Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has revealed that the second ethanol processing factory in Kpenu under the Dorfor Traditional Area is set to be commissioned next month.
According to the legislator, the ethanol processing factory which is now 95% complete will create over 800 direct jobs when it begins operation.
“We are also on course with our massive youth in cassava farming initiative to provide constant raw material for the ethanol production,” he added.
He expressed gratitude to the Chinese investors for their “strong partnership” and the Dorfor Chiefs “for their land support.”
In 2016, Caltech Ventures, a Ghana-based cassava cropping and processing company, began the production of ethanol from cassava at a distillery in Hodzo in the Ho municipality, making it the first industrial-scale ethanol production company in the country. Kasapreko Company (KCL), an indigenous alcoholic beverage producer, and a large importer of ethanol, holds 40% shares in Caltech Ventures.
Per reports, the Ghana Ethanol Market size is expected to grow at a significant CAGR of 7.5% during 2024-2030. One of the main drivers of growth in the Ghanaian ethanol market is government policies and incentives. One such initiative is the Biofuel Policy for Ghana was launched to promote local production and use of biofuels, including ethanol. Additionally, Ghana’s Ministry of Energy established a national biofuel committee to oversee the implementation of this policy and ensure its success.
The growing concerns about climate change and environmental sustainability have led to an increasing demand for renewable energy sources. Ethanol is a renewable fuel source as it is produced from biomass materials such as corn, sugarcane, and other agricultural products, hence its demand is increasing in the market.
However, the market faces competition from traditional fossil fuels such as gasoline and diesel. These fuels are widely available and are often cheaper than ethanol due to their established infrastructure.
Some of the major players in the Ghana Ethanol Market include Caltech Biofuel, Gihoc Distilleries Company Limited, Sasoil Biofuels Ltd., PIA Biomass Energy Limited, Flamingo Bioenergy Limited, Ekumfi Fruit and Juices Co. Ltd., Sunripe Farms Ltd., Dizengoff Ghana Ltd., Agrotopia Group of Companies, and Alternative Energy and Development Enterprises Ltd.
