Jatropha Curcas: Derived Biofuel Industry in Africa


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Jatropha Curcas: Derived Biofuel Industry in Africa

  1. 1. ICAN SCIE AFR N CE F ETWORK O ACADEMIES • •N N ASAC The African Academy of Sciences Jatropha curcas-Derived Biofuel Industry in Africa Conference Proceedings 22–23 February 2010, Hilton Hotel, NairobiFollow-up on the InterAcademy Council (IAC) report recommendations and financially supported by the InterAcademy Panel (IAP)
  2. 2. Jatropha curcas-Derived Biofuel Industry in Africa © The Network of African Science Academies (NASAC) 2010 Published by: icipe Science Press P Box 72913-00200 Nairobi, Kenya .O. Tel: +254 (20) 8632000 Fax: +254 (20) 8632001/2 E-mail: isp@icipe.org Home page: www.icipe.org Editorial assistance: Dolorosa Osogo DTP graphics and cover design: Irene Ogendo , Printing: KulGraphics Ltd.ii
  3. 3. Contents Acronyms and Abbreviations..................................................................... v Executive Summary. ................................................................................ 1 .Opening Ceremony Welcome Remarks, Shem Arungu-Olende, Secretary General, AAS................................................................................................... 2 Opening Remarks, Jacqueline Olang, Network Coordinator, NASAC.............................................................................................. 5 Presentation of the IAC Report, Shem Arungu-Olende, Secretary General, AAS..................................................................................... 7 .Status of Jatropha Cultivation in Africa: Challenges and Opportunities Overall Africa Perspective, John Kioli, Green Africa Foundation................. 12 Status of Jatropha Plantations in Ghana: A Case Study of Jatropha Africa’s Plantation, Ohene Akoto, Jatropha Africa. ................. 14 . Status of Jatropha curcas Cultivation in Africa: The Tanzania Perspective, Lillian Mkony, Jatropha Products, Tanzania......................... 15 Status of Jatropha curcas Cultivation in Africa: Challenges and Opportunities in Zambia, Petrus Snyman, Thomro Biofuels............. 16Jatropha curcas as a Source of Biofuel: Opportunities and Challenges Biofuels for Developing Economies: Current Scenario and Issues, Challenges and Opportunities, James Onchieku, KEFRI....................... 19 Utilisation of Jatropha Waste for Energy Production: Opportunities and Challenges, David Yuko, Institute of Research in Sustainable Energy and Development (IRSEAD)................................................................. 22Strategies for Developing Creative and Innovative Business Models,Accessing Venture Capital and Penetrating Local and InternationalMarkets Developing Creative and Innovative Business Models for the Bio- fuel Industry in Africa, Suresh Patel, Kridha Ltd and Representative, KAM............................................................................................................ 25 Commercialisation of Jatropha curcas-based Biofuel Production System for Integrated Rural Development and Energy Provision in Kenya, Lorna Omuodo, Vanilla Jatropha Development Foundation............... 29 Innovative Business Model for Biofuel Production in Africa: The Case of Mali Biocarburant, Hugo Verkuijl, Mali Biocarburant SA (MBSA)........................................................................................................ 31Identifying Ideal Conditions and Locations for Biofuel Crops Agronomy of Jatropha and How to Identify Suitable Areas, Alex Nabiswa, Jatropha Support Programme.................................................... 34 German Technical Cooperation (GTZ) Work on Jatropha in Africa, Myra Mukulu, GTZ..................................................................................... 37 iii
  4. 4. Policy Innovation Systems for Clean Energy Security (PISCES), Bernard Muok, PISCES.................................................................................. 40 . Key Recommendations .............................................................................. 44 Closing Remarks and Vote of Thanks Shem Arungu-Olende, Secretary General, AAS..................................................... 45 Appendix 1: Programme............................................................................ 46 Appendix 2: List of Participants................................................................... 48iv
  5. 5. Acronyms and Abbreviations AAS African Academy of Sciences ACTS African Centre for Technology Studies AGRA Alliance for a Green Revolution in Africa ATPS African Technology Policy Studies BMZ German Federal Ministry for Economic Cooperation and Development COMESA Common Market for Eastern and Southern Africa DEG Deutsche Investitions–und Entwicklungsgesellschaft DFID Department of International Development, UK ECOWAS Economic Community of the West African States EU European Union FAEE Fatty Acid Ethyl Ester FFA Free Fatty Acid GDP Gross Domestic Product GHG Green House Gases GIS Geographic Information Systems GTZ German Agency for Development Cooperation HBFHA Heinrich Böll Stiftung IAC InterAcademy Council ICRAF World Agroforestry Centre IPM Integrated Pest Management IRSEAD Institute of Research in Sustainable Energy and Development KAM Kenya Association of Manufacturers KARI Kenya Agricultural Research Institute KBDA Kenya Biodiesel Development Association KEBS Kenya Bureau of Standards KEFRI Kenya Forestry Research Institute KEPHIS Kenya Plant Health Inspectorate Service KPLC Kenya Power and Lighting Company LED Light-emitting Diode (Lamp) MBSA Mali Biocarburant SA MDGs Millennium Development Goals NASAC The Network of African Science Academies NGO Non-governmental Organisation PPP Public Private Partnership PREEEP Promotion of Renewable Energy and Energy Efficiency Programme ProBEC Programme for Basic Energy and Conservation in Southern Africa PSDA Private Sector Development in Agriculture R&D Research and Development SADC South African Development Community SMEs Small and Medium Sized Enterprises S&T Science and Technology UNEP United Nations Environmental Programme USAID United States Agency for International Development
  6. 6. Executive SummaryThe challenge to ensure the availability of sustainable energy is a complex task. Itsdimensions are social, technological, economical and also political. The momentumbehind the current energy trends is enormous given the rising demand of energy-related services around the world. There are high-levels of consumption in manyindustrialised countries, continued population growth and rapid industrialisationwhich have put pressure on the existing energy infrastructure. In light of this, therehave been, inevitably, growing environmental and energy security risks that havehelped to shift the game to renewable energy. The world’s energy supply mix iscurrently dominated by fossil fuels with coal, petroleum and natural gas supplying80% of the global energy demand. Traditional biomass, nuclear energy and large- JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAscale hydropower account largely for the remainder. Achieving sustainable energywill call for a shift in the current mix of supply resources towards a much largerrole of low carbon technologies and renewable energy sources including bio-fuels. Producing electricity using wind, solar, hydropower and biomass representsan important opportunity for displacing conventional petroleum based energywhereby crude prices keep escalating.“Lighting the Way” report, establishes the best practices for a global transitionto a clean, affordable and sustainable energy supply in both developing anddeveloped countries. The report developed by the IAC reached nine majorconclusions along with actionable recommendations formulated within a holisticapproach to the transition towards a sustainable energy future. This IAC reportformed the basis of the Jatropha curcas conference organised by AAS and NASACand had representation from over 7 countries in Africa. Various case studies onJatropha production and processing were shared and what came out clearly wasthe lack of support from the respective governments. Development of biofuels willnot produce the desired outcomes unless the policy and regulatory framework,instruments, price signals, market incentives and standards are in place. Inaddition, the governments’ support is vital in creating an enabling environmentfor Jatropha development.In any investment done, the aim is to get a return on the investments made. Severalpresentations were done on various business models that can maximise returns.The best model would be one that financially rewards everyone in the supplychain and not just benefits a few. Critical to the success of biofuels developmentin Africa will be the relentless pursuit of the most promising technology that candeliver solutions by uplifting the living standards of the people who are engagedin the supply chain. All in all, all efforts must be geared towards achieving asustainable energy future.
