Opportunities for modernized bioenergy in
             West Africa




            Prepared by Smail
            Khennas for UNDP
OUTLINE


Focus on investment and finance

1. Context & Objective
2. Key issues regarding
   sustainability
3. Biomass resources
4. Investment and finance
5. Key Recommendations
Support Implementation of ECOWAS White Paper
       Expanding Access to Modern Energy Services

Context & Objectives of Study:
1.    Information on practices, policies
      and programs for developing bio-
      energy to expand access to modern
      energy services

2.    Information on financing and
      partnership models

3.    Bio-energy use with the ongoing
      multifunctional platform programs
      in the Region

4.    Operational recommendations on
      bioenergy development and
      prioritization ( to meet MDGs)
Overview of current situation
1.   Traditional biomass represent
     50 % to 80% of final energy
     consumption and total primary
     energy supply
2.   Low access to modern cooking
     fuels (LPG)
3.   Low access to electricity; Cape
     Verde, Côte d’Ivoire, Ghana and
     Nigeria (50%) Burkina Faso,
     Gambia, Guinea, Guinea-Bissau,
     Mali, Niger and Sierra Leone
     (12% ).
4.   Apart from Nigeria, high
     dependence on fossil fuels
Sustainability issues of modern bioenergy
Bioenergy Sustainability Criteria (UN-Energy)

• Improved energy services for the
  poor;
• Contribution to agro-industrial
  development and jobs creation;
• Impact on health and gender ;
• Impact on land use;
• Impact on climate change.
• Impact on food security and
  energy security;
• Impact on government budget;
• Impact on trade,                 In-out door pollution cause by wood
• Impact on biodiversity and       fuel
  natural resource management;
Development potential
            of modernised bioenergy
         Energy needs                  Bioenergy solution
1. Cooking and heating         •   Improved cooking stoves and
                                   improved carbonization processes
2. Lighting and other
   domestic use (low           •   Landfill gas and biogas systems at
   voltage).                       household or industrial level based
                                   power generation
3. Electricity and shaft
   power (Income               •   Combined heat and power (CHP)
   Generating Activities).         production from agro- and wood
                                   residues, plant oil eg.jatropha
4. Mobility: transport fuels
                               •   Transport fuels (biodiesel,
                                   bioethanol), from energy crops
Maslow Energy Pyramid applied to Energy Acces
             in ECOWAS region
Biomass resources
             in the ECOWAS region
ECOWAS: 512 Mha; pop.
  of 280 M in 2007.

• Trend: Growing demand
  for traditional bio energy
  and increasing
  agricultural demand
  leads to continued
  reduction in forest cover.

• Opportunites: untapped
  biomass resources : (i)
  Agricultural residues (ii)
  Dedicated energy crops,
  (III) Woody biomass and      Data source: FAO, 2009 and CIA, 2009

  (IV) Aquatic biomass .
Availability and use of biomass resources
                in West Africa
Types of resources
Woodfuels
• Wood consumption is well
  above the annual increment
  (deforestation);
• Residues (e.g. sawmills) are
  left unused;
Agrofuels
• Ethanol: sugar cane, sweet
  sorghum, cassava
• Biodiesel : palm oil ,, cotton
  seed oil, peanut oil, Jatropha
  oil, coconut oil
                                   Groundnuts Senegal
Availability and use of biomass resources
                in West Africa
                            Dumped melasse in north Senegal (Demba Diop,
Types of resources          2004)

Municipal by-products :
• Landfill gas for energy
  generation
• Avoid uncontrolled
  dumping
• Cost effective compared
  with other options
Agro residues…
Agro residues and by-products have lower costs than
grown energy crops in the ECOWAS region:

•   Cote d’Ivoire alone 42% of world production cocoa. Ghana and
    Nigeria other top producers ;
•   Important palm oil and coconuts effluents;
•   Nigeria world leading producer of cassava; cutting edge
    technology for increasing yields ;
•   Large scale production of cotton, groundnuts, sorghum in the
    Sahel enables the use of the residues for energy generation;
•   Irrigated agriculture: Volta, Niger, Senegal, Gambia rivers:
    enough rice straw,
•   Aquatic plants (typha) to contribute to the production of biogas or
    for electricity generation
Electricity and Mechanical power
• Biogas for power                MFP, village of Dougounionain , Mali

  generation
  (slaughterhouse, large
  scale farm, agroprocessing
  units);
• Bioliquids for power
  generation (MFP);
• Combined Heat and Power
  (waste heat recovery to
  feed steam turbines for
  electricity generation)
• Thermal biomass
  gasification and landfill gas
  valorisation
Theoretical and realisable potential
Investment

