Ethanol plus investments limitedDocument Transcript
ETHANOL PLUS INVESTMENTS LIMITED
The Company was incorporated in Uganda in March 28th 2013 as Ethanol
Plus Investment Limited to construct and operate a fuel grade bio-ethanol
production plant and utilize the bi-products to promote fish farming and
charcoal production in accordance to the company’s Memorandum of
Association and in compliance with the applicable laws of the Republic of
Uganda. EPIL’s interest in renewable energy investments comes after a ray
of guidelines from the government and any legal and institutional
Ethanol is a renewable, environmentally clean burning and high octane
motor fuel source that is chemically produced by the fermentation of
sugars found in plants like sugarcane, grains and other biomass. Ethanol
can be produced from a number of different types of grains such as corn,
wheat and sorghum as well as from agricultural waste products such as
rice hulls, cheese whey, potato waste, brewery and beverage wastes and
forestry and paper wastes. However, EPIL will produce ethanol using
sugarcane because sugarcane contains large quantities of carbohydrates
and is in great supply in Uganda than the grains. Such carbohydrates
convert into glucose more easily than most other kinds of biomass.
OPERATION OF THE FACILITY
Unlike ethanol production around the world, our facility will mainly use
sugarcane as the raw material with alternatives such as sweet sorghum
viewed as future prospects. During fermentation 70% of carbon dioxide
will be induced in water for the formation of algae. The other 30% will be
captured and channeled to the green house producing vegetables to
enhance growth. 30% of the bagasse (sugarcane biomass) will be used for
heating the mush, while the 70% being ground into saw dust and
converted into charcoal.
After processing the grain, 70% of the product will be mixed with algae to
make livestock feed for livestock such as goats, cows, rabbits, chicken and
rabbits. Another 30% will be used for the production of mushrooms.
EPIL main production plant is in Mayuge district, Luyira village in Eastern
Uganda(Busoga region) and stands on 7 acres of land. The production
plant comprises of Ethanol processing and distillation chambers, above
ground fish farming ponds, charcoal making chambers and acts as a
collecting point for the raw materials used in all the plant activities.
BRIEF BACKGROUND ON UGANDA’S ENERGY USAGE
Uganda has various sources of energy such as hydroelectricity, solar
power, biomass and the traditional source which is charcoal and fuel
wood. 80% of the total Ugandan population resides in rural areas. Only 2%
of the rural households have access to the hydroelectricity, solar power and
biomass because they are expensive.
The charcoal fuel wood provides more than 90% of the economies energy
needs. More than 80% of the fuel wood consumption is still in the
domestic households pricing for cooking as attempts to convert the
population to fuel efficient stoves is so slow and difficult due to resistance
of change and increased biting poverty levels that makes most households
unable to afford kerosene or electricity.
In addition, Uganda is highly vulnerable to oil price shocks as it imports
almost all of its 7000 bbl. of oil. Expensive foreign energy sources divert
precious resources from other areas of need such as transportation, health
and sanitation, education, research and technology for a growing economy.
Thus the introduction of a cheaper bio-fuel will ensure at least every
household is able to afford an energy source that is environmentally clean
and sufficient through the cheap prices of ethanol and the ethanol powered
stoves that EPIL will introduce.
Our primary objective is to create an alternative cheaper and sustainable
clean and renewable energy fuel for Uganda. Because it will be
domestically produced, ethanol will help reduce Uganda’s dependence
upon foreign source of energy and will create green jobs in rural areas of
To create employment opportunities that will reduce on the poverty issues
and improve the socio-economic well being of the Ugandan community by
creating a base for both direct and indirect jobs.
To raise awareness and information on the environmental conservation
and reduce on the sustainable dependency on the environment for energy
and food products.
To promote research and development by creating a model base for
sustainable and renewable bio-fuel energy in Uganda.
To provide and increase the food source for the communities, especially
produced from the bi-products of ethanol. This increases the food base in
domestic households and acts as a source of nutrients to the families for
example fish farming.
SERVICES AND CORE COMPETENCIES
The nature of the company’s purpose is majorly on bio-ethanol production.
EPIL has designed and is currently developing a six million litres per year
(6MM LPY) advanced bio-fuel ethanol production using sugarcane as the
target feedstock. Because of the availability of sugarcane, it can be
harvested between 10 to 12 months after cutting. They grow well in soils
with enough water supplies.
About the farm land, sugarcane is got from the 200 acres of farmland. We
have an open umbrella contract with the farmers that can have a supply of
the agreed 10 acres and above of land to provide us with sugarcane as per
the contract in the appendices which makes it up to over 600 acres of land
in the first phase of 24 months.
Alternatively, the company plans to introduce sweet sorghum as 2nd target
feedstock. Sweet sorghum is a subtropical grass that grows well in
marginal quality soil and requires less water than sugarcane.
This is because sugarcane is traded on the commodities market creating
uncontrollable fluctuations in the cost of the raw material.
Advanced bio-fuel plant design
The sugarcane bio-fuel facility is a closed loop design.
The facility buys the sugarcane for its raw material supply from out
growers but plans to grow its own in the future.
The plant produces all of its own ethanol fuel; all of the steam
required to run the production facility and uses an ethanol run
generator to provide electricity for production.
Produces liquid fuel for transportation.
Produces a cheap liquid fuel for cooking stoves and household
heating replacing wood and charcoal as a fuel source.
The facility produces a low-carbon ethanol and the carbon credits can
be sold or traded on the international market.
High level employment
The advanced bio-fuel production facility will create many permanent jobs
and construction jobs of the following kinds;
Farming operations concerning out growers will employ 30 to 40
people during harvesting and supply activities.
Plant operations will create a total of 25 ongoing jobs for the
o Plant operation employees
o Foremen and supervisors
o Laboratory technicians
o Maintenance engineers
o Journeymen mechanics
o Office personnel, supervisory personnel
o Facility and farm COO and CFO to run the operations
When compared to similar projects, the number of indirect and
induced jobs in the surrounding community will average around 200
additional jobs created.
It can be blended with unleaded gasoline in varying percentages and this
reduces harmful auto emissions, enhances octane ratings of the gasoline
with which it is blended, offers consumers a cost-effective choice, and will
in turn decrease on the amount of crude oil Uganda will import from
o 200 indirect and direct jobs
o Drive towards local energy independence
o Strengthen agricultural base
o Local partnerships with business and educational groups
Localized development and benefits
The plant will act as a research and education centre for mostly the
Ugandan community that are interested in acquiring knowledge
about ethanol production and related bi-products since ethanol bi-
fuel is a cheap, new and unique sustainable energy in Uganda and
the surrounding economies.
The local community in the producing area around Busoga will be
directly rewarded points to the sugarcane growers which gives them
access credits in terms of income in between harvest time and the
yielding gap. This reduces on the rising poverty levels in the region.
Fish farming is carried out in above ground fish ponds of 24ft * 18ft
sizes and will increase the food source to the community. The plant
will use the bi-product like carbon dioxide during fermentation to
produce algae as the basic food for fish.
The facility will use bagasse bi-product to make charcoal to be
distributed and sold to the local community at a cheaper price that
will in a long run reduce deforestation that Uganda is currently
The introduction of sweet sorghum will increase the food base and
over reliance on sugarcane in the area.
This will also increase the availability of chickens, pigs, cattle and
other protein based food for the local population.
Locally produced ethanol supercharges regional economies. Each
litre of alcohol or fuel produces local income that gets recirculated
many more times.
Future Product development
The advanced bio-fuel production facility is designed to be expanded and
with the ability to make future co-products like industrial alcohol,
cellulosic ethanol or other refined products like bio-butanol.
The company has the required technical equipment and capacity to entirely
change or divert automobile engines to use ethanol bio-fuel alone. Like in
Brazil, the ethanol can replace the imported gasoline requirements of the
country while reducing automobile generated pollution in the local area.
Many automakers now produce vehicles that will run on 100% ethanol that
are sold worldwide.