  7. 7. Opening Ceremony Facilitator: Jasper Kirika Welcome Remarks Shem Arungu-Olende, Secretary General, AAS Distinguished participants; Ladies and gentlemen; On behalf of the African Academy of Sciences, and the Network of African Science Academies, I wish to welcome you all to Nairobi to participate in this importantJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA conference. Energy is at the core of socio-economic development and environmental protection. It powers industry and transport, lights buildings and is a major input into agricultural production. At the individual level, energy satisfies basic human needs. Lack of access to modern and sustainable energy is a major cause of poverty, underdevelopment and environmental degradation. Increased use of energy in the form of fossil fuels—coal, petroleum and natural gas—has been associated with adverse impacts on climate change in the form of global warming. Increased energy efficiency and more widespread development and application of renewable energy have been recognised as areas requiring attention and concerted effort worldwide. Biomass is by far the most abundant renewable energy; nevertheless, most of biomass used has been in traditional forms with attendant wastage and adverse health as well as environmental impacts. Transportation is the fastest growing sector worldwide, more so in the developing countries, including Africa. Todate petroleum has been the main source of transport energy. But, as we are all aware, petroleum is a finite resource whose production will peak and begin to decline, sooner than later. An added headache is the uncertainty about future petroleum prices, which have, in any case, been increasing steadily in recent years. Interest has, therefore, steadily grown on liquid biofuels as viable alternatives to petroleum. The potential for liquid biofuels for transportation is vast; indeed, world biofuel production has been growing steadily, most of it bioethanol. The main benefits of biofuels for transportation are improved energy security, reduced greenhouse gas emissions and emissions of particulates, improved octane rating and enhanced rural development (creation of new jobs, generation of income and creation of other development opportunities). The subject of this meeting is Jatropha curcas-derived biofuel industry in Africa. This is a commendable initiative, given the potential of biodiesel fuel in Africa and worldwide and the increasing use of Jatropha curcas as a feedstock for the production of biodiesel. I urge you not to focus only on Jatropha curcas biodiesel
  8. 8. production, but also to examine its potential multipurpose uses. These include, (i)oil as raw material (for making soap or for illumination), (ii) alkaloids for medicinalpurposes, (iii) raw material for dye, (iv) oil cake for soil enrichment and (v) feed,e.g. for silkworms.I am sure that many of you are also interested in other feedstock for biodieselproduction, such as algae, oils or fats, soybean oil, mustard seed oil, rapeseed,sunflower, copra, palm, cottonseed and avocados. I hope you will continue todevelop these too, as part of a comprehensive strategy.Let me now mention a number of contentious issues associated with large-scaleproduction of biofuels. Chief among these are land requirements and availabilityimpacts, and food production. Actual requirements for, and ready availability of, JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAland are among the touchy issues surrounding major biofuel production. Producingbiofuels on a large-scale could require huge tracts of land if traditional crops areused.The “food versus fuel” subject is controversial and complex. Food and biomassrequire the same resources for production, i.e. land, water and agrochemicals.In the ideal situation, both food and fuel are important requirements that neednot compete, particularly when there is careful planning to ensure ecologicalconservation and sustainability of production methods. Nevertheless, a ragingdebate on competition for land resources between biofuel and food productioncontinues. The debate should be of interest to African countries which wish or planto embark on large-scale production of biofuels.I should now like to mention a number of broad issues that directly impact on thefuture development and application of biofuels in Africa and which, therefore, demandattention. These include policies, knowledge, standards, investment and trade.In the African continent an outstanding feature is the dearth, and in most cases,the complete lack of policies on biofuels. The need to develop and implementpolicies in this subject is critical and urgent. For many African nations, access toland resources is of crucial importance. Land resources provide the basis of mosthuman activities, including the management of soil, water and energy. A soundland-use policy, with improved land tenure structures, is an essential step.Even in those countries where biofuel policies exist and even in cases where thepolicies are glaringly deficient, experience with such policies as well as thosein other sectors clearly indicates the need for implementation of policies andstrategies.The policies must be broad and all inclusive, reflecting the link between biofuelproduction and other activities. They must address the development of energy,agriculture, forestry, industrial development, environmental protection, all in anintegrated manner, aimed at maximising biofuel related benefits while minimisingsocial costs. To be viable, successful policies require robust legal, regulatory andinstitutional frameworks, which would also ensure effective implementation of thepolicies.