• Climate finance (Article 4.3 of UNFCCC) central issue in
  global climate negotiations since its beginning (UNFCCC,
  1992).
• COP 15, Copenhagen 2009 and Cancún 2010 (COP 16),
  countries made a concrete Commitment of USD 100
  billion per year by 2020 from developed countries to
  address the needs of developing countries.
  Various sources, public and private, bilateral and
  multilateral, (UNFCCC)
Investment




             Source:
             IPCC
Scale of investment for biomass
                    energy
•   Improved stoves: the market for improved woodfuel stove for
    45 M households million estimated at USD 500 million

•   Biogas : technical potential for Africa: 18.5 M people have
    sufficient dung and water to operate biogas plants
    West Africa: 4.88 M households (Nigeria: 2.2M)

    20 % of the technical potential = US$3.7 billions
Scale of investment for biomass energy


                Investmen   O&M          Life time   Typical size
                t cost      €/kWe/year   (years
                €/kWe
Biogas plant    2550 -      115 - 140    25          0.1-0.5 MWe
(agri)          4290
Landfill gas    1350 -      50 - 80                  7.5 - 8
plant           1950
Biomass plant   2225 -      84 - 146     30          1 – 25
                2995
Waste           5500 -      145 - 249    30          2 – 50
incineration    7125
plant
Strategic Financing Position of different types
                 of financers
General Recommendations
1.   Energy efficiency improvement remains as important as
     renewable energy production including bioenergy.
2.   Focus on low capital intensive & low operational costs first.
3.   Low risks option: technically and commercially proven.
4.   Work primarily with local investors, entrepreneurs and diaspora
     finance as drivers.
5.   Use successful projects as building stone for further roll out.
General Recommendations (cont.)
1.   Waste management to generate bioenergy
2.   Focus on cheap readily-available residues instead of more
     expensive energy crops.
3.   Bundles of small projects to scale up; PPP financing
4.   Avoid mistake by learning from countries or regions that are
     ahead regarding the implementation of bioenergy.
Policy
1. Prioritize policy choices and related programs using the Maslow
   Bioenergy Pyramid
2. Coherent and stable bioenergy policy with short-, medium- and
   long-term goals
3. Establish clear regulatory and legal framework for IPP and FIT
4. Blending policy and tax exemptions to create a market for the
   transportation sector.
5. Experiences of the Bioenergy Policy Support Programme for East
   Africa; (BEST, GTZ) improved cook stoves (e.g. DGIS/GTZ), the
   “Biogas for Better Life Initiative” on domestic cooking gas (SNV,
   DGIS, GTZ) and the Multifunctional Platform programmes(UNDP
   and others), to support policy and program development.
Market Development
1.   Wide scale dissemination of improved cooking stoves;
2.   Biogas at a domestic scale and landfill gas generation.
3.   Power generation or cogeneration based on biomass residues
     both for domestic rural and industrial applications.
4.   Greater dissemination of the Multifunctional Platforms with
     gradual replacement of fossil oil to biodiesel.
5.   Liquid biofuels should be used to satisfy local need first.
6.   Besides Jatropha, the Region has comparative advantages with
     cassava (Nigeria tops the academic research on cassava), Sugar
     cane and other residues (cocoa, sheanut, peanuts, palmoil
     effluents, rices and coffee husk).
Financing
1. Legal framework that provides a long-term stable market.

2. Appropriate and specific financial incentives for the prioritised bioenergy
   options for West Africa;

3. The niche markets need investment subsidies and/or soft loans

4. The mature market segments need FIT and tax exemptions .
Financing
1. Donor finance: Improved biomass cooking stoves, biogas for
   domestic use, MFP, landfill gas production and utilisation need.

1. Private investors : Industrial biogas, cogeneration and liquid
   biofuel bioethanol/biodiesel production.
2. Governments are recommended to stimulate bioenergy based PPP
   .
Capacity Development
1.   Develop more local expertise on bioenergy systems.

2.   Consider a “Bioenergy Capacity Building Programme – BIOCAB”
     as under consideration at UNIDO as well.

3.   Support training and exposure on bioenergy aspects for key
     policy & decision makers.

4.   Enhance understanding Carbon credit market and potential as
     source of financing

5.   Update the relevant websites on bioenergy policies in West
     Africa.
Technology transfer and R&D
1. Avoid immature technology. Only commercially proven
   technologies dissemination perspective.

