BUSINESS

Biomass, an energy-producing source, is used principally in the form of firewood and

charcoal. Currently, biomass provides about 93% of Ethiopia’s consumed energy source as

firewood and charcoal. Although Ethiopia is an agricultural country with vast amounts of

forests and trees, at the present time, the majority of its agricultural waste is not being

fully utilized for the production of energy.

Our failure to transform Ethiopia’s natural agricultural wastes into charcoal briquettes has

resulted in an increased exploitation of Ethiopia’s primary forests.

The briquettes will be made out of wood industry wastes, charcoal-dust and dry agricultural

wastes, sugar cane trash, and maize trash from farmers. Simple technologies will be

implemented to make it less expensive to produce briquettes. Thus, the briquettes will be

affordable by the local population.

The manufactured briquettes will be sold through selected charcoal vendor markets around

Ethiopia and the vendors will sell them to the end users. The changeover from wood

charcoal to briquettes requires no behaviour change nor a need to modify the stoves

currently used.

Briquettes have a high bulk density compared to fire wood and loose biomass. Because of

their density and low moisture content, the briquettes give a longer burning time which will

translate to cost savings for the customer.

Flyers and posters will be used as educational tool. They will be distributed to the selected

vendors who will hand them out to clients as they buy the briquettes.

According to Ethiopia Bureau of Statistics (2015), the total production of charcoal in

Ethiopia in 2014 was 586,000 tons of charcoal. This means that, theoretically, the

briquettes can replace 29% of the charcoal consumed.

DMCBE, a company limited by liability, will be registered through the Registrar General in

Ethiopia. It is expected that 720 tons of briquettes will be produced during the first year of

operation, which is an average of 2.4 tons of briquettes per day. A kilogram of briquettes

will be sold at 31 cents, thus generating sales’ revenue of $220,000 USD at the end of the

first year.

An initial investment cost of $174,354 is needed. This will be used to purchase machinery

land and meet the annual costs of production. Inquiries of applying for a business start up

loan have been made at Standard Chartered Bank.

The project will have a positive impact on developmental, it will aid in the preservation of

Ethiopia’s endangered biodiversity, as well as providing economic support to rural and

urban communities and help lower carbon house gas emissions.

Today, 110 million people in the country use fire wood and wood charcoal for their cooking

needs, this population is a sizeable market for charcoal briquettes