  9. 9. High quality data are of crucial importance in providing valuable information and knowledge for informed and effective policy making in biofuels. The key issues in this context are the value and reliability of the data, given the sensitive nature of the problems at hand. The quality and usefulness of information are enhanced through painstaking collection, processing and analysis of data. In the case of biofuels, relevant cross-sectoral data—involving transportation, forestry, energy, agriculture and environment—will be required. Estimating and projecting the demand for biofuels for domestic and global markets would involve, among others, the development and application of suitable methodologies. Current information on the demand for biofuels in respective African countries is inadequate. So is the proper knowledge of the biofuel resources and production, including the most appropriate feedstock. There is, therefore, need for an assessmentJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA of biofuel resources and their methods of production to acquire suitable data and information in this area. This would involve the development of resource database and building the capacity to effectively manage such a database. There is a need to adopt and enforce common standards for biofuels in Africa that are compatible with international ones. The main problem is that there are no international standards, thus making it difficult to reach the global market. At the moment there are, for example, different standards in the US and in Europe. Availability and adequacy of financial resources are critical in the current and future large-scale biofuel development. To be sure, interest is growing worldwide in investment in the development of biofuels; for many African countries there are opportunities for obtaining funding from international institutions such as the World Bank. Opportunities also exist in regional development banks, e.g. the African Development Bank, as well as sub-regional banks such as COMESA. Other development partners are also ready to participate in viable projects. There are also opportunities for sourcing funds from the private sector through public– private sector partnership. Trade in biofuels within African countries has so far been minimal. For example, the small quantities of bioethanol fuel produced in respective countries have been for domestic consumption. The potential for such trade—within African countries, and between Africa and the rest of the world—is, however, huge. Lastly I wish to thank the InterAcademy Panel for the generous support for this conference. These are but a few of the issues I wanted to share with you. I wish you success in your deliberations. Thank you.
  10. 10. Purpose and Goals of the Conference from the Network of African Science Academies (NASAC) Perspective Opening Remarks Jacqueline Olang, Network Coordinator, NASACNASAC was founded in December 2001 as an independent forum for Africanscience academies to ”provide authoritative science advice on policy formulationtowards economic, social and cultural development in Africa”. NASAC has amembership of science academies from 15 countries namely Cameroon, Sudan,Ghana, South Africa, Kenya, Tanzania, Madagascar, Uganda, Morocco, Zambia, JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAMozambique, Zimbabwe, Nigeria, Mauritius and Senegal. Additionally, two moreacademies are expected to join NASAC from Egypt and Ethiopia.NASAC’s objectives are to: • Encourage establishment of academies where none exist; • Empower existing academies; • Create an independent platform for credible science advice; and • Project a unified voice of science in Africa.NASAC has carried out a number of activities and participated in world forums.Recently, they circulated a joint statement on “Brain Drain in Africa” to G8 + 5Summit in June 2009 and also a statement on Sustainable Development to G8Summit in Japan in June 2008 among many others. They have also developedpublicity materials and a website (www.nasaconline.org) which serves as a linkto the rest of Africa. The organisation has formed an expert group comprisingof social scientists that provide oversight and foresight to NASAC’s activities. Inaddition, NASAC has held various awareness workshops for its members and hasdeveloped guidelines and strategies for creation of new academies. The Networkencourages best practices to use as benchmarks and foresees the academies asbeing the science advisers and partners for and in Africa.It was noted that the academies in Africa face challenges. Among these challengesinclude limited resources, slow inclusion of younger scientists who academicallymerit membership, academies act locally and in isolation even on common criticalproblems therefore no collective action and lastly majority of the academies needtransformation to dynamic organisations. There exist opportunities for NASACto partner with regional and international bodies with considerable commitmentto science which include SADC, ECOWAS, among others. Currently, AfricanGovernments acknowledge the need to support science and technology fromtheir GDP and NASAC uses the millennium development goals as reference pointfor its activities. Moreover, there is increased global focus and interest on Africanissues and hence an opportunity to seek support.As the case for renewable energy is important and urgent action is required,scientists must come together and provide research solutions in this area. Withthe unmet world energy demand, climate change and rising cost of crude oil, the
  11. 11. conference will therefore create awareness on biofuels as alternative sources of fuels. Further, the conference will deliberate on the IAC Report on Energy that was produced by a study panel of 15 world-renowned energy experts. It is entitled, “Lighting the Way: Toward a Sustainable Energy Future”. The meeting will further discuss best practices in production and commercialisation of Jatropha as a biofuel source and influence policies that govern exploitation of Jatropha at national level. The forum will create a networking platform where the participants will share experiences and exchange ideas on biofuels. At the close of the conference, participants will identify the challenges and opportunities for Jatropha in the energy sector; create sustainable networkingJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA among Jatropha entrepreneurs and researchers, and determine the next steps to seek subsequent funding support for identified priorities.
  12. 12. Presentation of the IAC Report“Lighting the Way: Toward a Sustainable Energy Future” Shem Arungu-Olende, Secretary General, AASCommissioned by the governments of Brazil and China, this report identifies ascientific consensus framework for directing global energy development. It laysout the science, technology and policy roadmap for developing energy resourcesto drive economic growth in both industrialised and developing countries whilealso securing climate protection and global development goals.  The report wasproduced by a study panel of 15 world-renowned energy experts, co-chaired byNobel Laureate Steven Chu, Director of the Lawrence Berkeley National Laboratoryin the United States, and José Goldemberg, former Secretary of State for the JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAEnvironment for the State of São Paulo, Brazil.The report acknowledged that making the transition to a sustainable energy future isone of the central challenges humankind faces in this century. The concept of energysustainability encompasses not only the imperative of securing adequate energyto meet future needs, but doing so in a way that: (a) is compatible with preservingthe underlying integrity of essential natural systems, including averting dangerousclimate change; (b) extends basic energy services to the more than 2 billion peopleworldwide who currently lack access to modern forms of energy; and (c) reduces thesecurity risks and potential for geopolitical conflict that could otherwise arise froman escalating competition for unevenly distributed energy resources.“Lighting the Way” establishes the best practices for a global transition to a clean,affordable and sustainable energy supply in both developing and developedcountries. The report addresses incentives that can accelerate the developmentof innovative solutions, provides recommendations for financial investmentsin research and development and explores other transition pathways that cantransform the landscape of energy supply and demand around the globe.In addressing mitigation of the environmental impacts of energy generationand use, “Lighting the Way” informs global action on climate change, suchas implementation of the Kyoto Protocol, agenda setting for the Asia-PacificPartnership on Clean Development and Climate, and ongoing multinational talkson future global action to reduce greenhouse emissions. “Lighting the Way” alsoconfronts the unequal access to energy experienced by one-third of the world’spopulation without access to basic energy services, and makes recommendationsfor addressing this disparity as well as for promoting national and global energysecurity.The conclusions and required actions drawn from the report were:Conclusion 1: Meeting the basic energy needs of the poorest people on thisplanet is a moral and social imperative that can and must be pursued in concertwith sustainability objectives.
