In order to implement this programme five main (areas of interventions) components have been identified:
For the implementation of a successful ethanol programme there is need for making informed policy decisions so as to encourage production of adequate ethanol, its distribution and utilization within the ethanol supply chain. Therefore there is need to review existing policies that affect the use of ethanol and its utilization while acknowledging advantages of the known positive aspects of ethanol as a motor vehicle fuel by learning from existing studies done on successful case studies on implementation of similar ethanol programme.
In Malawi, the desire to achieve energy security should also be understood as a government driven agenda not a market driven one. While the market will give signals on production, supply and demand, Government is supposed to champion the policy agenda that in order to meet the targets in the short, medium and long term.
The following activities are supposed to be undertaken under this component:
Ethanol is currently produced from sugarcane molasses by Ethco Ltd at Dwangwa in Nkhotakota and Presscane Ltd in Chikwawa. Annual production from both plants is estimated at 18 million against total plant capacity of 32 million litres.
Estimated annual fuel requirements for petrol driven vehicles for the country is 198.6 million litres by the year 2015 and 320 million litres by the year 2020. Maintaining the blending ratio of 20:80 (ethanol/ petrol), then an estimated 37 million and 53 million litres of ethanol is required to meet the demand for blending in 2015 and in 2020 respectively. With a target of 7.5% of vehicles running in 2015 being flex (through importation and conversion of existing vehicles) then the total ethanol requirement by the year 2015 is estimated at 49 million litres.
Increasing the proportion of vehicles running as flexi to 20% by the year 2020, then ethanol requirements for the increased usage is estimated at 51 million litres and total ethanol requirement estimated at 104 million litres. To meet these targets, it is therefore required to increase ethanol production from the current 18 million to 49 million litres by 2015 (is possible/ realistic?) and then to 104 million litres by 2020. It will also be required to increase plant production capacity from 32 million litres to 49 million litres by 2015 and then to 104 million litres by 2020.
Considering that ethanol can be consumed it is therefore required to be denatured to minimise the risk of people taking as an alcohol drink while it is in transit and prior to blending.
Proposed activities to be undertaken to increase ethanol production and denature ethanol are:
Currently ethanol companies are responsible for transportation of ethanol from their production factories to fuel distribution depots of fuel companies in Blantyre, Lilongwe and Mzuzu where ethanol is blended with petrol prior to distribution by the fuel distribution companies. With increased production there will be need to increase the transportation and distribution capacity of ethanol by both the producers and distributors.
Proposed activities for the distribution of increased ethanol are:
Currently there is an imbalance in production and usage of ethanol at different periods of the year leaving excess ethanol to be stored at ethanol producing companies for future use. It is therefore important to have adequate storage capacity at both production and distribution facilities to ensure consistent supply of ethanol to match with demand.
It will be required to ascertain as to whether current infrastructure at fuel depots and service stations are able to handle increased ethanol/ petrol blend of 80:20 (E80) as it is likely that the blend shall be introduced gradually. The choice for the gradual change is the most feasible option due to the fact that consumers need to make an informed choice of the different types of fuels they would like to buy.
Total population of petrol driven vehicles is therefore estimated at 191,000 in 2015 and 244,000 in 2020. With a target of 7.5% in 2015 and 20% in 2020 of all petrol driven being flexi then the population of flexi vehicles is estimated at 14,000 in 2015 and 50,000 in 2020.
Proposed activities for the infrastructure capacity of increased ethanol:
This component of the programme will prioritize capacity building in all areas to ensure successful rollout and implementation of the programme. In this respect, the project will implement a comprehensive capacity building programme targeting all key sectors of the economy. The programme will therefore implement the following strategies under capacity building and training:-
This component of the programme will implement a comprehensive and wide reaching awareness and publicity programme targeting all levels of society as outlined below:-
This component of the programme will implement research and development of emerging issues of ethanol at all levels of the supply chain i.e. feedstock production, ethanol production, distribution, use and impacts etc as outlined below:
