A new bill is in the works to allow the involvement of the private sector in development, production, distribution and the sale of biofuel energy. The law will be the first to be enacted for the biofuel energy industry.

The Ministry of Petroleum & Natural Gas is drafting the proclamation, regulation and directives that will fully open the industry to the private sector, which was once exclusively allocated to public investments only. The Ministry has been drafting the legal framework for the past two years in collaboration with 22 institutions, including ministries, public enterprises and representatives from the private sector.

The biofuel industry has been regulated by the investment and trade laws of the country until now. The new law, which is in its final stages of review, will replace the current laws, according to Michael Gessese, director of biofuel at the Ministry. The main points of the legal framework include establishing authority and managing the industry. It also includes incentives that will be given to private investors who generate energy from by-products of industries and agricultural outputs.

Source: Addis Fortune