  13. 13. Needed actions: • Given the international dimension of the problem, multinational organisations like the United Nations and the World Bank should take the initiative to draw up a plan for eliminating the energy poverty of the world’s poor. As a first step, governments and NGOs can assist by supplying data on the extent of the problem in their countries. • The private sector and the ST community can help promote the transfer of appropriate technologies. The private sector can, in addition, help by making appropriate investments. • The media should make the general public aware of the enormity of the problem. Conclusion 2: Concerted efforts must be made to improve energy efficiency and reduce the carbon intensity of the world economy.JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA Needed actions: • Governments, in dialogue with the private sector and ST community, should develop and implement (further) policies and regulations aimed at achieving greater energy efficiency and lower energy intensity for a great variety of processes, services and products. • The general public must be made aware, by governments, the media, and NGOs of the meaning and necessity of such policies and regulations. • The ST community should step up its efforts to research and develop new, low-energy technologies. • Governments, united in intergovernmental organisations, should agree on realistic price signals for carbon emissions and make them key components of further actions on reducing the carbon emissions. • The private sector and general public should insist that governments issue clear carbon price signals. Conclusion 3: Technologies for capturing and sequestering carbon from fossil fuels, particularly coal, can play a major role in the cost-effective management of global carbon-dioxide emissions. Needed actions: • The private sector and the ST community should join forces to further investigate the possibilities for carbon capture and sequestration and develop adequate technologies for demonstration. • Governments should facilitate the development of these technologies by making available funds and opportunities (such as test sites). • The general public needs to be thoroughly informed about the advantages of carbon sequestration and about the relative manageability of associated risks. The media can assist with this. Conclusion 4: Competition for oil and natural gas supplies has the potential to become a source of growing geopolitical tension and economic vulnerability for many nations in the decades ahead. Needed actions: • Governments should introduce (further) policies and regulations aimed at reducing energy consumption and developing petroleum alternatives for use in the transport sector.
  14. 14. • The private sector and the ST community should continue developing technologies adequate to that end. • The general public’s awareness of sustainability issues related to transportation energy use should be significantly increased. Again, the media can play an important role in this effort.Conclusion 5: As a low-carbon resource, nuclear power can continue to makea significant contribution to the world’s energy portfolio in the future, but onlyif major concerns related to capital cost, safety, and weapons proliferation areaddressed.Needed actions: • Given the controversy over the future of nuclear power worldwide, the UN should commission—as soon as possible—a transparent and objective JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA re-examination of issues that surround nuclear power and their potential solutions. • The private sector and ST community should continue research and development efforts targeted at improving reactor safety and developing safe waste management solutions. • Governments should facilitate replacement of the current aging reactors with modern, safer plants. Governments and inter-governmental organisations should enhance their efforts to remedy shortcomings in existing international frameworks and governance mechanisms.Conclusion 6: Renewable energy in its many forms offers immense opportunitiesfor technological progress and innovation.Needed actions: • Governments should substantially facilitate the use—in an environmentally sustainable way—of renewable energy resources through adequate policies and subsidies. A major policy step in this direction would include implementing clear price signals for avoided greenhouse gas emissions. • Governments should also promote research and development in renewable energy technologies by supplying significantly more public funding. • The private sector, aided by government subsidies, should seek entrepreneurial opportunities in the growing renewable-energy market. • The ST community should devote more attention to overcoming the cost and technology barriers that currently limit the contribution of renewable energy sources.Conclusion 7: Biofuels hold great promise for simultaneously addressing climate-change and energy-security concerns.Needed actions: • The ST community and the private sector should greatly augment their research and development (and deployment) efforts toward more efficient, environmentally sustainable technologies and processes for the production of modern biofuels. • Governments can help by stepping up public research and development funding and by adapting existing subsidy and fiscal policies so as to favour the use of biofuels over that of fossil fuels, especially in the transport sector.
  15. 15. Governments should pay appropriate attention to promoting sustainable means of biofuels production and to avoiding conflicts between biofuel production and food production. Conclusion 8: The development of cost-effective energy storage technologies, new energy carriers, and improved transmission infrastructure could substantially reduce costs and expand the contribution from a variety of energy supply options. Needed actions: • The ST community, together with the private sector, should focus on research and development in: – Potential new energy carriers for the future, such as hydrogen. – Improved energy storage technologies, either physical or chemical, thatJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA could significantly improve market prospects of intermittent renewable resources. – Continued improvements and cost reductions in technologies for transmitting electricity over long distances. Governments can assist by increasing public funding for research and development and by facilitating needed infrastructure investments. Conclusion 9: The ST community—together with the general public—has a critical role to play in advancing sustainable energy solutions and must be effectively engaged. Needed actions: • The ST community must strive for better international coordination of energy research and development efforts, partly in collaboration with the private sector. • Governments (and inter-governmental organisations) must make more public funding available to attract more scientists and engineers to work on sustainable energy problems. • The why and how of energy research and development should be made transparent to the general public. The ST community itself, inter-governmental organisations, governments, NGOs, the media and the private sector should be actively engaged in educating the public about the need for these investments. The full report can be accessed from – http://www.interacademycouncil.net10
  16. 16. DiscussionsConcerns were raised regarding the perceived reluctance by the private sectorto join in the renewable energy discussions which led to low investment inventures arising from these discussions. The participants were advised to ensurethat the biofuel ventures make business sense and are packaged lucratively toattract investors. Another concern raised was that governments did not seemto be supportive to the investors through provision of subsidies, facilitationof technology, research and development or even in policy development.Government representatives encouraged innovators and entrepreneurs toinvolve them in ongoing debates and present credible scientific facts to facilitatepolicy development. JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAAnother concern raised regarded the fact that Jatropha as a source of biofuelhad been under discussion since 2004 yet recommendations arising fromthose discussions had not been fully achieved. The meeting was advised thatdevelopments on recommendations would only happen if a multi-facetedapproach were taken. It would take some time to translate scientific breakthroughinto viable business enterprises as well as ensure that Governments come upwith a policy framework that will help the entrepreneurs, farmers and investorsinvest in development of biofuels. In the absence of policy framework, no supportwould be received from the Government for example in terms of incentives.Given Africa’s infrastructure the best vision for the biofuel market would bedevelopment and production of biofuels that can find local and internationalmarkets. 11