2. Consider a working group on bioenergy through an Internet
   platform that serve as data quality filter.

3. Utilize the know-how and experiences on bioenergy available at
   the donor organisations and private sector.

4. Consider technology transfer from other emerging countries.

5. Focus on the applications side and not on the development of the
   technologies itself.
6. Develop O&M Capacity. Each projet should have a O&M budget for
   the long term.
AND THE POOR
Thank you, Merci

Khenas presentation undp

  • 1.
    Opportunities for modernizedbioenergy in West Africa Prepared by Smail Khennas for UNDP
  • 3.
    OUTLINE Focus on investmentand finance 1. Context & Objective 2. Key issues regarding sustainability 3. Biomass resources 4. Investment and finance 5. Key Recommendations
  • 4.
    Support Implementation ofECOWAS White Paper Expanding Access to Modern Energy Services Context & Objectives of Study: 1. Information on practices, policies and programs for developing bio- energy to expand access to modern energy services 2. Information on financing and partnership models 3. Bio-energy use with the ongoing multifunctional platform programs in the Region 4. Operational recommendations on bioenergy development and prioritization ( to meet MDGs)
  • 5.
    Overview of currentsituation 1. Traditional biomass represent 50 % to 80% of final energy consumption and total primary energy supply 2. Low access to modern cooking fuels (LPG) 3. Low access to electricity; Cape Verde, Côte d’Ivoire, Ghana and Nigeria (50%) Burkina Faso, Gambia, Guinea, Guinea-Bissau, Mali, Niger and Sierra Leone (12% ). 4. Apart from Nigeria, high dependence on fossil fuels
  • 6.
    Sustainability issues ofmodern bioenergy Bioenergy Sustainability Criteria (UN-Energy) • Improved energy services for the poor; • Contribution to agro-industrial development and jobs creation; • Impact on health and gender ; • Impact on land use; • Impact on climate change. • Impact on food security and energy security; • Impact on government budget; • Impact on trade, In-out door pollution cause by wood • Impact on biodiversity and fuel natural resource management;
  • 7.
    Development potential of modernised bioenergy Energy needs Bioenergy solution 1. Cooking and heating • Improved cooking stoves and improved carbonization processes 2. Lighting and other domestic use (low • Landfill gas and biogas systems at voltage). household or industrial level based power generation 3. Electricity and shaft power (Income • Combined heat and power (CHP) Generating Activities). production from agro- and wood residues, plant oil eg.jatropha 4. Mobility: transport fuels • Transport fuels (biodiesel, bioethanol), from energy crops
  • 8.
    Maslow Energy Pyramidapplied to Energy Acces in ECOWAS region
  • 9.
    Biomass resources in the ECOWAS region ECOWAS: 512 Mha; pop. of 280 M in 2007. • Trend: Growing demand for traditional bio energy and increasing agricultural demand leads to continued reduction in forest cover. • Opportunites: untapped biomass resources : (i) Agricultural residues (ii) Dedicated energy crops, (III) Woody biomass and Data source: FAO, 2009 and CIA, 2009 (IV) Aquatic biomass .
  • 10.
    Availability and useof biomass resources in West Africa Types of resources Woodfuels • Wood consumption is well above the annual increment (deforestation); • Residues (e.g. sawmills) are left unused; Agrofuels • Ethanol: sugar cane, sweet sorghum, cassava • Biodiesel : palm oil ,, cotton seed oil, peanut oil, Jatropha oil, coconut oil Groundnuts Senegal
  • 11.
    Availability and useof biomass resources in West Africa Dumped melasse in north Senegal (Demba Diop, Types of resources 2004) Municipal by-products : • Landfill gas for energy generation • Avoid uncontrolled dumping • Cost effective compared with other options
  • 12.
    Agro residues… Agro residuesand by-products have lower costs than grown energy crops in the ECOWAS region: • Cote d’Ivoire alone 42% of world production cocoa. Ghana and Nigeria other top producers ; • Important palm oil and coconuts effluents; • Nigeria world leading producer of cassava; cutting edge technology for increasing yields ; • Large scale production of cotton, groundnuts, sorghum in the Sahel enables the use of the residues for energy generation; • Irrigated agriculture: Volta, Niger, Senegal, Gambia rivers: enough rice straw, • Aquatic plants (typha) to contribute to the production of biogas or for electricity generation
  • 13.
    Electricity and Mechanicalpower • Biogas for power MFP, village of Dougounionain , Mali generation (slaughterhouse, large scale farm, agroprocessing units); • Bioliquids for power generation (MFP); • Combined Heat and Power (waste heat recovery to feed steam turbines for electricity generation) • Thermal biomass gasification and landfill gas valorisation
  • 14.
  • 15.
