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Biofuels in Eastern and Southern Africa. Outline. Overview of energy sector Bio-energy Bio-fuels – Status and Trends Bioethanol Biomass cogeneration Biogas Biodiesel Biomass gasification Way Forward . Overview of Energy Sector.
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Outline • Overview of energy sector • Bio-energy • Bio-fuels – Status and Trends • Bioethanol • Biomass cogeneration • Biogas • Biodiesel • Biomass gasification • Way Forward
Overview of Energy Sector • Energy use in eastern and Southern Africa - dominated by biomass (wood, charcoal, bio residues) • Low levels of access to modern energy services
Biofuels – Key Drivers • Rising oil costs • Lead phase-out programmes in southern Africa • Declining biofuel production costs – Ethanol • Carbon finance • Bio-ethanol and cogeneration well developed in the region • Other biofuels at different stages of development
Bioethanol – Status and Trends • Widely developed in the region • Linked mainly to sugar industry and cogeneration • Ethanol produced in Zimbabwe, South Africa, Malawi, Kenya, Uganda, Ethiopia and Swaziland • Plans to produce ethanol in Sudan and Zambia • Ethanol blending practiced in Malawi • Blending practiced in Zimbabwe and Kenya in the past • Plans to introduce blending in South Africa if legislation is approved
Ethanol Potential from Cane in Selected African Countries * Estimated ethanol potential assuming an average of 70 litres of ethanol produced per tonne of cane crushed and that all cane is used for ethanol production (SEI, 2003; TaTEDO, 2006)
Case Study – Ethanol in Malawi • Ethanol production started in 1982 at Dwangwa Sugar Mill, run by Ethanol Company of Malawi (Ethco) • Second ethanol plant was built in 2004 at Nchalo Sugar Mill run by Press Cane • Both plants have combined capacity of 30 million litres per year • The two plants are located to the countries sugar factories (Nchalo and Dwangwa)
Ethanol Production in Malawi (litres) Source: Tembo, 2006
Case study - Ethanol production in Kenya • Kenya’s quest for alternative source of fuel sparked off by oil crisis in the 1970s • The Agro Chemical & Food Corporation (ACFC) established in 1978 – with the objective of utilizing surplus molasses from sugar industry to produce ethanol • ACFC installed capacity of 60,000 liters per day, daily average of 45,000 litres per day • ACFC collapsed in the 1990s
Case Study - Ethanol production in Kenya • Ethanol production revived in 2001 through Kisumu Ethanol Plant in Western Kenya • Private entity Energem owns 55% of the company • Produces 60,000 lpd of industrial ethanol • Other products include: beverage grade, yeast, carbon dioxide, alcohol, portable alcohol for beverages and chemical industries • Market for the ethanol: local market, Uganda, Rwanda, and Central Africa
Case Study - Ethanol Production in Kenya Source: Ethanol Producer Magazine
Ethanol - What worked • Building on an existing industry – both the Ethanol Companies in Malawi and Kenya piggybacked on the sugar industry • Government and private sector commitment – the Malawian and Kenyan governments created a conducive environment for private sector to invest in production, distribution and marketing of ethanol • Long-term commitment - Key players in the Malawian energy sector demonstrated long term commitment to biofuels through the testing of a car that can run on ethanol blended fuel • Ready local market – ethanol used in the blending of transport fuel up to 20% thereby reducing fuel imports
Biomass Cogeneration – Status and Trends • Widely developed in the region - Most sugar industries in eastern and southern Africa currently practicing co-generation for own use • Important option as agriculture and agro-industries account for close to 50% of sub-Saharan Africa’s GDP and over 70% of employment • Sugar industry directly or indirectly impact on 4-7 million people in Western parts of Kenya • Could be replicated across all agro-industries • Wood/timber, pulp and paper • Coffee, sisal, palm oil, tea, cocoa, tobacco, etc
Power Generation – Mauritius 2004 Others Sugar Industry Case study - Cogeneration in Mauritius • Successful in sale of power to the grid • Accounts for close to 40% of a 725MW national generation capacity (of which 25% bagasse) • Began with smaller installations (1.5MW - 5MW, now installing 70MW plants) • Grid connected cogeneration operational in Uganda, Kenya, Tanzania, Zimbabwe, and plans underway in Malawi, Ethiopia, Swaziland and South Africa
Case Study - Share Ownership Of Cogen Plants • Firm • Corporate sector 51% • Strategic Partner 27% • SIT (Small planters/workers) 14% • State Investment Corporation 8% • Continuous • Corporate sector 80% • SIT (Sugar Investment Trust) 20% • Equitable sharing of ownership of and revenue from cogeneration ensures even smallest low-income farmer gets a portion of revenue • In turn, leads to exceptionally strong & consistent policy support
Cogeneration in Mauritius - Key Lessons • Pre-determined feed-in tariff for cogen power which reduced investment risk • Higher prices offered for firm power/utility level cogen electricity generation, which encouraged higher investments in cogen from sugar industry • Government played “honest broker” key role in power purchase agreements and setting feed-in tariff (key factor) – reduced the lengthy and sometimes acrimonious tariff negotiations • Centralization of sugar factories to capture the benefits of economies of scale • Revenue sharing with even the smallest sugarcane farmers, which ensured long-term commitment
SourceThe Republic of Uganda,2007 Biogas – Status and Trends • Some experience in the region with mixed results • Institutional digesters more successful than domestic units • Tanzania has registered good progress - more than 4,000 domestic-size biogas plants have been in Tanzania during the past 20 years • An estimated 256 biogas digesters installed in Zimbabwe • Pilot biogas projects implemented in Kenya, Uganda, Ethiopia and Sudan • Large scale biogas plant (10 MW) planned in South Africa using landfill gas
Biodiesel – Status and Trends • Production of biodiesel drawing a lot of attention in the region • Technology still to be applied on a wide scale • A number of crops already grown in the region suited for biodiesel production i.e. palm oil, sunflower, soyabean, maize and Jatropha • Zimbabwe has ambitious Jatropha biodiesel programme • A private South African company running Jatropha oil initiatives in Malawi, Zambia and Madagascar • In Zambia, biodiesel trials conducted on a small scale using Jatropha • Individual farmers running biodiesel plants in South Africa • Pilot biodiesel projects in Kenya (Vanilla/Jatropha Foundation), Uganda and Tanzania (Tatedo)
Biomass Gasification – Status and Trends • Largely embryonic- no commercial bio-gasification projects running in the region • A few donor funded demonstration projects implemented • Experimental systems reported at universities in South Africa • Demonstration projects implemented in Tanzania (Tanzania Wood Industry Corporation) • Biomass gasifiers implemented in Ethiopia, Sudan – faced operational challenges
Way Forward • Short Term • Focus on proven options that build on existing agro-industries that use available agro-wastes (such as bio-ethanol and cogeneration) • Implement proven policy measures • Pre-determined prices for biofuels (feed-in tariff for cogen power & attractive price for liquid biofuels) • Standard power purchase agreement for cogen power • Compulsory blending ratios for transport fuels • Use model examples such as Mauritius to develop regional replication programmes & focal points of regional networks
Way Forward Medium to Long Term • Research and Development on embryonic options (Biomass Gasification) • Demonstration projects for embryonic options • Regional and International networks for sharing of experiences, skills and information