Biofuels – Ghana Experience

Biofuels Assessment Report - ECOWAS Sub-Region AU/Brazil/UNIDO Biofuels Seminar in Africa July 30 – August 1, 2007 Addis Ababa, Ethiopia Essel Ben Hagan Director, CSIR-Institute of Industrial Research Accra, Ghana ebenhagan@gmail.com AU/Brazil/UNIDO Biofuels Seminar in Africa 1 Biofuel Technologies • Biomass Gasification – demonstration plants in Cote d’Ivoire shut down in 1980/90s for non-viability • Biogas – e.g. Cote d’Ivoire, Ghana, Nigeria • Bioethanol – plans in Senegal and Nigeria • Biodiesel – e.g Mali, Ghana AU/Brazil/UNIDO Biofuels Seminar in Africa 2 Barriers to Promotion of Bio-fuels - ECOWAS sub-region • Absence of clear policy and regulatory frameworks for biofuel industry • Inadequate access to high quality planting material - seeds and seedlings • Poor support from traditional banks and other financial institutions • Bushfires and pests on feedstock farms • Competition with other arable crops for farm lands / labour AU/Brazil/UNIDO Biofuels Seminar in Africa 3 Biofuels – the Ghana Experience AU/Brazil/UNIDO Biofuels Seminar in Africa 4 Ghana’s Energy Sector • Heavy dependence on woodfuels and imported petroleum products • Final energy utilized – Woodfuels – 63% – Petroleum products – 27% – Electricity • Major consumers of petroleum products – transport - 78% – households - 8% – Industry - 7% – agriculture - 5.4% AU/Brazil/UNIDO Biofuels Seminar in Africa 5 Ghana’s Energy Sector (cont’d) • Total primary energy - 6.2 million TOE in 2000 to 6.6 million TOE in 2003 • Average expenditure on crude oil imports (20002004) - US$563.18 million/year • Expected expenditure on crude oil imports in 2007 - US$1.3 billion • Growth of consumption of petroleum products (2005-2015) – 56% • Heavy burden on Ghana’s balance of trade AU/Brazil/UNIDO Biofuels Seminar in Africa 6 Biodiesel Initiatives • Key players - non-profit organizations, private enterprises and Gov’t • Major activities – cultivation of Jatropha plant – extraction of oil from Jatropha seed – small-scale production plants– R&D and demonstration • Poor activities coordination and exchange of lessons learnt AU/Brazil/UNIDO Biofuels Seminar in Africa 7 Comparative Prices of Jatropha-Based Oils and Petroleum Products PRODUCT PRICE (US$/gallon) Jatropha Oil Versus Kerosene Jatropha Oil Kerosene ex-refinery Kerosene ex-pump 0.261 2.45 3.29 Jatropha-based Biodiesel Versus Petroleum Diesel Biodiesel Gas oil ex-refinery Gas oil ex-pump Gas oil Import Parity AU/Brazil/UNIDO Biofuels Seminar in Africa 3.12 2.49 3.88 2.67 8 Biofuel Committee • In 2005, Biofuel Committee (BFC) set up by Ghana Energy Commission developed and submitted a National Biofuel Policy (NBP) • NBP Objective- to accelerate the development of the biofuel industry in Ghana - special emphasis on production of biodiesel from Jatropha • NBP Recommendations • Substitute 20% of national gasoil consumption and 30% of national kerosene consumption with jatropha oil by 2015 • Remove institutional barriers in order to promote private sector investments and management of biodiesel industry AU/Brazil/UNIDO Biofuels Seminar in Africa 9 BFC Recommendations (cont’d) • Create favourable regulatory climate to ensure development of – competitive market – favourable pricing regime – high quality product • R&D to improve the efficiency of biodiesel production technologies – to reduce production costs – to raise quality and efficacy of product • Medium to long term – Ghana to become a netexporter of bio-fuels AU/Brazil/UNIDO Biofuels Seminar in Africa 10 Cultivation of Jatropha Institution Land area under cultivation (Hectares) B1 Ghana Ltd ADRA/UNDP New Energy Gbimsi Women Group AngloGold Ashanti Ltd Valley View University Total 20 4 1,534 AU/Brazil/UNIDO Biofuels Seminar in Africa 11 Funding