Ethiopia Targets Aviation and Transport Fuel Self-Sufficiency with New Biofuel Hub

Ethiopia is advancing its energy and transportation strategy with a 23,000-hectare agricultural biorefinery developed through a partnership between Sunbird Bioenergy Africa and the Ethiopian Mining Corporation (EMC). 

The project, targeting operations by 2030, aims to supply Sustainable Aviation Fuel (SAF), household biofuels, and ethanol for transport, while supporting the country’s broader shift toward electric vehicles (EVs), liquefied natural gas (LNG), and compressed natural gas (CNG).

The biorefinery will produce SAF for aviation, targeting a 10 percent SAF blend, with projected demand of 530,000 million litres per year by 2028–2030. Household clean cooking fuel, replacing kerosene, charcoal, and LPG, is forecast at 120–150 million litres per year during 2025–2030. Transport ethanol blends (E10–E20) are expected to reach 115–230 million litres per year in the same period.

The project will leverage locally produced feedstocks, including cassava and sugarcane, supporting rural employment and domestic agricultural development. Sunbird Bioenergy will manage renewable fuel production, while EMC provides industrial expertise, infrastructure, and end-to-end supply support.

Richard Bennett, founder and chief executive of Sunbird Bioenergy Africa, said Ethiopia has already laid a biofuel policy foundation for companies like his to operate. He added that the World Bank has also been exploring how finance can actually work to make the project succeed in the country. Bennett emphasised that the company’s goal is to substitute a significant portion of Ethiopia’s fuel consumption with biofuel.

Tewodros Getachew, CEO of Ethiopian Mining Corporation, said the biorefinery is expected to produce 40–60 million litres a year. He told Birrmetrics that they are partnering to supply jet fuel for Ethiopian Airlines and that EMC will help get it from production to the users and act as the main point of contact. He added the project should be up and running within five years.

Ethiopia’s energy transition is already underway. The country has implemented policies promoting electric vehicles, including import incentives, with more than 115,000 EVs currently registered. In parallel, the government is expanding LNG production through the Ogaden project, which produces over 100 million litres of LNG annually and powers industrial facilities, and promoting CNG adoption for buses and vehicles, targeting one million CNG-propelled vehicles by 2027.