MARKETING AND DISTRIBUTION
As an upcoming plant, EPIL shall contract third-party service providers to
market our ethanol bio-fuel as we start off and build a relationship with
the public over time and thoroughly analyze their response towards the
product through the tools the company is using .
With an expanded renewable fuels standard in the new Renewable Energy
Policy for Uganda in 2007 that marked a major milestone is expected be set
as obligatory to fuel companies distribute blended fuels with ethanol, in
order to curb down the high prices at the fuel pumps. This Policy envisages
an increasing share of renewable energy from 4% to 61 % by 2017.
EPIL will begin distribution to selected oil companies directly first which
by law will be obligated to blend fossil fuels with bio-fuels up to 20%
appropriate. Additionally ethanol will be sold to the communities directly
as a form of fuel that they use in equipment like ethanol stoves that the
company will introduce, this is because it’s a clean nature, and affordable
price of the ethanol unlike other fuels.
Because EPIL has the required technical equipment and capacity to entirely
change or divert automobile engines to use ethanol bio-fuel alone, it plans
to set up fuel points where ethanol bio-fuel will be distributed as is
PROPOSED COSTS OF SETTING UP AND FINAL PRODUCTION
The proposed cost for setting up the facility is expected to be around 900
million Ugandan shillings. Here is the comprehensive table showing the
breakdown of costs and expenses so far.
ITEM/ACTIVITY QUANTITY ESTIMATED COST
Land 7 acres 56 million
Plant machinery 400 million
Plant structures 6 buildings 120 million
Fish ponds 3 ponds 25 million
Road construction 10 million
Landscaping 6 million
Labour 13 million
Building materials 8 million
Plant machinery 23 million
Taxes. 70 million
Automobile 1 25 million
Furnishing 6 million
Office equipment 4 million
Miscellaneous 10 million
TOTAL 776 million
Acquisition of company automobiles
Acquisition of more machinery
Construction of green house
Acquisition of farm land
Acquisition of charcoal making machine
Construction of wall fence
Construction of a second distillery preferably in the western region of
Uganda’s 1st ethanol plant at
o World class production project
o More than 500 jobs during
o More than 400 indirect jobs
Phase 1: Total investment 900
Business partner (s)
o Afraitane Chamsiddine
o Priority to residents for
o Skills improvement &
training for residents
o 6 million litres per annum of
o Fish production
o Charcoal making
o Animal feeds
o Road network around
I am Dennis Rugumya and I was born and raised in Uganda. I was
formerly residing in Orlando, Florida USA, and employed as a Walt Disney
World Cast Member. I completed Bachelors in tourism from Makerere
University in Uganda but completed short courses on Ethanol bio-fuel
production while in USA.
I am partnering with Afraitane Chamsiddine, born and raised in Comoros
but currently residing and working in the United States of America, who
studied and practiced with the school of David Blume, the American perm
culture, teacher and entrepreneur, advocate and prolific public speaker for
production of ethanol fuel at local, small and medium levels. Chamsiddine
completed studies Aquaponics in Georgia USA.
We are the proprietors of the Ethanol plus Investments Limited (EPIL) with
a commitment and common goal of producing Ethanol bio-fuel in the
Republic of Uganda.
Our vision is to produce a clean renewable bio-fuel that can double as an
alternative and affordable fuel which is environmentally friendly.
In one of my discussions with the state minister of energy July 2013 Hon
Simon D’Ujanga, he expressed Uganda’s interest and support for
renewable energy sources as a potential lasting solution for the economy’s
fuel prices and shortages.
The Assistant commissioner for renewable source of energy Mr. Godfrey
Ndawula in the same concept of energy security and independence agreed
that small renewable energy firms will create a base and step closer to the
energy independence a Uganda’s main target to reduce on energy issues.
EPIL has been incorporated as a Limited liability company, taken the initial
stages of land identification and is constructing the supporting
infrastructure to produce Ethanol bio-fuel and utilize the bi products. We
have met with the sugarcane out growers in Mayuge district to start off the
supply of the raw material to the facility. Production is due before
December of 2013.
Telephone: 077 272 1857
Director and Chief Operations Officer