Ugandan sugar firm to start producing ethanol in July

Kakira Sugar Works, a Uganda-based sugar giant, said it will start commercial output at its $37m (€34m) ethanol plant by the end of July.

The sugar firm hopes to produce 20m litres of ethanol using 74,000 tonnes of molasses — the by-product of sugar production — annually.

Speaking to local news agency The Independent, Kenneth Barungi, the assistant general manager, said the plant was on course for the production of "clean energy".

Kakira, a unit of Madhvani Group, last year contracted Pune, India-based Praj Industries to build the distillery.

Power to run the distillery will initially be drawn from the sugar plant, and the distillery will subsequently be self-sufficient, using steam for generation, Barungi told Bloomberg.

The news comes as the Ugandan cabinet recently demonstrated its commitment to renewable energy by approving its 'Biofuels Bill 2015'. This is now awaiting parliamentary approval.

Barungi told The Independent that this would pave way for ethanol either being blended with gasoline to run vehicles or being sold as neutral alcohol for making other products including sanitisers.