This document discusses bioenergy policy and regulation in Malawi. It provides an overview of current biofuel feedstocks in Malawi, including sugarcane molasses for ethanol production and Jatropha curcas for biodiesel production. It also discusses the key policy and regulatory issues around biofuel production in Malawi, such as the need to protect food production, utilize marginal lands, establish clear biofuel standards and legal blending levels, and provide tax incentives to promote the biofuels industry. The overall aim is to develop a sustainable biofuels industry in Malawi through an appropriate policy and legal framework.

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FRAMING CLEAR BIOENERGY
POLICY AND REGULATION
THE CASE OF MALAWI
BY
GRAIN WYSON PHILIP MALUNGA, FIMMM.
(APRIL 2015)

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Table of Contents
Contents
1.0 Introduction............................................................................................................................2
2.0 Current Biofuels Feed Stockin Malawi......................................................................................2
2.1 Sugarcane Molasses for Ethanol Production..........................................................................2
2.2 Jatropha Curcus for Biodiesel Production ..............................................................................3
2.3 Other potential feedstock ....................................................................................................3
3.0 Production Systems.................................................................................................................4
4.0 Policy and Regulatory Issues.....................................................................................................5
4.1 Policy on Food Production....................................................................................................5
4.2 Land Policy..........................................................................................................................5
4.3 Biofuel Standards and Blending ............................................................................................5
4.4 Policy on SecuringFeedstock.................................................................................................6
4.5 TaxationPolicy and Fiscal Incentives......................................................................................6
5.5.1 TaxationPolicy Benefits......................................................................................................6
5.0 Conclusion ..............................................................................................................................7
7.0 Recommendations ...................................................................................................................7
8.0 References..............................................................................................................................8

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1.0 Introduction
In Malawi the national energy policy provides a supportive legislative framework for the
development of the biofuel sector in the country while safeguarding the livelihood systems of the
rural communities. Biofuels offer a great opportunity for diversifying energy sources and
livelihood systems of rural communities through employment creation in the bioenergy industry,
production and marketing of biofuel products. In order to promote a sustainable biofuels industry
in Malawi, it is necessary to create appropriate policies and legal framework for the production
of non-food feedstock for biofuel production as a way of safeguarding the potential dangers of
biofuel on food production and environmental protection. The Malawi Energy Regulatory
Authority (MERA) is a regulating authority on biofuels with a generic biofuels framework. This
means that investors in the biofuels industry who are interested in producing biofuels are free to
apply for a license from MERA.
2.0 Current Biofuels Feed Stockin Malawi
Two major crops are being promoted in Malawi for the production of bioethanol and biodiesel at
present and these are sugarcane and Jatropha respectively.
2.1 Sugarcane Molasses for Ethanol Production
Malawi started producing ethanol in 1982, which is blended with petrol in order to reduce
the fuel import bill where between 90 and 100 million litres of petrol is imported every
year. The target is to blend 20% ethanol with fossil petrol. Currently the blend is at 10%
ethanol and 90% petrol.
In October 2007, Malawi imported an ethanol-propelled car from Brazil and launched a
pilot program of modifying the engines of some vehicles to run on ethanol or a mixture of
ethanol and petrol. Sugar cane is already being widely grown in Malawi and its production
can easily be expanded wherever there is irrigation and water. Its impact on employment
is high. Considering that ethanol is produced from a by-product of sugar (molasses) there
is a double benefit in terms of income. Ethanol is already widely used as a petrol blend and
the processing technology is known and available.

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2.2 Jatropha Curcus for Biodiesel Production
Malawi plans to promote the production of biodiesel from Jatropha curcus. Jatropha curcas
is a small tree or shrub with smooth grey bark, which exudes whitish coloured, watery,
latex when cut. Normally, it grows between three and five meters high, but can attain a
height of up to eight or ten meters under favourable conditions. Jatropha curcas belongs
to the family of Euphorbiaceae and produces a “physic nut”, and “purging nut” as some of
the synonyms. The local name in Malawi is “nsatsi manga” in Chichewa or “mono” in
Tumbuka languages respectively.
Jatropha curcas is a drought-resistant perennial crop and can grow in marginal/poor soil. It
is easy to establish, grows relatively quickly (it takes around 5 years to mature) and can
produce seeds for up to 50 years. Jatropha curcas grows wild in many parts of the country
and thrives on infertile soils. It is rugged in nature, easy to propagate, can survive with
minimum inputs, and a good crop can be obtained with little effort.
It grows on well-drained soils with good aeration and is well adapted to marginal soils with
low nutrient content. Of course marginal soils will lead to lower yields.
Jatropha curcas produces nuts with annual yield that range from 0.5 to 12 tons. The nuts
contain up to about 30% oil which can be transformed into biodiesel fuel through
esterification. The oil can be combusted as fuel, without being refined and it burns with a
clear, smoke-free flame. The oil has also been tested successfully as fuel for simple diesel
engines.
Jatropha curcas or its parts/products are also used for medicinal purposes to treat certain
ailments such as piles, snakebite, paralysis, dropsy and wounds.
It has also been established that Jatropha curcas has been grown in Malawi for over 30
years as a hedge crop and it has never been reported to be invasive.
2.3 Other potential feedstock
Soya beans, cotton seed, sunflower and palm oil can also be used for production of biodiesel
while maize, cassava and sweet sorghum can be used for production of ethanol. However in
Malawi the use of food crops is discouraged.

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3.0 ProductionSystems
The Ethanol Company of Malawi (Ethco) has a factory for processing sugarcane molasses in
Dwangwa. Commissioned in 1982, Ethanol Company Limited has produced well over a quarter
billion litres of ethanol. They are the pioneers of Ethanol production in Malawi. PressCane is an
ethanol distillery which is a subsidiary of the conglomerate Press Corporation Limited and began
operations in June 2004. The plant is located in Chikhwawa on the east bank of the Shire River
about 25 km north of Nchalo (55km south of Blantyre) and employs 115 Malawians including
management. The main products of the distillery are fuel ethanol also known as anhydrous alcohol
(AA 99.8% v/v) and industrial alcohol (rectified spirit 96.5% v/v). Sugar cane molasses are
procured from Illovo in Nchalo and fermented into ethanol. The high quality of the ethanol is
possible due to the new molecular sieve dehydration (MSDH) technology installed in the distillery.
The molasses are a waste material (effluent) for the Illovo Sugar Mill whose environmental
disposal issues have been solved by the establishment of PressCane Limited. The fuel ethanol is
blended with petrol in the ratio of 10 - 20% ethanol to 90 - 80% petrol by the petroleum companies

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such as BP Malawi, TOTAL Malawi and CHEVRON Malawi. Fuel blending in Malawi was
precipitated by the energy crisis in the early 1970s.
BERL has a pilot biodiesel processing plant in Lilongwe to process Jatropha seed into oil. Jatropha
oil can be extracted from the nuts with very basic pressing. At the processing centre, the seed is
processed into crude oil. The seedcake can also be used as compost. The crude oil can be used for
lighting or engine fuel in rural areas or for the production of biofuel.
4.0 Policy and Regulatory Issues
One of the major challenges will be the harmonisation of various existing agricultural and energy
policies and strategies to provide a framework for development of the biofuels industry. To enable
this development, a Biofuel Advisory Council has been created with the sole purpose of developing
this policy and legal framework harmonisation.
4.1 Policy on Food Production
There is no plan to convert existing food production into biofuels and the government has
made it very clear that developing biofuels cannot be done at the expense of food
production.
4.2 Land Policy
Looking at land availability in Malawi, there is land pressure in the Central and Southern
Regions. But there is still 26% of arable land in Malawi unused. The current policy is to
utilise marginal land for Jatropha production while for sugar production areas with
irrigation potential are targeted.
4.3 Biofuel Standards and Blending
The need to have clear biofuel standards and legalised blending levels are driven by the
fact that all petroleum products in Malawi are imported. This is exacerbated by the fact that
Malawi is a landlocked country and has no oil reserves of its own; it relies solely on fuel
imports. Looking at the development of the economy of Malawi, the country’s growth also
relies on secure fuel imports. At the current rate of consumption the demand for diesel in
Malawi has increased from 155 million litres in 2006 to 300 million litres in 2014, with the
on-going trend of about 6.5% increase per year. Blending diesel with biofuels will require

