Biofuels in Uganda Report

Feasibility Analysis for Commercial
Biofuels Business in Uganda
Presented to:!
Ambassador (Ret.) Reno Harnish III!
President Doug Faulkner, Leatherstocking, LLC!
Mr. Gerry Hartis, Director, Global Development Enterprise!
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Presented by:!
Andrew Cleary, David Jung, Nicole Noyes!
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Global Development Enterprise! ! April 14th, 2014

Executive Summary
! This report outlines the findings from socioeconomic and environmental research
to discover the feasibility of a sustainable biofuel business in Uganda. The objective of
this project is to discern whether implementing a strategy for the production, refinement
and distribution of biofuels in Uganda would encourage the nation’s development by
generating social, economic, and environmental benefits. This report is based on both
primary and secondary research as well as analysis of each stage of the value chain:!
• Biomass Production!
• Biofuel Refining!
• Biofuel Transportation!
• Biofuel Marketing!
! Biomass production will examine the geographical and agricultural profile of
Uganda, the production of major food corps, and productivity of the chosen district. It
mainly focuses on analyzing the reasons for the significantly low yield of crops and
formulating potential solutions to increase the yield for greater production.!
! For biofuel refining, it will discuss various feedstocks for producing biofuels,
present research on building a refinery, and suggest locations for the refineries.
Specifically, it will analyze the cost of the refining process and explore all eighty districts
in terms of their food production, productivity, transportation infrastructure, markets, and
the suitability of chosen crops.!
! The distribution section will review the supply chain as well as transportation
costs and storage details. Possible points of entry into the transportation fuel supply
chain will be investigated. Analysis of the cookstove fuel supply chain will also be
presented. Road accessibility and quality will be assessed, specifically in the Mukono
region.!
! The biofuels marketing section will present market and competitor analysis of the
primary market of transport fuel, as well as the secondary markets of cookstove and
generator fuel. Transportation fuel demand currently outpaces supply, but foreign
companies investing in domestic fossil fuel production could alter the status quo.
Ethanol for use in cookstoves is a small, but growing market. The market for diesel fuel
to power generators is small and fragmented.!
! In this report, we have also utilized a select number of the Global Bioenergy
Partnership sustainability indicators to measure the potential environmental, social, and
economic benefits of a sustainable biofuels industry in Uganda. !
Environmental: The report analyzed the exceptional soil quality in Uganda. However,
soil quality is threatened by some issues such as soil erosion and mudslides.
April 14, 2014

Introducing more modern agricultural tools such as fertilizers can significantly improve
the soil quality and increase agricultural production. Likewise, the water quality is also
abundant, but faces similar challenges from increasing population and urbanization. The
filling in of wetlands for construction or factories and the running off of industrial waste
into Lake Victoria are some of the most pressing environmental issues related to water
quality. Uganda boasts a rich biodiversity, with an abundance of forests and rainforests,
but this is threatened by widespread deforestation to fuel a booming charcoal industry.
The report also found that there is no significant tension between land used to produce
food crops versus that designated to fuel crops.!
Social: The report explored the state of land tenure, outlining the four most common
forms including customary tenure, mailo tenure, freehold tenure and leasehold tenure,
with customary tenure being the most prevalent form in Mukono. The report also looked
at the social impact of biofuels on women and children, whether it reduces the time
spent gathering biomass or the threat of indoor air pollution. !
Economic: Due to a lack of agricultural technology, the agricultural productivity in
Uganda is extremely low. Implementing blended ethanol or biodiesel and ethanol
cookstoves would help reduce Uganda’s depending on imported fossil fuels.
Encouraging the dissemination of technology and improving infrastructure would
encourage the sale and distribution of biofuels. !
! Through careful analysis of each segment of the value chain and the economic,
environmental and social impacts, this report will present an informed position on
whether a biofuel business would be beneficial or detrimental to Uganda. Additionally,
suggested areas for further research and focus will also be included.

Table of Contents
BIOMASS PRODUCTION.……………………….……..…..5
BIOFUEL REFINING………………………..……………...20
BIOFUEL DISTRIBUTION…….………………….………..28
BIOFUEL MARKET……………………………….………..33
GBEP INDICATORS………………………………………..40
PROPOSED BUSINESS MODELS………….……..…….50
SUGGESTIONS AND FURTHER QUESTIONS……..….65

Biomass Production
The Uganda Census of Agriculture (UCA) 2008/2009 by Uganda Bureau of
Statistics provides a meticulous and comprehensive picture of the agricultural sector in
Uganda. It focuses on two major areas of Uganda’s agriculture: individual agricultural
households and the usage of land for agricultural purposes. In relation to agricultural
households, it describes individuals’ access to cash and water, ability to generate goods
and services, access to information and ability to sell their products. For delineating the
usage of land, UCA categorizes the country into four main regions and compares the
agricultural variety and quantity of each region. This will provides a thorough framework
by which to understand the agricultural sector of Uganda, which is indeed “the most
important sector of the economy, employing over 80% of the work force”.1
Agricultural Households (Ag HHs)
According to UCA, about 31 million people, or 86% of the population, rely on
agriculture. A vast majority of individuals are involved in either producing agricultural
products or in transacting them. Uganda’s Ambassador Oliver Wonekha mentioned that
the majority of workers on the farms are women, and they do not necessarily have any
modernized agricultural equipment to ease their labors and to maximize their
productivity. In farming communities, the primary sources of agricultural information are
radios and word of mouth, with popular topics of information being husbandry groups,
weather, credit facilities, and farm machinery. This demonstrates that the Ugandan
farmers are keenly interested in improving their capabilities to make their work more
profitable and efficient, despite the many difficulties facing them such as poverty, lack of
capital, and outdated or unavailable technology.
Food Security
Food security in Uganda is one of the most significant issues of this feasibility
analysis. More than half (56.7%) of Ag HHs cannot afford to enjoy a proper diet (Food
insecurity). Especially in the northern region, this issue is the particularly severe: three
out of four people (74.1%) of people do not receive a sufficient food supply, while about
50% of individuals in other regions suffer from similar food insecurity. The predominant
reason for this food shortage is a loss of crops or insufficient production of crops, which
is at 71.4%. We will discuss in greater detail the poor productivity of agricultural
products in Uganda. The two remaining reasons are inadequate capital and land, which
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http://www.countrywatch.com/country_profile.aspx?vcountry=1781

comprise 19.3% and 10%. This demonstrates a severe deprivation of the agricultural
capability levels in Uganda.
Capabilities of Agricultural Population
! There are six types of capabilities that affect the agricultural sector, of which
directly impact individuals’ quality of life and their ability to surpass their current
economic status. The first factor is the availability of food storage. About 56.7% of
agricultural households reported that they store food in their homes, and 18.5% said
they have a specific house or room for food storage. This evidences that less than one
out of five households have actual designated storage space. !
! Secondly, the statistics show that a vast majority of individuals are vulnerable to
natural disasters such as drought and pests. A lack of irrigation and agronomical
advancement resulted in 91.5% of households suffering from drought and two out of
three Ugandans suffering from pests and diseases. !
! Third, the state of water supply and quality in Uganda indicates the need for
drastic improvement in clean water resources. One third of Ugandan people lack safe
water and one half of the population has no access to sanitation services. Although
water is imperative for a flourishing human life, many Ugandan people do not have
access to the clean water that sustains their agricultural and economic activities. !
! Fourth, UCA demonstrates that 71.0% of agricultural households use axes, or
hand-held hoes, which are the most basic tool of farming. It also reports that 29% of
households have no equipment to use but their own hands. This is clearly another
cause for Uganda’s low overall productivity of agricultural goods. In addition, only 0.8%
of households own tractors, which also contribute to the low productivity in spite of
Uganda’s fertile farmland. !
! Fifth, only 10% of agricultural households had accessed credit in a period of five
years. Availability of cash and capital is a must for any entrepreneurial efforts or
business activities. This is an exceptionally low number, evidencing inactive business
behaviors in Uganda. The reasons given by those who did not access credit were: high
interest rates (27.1%), lack of collateral/security (20.9%), no need for credit (16.4%),
and ignorance of the existence of facilities (15.1%). !
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Map of Uganda
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Land Use of Uganda
The second portion of the Uganda Census of Agriculture reports the land use and
agricultural production of four regions: western, eastern, central, and northern.
According to Table 1.1.1, cultivated land had increased from 1990 to 2005 by 18% from
84,000 square kilometers to 99,000 square kilometers, while tropical forest and
woodlands had substantially decreased by 25%. This indicates a serious environmental
issue (deforestation) for the sake of increasing more farming land.
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Food Crops of Uganda
In Uganda, major food crops include banana, cassava, maize, sweet potatoes,
and beans. Although it produces millions of these products, they are still in some cases
insufficient to feed everyone in the country. Moreover, the yield (MT/Ha) of these crops
is substantially lower than the average yield of other developed nations. This report will
further discuss the causes of this low productivity of these crops and the potential for
improving it.
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Crop Area and Production by Region
Table 3.1.1(below) demonstrates the crop area and production of agricultural
goods by four different regions. The data highlighted in pink are significantly high
numbers whereas those in yellow are relatively high numbers. The western region is
known for its excellent production of plantain bananas along with relatively good
production of potatoes and corn. The eastern region boasts a very high production of
maize, sweet potatoes, and cassava, and in fact, appears to produce the most
significant amount of crops compared to other regions. In the central region, we can
infer that crop production is the lowest despite its exceptional soil fertility because of
increased industrialization. Lastly, the northern region maintains a relatively low
production of all crops but plantain bananas; this region produces a lower yield despite
its larger land area.
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Production and Disposition of Major Food Crops
Based on Table 4, banana has the highest production (about 4mil MT) followed
by cassava (about 2.9mil MT) and maize (about 2.4mil MT). A majority of crops are
consumed by their producers, in a state of subsistence farming, and about 20-40% of
them are sold at local markets. As this demonstrates, in most instances the Ugandan
people are not producing sufficient amounts of agricultural goods to participate in
economic activities other than subsistence farming. In addition, the rate of stored
production seems incredibly low, as previously discussed, due to the lack of storage
facilities (only 18.5% have specific storages).
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Imports and Exports of Commodities in 20112
According to the Food and Agricultural Organization (FAO)’s statistics included
below, Uganda’s top imports are palm oil, wheat, sugar, beer, and cigarettes. Although
one might assume that Uganda need not import any agricultural commodities because
of its incredible soil productivity and abundant precipitation, this set of data shows that
much of Uganda still lacks food. Even corn is ranked as the 13th import, despite the
fact that it is the third most-produced crop in Uganda.
<Top Imports of Commodities 2011>
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http://faostat.fao.org/desktopdefault.aspx?pageid=342&lang=en&country=2262

