Ugandan firm gets SEFA grant for 20-MW biomass power project

The Sustainable Energy Fund for Africa (SEFA) has approved a USD-993,000 (EUR 957,000) grant to Earth Energy Co Ltd of Uganda to fund the preparation for a biomass gasification project that is expected to supply 20 MW of power to Uganda's national grid.

According to an announcement last week by the African Development Bank (AfDB), which manages SEFA, the project is the first of its kind in the country.

The grant will help pay for preliminary studies needed to get the project off the ground, including a technical feasibility study, environmental and social impact assessment, a feed and detailed engineering design, as well as project management activities.

In addition to selling power to the grid, the project is expected to allow 15,000 farmers to earn an additional USD 720 a year from the sale of agricultural residue. It is also expected to create 6,000 jobs in the outskirts of Gulu Town in Uganda, in plantation sites and operation of the power plant. The project will also help prevent deforestation through the provision of affordable biochar briquettes to rural communities as an alternative to firewood.

"This grant will be instrumental in both the deployment of an innovative technology in an African context, but also in providing a clean energy alternative to a country highly dependent on hydropower such as Uganda," said Amadou Hott, AfDB's vice-president for power, energy, climate and green growth.

(USD 1.0 = EUR 0.963)

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