U.S.

Ethiopia
Gaia Association News Update:

Clean Ethanol Fuel Program Resumes in Ethiopian Refugee Camps

As of Thursday March 24, 2011 Gaia Association began hauling local ethanol from the new
government distillery Metahara to the UNHCR-run Ethiopian refugee camps, at a purchase
price of 8.5 birr or $0.52 per liter. This is a per liter savings of 5.55 birr or $0.30 over
kerosene. It also returns a profit to the government for their ethanol (unlike their fuel blending
program, which has been operating at a loss). For the purchase of one million liters (to supply
3,000 stoves for one year) a savings of $300,000 is achieved for the UNHCR and donors. This
savings would buy an additional 6,000 stoves to put in other camps.

In addition to this fuel cost savings, the supply of ethanol to the camps accomplishes the
following:

1. Allows the use of a much safer stove. The ethanol stove enjoyed a perfect safety record
in the camps from 2006 to 2009 (almost 2 million stove-use days).
2. Provides much cleaner air. The ethanol stoves burn as cleanly as LPG stoves.
3. Reduces GHG emissions by 1 ton per year per stove over a kerosene stove and 6 to 10
tons per year over wood fires.
4. Eliminates the need for fuel gathering; eliminates conflict with the host community
(except that now the host community wants the ethanol stoves too).
5. Reduces black carbon emissions to zero.
6. Achieves the full WHO benchmarks for clean indoor air.
7. Improves energy access—more energy to cook with.
8. Saves cooking time and provides women with more time to do other things.
9. Provides the Ethiopian distillery with a good market for its ethanol so that the ethanol
does not have to be sold abroad.
10. Provides macro-economic benefit to Ethiopia since imported kerosene no longer has to be
purchased, with an outflow of scarce foreign exchange (Ethiopia has to buy its petroleum
fuels with dollars since the birr is non-negotiable outside the country).
11. Creates an example for what is possible when more ethanol fuel is produced in the
country—which is coming. When all of the existing wasted molasses from the sugar
industry is used for ethanol production, there will be about 130 million annual liters
produced. Of this, the automotive fuel sector will absorb 30 to 40 million liters, and the
remaining amount will be available for stove fuel, a market which can take much more.

The Brazilian and Italian governments are kindly donating ethanol to the refugee camps, which
will supplement the local supply we are now able to buy. This will set an example for what is
possible with commercially supplied ethanol fuel purchased from Brazil or elsewhere, by the
UNHCR and other humanitarian organizations. Where fuel must be provided for cooking and
other essential life-saving needs, there can also be a benefit to governments and donors as a
result of being able to purchase clean-burning ethanol at almost half the price of kerosene!

For more information please contact:

Wubshet Tadele: Managing Director, Gaia Association / Addis Ababa @ wubshett@projectgaia.com
Gulce Askin: Project Coordinator, Project Gaia, Inc. / PA, USA @ gulce.askin@projectgaia.com
Visit us online at www.projectgaia.com