Imports and Exports of Commodities in 2011
As FAO’s top exports table shows below, Uganda’s primary exports include
coffee, cotton, and tea. These are the staple exports of Uganda in addition to other
forms of goods and services, such as electronics, manufactured products, and
technology-based goods. It is interesting to note that some of the top exports are also
top imports. This demonstrates an inefficiency of transacting goods within the country,
ultimately resulting in greater costs to acquiring goods as well as investing valuable
cash in the economics of other countries.
Top Exports of Commodities 2011
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Soil Productivity and Precipitation
As we have emphasized several times, the soil productivity and precipitation of
Uganda is almost too good to be true. Lake Victoria provides an incredible source of
fresh water, in addition to well many smaller lakes and rivers throughout the country. A
majority of Uganda’s land also receives more than 1,000mm up to 2,100mm of rainfall.
This abundance of rainfall makes much of Uganda a tropical climate. The maps below
portray the soil productivity and precipitation of Uganda. According to a interview with
the native Ugandan, Mr. Jinga, “they can grow almost anything anywhere. It is a blessed
land.”
Soil Productivity of Uganda
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Source: UNEP/GRID-Arendal and Hugo Ahlenius, Nordpil.
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Precipitation of Uganda
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Mukono Biomass Production
After careful analysis of the initial findings, our group chose to select Uganda’s
Mukono district to conduct further research on this specific region as the most
competitive location for a biofuels business. There are three primary reasons that we
chose Mukono. First, we enjoyed access to a reliable and direct contact from Uganda
Christian University in Mukono. Second, this district boasts some of the most productive
and fertile farmlands in the entire nation. Lastly, Mukono is strategically located in
proximity to Kampala, Uganda’s capital city and largest market. The main highway
connects Mukono with Kampala and Jinja, another prosperous market center. Although
Uganda’s infrastructure faces serious challenges, Mukono seems to have comparatively
goods roads to transport assets and resources.
Mukono District Profile
Mukono is located in the central region of Uganda, 21 kilometers (about 13 miles)
east of Kampala along Kampala-Jinja highway. It takes roughly 30 minutes to reach the
center of Kampala from Mukono. It also includes the shore of Lake Victoria and takes
about 20 minutes to 1 hour to the center of Mukono depending on which lake area you
are departing from. With this excellent location in close proximity to Kampala and to
nearby roads, Mukono truly is an ideal place to start a business.
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Just as the majority of Ugandans are involved in agricultural activities, Mukono is
likewise a predominantly agricultural district. The population of Mukono has been
increasing pretty rapidly since the 1990s. According to the Uganda Bureau of Statistics,
Mukono was home to about 320,000 people in 1991, and this number increased to
423,000 in 2002, a nearly 30% increase. In addition, in 2010, the population rose even
further to 583,000, which is another 40% increase from the year of 2002. This
demonstrates Mukono’s incredible population growth in recent decades, driven largely
factors such as its prime location and increasing industrialization.
Source: Uganda Bureau of Statistics
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As mentioned in introduction, Mukono has extremely high soil productivity and
precipitation, allowing for a wide range of crops. Its sandy-loam soils are not only fertile,
but a steady water supply from frequent rainfalls protect the land from severe droughts
or other harmful environmental trends. Mukono enjoys two rainy ranging between
1250mm to 2000mm annually. According to our discussion with members of Uganda
Christian University, Mukono does not suffer from flooding because the land is fairly flat
and protected by many forests.
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The arable land in Mukono is about 2600 square kilometers. However, currently
only 30% of this arable land ( about 800 km2) is being utilized. This reveals an excellent
opportunity to develop and use the un-utilized land for the sake of fostering increased
economic activities.3
Name Status
Population
census
1991-01-12
Population
census
2002-09-13
Population
census
2010-01-01
Mukono District 319,434 423,052 583,000
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http://www.mukono.go.ug/3

Agricultural Production
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According to Uganda Census of Agriculture (UCA) 2008/2009, the production of
cassava was the highest of all agriculture crops (41,669MT), followed by sweet potatoes
(37,501MT), plantain banana (33,663 MT), and maize (18,882 MT). Although the level
of production may seem sufficient to feed the people of Mukono and to market the
crops, the yields (MT/ha) of these crops seem drastically lower than average on-farm
yields. For example, farmers in Nigeria, working in conjunction with the USAID-funded
Cassava Enterprise Development Project (CEDP) achieved an average yield of cassava
of around 25 MT per hectare, which is almost 10 times higher than that of cassava in
Mukono. The advancement of agronomical support and fertilizer seems to tremendously
amplify this productivity of crops.
In addition, if Mukono invests in cultivating about 1500 square kilometers of un-
utilized arable land, which is twice of currently utilized land, it will likely generate 20
times more agricultural production. Even if this 20 times increase may sound too
optimistic, Mukono can easily achieve an astronomical growth in its production. In fact,4
this is one of the most significant findings of this study. Although Uganda is known as an
agricultural country, its productivity is incredibly low. If we can reach this suggested yield
level in Africa (25 MT/Ha) or even that of Europe (35 MT/Ha) by investing in fertilizer,
Mukono - 2008F/2009S Production (MT) Area (ha) Yield (MT/ha)
Cassava 41,669 15,430 2.7
Sweet Potatoes 37,501 14,817 2.53
Plantain Banana 33,663 17,048 1.97
Maize 18,882 16,776 1.12
Beans 4,202 9,667 0.43
Rice 837 1,065 0.79
Groundnuts 727 2,012 0.36
Soya Beans 22 98 0.22
Sorghum 15 104 0.14
Simsim 11 44 0.25
Total 137,529 77,061 (770.61km
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http://www.nigeriamarkets.org/files/Cassava%20fact%20sheet_FINAL.pdf4

research centers, technology and equipment, we will achieve only increased production
of adequate and affordable biomass for ethanol/biodiesel, but also significant
advancements in the fight against poverty in Uganda. Indeed, Uganda has the
incredible potential to transform into an economically-leading country in East Africa.
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Biofuel Refining
In the previous two chapters, we discussed the biomass production and
productivity of agricultural products in Uganda. It is a positive sign that there is a
favorable condition to grow and harvest biofuel feedstock, which is the main ingredient
of biofuels. In this part of the report, we will focus on characteristics of biofuels,
comparison between ethanol and biodiesel, feedstock assessment, basic steps to build
a refinery and potential locations for biofuel refineries.
Advantages & Disadvantages of Biofuels5
There has been a lot of research and publications regarding biofuel as a
replacement of petroleum and other source of energy. In fact, this issue has developed
especially over the last decade. Many people are aware of this concept and pros and
cons that are involved in this activity. In light of the purpose of this report, there are a
few relevant advantages and disadvantages that are useful to consider. In terms of
advantages, there are three main elements: energy independence, economic growth,
and environmental benefit. Firstly, generating biofuels and replacing them with
petroleum would make the economy more stable and less risky. In most countries,
besides large oil nations, are directly impacted by the price of petroleum as almost all
industries rely on fossil fuel as well as transportation. Secondly, there might be
economic growth at a community level. More jobs will be created and those farmers and
manufacturers will be able to grow their own supply of affordable and reliable energy.
Thirdly, there is a huge environmental benefit in using biofuels instead of fossil fuel. The
CO2 emission will decrease by 80% if you use biodiesel and about 40% if you use
ethanol. It will foster cleaner air and less climate change (global warming). In terms of
disadvantages, on the other hand, there is potential competition with food crops.
Especially in countries like Uganda where there is food insecurity, using food crops as
the ingredient of biofuel will take food away from people who really need it to sustain
their lives. It requires appropriate policy support and availability of alternative plans for
sustainable development. There are numerous factors in both ends, however, these6
are more significant things to consider according to the purpose of this project.
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http://www.jatrophabiodiesel.org/bioDiesel.php?_divid=menu65
http://nordpil.com/go/news/uganda-biofuels/6

Comparison Between Ethanol and Biodiesel
The table below compares ethanol and biodiesel by three different aspects:
production, transportation fuel use, and environmental impacts. The major difference is
the kind of crops are being used. For Ethanol, food crops such as corn, cassava, and
sugar are used whereas for biodiesel, generally non-food crops like Jatropha, sunflower,
and Switchgrass are used as primary materials for fuel production. Although many
regard these two biofuels as the replacement of petroleum, they each have secondary
markets where there is great potential and demand. Ethanol can be sued as cooking
fuel for cookstoves, and biodiesel can be sued for producing electricity. They both
cause greater environmental performance than petroleum but biodiesel seems to be
more eco-friendly than ethanol.
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ETHONOL BIODIESEL
Combustion Danger Flammable/combustible Non-Flammable/combustible
Estimated Production Cost More Less
Secondary Market Cookstoves Electricity
Transportation Fuel Use
Fossil Fuel Sector Demand 450M liters/year 600M liters/year
Increase/Decrease Increasing Drastically Decreasing Slightly
Recommended Blend with
Petrol
10/90 (E10); 85/15 (E85) 5/95 (B5); 20/80 (B20)
MPG/Power Reduction 3-4% (E10); 20-30% (E85) Negligable (B5); 2% (B20)
Environmental Statistics
Net Energy Balance 25% 93%
CO2
Petrol
72% 40%
Overall Emissions
Comparison
More Fewer
Production
Feedstocks Corn, Sugar, beets, wheat,
cassava (food crops)
Rapeseed, sunﬂower, soybean,
palm, coconut, jatropha, animal
fat
Made with Isobutylene Methanol
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Ethanol and Biodiesel Feedstock Assessment
One of the main challenges of this project is garnering the right information from
the right source. In spite of researching this topic of feedstock assessment for many
hours, we were not able to acquire the source that compares all the energy crops with
the same measures. Instead, through the extensive research and use of intuition, we
came up with two sets of feedstock assessment: one for ethanol and the other for
biodiesel.
Ethanol Feedstock Assessment
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For the ethanol feedstock assessment, we ranked the energy crops based on oil
productivity, variation of production, land use, maintenance, resilience, and suitability to
the Ugandan land. We decided that Switchgrass, Miscanthus, and sugar cane are the
top three feedstocks for generating ethanol. On the other hand, we regard cassava,
maize and sweet sorghum as lower ranks because of their low oil yield.
 
Biodiesel Feedstock Assessment7
Energy
Crops
Oil Yield Variation of
production
Land
Use
Maintenance Resilience Suitability
Switchgrass High Low Medium Low High Medium
Miscanthus High Low High Low Medium Medium
Sugar Cane High Low High Low Medium Medium
Sweet
Sorghum
Medium Medium Medium Low High Medium
Maize Low Low High Low Medium High
Cassava Low Low High High High Medium
Energy
Crops
Oil Yield Variation of
production
Land
Use
Maintenance Resilience Suitability
Jatropha Medium High Medium Low High Very High
Giant King
Grass
Very High Medium High Medium High Unknown
Palm Oil High Low High Medium Medium Medium
Soybeans Medium Low High Medium High High
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http://www.recrops.com/miscanthus/miscanthus-growing-cycle, http://7
www.biofuelstp.eu/crops.html

For the feedstocks for producing biodiesel, we chose four candidates: jatropha,
giant king grass, palm oil, and soybeans. They are some of the most well known
feedstock candidates because of their oil yield, familiarity, and suitability to various
climates. As can be seen, Jatropha is ranked the highest because of its fantastic
suitability with the Ugandan soil (See Nordpil’s map) and numerous research and
publications have proven its productivity and feasibility especially in India. While palm oil
and soybeans are also preferred feedstocks, we discovered that giant king grass was
recently introduced by Viaspace and it has an incredibly productivity/oil yield rate (100T/
ha), which is 10times higher than corn. Another reason that many welcome biodiesel is
the fact that they are cash crops instead of food crops. They do not directly impact the
food security issue as long as there is enough land for food crop production.
Steps to Building a Sustainable Refinery8
According to the website of SRS Biodiesel, it provides a framework of planning
and installing a biofuel refinery. At this stage of our project, we have been focusing on
the first two steps, which are about business planning. Later in the report, we will
present our budget plans, available land, feedstock, plant size, and appropriate sites. It
is a very good model to establish our strategic business model in Uganda.
Step 1: Plant Size Determination
• Budget/Available land/Feedstock availability/Government incentives
Step 2: Selecting an Appropriate Site
• Plant Size/Distance from suppliers & customers/Utilities/Infrastructure
Step 3: Permitting 
Step 4: Biodiesel Plant Engineering  
Step 5: Determining Your Biodiesel Equipment Needs 
Step 6: Assistance in Plant Installation  
Step 7: Quality and BQ-9000 Considerations 
Step 8: Plant Start Up and Training 
Step 9: Plant Management 
Step 10: Planning for the Future
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http://www.srsbiodiesel.com/our-services/turnkey-biodiesel-refineries/8

Potential Locations for Refineries
In terms of selecting potential locations, we took advantage of the second step of
SRS Biodiesel’s framework, Nordpil’s recommended area of Jatropha, and the Uganda
road map. In addition, according to Dalberg analysis, it suggests three factors for the
ideal agriculture-based biorefinery. First, it needs to be integrated into a relevant
industrial cluster. Second, it should be located next to an agricultural area with existing
residues collection infrastructure. Lastly, it should be close to clients and biotech
knowledge, such as active industries in the area, research centers and universities.
Overall, we chose six locations, Iganga and Soroti from eastern region, Kabale and
north western Mbarara from western region, and northern and southern Apac from
northern region.
Eastern Region
• Iganga
o Great transportation (Rail Road, roads)
o Suitable for Jatropha
o Major Market (City): Iganga
o No. 1 Maize Production District (303,262tons)
• Soroti
o Lake Kyoga
o Great transportation (Roads, Rail Road)
o Major Market (City): Soroti
o No. 3 Maize Production District(137,657tons)
Western Region
• Kabale & Kisoro
o Most suitable for Jatropha
o Closer to Rwanda and Congo
o Three roads that intersect the capital
o Small lake and river
o Major Market (City): Kabale
• North Western Mbarara
o Highly suitable for Jatropha
o Great transportation (Rail Road, River, Road)
o Major Market (City): Ibanda
Northern Region
• Northern Apac
o Great Transportation (Railroad and Road)
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o No. 1 Cassava Production (239,932 tons)
o Close City (Market): Lima
• Southern Apac
o Great Transportation (Lake Kwania)
o No. 1 Cassava Production (239,932 tons)
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Recommended Area of Jatropha Production
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Recommended Area of Palm Oil Production
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Recommended Area of Sugar Cane Production
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0123456789101112131415
Average Yield(MT/Ha);;Productivity of Major Crops: Banana, Maize, Cassava
0
1
2
3
4
5
Transportation Score(Road & Railroad)
Kampala
Jinja
Iganga
Mubende
Mbarara
Luwero
Masaka
Wakiso
Mbale
Kayunga
Sembabule
Arua
Amuru
Kumi
Soroti
Tororo
Katakwi
Kitgum
Kotido
Kapchorwa
Lira
Ibanda
KiruharaHoima
KanunguAmuria
Bududa
Manafwa
KobokoIsingiru
Pader
Kalangala
District Analysis for Jatropha Farm & RefinaryMarket Size
1
2
3
4
5
6
Jatropha Suitability
Highly Suitable
Suitable
Marginally Suitable
Not Suitable
Region
Central
Eastern
Western
Northern
VerySmall!
Small!
Medium!
Large!
VeryLarge!
Largest

Biofuel Distribution
Transportation Fuel Supply Chain9
Retailer
Wholesaler
Corporate Customer
Wholesalers
The first step in transporting refined fuels to market is the import of large volumes
of fuel by distributors. Currently, all distributors in Uganda import refined petroleum that
was produced in other nations, with Kenya being the main supplier. Distributors then
either sell fuel through their own retail outlets, to corporate customers in high volume, or
through third party owned fueling stations. Multinational distributors store imported fuel
in depots before redistribution because of the regulations imposed by their home
countries. Ugandan distributors are able to bypass depot storage and store large
volumes of petroleum at retail outlets because of the lack of local regulation, which
reduces overhead. Wholesale prices are estimated to be 92% of retail prices minus
sales taxes based on the supply chain in the United States.10
Page of28 66
Local Distributors Multinational Distributors
Regulations Low (Ugandan) High (Parent Country)
Capital Low High
Area Served Urban Rural and Urban
http://cit.mak.ac.ug/iccir/downloads/ICCIR_11/K.%20Byangwa1%20and%20J.9
%20Ngubiri2_11.pdf
http://newsroom.aaa.com/2014/01/aaa-monthly-gas-price-report-january-2014-trends-10
and-february-outlook/
http://www.api.org/oil-and-natural-gas-overview/industry-economics/~/media/Files/
Statistics/state-motor-fuel-taxes-report-summary.pdf
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?
n=PET&s=EMA_EPMR_PWG_NUS_DPG&f=M
http://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price1.htm

Transportation
The wholesaler generally sets the regulations and safety standards for
transportation. The three types of firms responsible for managing transportation are
wholesalers, retailers and third party contractors. Rural areas with low fuel demand
have extremely limited access to fuel because of high transportation costs and poor
road systems.
Retailers
There is a wide range of affiliation between retailers and wholesalers. Owned by
wholesaler, operated by an individual (Company Owned Retailer Operated) and
branded by the wholesaler. Owned and operated by an individual, but exclusively resells
a certain wholesaler’s products (Retailer Owned Retailer Operated) and is branded by
the wholesaler. Owned and operated by an individual with no wholesaler affiliation
(Retailer Owned Retailer Operated) and branded by the retailer.
Corporate Customers
Some large organizations that consume high volumes of fuel buy in bulk, either
directly from wholesalers or through CORO’s. They are able to negotiate lower prices
because of their high volume of business. A biofuel refinery that wishes to purchase
transportation fuel for blending would fall under this category as a buyer in large volume
from a distributor.
Major Corporations11
• Threeways Shipping
• Spedag Interfreight
• SDV Transami
• Quantum Associates Oil & Gas Logistics
• DHL
• Habib Oil
- Based in Kampala
- Customer base includes Total Uganda, Delta Petroleum, Electro-Maxx, African
Power Initiatives and Rwenzori Commodities
- Connects suppliers with end users
Page of29 66
http://www.oilinuganda.org/categories/oil-industry-2/transport-and-logistics11

Storage12
Biodiesel is considered non-flammable and non-combustible, making it safer to
store than ethanol, which is flammable. Acceptable storage tank materials include
aluminum, carbon steel and stainless steel, as well as fluorinated polypropylene,
fluorinated polyethylene, teflon and most fiberglass materials. Ugandan regulations
permit excessively large storage facilities at pumping stations compared with the
regulations that govern multinational corporations and require storage in separate
locations.13
Transportation Methods
Aluminum, carbon steel, or stainless steel containers are recommended. Trucks
can haul up to 30,000 liter capacity semi-trailers and attain about 6 MPG. Railroad14
transportation is more fuel efficient and can transport higher volumes at a time.15
Railcars can carry up to 100,000 liters and attain 18 MPG (for comparison purposes,
trains are 3X more fuel efficient than trucks).
As a benchmark for transportation costs in Uganda, transporting 20,000 liters of
fuel across the distance of 20 kilometers costs about $100. Purchasing a used semi
truck in Uganda would cost about $12,000 - $20,000.
Quality of Roads16
The quality of roads in Uganda is poor overall. However, the main highway
running through Kampala and the Mukono region is well maintained. Congestion is an
issue in the area surrounding Kampala. Potholes are found on on every road besides
the major highways. Nearly all Northern region roads and many others throughout the
country require 4x4 vehicles to transverse, and only 3,500 kilometers of Uganda’s
20,000 kilometers of roads are paved.
!
!
!
Page of30 66
http://www.rimlifegreentech.com/biodiesel_production_logistics.htm12
http://cit.mak.ac.ug/iccir/downloads/ICCIR_11/K.%20Byangwa1%20and%20J.13
%20Ngubiri2_11.pdf
http://business.tenntom.org/why-use-the-waterway/shipping-comparisons/14
http://www.istc.illinois.edu/about/SeminarPresentations/20091118.pdf15
http://www.theforeignreport.com/2012/12/23/uganda-a-bumpy-road-ahead/16

Distribution Summary and Analysis
Transportation costs in Uganda are very reasonable. Doing business in regions
with good access to highways reduces risk in transportation. Analysis of the supply
chain reveals that blending biofuel with diesel or petroleum must be an intermediary
step between the distributor and the retailer. The biofuels refiner and blender could
either sell the biofuel to a distributor to be blended, or purchase fuel and blend it
themselves. Refining biofuels in the Mukono region would save on transportation costs
because of the proximity to wholesalers, retailers, and corporate customers in Kampala.
Although refining biofuels and selling them to distributors to be blended is a
viable option, the current state of affairs in Uganda with large multinational distributors
focusing on petroleum and diesel only suggests that they would not wish to install the
capability to blend biofuels. Perhaps a smaller, local distributor would be open to
installing the necessary equipment to blend fuels.
!
*The supply chain for pure ethanol to fuel cookstoves goes from the refiner to either a
retailer or a distributor to eventually be sold in supermarkets in urban areas or other
local markets in rural areas.
!
!
Transportation fuel supply chain including biofuels:
!
!
!
!
!
Page of32 66
Wholesale Biofuel ReﬁnerFossil Fuel!
Biofuel Blend!
Retailer
Biofuel Blend!
Corporate!
Customer

Biofuel Market
The largest biofuel market is transportation fuels, and there is no current use of
biofuels for transportation reported. Uganda relies completely on imported petroleum
and diesel, which causes high and fluctuating prices. This is a high visibility problem17
for the Ugandan people with multiple news outlets consistently reporting on the issue.18
Transportation fuel costs are also closely linked with food and commodity prices.19
There are smaller, secondary biofuel markets in ethanol fueled cookstoves and diesel
powered electricity generators.
Transportation Fuel Market
!
Conditions in neighboring countries from which fuel is imported, as well as
inconsistent government regulations concerning border security mean that the supply of
transportation fuel is constantly fluctuating. These factors drive up prices, causing20
speculators to purchase and hoard large quantities of fuel to sell on the black market.
Diesel Petroleum
Price/liter $1.22 $1.42
Tax rate $0.24 $0.37
Consumption/year 600M liters 450M liters
Blend options 5%, 20% 10%
Uses Commercial trucking,
public transportation, farm
equipment and other
machinery, consumer
SUV’s and trucks
Passenger vehicles,
motorcycles
Page of33 66
http://www.eia.gov/countries/country-data.cfm?fips=ug17
http://www.observer.ug/index.php?option=com_content&view=article&id=30265:-fuel-18
crisis-speculators-blamed-for-price-hike&catid=79:businesstopstories&Itemid=68, http://
www.redpepper.co.ug/crisis-as-kabale-runs-out-of-fuel/
Jones Ahabwe, Ugandan Studies Program19
http://www.ubos.org/onlinefiles/uploads/ubos/newsletter/2011_June_newsletter.pdf20

Additionally, the fuel brands that operate in Uganda often keep fuel prices high and do
not adjust to increases in supply as quickly as they could in order to maximize profits.21
Prices at the pump for petroleum and diesel are $1.42 and $1.22, respectively as
of 4/4/2014. Petroleum retailed for up to $1.49 in early 2014 and is sold on the black
market for up to $2.75/liter. The cost of diesel fuel is projected to rise to $1.29 by the
end of 2014. Petroleum is taxed at a rate of $0.37/liter and diesel fuel is taxed at $0.24/
Page of34 66
Petroleum Prices 5/2013 - 3/2014!
https://www.bou.or.ug/export/sites/default/bou/bou-downloads/research/21
BouWorkingPapers/2011/All/
A_Case_of_the_Feathers_and_Rockets_Phenomenon_in_Ugandaxs_Retail_Oil_Pricin
g_BOUWP1011.pdf
Diesel Prices 5/2013 - 3/2014!

liter. The Ugandan government has reportedly stepped in to mitigate these fluctuations22
by keeping a 30M liter reserve (20M diesel and 10M petroleum) to offset supply
fluctuations. There are mixed reports as to whether this has actually been23
implemented and prices continue to fluctuate.
Diesel consumption has nearly doubled that of petroleum over the last five years.
Diesel fuel is mainly used in the commercial sector to power semi trucks, public
transportation and farm equipment. However, the demand for petroleum has been
steadily and drastically increasing. Since 2010, the increase in demand for gasoline has
far outpaced that for diesel, increasing 41% from 2008 to 2012. Diesel consumption has
declined for the first time from 2011 to 2012, an 8% decline. In total, Uganda consumes
approximately 1.05B liters of transportation fuel per year with 600M liters of diesel and
450M of petroleum as of 2012. The demand outpaces the consumption, indicated by24
the skyrocketing prices during shortages.
Citing concerns over durability, efficiency and performance, most automakers do
not recommend using biofuels as complete replacements for oil-based fuels, but instead
suggest blending the two fuel types. Blends mitigate some of these concerns, but25
there are still performance and efficiency losses because engines, especially those
manufactured before the mid 1990’s, are not made to run on biofuels. Manufacturers
suggest limiting the amount of ethanol mixed with petroleum to 10% and the amount of
biodiesel mixed with diesel to 5%, although most engines manufactured after 1994 can
run on up to 20% biodiesel. , Given the lax regulations and most diesel vehicles in26 27
Page of35 66
E10 B5 B20
Power/efﬁciency
reduction
3-4% Negligable 2%
Approved for use in all
engines
Yes Yes No
https://www.kpmg.com/Africa/en/IssuesAndInsights/Articles-Publications/Documents/22
KPMGUgBudgetBrief2013.pdf
http://www.theeastafrican.co.ke/business/Uganda-stocks-up-on-fuel-reserves/-/23
2560/2093892/-/2ijhl0/-/index.html
http://www.ubos.org/onlinefiles/uploads/ubos/pdf%20documents/abstracts/Statistical24
%20Abstract%202013.pdf
http://www.fueleconomy.gov/feg/biodiesel.shtml25
http://www.fueleconomy.gov/feg/ethanol.shtml26
http://www.afdc.energy.gov/fuels/biodiesel_blends.html27

Uganda having been manufactured in the late 1990’s or sooner, a 20% blend is feasible
for distribution to fuel stations in Uganda.28
Secondary Markets
Biodiesel Powered Generators
Because of the unsatisfied demand for electricity and the high costs associated
with being located far from the main electric grid, some rural areas in Uganda opt to
create local mini-grids with diesel powered generators. This amounts to about 1% of29
the total electricity production, which mainly relies on hydro-electric generators. The UN
implemented a project in which diesel generators were used to generate small amounts
of electricity and power basic household tools. These generators could be used to fill30
the electricity needs of rural areas by powering electric stoves and other tools that
would improve quality of life in rural households. Most households in rural areas do not
have the money to invest in generators or the diesel/biodiesel fuel to run them. The31
market for generators is therefore limited to commercial operations, which is extremely
small at this point.
Although there is a large potential market for biodiesel to power generators in rural
areas, the Mukono region is extremely well connected to the main power grid because
of its proximity to Kampala. There are concerns over cost that keep some households32
on the edge of the grid from connecting, but the connection is available. The Mukono
area does not have a high enough demand for electricity alternatives to the main grid to
make this a market worth pursuing at this time.
Ethanol Powered Cookstoves
Ethanol can be used as an alternative cookstove fuel to LPG (Liquid Petroleum
Gas) and kerosene. There are an estimated 400,000 to 500,000 households in Kampala
and the surrounding areas, so theoretically 400,000 to 500,000 consumers of cooking
fuel near the Mukono region. Cooking fuel is currently distributed through33
supermarkets in urban areas and local markets in rural Uganda. Ethanol for use in
cookstoves faces a variety of competition.
Page of36 66
http://www.cars.co.ug/cars-for-sale-uganda/28
http://www.indexmundi.com/uganda/electricity_production_by_source.html29
http://www.energia.org/fileadmin/files/media/pubs/biofuelsbook_uganda.pdf30
http://www.cleancookstoves.org/resources_files/uganda-market-assessment-33
mapping.pdf

There is LPG currently for sale in Ugandan markets as cooking fuel, however most
consumers do not realize the health benefits of the cleaner oil and opt for the lowest
price instead. A 25 kilogram cylinder contains 12.75 liters of LPG, costs about $40 and
lasts over eight months when cooking one meal per day. Competition in this market34
would also come from electric, solar, and charcoal stoves. Charcoal stoves are currently
the most popular, but the increasing cost of charcoal in urban areas is making
alternative cooking fuels more attractive to many consumers. The main reason they do35
not switch is the cost of a new stove that would be able to run on ethanol, LPG, or
kerosene.
Promotion
On the transportation fuel side, promotion to consumers is not necessary
because the demand already outpaces the supply. Promotion to retailers could include
joining or collaborating with the Association of Uganda Oil and Gas Service Providers,
which empowers local companies to be more involved in the support of transportation
fuel providers. Presence at industry events such as the Uganda Mining, Energy Oil36
and Gas Conference and Exhibition is also advised to gain insights into the future of the
industry and make connections with potential partners. Biofuels could be marketed37
directly to corporate customers who seek to reduce emissions or secure a steady fuel
supply.
Education and awareness about ethanol for cookstoves is necessary to break the
buying habits of the Ugandan people who have been buying charcoal or a familiar brand
of LPG (liquid petroleum gas) for an extended period of time. Forging partnerships38
with cookstove manufacturers to include cylinders containing ethanol rather than LPG
would be a way to penetrate the gas cookstove fuel market. Collaborating with
government agencies or NGO’s that focus on the health risks of dirty cooking fuel would
be beneficial for increasing demand for ethanol fuel as a clean alternative to charcoal.
There is NGO promotional activity on the issue, mainly by door to door education on the
issue.
Page of37 66
http://www.cleancookstoves.org/resources_files/uganda-market-assessment-35
mapping.pdf
http://augos.org36
http://www.umec-uganda.com/37

Institutions Involved in Transportation Fuel
There are many current players in the Ugandan transportation fuel market. Retail
brands in the Mukono region are Total, Shell, Petro City, and Hass. They currently39
distribute imported fuel that has been produced abroad. However, there are domestic
extraction and refinery capabilities that are planned to be operational by 2016. , The40 41
Ugandan government has awarded a $2B contract to extract the estimated 1.7B barrels
of recoverable oil in Uganda and refine it primarily to use as transportation fuel. The
refinery is to be located in Kampala and extraction will begin in the Albertine region. The
three companies that are part of the contract are Britain's Tullow Oil, France's Total and
the state-owned China National Offshore Oil Corporation, which is furthest along in their
production capabilities. Once established, these companies will be able to extract
30,000-40,000 barrels of crude oil per day and refine 30,000 barrels per day. There is
also talk of constructing a pipeline to connect Uganda with the Kenyan port of Lamb.
Another fuel venture is the African Power Initiative, which is an initiative by the
Obama administration. This venture began a small scale production of biofuel in 2013.42
Currently, API produces about 4000 liters of biodiesel per day. The biomass feedstock
consists of jatropha, castor nut, and croton and is produced on 20,000 acres (8,100
hectares) in the Karamoja region. Their production capacity is far greater than their
current output. With an increased biomass supply, API could produce up to 60,000 liters
of biodiesel per day. This would amount to 1.8M liters per month and satisfy
approximately 3.6% of the country’s demand for diesel transportation fuel. However, the
biodiesel could alternatively be used to power generators to keep up with the increasing
electricity demand.
Market Summary and Analysis
Diesel fuel is currently the largest transportation energy market, but gasoline is
quickly closing the gap. There are no current biofuel blends being sold to consumers at
the pump and no reported consumption as a transportation fuel. Significant domestic oil
production capacity could be operational by 2016, providing competition for domestically
produced transportation fuel. The demand for energy clearly exceeds the supply as
evidenced by shortages and price fluctuations. Automakers suggest blending biofuels
with petroleum. The most popular ethanol blends are E10, which can be used in any
Page of38 66
http://www.bloomberg.com/news/2013-09-25/cnooc-of-china-wins-uganda-s-first-oil-40
production-license.html
http://news.yahoo.com/uganda-signs-roadmap-commercial-oil-41
production-112037414--finance.html
http://allafrica.com/stories/201304020406.html?viewall=142

petrol engine, and E85, which requires a Flex Fuel equipped engine that is rare in
Uganda. Although it is possible to run any diesel engine on B100, most automakers
suggest a B20 max blend in vehicles produced in the late 1990’s or later because of
concerns over engine durability and performance.
The secondary markets for biofuels are diesel for electricity production in rural
areas and ethanol for use in cookstoves. The Mukono region is too well connected to
the main grid to require diesel generators. The main grid is powered nearly exclusively
by hydro-electric power. Ethanol fueled cookstoves are expensive, but the fuel
production prices could be low enough to be competitive with other cooking fuels.
Uganda’s reliance on imported fuel that produces high, fluctuating prices makes
a reliable supply of domestic fuel attractive to retailers. Production costs must be able to
compete with costs of importing petroleum to sell at a marketable price. Higher energy
demand than supply indicates room in the market for biofuels without having to try to
compete with petroleum sales. The new contracts for domestic petroleum production
could make the transportation fuel market more competitive by stabilizing the market
and mitigating some of the fluctuations caused by the current 100% import rate of
petroleum and diesel. This would likely reduce the possibility for a high positive impact
of domestically produced biofuels on market stability, although an impact would still be
made. Secondary markets such as cookstoves and generators depend on the adoption
of devices that consume biofuels. There is a strong perceived market for these devices,
but the combination of the lack of affordability of the the equipment that would run on
biofuels and distribution issues limits the size of the current market.
!
Page of39 66

GBEP Indicators
Environmental Impact
2. Soil Quality
! As discussed in the production section, the quality of the soil is incredibly rich
and fertile throughout Mukono. The soil can be categorized as “ferralitic,” and “ferrisols,”
soil types made up of sandy loams and clay loams. Because of the heavy rainfall that
the region regularly receives, the soil has high to medium levels of fertility as well as
good porosity. !43
! However, one major environmental issue concerning Mukono’s soil is that of soil
erosion. This is most commonly caused by overpopulation in certain areas of Mukono,44
coupled with heavy rainfall and deforestation. In its most serious form, this soil erosion
can lead to devastating mudslides that cause widespread destruction, injuries and even
death.!
! According to Jones Ahabwe, in the eastern region of Uganda, two instances of
these mudslides recently took place. Occurring as a result of deforestation, the soil
erosion and ensuing rainfall was so bad that massive mudslides took place, burying two
entire villages and killing hundreds of people in the process. This is not only an example
of poor stewardship of Mukono’s rich soil resources, but it is also a manifestation of how
a lack of environmental care can lead to devastating impacts on Uganda’s people. !
! Another environmental factor to take into consideration in relation to soil quality is
the use, or lack of use, of fertilizers. Although Uganda’s soil is naturally very fertile and
has high potential for agricultural productivity, the use of fertilizers can encourage
increased productivity. According to a report on “Sustainability Indicators for Natural
Resource Management & Policy” by the Economic Policy Research Centre:!
!
Fertilizers should be promoted as a complement to appropriate land
and crop husbandry practices such as water and soil conservation,
organic fertilizer, proper tillage, and crop rotation.45
!
Therefore, in order to encourage increased yields from Uganda’s already-fertile
and agriculturally productive land, the increased use of fertilizers is suggested as an
extremely effective method of reaching this goal.
Page of40 66
ftp://ftp.fao.org/agl/agll/kageradocs/08case_studies/ug_nrm_overview_paper.pdf43
ibid.44
ibid45

6. Water Quality
Uganda is home to an abundance of natural fresh water resources. In fact, “lakes
in Uganda cover one fifth of the total area of the country.” In Mukono’s rich, semi-46
tropical climate, there is typically no shortage of rainfall and fresh waters sources. In
fact,
The district is endowed with enormous water resources, including Lake
Victoria to the south of the district, River Nile to the east and Sezibwa
River, which drains 90% of the district, and also ground aquifers.47
!
! Mukono is home to a total of 1,181.73 square kilometers of water bodies, with
rivers and lakes making up 396.3 square kilometers of that and wetlands or swamps
covering 151 square kilometers. !48
! In addition to these natural surface-level sources of fresh water, Mukono also has
the blessing of experiencing two rainy seasons, which produce 1250 to 2000 millimeters
of rainfall each year. The water level in Mukono is also extremely high, making it easy49
for households to dig wells and have immediate access to a consistent supply of water.
The area’s hilly terrain also contributes to this ease of access to water. Those
individuals who choose not to drill wells often just collect the abundant availability of
rainwater, particularly during Mukono’s two rainy seasons, and use that supply
throughout the year. !
! However, an environmental concern for many is the fact that even these plentiful
sources of surface fresh water are often contaminated by pollution from industrial
sources. Indeed, as Mukono becomes increasingly urbanized, the resulting industrial
waste often is not discarded in an appropriate or responsible way, leading to
contamination of Mukono’s essential water supply. !
! Because of poor governance in Uganda’s urban centers, including Mukono, the
water runoff from the cities is contaminated. Much of this water runs off into surrounding
lakes, and in Mukono it ﬂows into Lake Victoria. There is a high level of industrial waste
in Lake Victoria from both Kampala and Mukono, with the majority of this pollution
coming from industry and factories. !
! Another issue surrounding the quality of Mukono’s water supply involves the
wetland areas around Mukono. As urbanization has increased, a high degree of
wetlands reclamation has taken place in Mukono, and as factories or industry increase
Page of41 66
ibid46
ibid47
ibid48
ibid49

in number, they will ﬁll in wetlands areas to build their factories on that land. These
wetlands, which had previously acted as a sort of “ﬁlter” to remove pollution and
chemicals from water before it reached Lake Victoria, can no longer perform these
necessary functions. Indeed, in Mukono:!
!
Wetlands are facing encroachment from…rapid population growth, the
need for more agricultural land, rapid urbanization, industrialization and
the expansion of the construction industry.50
!
7. Biological Diversity in the Landscape
Uganda as a whole, and Mukono specifically, boasts a rich biodiversity. In the
district’s highlands, there are “unique ecosystems, well endowed with productive soils
and favorable climate.” Because these areas are so attractive and fertile, they also51
tend to be more heavily populated than others areas in Mukono.
Forests and tropical rain forests also compose a significant portion of the land
area and contribute to its stunning biodiversity. Forests are not only a major source of
natural resources such as firewood, but they also are home to a spectacular range of
wildlife and vegetation. The forests constitute about 7% of Uganda’s total land area is
categorized as gazetted (forest reserves), protected (national parks), or private or
ungazetted public land.52
Mukono is also home to incredible tropical rain forests, particularly close to Lake
Victoria and Mt. Elgon. As with forests, these tropical rain forests are concentrations of
biodiversity essential to maintaining Mukono’s rich ecosystem. However, as one report
notes:
!
Over the years, these forests have been cleared, and from a coverage of 12.7%
of the country’s land area at the start of the century, tropical high forests now
account for only 3% of Uganda’s land area.53
!
Indeed, according to Jones Ahabwe, deforestation is perhaps one of the most
environmentally damaging practices in Mukono. For example, the largest forest in the
Mukono region is the Mabira forest. Today, the deforestation that has taken place is so
Page of42 66
ibid50
ibid51
ibid52
ibid53

widespread that just a casual walk through the forest is enough to notice how many
trees have been cut down and how drastic the deforestation is to this forest.
Deforestation is driven largely by a massive demand in Mukono for charcoal and
firewood for use in stoves. What used to be a huge forest is now shrinking every year
as individuals are cutting trees down for charcoal to sell in Mukono and Kampala.
Because this is such a serious environmental issue, there has been increased
pressure from the government, NGOs and churches to encourage individuals to cut
back on their charcoal use and to seek alternative fuel sources that do not have such
devastating environmental impacts. However, these efforts have thus far achieved only
minimal success. In part, this is due to a lack of effective enforcement at the local level,
where the very government officials charged with protecting the Mabira forest are often
themselves actively involved in the charcoal industry. The supply and affordability of
cookstoves that run on cleaner fuels is also an issue.
8. Land use and land-use change related to bioenergy feedstock production
As one report noted, “excluding lakes, swamps and forest reserves, more than
75% of the country is available for cultivation, pasture or both.” In Mukono specifically,54
much of the land is arable and ready for cultivation for farming initiatives. Although
purchasing land and developing it for the sake of growing biomass products does
prevent it from being used for food crops, there is currently no shortage of availability of
farmable land in Mukono. Thus the conflict of interest between food and fuel crops and
the land devoted to growing them does not seem to be as pressing of a concern for
Mukono as in other African countries.
There indeed is not substantial food-fuel tension in Mukono. Because the area
receives such heavy rainfall, boasts such fertile soil, and has an abundance of
agricultural crops, there is no shortage of food crops in Mukono. The area rarely
experiences drought or floods, so the harvest typically comes on time every year.
Many of Mukono’s residents grow their own food through subsistence farming,
and in these situations the residents typically enjoy a healthy range of food. But
because the central area of Mukono is urbanized, there are a number of impoverished
slums. Those living in the slums typically do not have the ability or resources to grow
their own food. Instead, they will purchase street food from vendors or local markets;
while accessibility is not an issue, healthy food is expensive. So although they still have
access to nourishment, it is not as healthy or nutritious as the diets enjoyed by those
living in rural areas. For example, they might eat two meals a day of chapatti, a
flatbread-like food, instead of a diet balanced out also by vegetables, meat or diary
products.
!
Page of43 66
ibid54

Social Impact
9. Allocation and tenure of land for new bioenergy production
The issue of land tenure is Uganda is incredibly complex. As one report noted,
“Land is one of the most contested resources in Uganda.” However, land is of central55
importance in Uganda. Indeed, “land is central to the shaping of community cultures and
gender relationships” in Uganda. Once lakes, swamps and forest reserves are56
excluded, over 75% of Uganda’s land area is arable for cultivation or pasture or both.
Having a proper understanding of land tenure, which can be defined as “the way land is
owned, occupied, used and disposed of within a community,” provides a thorough57
framework to understand other issues in Uganda influencing everything from agriculture
to food prices to energy. Indeed, “a properly defined and managed land tenure system
is essential to ensure balanced and sustainable development.”58
Historically, land in Uganda has been held by communities or families, rather
than by individuals. The concept of individual private property rights is indeed a foreign
concept in Uganda’s legal heritage. Throughout much of Uganda’s history, families or
communities owned large tracts of land, and the land was simply passed down as time
went on. This form of land tenure in Uganda is known as customary tenure.
This all changed four decades ago with the passage of Uganda’s 1975 Land
Reform Decree. This legislation nationalized Uganda’s land in an attempt to:
!
Improve tenurial arrangement for land. The decree substantially changed the
legal basis of land tenure in Uganda by declaring all land a public land
administered by Uganda Land Commission.
!
Under the decree, one cannot occupy public land by customary tenure except
with the written permission of the prescribed authority.59
!
However, due to a lack of sufficient resources and consistent, effective
enforcement measures, clear land policy and a national development plan, the Land
Page of44 66
http://docs.mak.ac.ug/sites/default/files/55
WomensLandRightsLocalFaceCultureAfricana.pdf
ibid56
ibid57
ibid58

Reform Decree failed to be fully implemented as a successful policy. Other problems
included:
!
Land fragmentation and exclusion of women from land inheritance; open access
to resources under communal land use; land degradation due to unsustainable
methods of resource use; and demographic pressure leading to encroachment in
gazetted areas.60
!
As a result of these policy failures, the government has taken measures to
gradually decentralize Uganda’s land and provide for more private ownership. Today in
Uganda, land tenure is takes four different forms.
Although found in nearly every region, the form of land tenure practiced
predominantly in Uganda’s eastern and northern areas is customary tenure. In
customary tenure, land is “owned and disposed of in accordance with customary
regulations” according to local cultural customs. Consequently, the rules for land
ownership “vary according to ethnic groups and regions.” Customary land tenure is
heavily community-based; in fact, it does not even recognize individual land ownership.
Indeed, customary tenure:
!
Does not recognize individual ownership of land—only the rights of the individual
to possess and use land subject to superintendency by his family, clan or
community.61
!
Another form of land tenure is mailo tenure, found mostly in the Buganda region.
In mailo tenure, the “basic unit of sub division [is] a square mile, hence the name
mailo.” Mailo can take the form of private or official/public ownership. In private mailo62
tenure, the individual owner possesses the right to use or sell the land as he desires.
And in the case of official mailo, land was historically given specific individuals or offices
of the local government in Buganda. According to one report, “The principle advantage
of this system is that it provides security of tenure thus allowing long term developments
including those related to conservatism.”63
A third practice of land tenure in Uganda is freehold tenure. In Uganda’s freehold
tenure, land is privately owned “in perpetuity and a certificate of title is issued.” This64
Page of45 66
ibid61
ibid62
ibid63
ibid64

form of land ownership is centered primarily in eastern and western Uganda, and
reflects certain similarities to mailo tenure. One potentially negative impact of freehold
tenure is land fragmentation, in which land passed down through families is broken into
smaller and smaller portions of land.
The final form of land tenure is leasehold tenure. As its name implies, leasehold
tenure is “where land is held based on an agreement between lessor and lessee.” It is65
a typical “rental” transaction of land.
In Mukono, the most common forms of land tenure are:
• Registered freehold: over 16,000 hectares
• Leasehold: nearly 17,000 hectares
• Customary: over 160,000 hectares
• !
As demonstrated above, customary tenure, in which land is held by the
community and individual property rights are virtually nonexistent, is the most prevalent
form of land ownership in Mukono.
13. & 15. Change in unpaid time spent by women and children collecting biomass
and change in mortality and burden of disease attributable to indoor smoke
A recent report from the Acton Institute highlighted the findings of the World
Health Organization regarding indoor air pollution in the developing world. According to
this WHO report, indoor air pollution is “now the world’s largest single environmental
health risk, and the main cause is entirely preventable.”
!
In cases of indoor air pollution, about 3 billion people around the world:
!
Cook and heart their homes using solid fuels (i.e. wood, crop wastes, charcoal,
coal and dung) in open fires and leaky stoves…Such inefficient cooking fuels and
technologies produce high levels of household air pollution with a range of
health-damaging pollutants, including small soot particles that penetrate deep
into the lungs. In poorly ventilated dwellings, indoor smoke can be 100 times
higher than acceptable levels for small particles. Exposure is particularly high
among women and young children, who spend the most time near the domestic
hearth.66
!
Indeed, this energy poverty afflicting much of the developing world is tragically
found in Uganda as well. According to Uganda’s Ambassador Oliver Wonekha, indoor
air pollution affects much of Uganda’s population, especially the women and children
living in the poorer or more rural communities. In fact, Ambassador Wonekha shared her
Page of46 66
ibid65
http://blog.acton.org/archives/67445-deadly-environmental-problem-world-today.html66

belief that the very esophagus cancer of her own mother was caused by indoor air
pollution.
What causes indoor air pollution, and why does it disproportionately impact
Uganda’s poor individuals and female residents? Ugandan women spend a significant
portion of their daily routine confined in small mud-thatched homes cooking for their
families with their children gathered around them. The women spend hour upon hour
bending over outdated stoves or even open fires burning firewood or charcoal. Because
the homes lack proper ventilation, the small particles released in the smoke are inhaled
repeatedly by the Ugandan women and their children.
Globally, indoor air pollution is responsible for causing one out of eight total
deaths around the world. Indeed, more than a million children are killed every year as a
result of these inefficient and potentially-lethal cookstoves. These numbers should be
astonishing. In Uganda, it is estimated that indoor air pollution causes 19,700 deaths
each year, as about 91% of the population still relies on traditional stoves and fires.
Indeed:
!
About 3.8 million households cook on open fires in an enclosed space and nearly
1 million additional households are exposed to carbon monoxide from traditional
stoves.67
!
One of the most popular and, thus far, effective solutions to indoor air pollution is
to use improved cookstoves. Already in Mukono, many households are transitioning
from charcoal or firewood burning stoves to gas stoves. Not only do these cookstoves
effectively cut down on the inconvenience, smell and smoke associated with charcoal or
firewood burning stoves, but they also mitigate the devastating effects of indoor air
pollution.
Economic Impact
17. Productivity
Compared with neighboring countries, productivity in Uganda is extremely low.
For example, the yield of cassava per hectare is about 10% of the yield on Nigeria. One
consideration is the role that yield-enhancing seeds could play in increasing crop
production. Additionally, most farmers do not have the means to invest in advanced
tools, equipment, fertilizer or other technology. Since the majority of farmland is
dedicated to growing only what Investment in agriculture to produce biofuels could
present a model for other agricultural initiatives to observe and imitate.
These investments would allow more crops to be used for biofuel production per
hectare, which is important considering the difficulty of attaining large plots of land. They
Page of47 66

would increase the efficient use of economic and land resources, and help to ease the
tension between competing food and energy interests in the case of cassava. If superior
agricultural techniques and a return on investment in advanced technologies could be
proven, the increased productivity in the Mukono region would be exponential because
of its fertile climate.
20. Change in consumption of fossil fuels and traditional use of biomass
On a large scale, blending ethanol or biodiesel with fossil fuels would reduce the
amount of fossil fuels that Uganda would have to import to keep up with transportation
fuel demand. Because biodiesel contributes to a 20/80 blend with diesel and ethanol is
blended at a 10/90 rate, the changes in fossil fuel consumption are doubled with B20
production compared with E10. On a smaller scale, its role would be to help stabilize
prices by helping to meet the demand that currently outpaces supply. Blending biofuels
for transportation fuel use would have a positive impact on the energy security and
emissions in Uganda.
The replacement of charcoal stoves with ethanol fueled stoves would greatly
reduce the amount of charcoal needed to be gathered and transported. This would help
to reduce deforestation and free up time to engage in other activities for the people who
currently gather charcoal, mainly women. However, an increased supply of stoves is not
directly affected by an increased fuel supply. The issues with accessibility to charcoal
stoves prevents a 1:1 impact on the gathering and use of charcoal and firewood merely
by bringing ethanol cookstove fuel to market. A steady supply of cookstove fuel would
create an environment where production and accessibility of compatible cookstoves
could increase, thus contributing to long term improvement in this area.
21. Training and re-qualification of the workforce
Related to productivity benefits, a biofuels operation in Uganda has the potential
to serve as a model for improved agricultural techniques and test the implementation of
new technologies in planting, fertilizing, and harvesting. The local workers employed in
these capacities would receive training and be able to pass their new knowledge on to
their families and neighbors. Exponential increase in the knowledge of advanced
agricultural techniques is possible.
23. Infrastructure and logistics for distribution of bioenergy
There is no large scale biofuel supply chain in Uganda. Although the African
Power Initiative has been producing biodiesel from Jatropha since 2013, there is no
information on their distribution channels or markets. A newly created biofuels operation
would have to forge partnerships with fossil fuel companies to either blend its biofuel
with petroleum or gasoline, or sell the raw biofuel to be blended by another company. In
this initial stage, it appears that it would be more feasible for the biofuel refiner to
purchase fossil fuels to blend with their biofuels and distribute B20 or E10 to either
wholesalers or retailers. The infrastructure in the Mukono region is sufficient to support
Page of48 66

the transport of biofuels via semi truck or railroad, however the highways are of
increasingly questionable quality further away from Kampala.
Ethanol produced to fuel cookstoves should use the same distribution channels
as LPG and kerosene by partnering with stove makers and supermarkets to deliver the
fuel to end users. Additionally, producers of ethanol cookstove fuel could look into
partnering with charcoal distributors as the volume of charcoal to be distributed should
decline as more alternative fuels are made available. These distributors may be looking
for new business as their volume shrinks. Logistics for biodiesel distribution to power
electricity generators in rural areas is complicated. Low demand and poor road quality
suggest that it is not an economically feasible market.
As an early player in the biofuels industry in Uganda, this initiative could provide
a model for future biofuel companies to imitate. Once a refinery is built, collaboration
with biomass producers could be pursued to increase the production of biofuel. This
could be attained by leasing out the use of equipment or by purchasing feedstock from
other producers. 
Page of49 66

Proposed Business Models
With Mukono as the location for further research and assessment of whether a
biofuel business will flourish, there are three suggested bioifuel business models to
explore that vary in the following ways: land acquisition/production of our own biomass,
choice of feedstock, and type of biofuel. Based on primary and secondary research and
informed projections and assumptions, these models compare and analyze the
profitability and sustainability of these biofuel business models.
1. Cassava Model (A): Purchase Cassava, Refine Biomass, Produce E10
This model is relatively a small-scale model in terms of its capital requirement. It
does not require purchasing land, which is the most expensive and complicated task,
according to Jones Ahabwe of Ugandan Christian University. Also the owner of this
model can simply focus on refining and distribution, instead of investing time and energy
in biomass production. It will require a single facility where refining and blending are
happening.
With Christianna Ogbonna and Eric Okoli’s research paper, Economic feasibility
of on-farm fuel ethanol production from cassava tubers in rural communities, we
garnered valuable information regarding refining process, equipment costs, operation
costs, and ultimately production costs of ethanol from given amount of cassava. 68
In addition, we acquire the market price of cassava, which consists of wholesale value,
market value in farms, and market value in Kampala from Cassava Market and Value
Chain Analysis by Africa Innovations Institute in July 2012.69
This model relies a few assumptions: there must be the constant price of
cassava and petroleum, and the availability of these two major sources.
!
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Page of50 66
http://www.academicjournals.org/article/article1380783331_Ogbonna%20and68
%20Okoli.pdf
http://cava.nri.org/documents/publications/UgandaCassavaMarketStudy-69
FinalJuly2012_anonymised-version2.pdf

Financial Analysis
*Based on current assumptions, this is not an economically sustainable business model.
SWOT Analysis
Strengths Weaknesses
• High Fuel Yield From Cassava
• Low Starting Capital
• No Land Acquisition
• No Production Costs
• High Price Of Cassava
• Low Blending Ratio With Petroleum
• Negative Gross Margin
Opportunities Threats
• Find Cheaper Cassava In Bulk
• Import Petroleum At A Cheaper Price
• Increasing Cassava Yield Probable
• Established Petroleum Market May Be Hostile
To A New Player Selling E10
• Sensitive To Fluctuating Petroleum Prices
Page of51 66

2. Cassava Model (B): Produce Cassava, Refine Biomass, Blend E10
This model is very similar to the Cassava Model (A) except it includes land
acquisition and producing our own cassava. This will require a large investment for
buying not only land, but also farming equipment, fertilizer and human labor. Although
this model may seem unattractive because of a large investment and risks, we
discovered that there is a great opportunity if we can increase the productivity (Yield) of
cassava to the level of the USAID-funded Cassava Enterprise Development Project
(CEDP) in Nigeria. Currently, the average yield of cassava in Mukono is 2.7T/Ha
whereas CEDP’s yield is 25T/Ha, which is approximately ten times higher than Uganda.
According to Jones Ahabwe, the main reasons of such a low yield in Uganda are
low-scale farming (non-commercial farming), and lack of basic equipment, fertilizer and
technology. In fact, we found out how much it costs to generate Nigeria’s 25T/Ha from
Integrated Cassava project. Considering rising demand for cassava in Uganda as well
as neighboring countries, producing crops at the level of Nigeria will most definitely
make the business profitable. In addition, Uganda’s fertile soil, great precipitation and
other favorable weather conditions could allow the crop production to achieve even
higher yield, like Europe’s 34T/Ha. 2M liters of E10 is 0.4% of Uganda’s petroleum
market.
Financial Analysis
This is the most profitable model, but has the highest operating cost and highest
required initial investment. Acquiring 10 hectares of land would be challenging.
Page of52 66

SWOT Analysis
!
3. Cassava Model (C): Purchase Cassava, Refine Biomass into Ethanol
Similer to Model #1, this model is relatively small-scale in terms of its capital
requirement. It does not require purchasing land, which is the most expensive and
complicated task, according to Jones Ahabwe of Ugandan Christian University. Also the
owner of this model can simply focus on refining and distribution, instead of investing
time and energy in biomass production. It will require a single facility to refine cassava
into ethanol to be sold for consumption as cookstove fuel.
With Christianna Ogbonna and Eric Okoli’s research paper, Economic feasibility
of on-farm fuel ethanol production from cassava tubers in rural communities, we
garnered valuable information regarding refining process, equipment costs, operation
costs, and ultimately production costs of ethanol from given amount of cassava. 70
In addition, we acquire the market price of cassava, which consists of wholesale
value, market value in farms, and market value in Kampala from Cassava Market and
Value Chain Analysis by Africa Innovations Institute in July 2012.71
This model relies on a few assumptions: there must be supply of cassava at a
constant price, demand for 20,000 liters of cooking fuel per year, and a warehouse for
lease around the price of $5,000 per month.
• High Fuel Yield From Cassava
• Highly Gross Margin
• Benefit The Society By Showcasing New
Agricultural Technology
• Control Over Cassava Supply
• High Operating Cost
• HIgh Initial Investment
• Complicated Land Acquisition Issue
• No Example Of Expected Productivity In
Uganda
• Increasing Cassava Yield Is Highly Probable
• Success In Increasing Productivity Will
Encourage Other Business
• Constant Growth In Demand For Petroleum
And Cassava
• Established Petroleum Market May Be Hostile
To A New Player Selling E10
• Difficulty Of Acquiring Land
• Political Risks (Bribery & Corruption)
Page of53 66
http://www.academicjournals.org/article/article1380783331_Ogbonna%20and70
%20Okoli.pdf
http://cava.nri.org/documents/publications/UgandaCassavaMarketStudy-71
FinalJuly2012_anonymised-version2.pdf

Financial Analysis
!
SWOT Analysis
!
• Low OperatIng Costs
• Low Starting Capital
• No Land Acquisition
• No Involvement In Production
• HIgh Price Of Cassava
• Cassava Is A Food Crop
• Negative Gross Margin
• Small Market
• If The Price Of Cassava Decreases While The
Price Of Cookstove Ethanol Remains, It Can
Be Profitable
• Increasing Demand For Cookstove Ethanol
Could Result In Higher Market Price And A
Higher Volume Of Business
• Fluctuating Price Of Cassava
Page of54 66

4. Cassava Model (D): Produce Cassava, Refine Biomass into Ethanol
This model is very similar to Cassava Model (B) except the scale has been cut by
90% to reflect the small but emerging cooking fuel market compared with the large
transportation fuel market. This will require a much smaller investment into land, farming
equipment, fertilizer and human labor. This model is less risky than Model (B) because
of the lower initial investment. Considering the rising demand for cooking fuel in the
Kampala area, the scale of this enterprise should increase year by year. Uganda’s fertile
soil, great precipitation and other favorable weather conditions could allow the crop
production to achieve an even higher yield to keep up with increasing cooking fuel
demand. The sale price is 65% of a competitive retail price with LPG and kerosene.
Financial Analysis
This is a model for the profitable production of cookstove ethanol. The initial
investment is far lower than that of a profitable E10 production operation and has
potential for sustained growth.
Page of55 66

SWOT Analysis
!
5. Jatropha Model: Produce Jatropha, Refine Biomass, Blend B20
This model is similar in scale to the Cassava (B) model, the main difference is the
production of biodiesel instead of ethanol. Also, Jatropha is not a food crop but a very
popular energy crop. Jatropha’s yield per hector is According to National Agricultural
Research Organisation (NARO)’s The Potential of Biofuel in Uganda, it recommends
jatropha as the most sustainable and profitable feedstock after extensive analysis of
other feedstocks, such as oil palm, sugar cane, and maize. We find this study very72
valuable because it not only deals with the nature of feedstocks, but also deals with the
suitability of feedstocks in the context of Uganda. In addition, there is already a US-
initiated biodiesel business in Kampala, Africa Power Initiative. Currently API has a pilot
refinery with a capacity of producing 1,300,000 liters of bio-diesel per year and an
industrial refinery of 20million per year capacity stored on site, which will be set up upon
establishing sufficient feedstock. For the financial projection of this model, we used the73
ratio of API’s current productivity of biodeisel per hectare to measure the revenue,
COGS, and other expenses. Further research should be conducted into the yield of
jatropha, as API’s is extremely low.  
• Very Small Operating Costs
• Low Initial Investment Required
• Easy To Acquire 1 Ha
• Bring Technology To Society
• Producing Cassava Is Cheaper Than
Purchasing It
• Low Profitability
• No Comparable Cassava Productivity In
Uganda, Must Estimate
• Unsure About Market Size
• Increase Cassava Yield
• Refining Equipment Can Handle Far Greater
Input
• Constant Growth In Demand For Cookstove
Ethanol
• Low Production Of Compatible Cookstoves
Page of56 66
http://www.nemaug.org/research_publications/bio_fuels.pdf72
http://www.api.co.ug/?page_id=1673

Financial Analysis
The yield of jatropha calculated from API’s current operation is extremely low, and this
model reflects the size of a plot of land that is reasonable to acquire in the Mukono
region. On a larger scale, this model would be profitable.
SWOT Analysis
• Jatropha Is Not A Food Crop; No Impact On
Food Security
• Substantially Lower Co
Ethanol
• Highly Recognized By Numerous
Organizations And Researchers
• Has To Be Large-Scale To Be Profitable,
Which Is Challenging In The Mukono Region
• High Starting Cost
• Land Acquisition Issue
• Reliance On Diesel Price
• Diesel Is The Largest Fuel Market
• Potential For Government Aid Because Of Its
Favorable Public Opinion
• Slightly Decreasing Diesel Demand In 2013
Page of57 66

6. Cassava Hybrid Model: Produce Cassava, Refine Biomass, Blend E10
and Sell Leftover Cassava as Food
As previously discussed, the low yield of agricultural crops in Uganda is the main
reason for its food shortage and slow economic growth. According to Jones, because of
the low supply of food, the price of commodities has been inflated and many ordinary
people are having one or two meals instead of having adequate diet. Although this
feasibility analysis is mainly focused on a biofuel business, we tested if producing
cassava at the higher yield (25T/Ha) at a bigger land and selling the surplus production
to the market after producing the same amount of Ethanol as Cassava (B) Model. We
planned to acquire 100Ha, which is quite large, as well as hiring about full-time 200
local employees. With the expected production of 2,500,000kg, we would keep
58,565kg of cassava for 20,000 liter of Ethanol then sell the rest (2,441,435kg) at the
market price of $0.15/kg (Farm area: $0.12/kg, Kampala: $0.18/kg). Surprisingly, this
business will generate $55,575 of annual net income, which means it will take about 2-3
years to pay off the investment cost except land. In fact, Jones mentioned that there is a
possibility of food price increase due to the increasing demand from not only Uganda
but also neighboring countries. The main assumptions of this business model are two:
the yield of cassava must meet the expectation, and we must acquire 100ha of land.
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Page of58 66

Financial Analysis
This is a profitable model as long as the farm maintains the expected yield (20 tons/Ha).
Acquisition of 100 Ha of land is a massive challenge in Mukono.
SWOT Analysis
• Potential To Be Highly Profitable
• Creates 200 Jobs
• Increases Food Supply Instead Of Decrease
• Flexibility To Produce Ethanol And Cassava
• High Initial Investment Cost
• Difficulty Of Acquiring 100Ha Of Land
• Difficulty Of Guaranteeing The Expected Yield
• Increase Of Food Price!
• Partnering With Other Agricultural Businesses
• Natural Disaster Or Pests Could Decrease
Productivity
Page of59 66

ROI Per Business Model
ROI Treemap (Area Of Model Indicates Size Of Initial Investment) 
Cassava
(A)
Cassava
(B)
Cassava
(C)
Cassava
(D)
Jatropha
Cassava
Hybrid
Sales
Revenue
$180,000 $1,800,000 $40,000 $40,000 $8,100 $546,215
COGS $(221,129) $(1,683,513) $(57,129) $(20,509) $(33,180) $(466,822)
EBIT $(41,129) $116,487 $(17,129) $19,491 $(25,080) $79,394
Net Income $(28,490) $81,541 $(11,990) $13,644 $(17,556) $55,575
Initial
Investment
$55,870 $376,741 $55,870 $135,740 $150,000 $1,138,170
ROI -0.51 0.22 -0.21 0.10 -0.12 0.11
Page of60 66

Further Research Suggestions
Production
1. Create an extensive feedstocks profile with the same standards and variables.
A. Ethanol vs. Biodiesel
B. Oil Yield, suitability, Variation of Production, Land Use, Maintenance, resilience,
C. Top Candidates: Jatropha, Giant King grass, Switchgrass, Palm Oil, Sugar Cane,
Cassava, etc.
2. Find the availability of biomass leftovers in terms of the amount and the cost in the
designated regions.
3. Research the use of leftover biomass from production of maize, bananas, coffee,
etc. to use as a feedstock.
Refining
1. Define commercial institutions in the designated area and find ways in which you
may collaborate with them
A. Ex) Sharing resources, facilities, infrastructure, leftovers, etc.
2. Find the precise operations of biodiesel/Ethanol refining process & cost
3. Find the precise operation of biodiesel/Ethanol blending process & cost
Distribution
1. Can petroleum or diesel be imported from Kenya at a lower price than 92% of retail
minus sales tax?
2. Is there a potential buyer for non-blended biofuels in the transportation fuel supply
chain?
Marketing
1. Are there any rural regions that produce their electricity from diesel generators in
need of a greater or more reliable fuel supply?
2. Are there any government initiatives pushing the use of cleaner transportation fuel?
3. Are there any groups or government programs aimed at promoting increased
awareness about the benefits of cleaner cooking fuels?
!
Page of65 66

GBEP Indicators
1. Because Mukono is an urban area, and households use primarily charcoal-burning
stoves, women and children do not spend a great deal of time gathering firewood. In
areas other than Mukono, particularly ones that are more rural, would the use of
ethanol-burning cookstoves have a greater benefit for women and children than
simply countering indoor air pollution?
2. Do ethanol-burning stoves release any non-GHG air pollutants or air toxics?
General Suggestions
1. Conduct risk analyses of Uganda’s politics, economy, climate, and social issues that
would influence the performance of a commercial biofuels business.
2. Consistently conduct validation sessions to confirm and strengthen the credibility
and reliability of the project.
Page of66 66

Biofuels in Uganda Report

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