Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has announced that Kpenu, located within the Dorfor Traditional Area will soon be home to Ghana’s second ethanol processing factory which is set for commissioning next month.
The facility, now 95% complete, is expected to generate over 800 direct jobs upon commencing operations.
“We are also on course with our massive youth in cassava farming initiative to provide constant raw material for the ethanol production,” Ablakwa shared. He expressed gratitude to the Chinese investors for their “strong partnership” and to the Dorfor Chiefs for their “land support.”
Ghana’s ethanol production industry began in 2016 when Caltech Ventures, a local cassava farming and processing company, established the country’s first large-scale ethanol distillery in Hodzo, within the Ho municipality. Kasapreko Company Limited (KCL), a leading Ghanaian alcoholic beverage manufacturer and significant ethanol importer, owns a 40% stake in Caltech Ventures.
Reports indicate that Ghana’s ethanol market is projected to grow significantly at a CAGR of 7.5% between 2024 and 2030. This growth is largely driven by supportive government policies and incentives, including the Biofuel Policy for Ghana, which promotes local biofuel production and use. The Ministry of Energy also established a national biofuel committee to support the policy’s implementation and success.
As environmental concerns and climate change drive demand for renewable energy, ethanol, produced from biomass sources like corn, sugarcane, and other agricultural products, is increasingly valued for its sustainability. However, the ethanol market faces competition from traditional fossil fuels, such as gasoline and diesel, which are often more affordable due to established infrastructure.
Key players in the Ghanaian 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.