According to the agreement, the companies would supply the Nile Petroleum while the latter would distribute the oil by mixing it with ethanol, which constitutes 5 per cent.

The ethanol-blended petroleum would be on sale as of the coming year.

The ethanol would be obtained from Fincha Sugar Factory. Wonji, Metehara and Tendaho Sugar Factories are also expected to supply ethanol on the process. Metehara and Wonji Sugar Factories are undertaking preparations to produce ethanol within a short period of time for the same cause.

Energy Department head with the Ministry of Mines and Energy, Meles Teka said the high cost of oil worldwide has posed a serious challenge particularly on the growth of developing nations.

He said as a country with abundant human resource, suitable climate and soil for bio-fuel production, Ethiopia can fulfill its oil need by vastly developing plants that would be used for bio-fuel.

The head said in 2002 the country’s ethanol production would reach 35.1 million liters.

NOC, Total and Shell are among the oil companies that signed the agreement.

T-2:45-3:17 PM

E-3:19-3:30 PM

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