sources 700 800 6 4 Private investment UNDP-GEF/ADRA Donor funding UNIFEM/UNDP-GEF Corporate Funds University funds Processing of Jatropha Seeds • Anuanom Industrial Bio Products Ltd. (AIBP) - first company to build Jatropha oil processing factory in Ghana • Originally AIBP planned to build 360,000 tonnes/yr plant at US$12 million Currently, AIBP has installed 500-tonne plant for processing Jatropha seeds into biodiesel 2000-tonne equipment for producing organic fertilizer from by-product of biodiesel - seedcake Commercial production of biodiesel is yet to commence AU/Brazil/UNIDO Biofuels Seminar in Africa 12 Other Initiatives • Biodiesel 1, Ghana Ltd - Jatropha oil processing plant -2,000 tonnes seeds/month • Gbimsi Women’s Group – production of Jatropha oil to run a Multi Functional Platform for cereals processing • Kwame Nkrumah University of Science and Technology – R&D on agronomy of Jatropha and its susceptibility to pests – R&D on chemical and biochemical properties of Jatropha oil – R&D Jatropha utilisation in diesel engines, especially MFPs – Local fabrication of nut-cracking machine and manual press AU/Brazil/UNIDO Biofuels Seminar in Africa 13 Other Initiatives (cont’d) • CSIR- Forestry Research Institute – R&D on improved species of the Jatropha plant with higher oil yields – genetic improvement of planting the jatropha seed – technologies in seed production – collection and handling of seeds – seed germination and viability testing AU/Brazil/UNIDO Biofuels Seminar in Africa 14 Other Initiatives – cont’d • Biodiesel 1 Ltd & University of Ghana, Legon – R&D on – behaviour of Jatropha plant under different agro-ecological and climatic zones in Ghana – development of planting material through tissue culture • Bulk Oil Storage and Transportation (BOST) Ltd – offers to buy any quantity of biodiesel produced in Ghana – has initiated discussions with Biodiesel 1 Limited and AIBP Ltd AU/Brazil/UNIDO Biofuels Seminar in Africa 15 Overcoming Barriers to Biofuel Promotion – ECOWAS Sub-Region • Demonstrated support of Governments - clear biofuel policy • Public awareness and education on biofuels • Active participation of all stakeholders of biofuel projects – farmers, industry, policy makers etc • Development of profitable supply chains in the biofuels industry • Availability of micro-credit facilities for biofuel projects • Build local capacity of local artisans on fabrication, repairs and maintenance of equipment of biofuel systems • Detailed feasibility studies and financing plan on projects prior to implementation AU/Brazil/UNIDO Biofuels Seminar in Africa 16 Potential Biofuels Projects in ECOWAS Sub-Region Country 1 2 3 4 5 6 7 8 9 Benin Burkina Faso Côte d'Ivoire Ghana Guinea-Bissau Mali Niger Nigeria Senegal Biofuel ethanol ethanol ethanol biodiesel ethanol ethanol biodiesel ethanol ethanol biodiesel Total AU/Brazil/UNIDO Biofuels Seminar in Africa Plant Capacity, million litres 20 20 20 50 10 20 10 70 15 10 Raw Material cassava sugarcane molasses jatropha cashew tree apples molasses jatropha sugarcane molasses jatropha Investment, US$'million 14.0 12.0 12.0 15.0 9.0 12.0 6.0 30.0 10.0 6.0 126.0 17 10 Togo Recommendations • Awareness creation workshops - potential of biofuels among the private sector, policy makers and financial institutions • Adoption of ECOWAS Commission directives to develop biofuels market • Support private sector to carry out feasibility studies on biofuel projects • Support research institutions for R&D and technology transfer • Development of agro-energy policies to facilitate the acquisition of large tracts of land for biofuels feedstock • Establishment of Bioenergy Development Funds for private sector AU/Brazil/UNIDO Biofuels Seminar in Africa 18 AU/Brazil/UNIDO Biofuels Seminar in Africa 19