28/02/2011 (East African Business Week) - With Uganda expected to start oil production soon, strong progress is being done in the field of bio-fuels to supplement on the available oil and energy in the country.
Bio fuels are renewable energy sources well as oil and gas are non renewable energy sources. Uganda's policy on renewable energy aims at increasing the use of renewable energy from the current 4% to 61% of the total energy consumption by the year 2017.
It also ensures  that it  makes modern renewable energy a substantial part of the national energy consumption. The Bio-fuels policy lays out specific modalities for the development and production of bio-fuels. It is noted that the sector has had no facility to test and monitor standards.
Petroleum companies are also not obligated to blend bio-fuels. According to the government, through the provision of incentives to bio-fuels producers and establishment of a testing facility at the Uganda National Bureau of Standards (UNBS), bio-fuels production is expected to increase significantly.
The production of Bio-fuels in Uganda currently lacks a law, which will obligate petroleum companies to blend fossil fuels with at least up to 20% bio-fuels.
"The bio-fuels are used mainly, in the transport sector and for power generation," explains Mr. Godfrey Ndawula, the assistant commissioner For New and Renewable Source of Energy in Uganda's Ministry of Energy and Mineral Development.
He says that the government is currently balancing bio-fuels and food security by carrying out research/ a study to identify, quantify and compare all the primary different potential bio-fuels feedstock indigenous to Uganda.  
"We want to assess the impact and availability. For example if we want to start by getting the fuels from cassava, corn or maize flour. How will we be secure in terms of food, without causing food shortage and hiking of prices," Ndawula notes.
Bio fuels such as ethanol and bio diesel are derived from agricultural crops, while methanol is derived from condensing smoke during wood distillation process. Ethanol and bio diesel can be blended with or direct substitute for gasoline and diesel respectively.
The use of bio fuels reduces toxic air emissions, green house gas build up and the dependence on imported oil, while supporting agriculture and rural economies.
In Uganda, ethanol is being produced on a small scale by sugar manufacturers as a by-product from molasses and several cottage industries from cereals and fruits. Bio diesels are a product of fatty acids like vegetable oils and animal fat and alcohols such as ethanol.
Vegetable oils are produced locally from jatropha though on small scale, hemp, sunflower, soya, beans, ground nuts, castor plant and palm oil. It is estimated that last year, Uganda imported and consumed 360 million litres of diesel and 385 million litres of gasoline. "If, this fuel was blended, with environmentally friendly locally produced bio-fuel, eg Methyl alcohol 25% gasoline and 60% diesel, it would have required a total of 312 million litres of Methyl alcohol a product from timber," stresses Ndawula.
He says that in two months time, the research would be complete and market estimates of the level of bio fuel consumption required over a 20 year period necessary to achieve the Renewable Energy Policy goals would be achieved.
Ndawula indicates that the economic and financial projections of bio fuel cost and identification of other social impacts of bio fuels feed stock choices are also being worked upon, as well as preparing an Investment Plan to implement the strategic bio fuels programme. He however notes that by mid this year, petroleum companies will be able to blend bio diesel of up to 2% and ethanol of up to 5%. "The lawmakers should as well speed up the law," he says.