Ethiopia plans to introduce mandatory biofuel blends in both road and aviation fuels, aiming to reduce its reliance on imported petroleum and establish a domestic bioeconomy by 2035, according to Birrmetrics.

Under the new framework, road fuels will move to a 10 percent bioethanol blend (E10) by 2030 and 15 percent (E15) by 2035. Aviation will introduce a five percent Sustainable Aviation Fuel (SAF) blend, aligning Ethiopian Airlines with international decarbonisation standards. The strategy frames these measures as central to Ethiopia’s broader green growth agenda.

The strategy also outlines a regulatory and investment framework to attract private capital and stabilise markets. The Ministry of Water and Energy plans to collaborate with the African Development Bank and World Bank to provide financing instruments and risk guarantees for biofuel producers and distributors.

Sugarcane will supply ethanol, while oil-rich crops such as Ethiopian mustard will provide biodiesel. The use of non-food feedstocks is intended to prevent competition with food production, while generating rural employment and supporting agricultural industrialisation.

“The revised framework creates clear market signals through mandatory blending, ensuring long-term investor confidence,” the strategy reads. “It integrates climate action with rural industrialisation, placing agriculture at the centre of Ethiopia’s energy transformation.”