Bioethanol Technologies in Africa

Bothwell Batidzirai

UNIDO/AU/Brazil First HighLevel Biofuels Seminar in Africa (30 July1 August 2007) Addis Ababa, Ethiopia

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

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

Global Ethanol Production

Sugarcane Maize Wheat, beet

Ethanol production doubled to 46 Gl in 20002005 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

Bioethanol costs by feedstock

Source: Davis, 2007

Ethanol production in Africa

Country Egypt Annual production (million litres) 30

Kenya
Mauritius Nigeria South Africa Swaziland

15
30 410 13
Source: FO Lichts, 2007

23

Zimbabwe
Other Africa Total Malawi ~

25
92 638 18 Ml/yr

Bioethanol experiences in Africa

Blending programmes

Zimbabwe blending from 1980-1992 Malawi blending since 1982 Kenya blending since 1983-1993
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

New programmes

Zimbabwe ethanol program

Motivation

Sanctions, security of supply, saving foreign currency, low sugar prices

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)

Success factors

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

Malawi ethanol program

Motivation

Costly imports, security of supply (regional instability) Clear & consistent policies including incentives & competitive pricing Steady availability of feedstock Availability of irrigation water (Lake Malawi) Plant cost $8mln, savings $32mln (1982-1990) Blending at 15-22%

Success factors

Dwangwa plant produces 15-20Ml pa since 1982

New plant at Nchalo with capacity of 12 Ml pa

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

New Ethanol Fuel Initiatives

South Africa

Ethanol from maize programme (155 Ml pa) Mandatory E10 blending legislation pending Biofuels strategy being developed
Using Brazilian model & partnership to start bioethanol programme Presidential Initiative on Cassava & ethanol from cassava plant in Niger with China

Nigeria

Ethiopia: Staggered E5 blending programme starting with

Addis

Sudan: New 10-year sugar strategy include 250 Ml

ethanol plant at Eljazeera

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

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

Action plan
Capacity building

Stakeholder awareness raising on benefits, opportunities, technologies, policies Awareness raising on project development, financing strategies
Training in sustainable feedstock production Training in equipment fabrication, civil works , production and maintenance Training in biotechnologies and yield improvement

Technical expertise development

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
Develop bioethanol research programme Conduct long term research on feedstocks, technologies Establish continuous market and policy review Establish international knowledge sharing forum Promote joint RD&D

Research, Development & Demonstration

International knowledge sharing

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