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Charcoal in Maputo

Charcoal in Maputo. • > $100M annual consumer spend • > $25 / month per household • 10-30% of average incomes • >100,000 ha annual forest destruction Key driver of respiratory disease and death in women & children. Charcoal-based deforestation.

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Charcoal in Maputo

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  1. Charcoal in Maputo • > $100M annual consumer spend• > $25 / month per household • 10-30% of average incomes• >100,000 ha annual forest destruction Key driver of respiratory disease and death in women & children

  2. Charcoal-based deforestation • Causes land degradation and flooding • Soil erosion leads to food insecurity • 10kg of wood = 1kg charcoal • Major source of CO2 emissions

  3. Cooking shouldn’t kill Indoor charcoal smoke = 2 packs of cigarettes per day 2 million early deaths per yearfrom indoor air pollution World Health Organization HELP KIDS QUIT!

  4. A fullvaluechain approach

  5. A low-input agroforestry cultivation system is at the core of our partnership with smallholders Forestry Shelterbelt Zone • The system has a 1 ha agroforestry zone with rows of fast-growing leguminous trees/shrubs and alleys planted with annual crop rotations • This is surrounded by a 1 ha forestry shelterbelt zone that contains indigenous trees and Pongamia oilseed trees • The system involves a mix of multi-purpose crops & trees, incl. cassava, cowpea, soyabean, sorghum, ground nut, lucaena, pigeonpea, pongamia and native tree species Rotation 1 Agroforestry Zone Rotation 2 Rotation 3

  6. Worlds First Sustainable Cooking Fuel Plant Opened 17 May 2012

  7. First tanker-truck with ethanol ready to leave our plant 14 March 2013 NOVOZYMES PRESENTATION

  8. NdZilo cooking fuel being blended and bottled 15 May 2013

  9. NDZiLO shop network being rolled out in low-income neighbourhoods

  10. Customers visit shops to fulfill orders, sign warranty/carbon agreement, take stove and fuel

  11. Even the charcoal sellers are converting over to ethanol!

  12. VENTURE WILL ACHIEVE PROFITABILITY IN 2014 AND THEN EXPAND IN MOZAMBIQUE AND BEYOND by end of 2012 by end of 2014 2015+ (not modeled) • 1000+ farmers • 3 community-level pre-processing centres • 2m litreethanol cooking fuel plant commissioned • Stove manufacturing & assembly started in Maputo • 5000+ cookstove & fuel customers in Maputo • ~$10m invested • 3,000 farmers • 7 community-level pre-processing centres • 20m litres of clean cooking fuel sold per annum • Farmer household income increased at least 3x • 80,000 urban households using clean cookstoves • 320,000 t CERs per annum • 4,000 ha of avoided forest destruction per annum • 2.4 million trees planted in forest belts (3,000 ha) • ~$15m invested • 15,000 farmers in central Mozambique • Agroforestry system replicated in Inhambane & Nampula provinces • Stove market share expanded to 40% (160,000 households) • Ethanol cooking fuel production capacity matched to demand • Cooking solution launched in other sub-Saharan African cities • Potential to leverage several hundred million dollars of investment 14

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