1. Product Description:- Brequetting of coal is the processing of natural coal (found in Chilga-North Gondar) to increase its heat value and make it transportable to other parts of the Region to be sold for fuel.
2. Rationale:- Wood is the main source of fuel in the Amhara Region. In fact more than 95 percent of people in the Region depend on wood for fuel. This has caused wide spread deforestation throughout the Region. Because of depletion of the forest resources of the Region, fuel wood has become so scarce and people partly depend on cow dung to get some fuel. Shortage of fuel wood will be more acute in the future since trees destroyed for fuel wood are not replaced by planting trees.
A number of studies have indicated that there is a substantial deposit of coal in Chilga Woreda of North Gondar Zone. Some estimates put the volume of deposits at 14.5 million tons. Until now the most economical use of the coal deposits is not yet determined. However, considering the acute shortage of fuel wood in the Region, one possible and immediate use of this coal could be to make briquettes out of it and sell the briquetted coal for fuel. The briquetted coal will be more convenient to pack and transport to other parts of the Region. With distribution points at strategic locations, the coal could be sold to urban and rural users. This will save the remaining in the Region from being cut-down for fuel.
3. Market Potential:- If the price is affordable for the majority of the population of the Region, briquetted coal will have a captive market since fuel is one of the essential products for every day life. One strategy to make the product accessible to as many people as possible (both in urban and rural areas) is sell it in small quantities in retail stores.
4. Raw Material:- The raw material source will be the natural coal deposits at Chilga.
5. Process & Technology:- Not much physical or chemical transformation takes place for producing brequetted coal from natural brown coal. What is needed is the extraction of the brown coal from the ground and compacting in a machine designed for this and packing it for shipment. Except the compacting (brequetting) process, the other production activities will be done using human labor as much as it is practical and economical.
6. Estimated Investment:- The investment requirement for this project will be mainly composed of machinery cost for the briquetting process. Investment for building and working capital will be minimal. Total investment will be around Birr 2 million.
7. Benefits:- Saves forest resources from being cut down for fuel wood, utilizes a natural resource of the Region which has never been utilized, introduces new skills and technology.
8. Location:- Chilga area in North Gondar Zone. Other possible locations include sites in North Shewa and South Wollo where there are deposits of natural coal.