  17. 17. Status of Jatropha Cultivation in Africa: Challenges and Opportunities Facilitator: Felix Luti Overall Africa Perspective John Kioli, Green Africa Foundation Introduction Kenya and Africa at large, rely heavily on biomass fuels in form of charcoal orJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA wood, followed by petroleum fuels used in transport and the industrial sector, while electricity and renewables take a smaller fraction. In Kenya, the sources of biodiesel were reported to be palm, castor, soybeans, sunflower, sugarcane and Jatropha curcas. The uses of Jatropha curcas were named as follows: • Used as fuel: Biodiesel to run engines and for domestic use in place of kerosene. • Soil fertility uses: Residue cakes are rich in nitrogen, phosphorus and potassium (NPK). • Use in the soap manufacturing sector: The Jatropha oil has high saponification value in soap manufacturing. • Land rehabilitation uses: Soil erosion control and dune shifting. • Medicinal purposes: Latex is used as anticancer agent externally applied for skin diseases in humans and livestock. Its roots are used as antidote for snake bites. Kenya was seen to have opportunities in the development of Jatropha because of land availability in the semi-arid areas. These areas are known to have good climate for Jatropha cultivation. In addition, there is availability of both unskilled and skilled labour, which will be able to meet the huge market demand for local and international markets. However, there were challenges singled out in the development of Jatropha in Kenya. The major one being the choice of crop — between agroforestry trees and food crops. Food crops like soya and corn mature faster than agroforestry trees hence the dilemma. There is also high investment costs associated to large-scale plantation. A common limitation is lack of extraction and processing technology to process the finished products. The participants were notified that policy and guidelines on biofuels were yet to be put in place in the East African region. The policy instruments would touch on subsidies, trade tariffs, blending targets, production, marketing and land provision. With the strained energy resources, there are factors that have triggered the production of alternative sources of energy: • Decentralised use of bioenergy to reduce the cost of transmission. There is high cost of rural energy transmission. • Carbon trading: There are a few registered projects in Africa that are signatories of the Kyoto protocol. • Rising cost of fossil fuels.12
  18. 18. The Kenya Case Study: Mpeketoni Model in LamuThe case study revealed that over 10,000 farmers have planted Jatropha withacreage of 1ha per farmer. They are registered under a cooperative society whichis funded by the Norwegian Church AID. They carry out intercropping hencemaximise land use and income streams. The Mpeketoni Model has been able tocreate a growing market for biofuel with companies such as KPLC purchasing it.Conclusion and recommendationsThe speaker concluded the session by recommending the production andutilisation of biofuels in Africa. Biodiesel would be an attractive alternative fuelwith a huge potential and once exploited will lead to the improvement of the JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAgeneral well-being of a big section of Africa’s population. Certain factors wereperceived to enable such transition: How to manage this change properly witha view to economics, technology, and structure and ownership of industry andcreation of a knowledge base. A comprehensive programme for the introductionof this biodiesel industry was seen as a requirement. Key to the success would bethe Government support in policy formulation. 13
  19. 19. Status of Jatropha Plantations in Ghana: A Case Study of Jatropha Africa’s Plantation Ohene Akoto, Jatropha Africa Oil shock in the 1970s and early 1980s forced the government of Ghana to encourage the use of biodiesel at the national level. It ended when world oil prices declined in late 1980s. At present, interest in biodiesel has been rekindled in Ghana with focus on the use of Jatropha. Due to the good climate, soil and rainfall pattern in Ghana the plant grows almost everywhere. The country saw the need to diversify its energy resources because of the high world crude oil prices, legal mandate, and geopolitical tensions in Iraq, Iran, Nigeria and other oil producing countries. Further, the emergence of new economic powers likeJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA China, and the Kyoto Protocol on the reduction of greenhouse gases and global warming were seen as contributing factors to its development. Jatropha curcas is a perennial tree, found in the tropics. It has known advantages. It can be cultivated on land not suited to food crops and its oil has good properties, e.g. low waxing temperature, and low sulphur and can be used as direct fuel (with additives) in engines. Jatropha Africa is an organisation that is both British and Ghanaian owned that produces biodiesel feedstock. The organisation has its own improved seed called Jatropha Africa and has 500 ha of existing plantation. In the past, shea butter oil was used for biodiesel in Northern Ghana for lighting lanterns. Jatropha Africa’s plantations have good soil profile coupled with prevailing agro-climatic conditions. The project carries out intercropping by combining Jatropha with suitable species like shea butter, peanuts, tubers and vegetables. The advantages of intercropping include helping to boost cash flow, weed control, provision of shade, and availing nutrients because Jatropha’s root system is deep. The organisation has also found it useful to run other projects like bee-keeping and fish farming to make maximum use of the resources available. The project encounters problems of funding, lack of a regulatory framework and insufficient scientific data, and information on biofuel. Given the escalating crude prices and constraints on the available energy resources, alternative sources of energy is a profitable business but profits can only be realised by having the correct business model and government support.14
  20. 20. Status of Jatropha curcas Cultivation in Africa: The Tanzania Perspective Lillian Mkony, Jatropha Products, TanzaniaJatropha Products Tanzania Ltd (JPTL) is a nonprofit organisation whose objectiveis to link research and development in areas of knowledge, skills, and technologytransfer to smallholder farmers and small and medium enterprises interested in theJatropha plant and its products. JPTL helps small-scale farmers to improve theirlivelihood and alleviate poverty by selling and utilisation of Jatropha products, oiland by-products. The organisation operates in five regions in Tanzania.JPTL focuses on Jatropha crop system as an integrated rural development approach JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAthrough: • Increase in household livelihood by restricting Jatropha cultivation in hedges, farm boundaries and on marginal lands. The farmers are trained on how to intercrop Jatropha with other food crops. • Encouraging and training farmers on harvesting, storage and processing of seeds for the market. • Biofuel from Jatropha seeds — training small-scale farmers on the best farming practices for quality and high seeds yield. • Farmers are trained on the simple methods of extracting oil from Jatropha seeds, by the use of locally made hand press machine; oil produced is applied for their daily usage. • JPTL provides training on how to make and use Jatropha oil lanterns. • JPTL also carries out research on local cook stoves, lanterns, improved seed cake stove and medicinal value of Jatropha herbal soap.The participants were informed that there has been concerted effort on Jatrophagrowing, processing, trading and other related activities in Tanzania. Throughthe government, relevant guidelines and policy have been formulated, and alsoinvestment facilitation and monitoring through various ministries. Institutions likethe University of Dar es Salaam and Muhimbili University have provided guidelineson best farming practices, pest control, environment, medicinal value of Jatrophaand certification of Jatropha products. NGOs have promoted seeds for planting,processing to production of Jatropha products. The land is allocated to the NGOsby the local government. It was noted that processors and companies such asDiligent Ltd engage in buying seeds from farmers and processing them into oil forexport and for production of other products such as soap.In concluding the session, the presenter mentioned the challenges the organisationfaces. Low awareness among farmers, propaganda against Jatropha plant fromsome sections of the society, limited funding, need for policies on biofuels anduncertainty in the sustainability of the Jatropha chain linkage (demand and supply)were some of the challenges highlighted. JPTL sees opportunities despite thesenumerous challenges. The escalation of crude oil prices and climate change willcause Tanzania to make a shift towards biofuels in the near future. 15
  21. 21. Status of Jatropha curcas Cultivation in Africa: Challenges and Opportunities in Zambia Petrus Snyman, Thomro Biofuels Introduction The presentation focused on the Biofuels Association of Zambia, an association of firms, companies and individuals who are producers or service providers in biofuels industry in Zambia. The Association was registered under the Societies Act of the Laws of Zambia, with the support of Government through the Ministry of Energy and Water Development. The Association dialogues with Government and other stakeholders to promote the interests of the biofuels industry. In supportJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA of biofuels there are government policy, statutory instrument and standards for biodiesel and bioethanol. There are others at pre-draft stage namely biofuels regulatory framework, technical guidelines on production, storage, transportation and retailing of biofuels, and blending ratios. The best feedstock should be one that empowers all players across the board. Monopolistic feedstocks are a possible breeding ground for unsustainable biofuels industry. Every Zambian has an opportunity to participate and there is great potential for SMEs and village level involvement as part owners of the industry, in biofuels value chain business and by offering services to the biofuels industry. Unlike other industries, biofuels industry in Zambia is participatory and has a 100% internal value chain. It was reported that Jatropha plantation in Zambia is done in the field, as a garden plant, as a hedge and intercropped. The farmers use simple technologies to press to extract and filter oil. Benefits of a well developed Jatropha industry A well developed and managed biofuels industry in Zambia has potential to reduce deforestration, enrich soils and improve food security, reduce poverty, reduce greenhouse gas emissions and trigger industrialisation. Challenges The following were the challenges identified to be associated with the planting of Jatropha: • The farmers lack the knowhow on how to establish a nursery and plantation management in a cost effective manner. • Disease identification and management of Jatropha. • Jatropha value chain opportunities especially through by-products. • Financing and available market for Jatropha oil because it is a new alternative source of energy. • Lack of professional courses on Jatropha, training and extension services to the farmers. • Lack of fuel blending ratios which define the national volume of business.16
  22. 22. OutcomesDespite the challenges, the presenter had confidence that if Zambia embraces thebiofuel technology there will be advantages accrued by the country: • Be self-sufficient in all basic energy forms; • Accelerate development especially in the rural areas and enhanced job opportunities, rural electrification and infrastructure since Jatropha is to be grown in the country-side; • Reduce poverty levels in both rural and urban areas; • Enhance food security; • Net reduction in environmental degradation; • Country-wide industrialisation. JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAIn conclusion, Zambia considers Jatropha industry as a turn-key to the country’sdevelopment. She is geared to go beyond her potential and turn the wheels intoaction because of the conducive agro and investment climate for the industry. 17
  23. 23. Discussions There was discussion on Ghana and the recent discovery of fossil fuel and its effect on the development of biofuels. Ghana will soon be a major oil exporter hence the gains made in biofuel development will be swept away. It was mentioned that the government is still reluctant to empower Jatropha production which is still largely 70% foreign owned and 30% locally owned. The participants concurred that it is a good investment opportunity to enhance development especially at the grassroots level even after the discovery of oil reserves that will only benefit a few. A clarification was made that in Tanzania, the Government has set guidelines on the production of biofuels in relation to food crops. The major problem is that the market is deregulated and the buyers dictate the prices thereby taking advantageJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA of the farmers. This requires sensitisation of the farmers in the marketing of the products. The other advantage Tanzania has is that the Government owns the land and large tracts can be set aside for the development of Jatropha. The participants acknowledged that more research needs to be done to know the true economic value of Jatropha’s by-products. The waste makes very good fertilisers because it is rich in nitrogen, phosphorous and potassium. Further, the participants concurred that the production and processing of Jatropha should be done in the respective country and then exported as finished products. This will help in creating more opportunities for development and empowering Africa. There was a general consensus that the standards of Jatropha processing have not been developed in a majority of the countries and there are issues regarding its safe packaging. Like any other flammable fuel, it was advised that Jatropha should be stored in proper jerricans that will withstand its properties and also be safe to store.18
  24. 24. Jatropha curcas as a Source of Biofuel: Opportunities and Challenges Facilitator: Mosto Onuoha Biofuels for Developing Economies: Current Scenario and Issues, Challenges and Opportunities James M. Onchieku, KEFRIIntroduction JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICABiofuels are produced from biomass, which are organic materials, e.g. plants,fruits or seeds. There are two types of biofuels: 1st generation also calledconventional biofuels derived from crops grown purposely for biofuel production,e.g. ethanol produced from sugar plants, and 2nd generation fuels producedfrom agricultural and forestry wastes and residues. The main biofuels feedstock isdivided into two categories: annual crops which are sunflower, soybeans, canola,cotton and groundnuts, and perennial crops which include Jatropha curcas, palmoil, avocado, croton and castor. Currently the main focus is on Jatropha curcas,Croton megalocarpus and castor.The presenter pointed out that biofuels provide an opportunity to develop Africa’seconomies with the increasing global demand for energy. Fossil fuels reserves, asmentioned earlier, are slowly depleting and are heavy contributors to greenhousegases. Moreover, with the escalating fossil fuel prices, Africa has a chance toproduce biofuels thereby contributing to its own development. However, a WorldBank report indicates that rising biofuel production is the main cause of foodshortages and rising food prices in the developing countries.Characteristics of JatrophaThe characteristics of Jatropha that make it a suitable alternative source of energyfor Africa are: • Resistance to drought (can be planted even in the desert climates), and it thrives on any type of soil, grows almost anywhere; in sandy, gravelly and saline soils. • Jatropha needs minimal input or management. • Jatropha is not browsed by cattle or sheep. • Jatropha propagation is easy, from seed and cuttings. • Jatropha growth is rapid; forms a thick live hedge after only a month. • Jatropha starts yielding from the second year onwards and continues for 40 years. • The meal after extraction is an excellent organic manure (38% protien N:P: K ratio 2.7:1.2:1). • Jatropha quickly establishes itself and will produce seeds all year round if irrigated. • Other than extracting biodiesel from Jatropha curcas plant, the leaves and bark are suitable for various other industrial and pharmaceutical uses. 19
