision 2040, the Renewable Energy Policy of 2007, and the National Energy Policy of 2023.
“We are carefully licensing key players, such as Bukona Agro Processors, for both production and blending to ensure the national fuel supply chain remains robust, reliable, and adheres to the highest standards,” Bateebe stated.
She added that blending will begin at an initial ethanol-petrol ratio of 5 percent (E5), which requires about 60 million litres of ethanol annually. Plans are in place to progressively increase this ratio to 10, 15, and eventually 20 percent (E20), significantly boosting demand for local bioethanol.
“The signing of this PPP is particularly important because it directly benefits smallholder farmers—the backbone of our economy,” she added. “It translates into tangible, life-changing benefits at the grassroots level.”
Mr. Praviin Kekal, Founder and Managing Director of Bukona Agro Processors, reaffirmed the company’s commitment to inclusive development and job creation through the project.
“This is not just about fuel; it’s about transforming lives, empowering communities, and building a resilient, prosperous agricultural sector that feeds directly into our national energy independence,” he said.
According to Kekal, the Malaba Ethanol Blending Facility will initially blend 450 million litres of petrol annually at 5 percent. As blending ratios increase, demand could grow to 800 million litres to meet E20 targets.
The project also has strong backing from financial institutions. Opeero David Moses, Manager of Centenary Rural Development Bank in Gulu City, said the bank is ready to support farmers with affordable financing to scale up raw material production.
“Financial inclusion is paramount for scaling up raw material production. We’re committed to offering loans to both individuals and associations, which will enhance the sustainability of the biofuels supply chain,” said Opiru. “Beyond economic empowerment, this programme strengthens our environmental stewardship to combat climate change vulnerabilities.”
On the ground, local leaders welcomed the development but called for responsible implementation. Charles Ekisa, the LC I Chairperson of Asinge Ward, urged Bukona Agro Processors to prioritise local employment and take proactive steps to mitigate air pollution.
“We are excited about this development, but we also expect the company to employ our people and manage any environmental impact to protect our community’s health in the long run,” Ekisa noted.
Geoffrey Odoki Ocitti, the Nowya District Commercial Officer and representative of the farmers, praised Bukona Agro Processors for catalysing farmer organisation since its establishment in 2005.
“Today, we have over 4,800 registered Village Savings and Loan Associations across 11 sub-counties,” said Ocitti. “This PPP gives our farmers predictable incomes, reduces market volatility, and fosters economic transformation through value addition.”
The biofuel blending programme will be implemented through three other strategic blending facilities: Modern Energy Ltd (Busia) – 49 million litres/month, Afro-Kai Ltd (Mutukula) – 6–8 million litres/month, operational by the end of August; and Lake Victoria Logistics (Kawuku-Entebbe) – 10 million litres/month.
Collectively, these facilities will process over 110 million litres of PMS annually, blended with ethanol at 5% volume. The Ministry reported that 78.5 million litres of ethanol are already available locally, with an additional 110 million litres in the pipeline.
Uganda joins other East African countries such as Ethiopia, Kenya, and Tanzania in implementing biofuel blending initiatives. While the sector offers immense promise, challenges such as feedstock supply, land availability, initial investment requirements, and institutional capacity must be addressed for long-term success.
As Uganda scales its transition to cleaner fuels, stakeholders across the government, private sector, and communities remain optimistic that the National Biofuels Blending Programme will mark a turning point in the country’s energy and agricultural sectors.
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