Government Developing Biofuel Policy to Harness Market Potential


Accra: The Government says it is developing a comprehensive biofuel policy to guide strategies and initiatives to unlock the country’s potential in the renewable energy market. A policy drafting team is wrapping up stakeholder consultations across the northern and middle belt regions, which will pave the way for subsequent processes to finalise the policy by the end of 2025.



According to Ghana News Agency, Mr. Seth Mahu, Director of Renewable Energy, Ministry of Energy and Green Transition, highlighted that finalising the regulatory framework would open up opportunities for biofuel use in sectors such as aviation, clean cooking, and exports. He noted that Ghana had already made provisions for a 10 percent biofuel blend with conventional fuel in the aviation sector to reduce carbon emissions, but the opportunity had not been fully realised.



Biofuels are renewable fuels produced from organic feedstocks such as cassava, sugarcane, jatropha, and agricultural residues. Mr. Mahu pointed out that the country is currently not producing even one percent of the target blend. He emphasized that if the sector had been prioritized, Ghana could have earned over GHS five billion annually from blending just 10 percent biofuel with conventional fuel.



On clean cooking, Mr. Mahu suggested the potential of converting biofuels into bioethanol to serve as a sustainable energy source for households and commercial kitchens. This approach would reduce reliance on solid biomass, help preserve forests, promote cleaner air, and cut emissions.



He further stressed the biofuel sector’s promise for diversifying Ghana’s energy mix, fostering rural development, creating employment, and advancing climate action. The establishment of the Renewable Energy Authority is seen as pivotal in promoting these opportunities and facilitating the country’s green economic transition.



Addressing concerns about competition between biofuel feedstocks and food security, Mr. Mahu assured that Ghana has sufficient arable land. He suggested that collaboration with institutions like the Ministry of Food and Agriculture could improve crop productivity. He remarked on the inefficiencies in production, citing abundant land suitable for cultivation and water resources, but highlighted the largely unmechanised nature of the agricultural sector, which depends on rain-fed cycles.



With the implementation of commercial-scale agriculture, Mr. Mahu believes the same acreage could be used more efficiently to meet both food and biofuel needs, thus supporting both sectors.