  25. 25. • Localised production and availability of quality fuel, restoration of degraded land over a period of time. • Approximately 31 to 37% of oil is extracted from the Jatropha curcas seed. It can be used for any diesel engine without modification. Uses of Jatropha The presenter gave details on Jatropha uses that include the following: • Jatropha oil has a very high saponification value and is being used for making soap in some countries and is known to have medicinal characteristics. • Used as an illuminant as it burns without emitting smoke. • Medicinal plant: The latex of Jatropha curcas contains an alkaloid known as ‘jatrophine’ which has anti-cancer properties. • Raw material for dye: The bark of Jatropha curcas yields a dark blue dyeJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA which is used for colouring cloth, fishing nets and lines. • Soil enrichment: Jatropha curcas oil cake is rich in nitrogen, phosphorous and potassium, useful for organic manure. • Feed: Jatropha leaves are used as food for silkworms. • It has many rural applications (used in lamps and cook stoves or substitute fuel in modified engines; unmodified engines for B10 and B20 blends). • Seedcake is used for briquettes, fertiliser or input in biogas plants. Rationale for biofuel production Production of biofuels would contribute towards the achievement of Vision 2030 and the millennium development goals through enhanced security of energy supply by reducing dependence on fossil fuels. In addition, this will contribute immensely to global warming mitigation. Further, it will contribute to poverty reduction by diversification of income sources and employment creation. Legal and policy framework The session advised that government support in developing alternative sources of energy and creating an enabling environment for Jatropha production will help a great deal in making Kenya self-reliant in terms of energy sources. Jatropha and the millennium development goals (MDGs) In line with the UN MDGs, the following benefits were associated with the Jatropha curcas production system: • MDG 1: Reduce extreme poverty and hunger: Income generation, foreign exchange, improved community livelihoods. • MDG 3: Promote gender equality and empower women: Women are in the farming business thus their involvement in Jatropha cultivation will empower them. • MDG 4: Reduce child mortality: Child mortality is high in the rural areas where poverty is most prevalent. Improved community livelihoods will reduce child mortality. • MDG 7: Environmental sustainability: Increased vegetation, land rehabilitation, nitrogen fixation, clean energy.20
  26. 26. • MDG 8: Develop a global partnership for development: Through opening up of international markets, partnership with local foreign investors.Policy frameworkAs earlier reiterated, policy framework and institutional structures like the EnergyAct 2006 and Policy; Forest Act 2007 and Policy; Agriculture Act, among others,are underway to regularise the energy sector. Major milestones that have beenachieved so far have been the National Biofuels Committee establishment of aTask Force working on Strategy for Development of Biodiesel Industry and theformation of the Kenya Biodiesel Development Association (KBDA).Proposed way forward and recommendations JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAThe presenter gave a recommendation on the establishment of model pilotJatropha production, processing and utilisation units in Coast, Eastern, Westernand Rift Valley provinces. In addition, support should be offered to interestedparties to develop integrated Jatropha energy programmes, that is, individualfarmers, organisations and government agencies. Lastly, operationalise anenabling environment for the development, marketing and utilisation of Jatrophaproducts and by-products. 21
  27. 27. Utilisation of Jatropha Waste for Energy Production: Opportunities and Challenges David Yuko, Institute of Research in Sustainable Energy and Development (IRSEAD) Introduction During this session, the presenter pointed out that there is renewed interest in renewable energy in Africa. Energy use in sub-Saharan Africa has been dominated by biomass (wood, charcoal, bioresidues) and there is low level of access to modern energy services. Africa has the potential to exploit renewable resource base such as hydro, geothermal, solar, wind and biomass. With new challengesJATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA of energy security and sustainability around the world today and unsatisfactory performance of conventional energy sector (high cost and unreliable supply due to drought), increasing oil prices compounded by lower export earnings, Africa needs to stand up to the challenge. Biofuels as mentioned, have a central role as we address the changing patterns in energy supply and demand. Biofuels and bioenergy include those extracted directly or indirectly from organic matter or its derivatives: • solid (fuelwood, biomass, agricultural waste); • liquid (bioethanol, biodiesels); • gaseous fuel (biogas). Key issues in solid biofuels are indoor air pollution from using fuelwood unsustainably. Women and children are the most affected. Oil content of different crops and the oil yield per hectare under commercial production regimes Oil % oil % %oil Oil Oil litre/ % Crop content remaining oil extracted from extracted ha oil cake % in crop extracted the seed litre/ha Seed cotton 8 225 6 70 6 157 92 Groundnuts 44 967 6 92 41 893 56 Soy beans 17 467 6 71 12 330 83 Sunflower 40 879 6 91 36 791 60 Sesame 50 611 6 94 47 574 50 Avocado 16 3270 6 69 11 2240 84 Palm 30 5275 6 86 26 4536 70 Jatropha 40 1319 6 91 36 1200 6022
  28. 28. The following were presented as factors that limit commercial wasteharvesting: • Grassroots organisation: Who is the producer and who is the buyer, that is smallholder versus large-scale. • Ensuring continuity of crop development by ensuring prompt and adequate returns to farmers (eliminate exploitation by middlemen). • Need for technical adaptation and advocacy to promote uptake of the commercial and economic opportunities. • Lack of proactive policy to encourage and promote use of by-products as the biodiesel component is being addressed. • The need to create jobs and wealth requires higher returns for the farmer, hence higher costs for the energy produced. JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAOptions and opportunities that accrue from Jatropha development: • Carry out independent studies to document economic opportunities with environmental benefits, and highlight advantages to communities with a view to making them drivers of the process. • Engaging governments to create opportunities for commercial development of biofuels as a tool for driving environmental protection. • Highlight gender opportunities: Jatropha waste offers prospects for fuel switch to modified/improved cookstoves using briquettes from Jatropha and other agricultural waste. • Jatropha offers opportunity to integrate smallholder and large-scale commercial producers. Structures can be borrowed from tea and coffee industries.Policy framework is the foundation that biofuels requires. The sessiondefined two options that the framework can embed on. These are: Policy and Institutional Option 1 • Identify opportunities for rationalisation and improved efficiencies. • Increased use of policy research and project implementation. Use of NGO, private sector and regional research networks. • Regulatory and fiscal measures to be implemented by local institutions, with involvement of key stakeholders (energy producers, distributors and users). Policy and Institutional Option 2 • Appropriate pricing scheme to allow cost recovery of energy generation and distribution. Set up and empower local institutions to review and police this arrangement. • Environmental impact assessment to be carried on all major energy projects, with appropriate weighting for environmental costs. • Develop least cost strategies that internalise all costs, to minimise forex requirements, develop and diversify local energy resource base. • Institute proactive advocacy, with regular reviews of past policies, projects and initiatives, and incorporate lessons learned into future projects. 23
