Mera expects ethanol usage by august
The Malawi Energy Regulatory Authority (Mera) expects ethanol producing companies to start selling the product in filling stations between July and August this year depending on the conclusion of the pricing framework, Business News has learnt.
Mera has, for the past couple of years, supported ethanol producing companies — Ethco and Presscane — in re-examining the pricing model for ethanol as well as facilitating the development of a standard for the 100 percent ethanol fuel by Malawi Bureau of Standards.
Speaking in an interview on Wednesday, however, Mera chief executive officer Elias Hausi said the country would still be importing petrol despite the development.
Said Hausi: “We have not yet finalised the date when ethanol will be available in filling stations but hopefully by July and August. Through the enforcement of blending ration for the other type of ethanol (anhydrous alcohol), Mera assisted in ensuring that there is adequate market for the ethanol, and the process promotes import substitution and security supply. Malawi consumes 100 million litres of petrol per annum while the national production capacity for ethanol is currently about 22 million litres, of which only 15 million is used for fuel.”
According to Hausi, ethanol companies are working to increase the volume produced to 36 million litres by the time investments in additional sources of feedstock materialise.
Hausi further said Mera will continue to promote the industrial grade ethanol (rectified alcohol) in its use as fuel ethanol at 100 percent.
“We will be reviewing the price of the ethanol every month to ensure that the industry is cushioned from adverse movements in economic fundamentals such as inflation and exchange rate. At the same time we will be ensuring that the pricing is fair to the consumer. There is still a long way to go before we can talk of substituting imported petrol,” said Hausi.
Hausi said vehicle owners will be required to buy a gadget that will be fitted in their cars for them to start using ethanol.
“For one to use ethanol you do not need to have an engine that is specifically made to use ethanol. There is a special gadget which will be in the country soon which vehicle owners will have to fit into their cars for them to use ethanol,” said Hausi.
Recently, Presscane general manager Christopher Guta confirmed in an interview that they are working hand in hand with Mera to make sure that filling stations start stocking ethanol but could not release more details because they are still working on a communication strategy for the company.
“We cannot give you more information because we are still developing our communications strategy. We are one of the players in the whole value chain of producing ethanol and we are indeed working very closely with Mera,” said Guta.
Some of the direct benefits to the consumer include fighting climate change since on a simple litre to litre basis, ethanol is believed to produce less carbon dioxide compared to petrol.
Mera also expects that successful implementation of the programme would attract new investments into the ethanol industry which would be an important contribution to the economic growth of the nation.
“The increased investments in production of ethanol in Malawi will lead to increased production of sugarcane. Use of cane outgrowers will bring benefits to the rural community,” said Hausi.
