Bioethanol Production in Ghana: Strategies for Supply Chain and Market Improvement

Abstract

Ghana’s energy sector remains heavily dependent on fossil fuels, posing significant challenges to energy security, environmental sustainability, and economic development. Bioethanol represents a viable alternative to fossil fuels, with the potential to enhance energy security, support rural economies, and reduce greenhouse gas emissions. Despite abundant agricultural resources, Ghana’s bioethanol sector is constrained by logistical, infrastructural, and policy barriers, hindering the commercialisation and scaling of renewable energy solutions. Addressing these issues is crucial to achieving national energy transition targets. This study aims to analyse Ghana’s bioethanol supply chain, develop strategies for optimising production and market performance, and assess the economic, social, and environmental impacts of these interventions. A qualitative exploratory approach was employed, combining systematic data review, comparative case study analysis, and supply chain modelling. Data from 2005 to 2023 were analysed using a Mixed-Integer Linear Programming (MILP) model to optimise feedstock logistics, plant siting, and distribution, supported by GIS for spatial analysis and benchmarking against successful African bioethanol initiatives. Supply chain optimisation showed that targeted improvements in feedstock logistics and processing technologies could enable production of up to 542 million litres of bioethanol annually from cassava, maize, sorghum, and yams. Regional analysis identified Eastern, Ashanti, Bono, and Ahafo as priority hubs, with an estimated 865,879 tons of feedstock available each year. Model results suggest that implementing strategic policies, such as E10 blending mandates, could satisfy approximately 90% of national demand. However, technological and infrastructural constraints, particularly limited access to advanced conversion technologies, remain significant barriers. The study presents a comprehensive, data-driven framework for optimising Ghana’s bioethanol supply chain and market development. The findings underscore the importance of integrated policy enforcement, technological advancement, stakeholder collaboration, and investment in logistics to establish Ghana as a competitive regional leader in sustainable bioethanol production and utilisation.