Ethiopia and its neighbors have rapidly growing needs for energy in the form of electricity and fuel. At present, biofuel production is negligible in the region. Ethiopia currently produces only around 32 million liters of bioethanol, of which only 6 million liters are used for transport fuel blending, while the remaining balance is shared by alcoholic beverage distilleries and the pharmaceutical industry. Project Green Fuel-I thus aims to expand this capacity to 200 million liters per annum, leveraging the underutilized publicly owned natural bamboo forest as a sustainable feedstock source, thereby addressing the urgent need to meet the E20 blending mandates set by the country (a minimum of 320 million liters per annum by 2030).

Charcoal fuels daily cooking and coffee rituals for Ethiopia’s 20 million households (80% rural, 20% urban), using 7 kg of wood per 1 kg of charcoal. Inefficient production destroys forests (15–25 years to regrow trees) and emits potent GHGs (CO₂, CH₄, N₂O). Household burning releases toxic carbon monoxide, worsening respiratory illnesses and climate impacts. Meanwhile, pellets made from bamboo require 1.5 kg of bamboo per kg of fuel pellets, and bamboo can be reforested in 3–4 years instead of 15–25 years.

Ethiopia depends on imports for 70% of its pulp and paper demand. However, since demand is expected to grow further, it is necessary to develop local alternatives. Bamboo is a great alternative source that can be regrown much more rapidly than trees, making it an ideal feedstock.