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clear standards and legalised blending level. Ethanol is well established with
internationally accepted standards and legalised blending levels. Biofuel Standards have
been developed and approved by the Malawi Bureau of Standards. However, they need to
be tested by a large population of vehicles so that they can be firmed up.
4.4 Policy on Securing Feedstock
One of the major challenges facing the growing of feedstock for biofuel on an out-grower
model is, side selling. The presence of refining capacity without feedstock in neighbouring
countries like Zambia and Mozambique poses a major risk on side selling of feedstock by
smallholder farmers in Malawi.
The Government of Malawi can take several steps to prevent this from happening like
export ban on oilseeds like Jatropha and on crude oil. Also it can be incorporated in the
licensing process authorised by MERA that proof of provenance of feedstock must be part
of the licensing approval process.
4.5 Taxation Policy and Fiscal Incentives
In Malawi it is important to come up with clear taxation policy for the promotion of
biofuels. One such policy would be granting of tax holidays for investors. Another
interesting area of intervention is on equipment for the production of biofuels which could
be granted duty free status.
5.5.1 Taxation Policy Benefits
 Fiscal impact: Foreign exchange savings to substitute petrol and diesel import by using
locally produced biodiesel. Also foreign exchange savings on substitution of paraffin
with Jatropha oil.
 Employment: Jatropha growing with out-growers schemes will create permanent jobs
with employees on contract. If local sales and marketing of the products are considered,
many more rural jobs will be created, as well as considerable opportunities for local
transporters and other downstream businesses.
 Introduction of knowledge and technology: In order to ensure efficient bio-diesel
production and considering that this is a relatively new technology in the country,
training staff extensively in such subjects as forestry management, pest control, oil
expelling, refining and laboratory testing.

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 Income level and working conditions: Jatropha smallholder farmers will be paid a
fair price for their seeds, while incentive payments during the first year of operation
will form part of the supportive measures for these farmers.
 Impact on the position of women: The biofuel industry will create employment
opportunities for women, especially in the cultivation of the plants and collection of
the seeds. By offering a fair purchase contract and incentive payments, combined with
intensive training and monitoring activities, the project partners will enable the women,
with their families, to improve their financial position and social status. An equitable
gender balance is strived for in recruitment of staff. As such, the net impact on the
position of women will be positive.
 Environmental benefits - The environmental effect will be positive for a variety of
reasons. In Jatropha there is a viable alternative; one that can improve the health of the
local environment by revegitation and topsoil. The organic fertiliser produced will have
a positive effect on the water quality and will also save Forex when importing fertiliser.
An important component is contribution to reducing greenhouse gas emissions through
carbon sequestration in Jatropha trees.
 Carbon Trading: Carbon debt must be taken into account when growing biofuels.
This means current biomass must be recorded and strict criteria must be set. If proper
policies are put in place for carbon trading, energy crops can qualify for benefiting from
the carbon trade.
5.0 Conclusion
 Malawi has a big potential to produce enough biofuels for its local as well as
international markets.
 Malawi is capable of producing different non-food feed-stocks
 Malawi can convert unutilised land for biofuels crop production.
 Malawi has the potential to reduce its fuel importation bill.
 The issue of food verses fuel does not arise if the production of biofuels is
accompanied with proper policy instruments.
 Malawi needs additional policy instruments for the sustainable promotion of
biofuels
7.0 Recommendations
There is need to expand sugar production for production of more ethanol.

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Malawi may wish to involve the academics for further study on:
 cost-benefit analysis of biofuels production.
 land productivity forproduction in biofuels production.
 utilisation of marginal land for biofuels production.
 how to engage in international trade for biofuel and gain from carbon markets.
8.0 References
1. Government of Malawi, 2003, Malawi Energy Policy
2. National Biofuels Advisory Council, 2009, Draft Biofuels Position Paper for Malawi
3. Malawi Government, 2004, Malawi Energy Laws