According to Alemayehu Tegenu, Minister of Mines and Energy, who briefed journalists on Friday, November 9, 2007 at the Hilton Addis, the plan will  not share harvesting land. "Our plan will have no negative impact on the crop production of the country as the land allocated for bio-fuel will neither be convenient for farming or grazing," he said.

"While our development endeavour is being challenged by the continuous hike of crude oil prices, we don't have to sit back and look at the bare land we have. In addition, filling the bare land with jatropha will improve environmental degradation in the area and provides natural fertilizer to the land," the Minister stressed.

So far, some 17 companies with a maximum of 100 hectares of plot each are registered to invest in generating bio-fuel from jatropha and other plants and individual farmers will benefit from this plan, according to Alemayehu.

Sinkinesh Ejigu, State Minister of Mines and Energy, on her part also stated that with the objective of searching and using energy as the leading sector for social and economic development of the country, six foreign oil exploration companies are engaged in exploration of natural oil in various parts of the country.

Another local company whose study has identified the presence of crude oil around the Abay river area is also looking for foreign partners to start exploration.

In a related development, Gilgel-Gibe II Hydroelectric Power Generation plant will start generating 420 Megawatts of electric power at the end of 2008. The Minister of Mines and Energy noted that the project that experienced unexpected difficulties and was unable to be completed in the time table previously set, has all its problems solved now.

The existing power generation in the country produces only some 800 Megawatts, although the country has a potential of producing 45,000 megawatts of hydropower. Taking into consideration the untapped hydropower potential that stands the country in second place in the continent next to Democratic Republic of Congo, various bilateral interconnections are planned by the government to sell power to Sudan, Djibouti and Kenya.

The Ethiopian Electric Power Corporation has targeted to increase the existing 22 per cent electricity coverage of the country to 50 per cent after five years.

He also stated that within one year, the Ministry will introduce a blending mechanism of ethanol fuels with petroleum that will be used by automobiles. Eight million liters of ethanol fuel is expected to be produced annually by the time the expansion of government owned four sugar factories: Metehara, Wenji, Fincha and Tendaho sugar factories is concluded.

Keywords: ethiopia agriculture energy business society