    Investment • Climate finance(Article 4.3 of UNFCCC) central issue in global climate negotiations since its beginning (UNFCCC, 1992). • COP 15, Copenhagen 2009 and Cancún 2010 (COP 16), countries made a concrete Commitment of USD 100 billion per year by 2020 from developed countries to address the needs of developing countries. Various sources, public and private, bilateral and multilateral, (UNFCCC)
  • 16.
    Investment Source: IPCC
  • 18.
    Scale of investmentfor biomass energy • Improved stoves: the market for improved woodfuel stove for 45 M households million estimated at USD 500 million • Biogas : technical potential for Africa: 18.5 M people have sufficient dung and water to operate biogas plants West Africa: 4.88 M households (Nigeria: 2.2M) 20 % of the technical potential = US$3.7 billions
  • 19.
    Scale of investmentfor biomass energy Investmen O&M Life time Typical size t cost €/kWe/year (years €/kWe Biogas plant 2550 - 115 - 140 25 0.1-0.5 MWe (agri) 4290 Landfill gas 1350 - 50 - 80 7.5 - 8 plant 1950 Biomass plant 2225 - 84 - 146 30 1 – 25 2995 Waste 5500 - 145 - 249 30 2 – 50 incineration 7125 plant
  • 20.
    Strategic Financing Positionof different types of financers
  • 21.
    General Recommendations 1. Energy efficiency improvement remains as important as renewable energy production including bioenergy. 2. Focus on low capital intensive & low operational costs first. 3. Low risks option: technically and commercially proven. 4. Work primarily with local investors, entrepreneurs and diaspora finance as drivers. 5. Use successful projects as building stone for further roll out.
  • 22.
    General Recommendations (cont.) 1. Waste management to generate bioenergy 2. Focus on cheap readily-available residues instead of more expensive energy crops. 3. Bundles of small projects to scale up; PPP financing 4. Avoid mistake by learning from countries or regions that are ahead regarding the implementation of bioenergy.
  • 23.
    Policy 1. Prioritize policychoices and related programs using the Maslow Bioenergy Pyramid 2. Coherent and stable bioenergy policy with short-, medium- and long-term goals 3. Establish clear regulatory and legal framework for IPP and FIT 4. Blending policy and tax exemptions to create a market for the transportation sector. 5. Experiences of the Bioenergy Policy Support Programme for East Africa; (BEST, GTZ) improved cook stoves (e.g. DGIS/GTZ), the “Biogas for Better Life Initiative” on domestic cooking gas (SNV, DGIS, GTZ) and the Multifunctional Platform programmes(UNDP and others), to support policy and program development.
  • 24.
    Market Development 1. Wide scale dissemination of improved cooking stoves; 2. Biogas at a domestic scale and landfill gas generation. 3. Power generation or cogeneration based on biomass residues both for domestic rural and industrial applications. 4. Greater dissemination of the Multifunctional Platforms with gradual replacement of fossil oil to biodiesel. 5. Liquid biofuels should be used to satisfy local need first. 6. Besides Jatropha, the Region has comparative advantages with cassava (Nigeria tops the academic research on cassava), Sugar cane and other residues (cocoa, sheanut, peanuts, palmoil effluents, rices and coffee husk).
  • 25.
    Financing 1. Legal frameworkthat provides a long-term stable market. 2. Appropriate and specific financial incentives for the prioritised bioenergy options for West Africa; 3. The niche markets need investment subsidies and/or soft loans 4. The mature market segments need FIT and tax exemptions .
  • 26.
    Financing 1. Donor finance:Improved biomass cooking stoves, biogas for domestic use, MFP, landfill gas production and utilisation need. 1. Private investors : Industrial biogas, cogeneration and liquid biofuel bioethanol/biodiesel production. 2. Governments are recommended to stimulate bioenergy based PPP .
  • 27.
    Capacity Development 1. Develop more local expertise on bioenergy systems. 2. Consider a “Bioenergy Capacity Building Programme – BIOCAB” as under consideration at UNIDO as well. 3. Support training and exposure on bioenergy aspects for key policy & decision makers. 4. Enhance understanding Carbon credit market and potential as source of financing 5. Update the relevant websites on bioenergy policies in West Africa.
  • 28.
    Technology transfer andR&D 1. Avoid immature technology. Only commercially proven technologies dissemination perspective. 2. Consider a working group on bioenergy through an Internet platform that serve as data quality filter. 3. Utilize the know-how and experiences on bioenergy available at the donor organisations and private sector. 4. Consider technology transfer from other emerging countries. 5. Focus on the applications side and not on the development of the technologies itself. 6. Develop O&M Capacity. Each projet should have a O&M budget for the long term.
  • 29.
  • 30.