The Ethiopian Ministry of Petroleum and Natural Gas is drafting a new biofuel Bill which will be the first to be enacted for the biofuel energy industry in the East African country.
The Bill is set to open the biofuel energy industry to the private sector, which was once exclusively allocated to public investments and was regulated by the investment and trade laws of Ethiopia. The Ministry has taken the past two years to draft the legal framework and collaborated with 22 institutions, including representatives from the private sector.
Michael Gessese, Director of biofuel at the Ministry, said that the new law, which is in its final stages of review, will replace the current laws.
“The sector is underdeveloped and facing multiple challenges,” he added.
The Ministry said the new legal framework would include establishing an authority and managing the industry. Private investors who generate energy from by-products of industries and agriculture outputs will also receive incentives.
The Ministry has identified 40 potential plants to produce biofuel energy.