Bioethanol Technologies in Africa

1. Bioethanol Technologies in Africa Bothwell Batidzirai UNIDO/AU/Brazil First High-Level Biofuels Seminar in Africa (30 July–1 August 2007) Addis Ababa, Ethiopia

2. Contents • Overview • Drivers of bioethanol fuel • African experiences • Lessons learnt • Barrier analysis • Action plan • Conclusions

3. Key Drivers of Bioethanol • Energy security • Reduction of oil imports • High oil prices • Environmental commitments • Rural development opportunities • Diversification of agricultural industries • Lead/MTBE phase out programs

4. Sugarcane Maize Wheat, beet Global Ethanol Production • Ethanol production doubled to 46 Gl in 2000-2005 • Projected to 60-75 Gl in 2010 • Growth mainly in US, Brazil, China • 13 countries using ethanol fuel in 2003 • At least 30 countries have/plan to introduce ethanol fuel programs

5. Bioethanol costs by feedstock Source: Davis, 2007

6. Ethanol production in Africa Source: FO Lichts, 2007 Malawi ~ 18 Ml/yr

7. Bioethanol experiences in Africa • Blending programmes • Zimbabwe – blending from 1980-1992 • Malawi – blending since 1982 • Kenya – blending since 1983-1993 • New programmes • South Africa – new programme in 2007 • Ethiopia – E5 mandate in Addis in 2007 • Nigeria – Brazil partnership to create BioCity • Sudan – new programme in 2007 • Pan African Cassava Initiative

8. Zimbabwe ethanol program • Motivation • Sanctions, security of supply, saving foreign currency, low sugar prices • Success factors • Public-private partnership • Local material (60%), construction and labour • Well developed agriculture & industry • Clear pricing policy • Well planned implementation strategy • Food-fuel dilemma not critical (sugar export crop)

9. Zimbabwe ethanol program • Annexed distillery at Triangle (40 Ml pa) • Blending at 13-18% • 1992 drought reduced feedstock drastically • Resuscitation attempts failed • Economic reforms favoured export of ethanol • Triangle maximised sugar production for export • Current plans to resuscitate blending in 2007

10. Malawi ethanol program • Motivation • Costly imports, security of supply (regional instability) • Success factors • Clear & consistent policies including incentives & competitive pricing • Steady availability of feedstock • Availability of irrigation water (Lake Malawi) • Dwangwa plant produces 15-20Ml pa since 1982 • Plant cost $8mln, savings $32mln (1982-1990) • Blending at 15-22% • New plant at Nchalo with capacity of 12 Ml pa

11. Kenya ethanol program • Madhvani project failed due to costly design • Muhoroni plant annexed to sugar mill has capacity of 60kl/day, cost $15 mln • Blending at 10% • Project continuously registered losses due to uncompetitive pricing • Also poor management, resistance from oil companies, loan servicing burden • Blending discontinued in 1993 • Ethanol currently being exported

12. New Ethanol Fuel Initiatives • South Africa • Ethanol from maize programme (155 Ml pa) • Mandatory E10 blending legislation pending • Biofuels strategy being developed • Nigeria • Using Brazilian model & partnership to start bioethanol programme • Presidential Initiative on Cassava & ethanol from cassava plant in Niger with China • Ethiopia: Staggered E5 blending programme starting with Addis • Sudan: New 10-year sugar strategy include 250 Ml ethanol plant at Eljazeera

13. Lessons Learnt • Government support critical (not control) • Clear, consistent, sustained policies • Capital and pricing incentives • Close public-private partnership • Supportive institutional framework • Local construction & early capacity building • Simple designs & avoiding too rapid expansion • Sustained feedstock availability • Preparedness for weather induced feedstock shortages • Comprehensive program of action

14. Barriers • Lack of clear, consistent long term policies • Lack of government support • Lack of supportive institutional framework • Lack of technical expertise • Capital intensive nature of projects • Lack of access to affordable finance • Arable land and water availability (droughts) • Limited availability of feedstock • Competition with food production • Market uncertainty due to fluctuating oil, sugar prices

15. Action plan • Capacity building • Stakeholder awareness raising on benefits, opportunities, technologies, policies • Awareness raising on project development, financing strategies • Technical expertise development • Training in sustainable feedstock production • Training in equipment fabrication, civil works , production and maintenance • Training in biotechnologies and yield improvement

16. Action Plan • Policy development • Establish a consultative industry strategy • Develop implementation plan incl institutional structure • Develop supporting policies e.g incentives & supporting regulatory framework • Establish pricing formula for ethanol • Research, Development & Demonstration • Develop bioethanol research programme • Conduct long term research on feedstocks, technologies • Establish continuous market and policy review • International knowledge sharing • Establish international knowledge sharing forum • Promote joint RD&D

17. Conclusions • Enormous potential for bioethanol fuel • Significant benefits already demonstrated • Government support critical to project success • Mandates and incentives important for market transformation • Clear & consistent policy framework important • Need for ensuring & monitoring sustainability of programs w.r.t food-fuel dilemma, maintaining environmental integrity