The current domestic consumption of ethanol is minimal. However, Tanzania would be capable of immediately replacing 10% of gasoline imports through consuming approximately 50 million litres of ethanol per annum (assuming a 10% ethanol blend in gasoline) based on 2012 levels of gasoline consumption. The project will produce approximately 10 million litres of ethanol that will be sold to domestic market. Ethanol can also be sold to the beverage industry, for pharmaceutical usage or as a clean and sustainable alternative cooking and lighting fuel. This would replace charcoal, firewood, kerosene and LPG.
The generation of steam and electricity is fully integrated within the production process just like any other modern sugar production facility. Most of the power generated will be used for internal processes. By using high pressure boilers (87 bar) and applying energy efficient processes, approximately 100,000 MWh/year of electricity will be delivered to the national grid. The energy delivered will be on a “take-or-pay” basis without any capacity charges. As rural households average consumption is less than 1MWh/year (1,000KWh/year), the power delivered by the project to the grid can supply about 100 000 new rural households with reliable power. Compared to power generated by imported oil or light generated by kerosene, the power delivered by the project is estimated to save approximately 40 MUSD every year for the national economy.
The current sugar production capacity of the Tanzanian Sugar Industry is approximately 50% of the demand. The ability of the existing sugar estates and factories to expand their capacity is limited. The current per capita consumption in Tanzania is much lower than for example neighbouring Kenya, but it is growing fast. When the expected per capita growth is coupled with the predicted increase in the population of Tanzania, it is very clear that the demand for sugar will grow rapidly. Without the introduction of new “greenfield” projects, the amount of sugar that needs to be imported will grow rapidly. In fact it is estimated that to keep pace with demand, it would take 6 new projects of the scale of the Agro EcoEnergy Project to meet the projected demand by 2030.