  29. 29. Mobilisation of financial resources and developing regional efforts was seen as a key factor in realising the development. The presenter mentioned the following factors that should be put in place: • Establish indigenous and reliable sources of funds with low bureaucracy, to provide long term loans for energy projects. • Involve local banks and financial agencies in energy projects. • Develop and strengthen cadre of local energy experts capable of undertaking planning and implementation functions. • Promote regional cooperation in energy resource assessment, development and distribution. • Encourage efficient use of biomass in households, small- and medium- scale industries in rural and urban areas.JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA • Promote regional efforts in use of industrial biofuels in the transport sector.24
  30. 30. Strategies for Developing Creative and Innovative business Models, Accessing Venture Capital and Penetrating Local and International Markets Facilitator: Ishmael Machiya Developing Creative and Innovative Business Models for the Biofuel Industry in Africa JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA Suresh Patel, Kridha Ltd and Representative, KAMFour key assumptions for business modelling are: • A business concept is based on the demand and supply gap for Jatropha oil. • There cannot be single and practical business model to cover entire Jatropha utilisation cycle. • Business models have been built on specific activities in chain of the development. • All models to be integrated as a programme for comprehensive success for Jatropha oil as biofuel.The presentation touched on three business models on Jatropha oil that linked it toproduction, processing and consumption. For successful Jatropha development,each model has to work efficiently and successfully and will be connected toeach other in an overall view. Each model has specific activities among particularstakeholders, specific target, location and specific characteristics.Models for productionPurpose of the two models A and B is to achieve the following main output whichis seed.Other complementary outputs – though not comprehensive are: • Stable output of seeds • Assured quality of the seeds • Acceptable price of the seeds • Protection against uncertainties • Capacity building for the growers.Business Model A for productionIn this model there is supply of seeds to the farmers and growers who use eitherConstituency Development Fund or financial institutions to seek financial support.There is also use of brokers or middlemen that link to the processors. In most casesthe middlemen have an upper-hand in terms of the pricing structure. Interestingly, 25
  31. 31. the insurance companies provide for insurance cover to cushion any risks accrued thereof. Please see the diagram below:JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA Business Model B for production In this model, it was noted that the farmers and growers are more familiar and comfortable with the model and they are members of the cooperative society. This model is advantageous since the farmers get dividends from the society and other benefits like loan facilities and training. There is an incentive because governments recognise cooperative societies. See figure below: Model for processing The model’s purpose as presented is to achieve the main output—Jatropha oil— crude/refined/other oil products. Other complementary outputs include: • Stable output of oil • Assured quality of the oil • Acceptable price of the oil • Protection against uncertainties • Capacity building of processors. At the centre is the processor who receives the output from the co-operatives, brokers, contracted farmers and supplies the end product to the buyers. The26
  32. 32. processor gets government incentives and there is a quality management systemin place.See figure below: JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAModel for consumptionUnder the consumption stage, the purpose of the model was to achieve themain output energy through biodiesel/refined oil—mainly for transportation andpower.Other complementary outputs are: • Acceptance of blended fuel B5 • Stable demand of the fuel • Reliable availability of the fuel • Stable price of the fuel • Acceptable quality of the fuel • Protection against uncertainties • Capacity building of the marketers.See figure below:Sustainability of Jatropha fuel as businessThe key issues which need long term solutions to make Jatropha a business tomany of the farmers are: 27
  33. 33. • Food versus fuel impasse, striking the balance • Political harmony and security to attract investors • Competition from imports • Ability to use East Africa as common resource hub • Market stability especially when there is an economic downfall. In Kenya, as discussed, the petroleum imports have doubled over a period of six years, i.e. 2003–2008 showing the rising demand of energy by the industries, transport sector, household and the like. This shows that the demand is rising and unmet and therefore the production of biofuels makes a viable business opportunity.JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICA28
  34. 34. Commercialisation of Jatropha curcas-based Biofuel Production System for Integrated Rural Development and Energy Provision in Kenya Lorna Omuodo, Vanilla Jatropha Development FoundationIntroductionThe project’s goal is contributing towards the transformation of Kenya’s industrialcrops sub-sector into a commercially oriented economic activity for increasedhousehold incomes and employment creation for improved livelihoods whileutilising the natural resources and biodiversity sustainably. JATROPHA CURCAS–DERIVED BIOFUEL INDUSTRY IN AFRICAThe project design is aimed at advancing Jatropha value chain by promoting thedevelopment of production techniques and processing technologies/ innovations,marketing strategies as well as scaling up and increasing uptake pathways in apluralistic, and demand-driven way by empowered clients.The following were narrated as the expected project outputs: • Carry out a situational analysis for sustainable production to consumption of Jatropha curcas-based technologies. • Validate and pilot best-bet field production, processing and marketing Jatropha curcas-based technologies. • Establish and promote appropriate infrastructure for best-bet field production, processing and marketing interventions for Jatropha curcas crop and related products. • Develop and facilitate strategies for information and knowledge sharing for increased uptake and up-scaling for Jatropha value chain.The project was to receive various uptake promotion and support in agricultural,technical, quality assurance, business development, access to market, commercialmarketing and project management among others.The project activities were to be undertaken in collaboration with: • Farmers and farmer groups • Key line government ministries – Ministry of Agriculture, Environment, Energy • Technical and regulatory institutions – KEBS, KARI, KEPHIS • Non-governmental organisations.The project benefitsThe participants were taken through the project’s benefits. The project as plannedwill benefit the locals through the establishment of a viable and sustainableentrepreneurship base. This will in turn improve the access to energy, developmentof effective markets, with spin-off effects in rural economies thereby improving thestandards of living. At a national level, the partnerships will create new networksfor sharing information and exchanging experiences among the stakeholders. 29