Biofuels – Ghana Experience

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					           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

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        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

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  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 /
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Biofuels – the Ghana Experience

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          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%
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    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 (2000-
  2004) - 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

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Biodiesel Initiatives
    • Key players - non-profit
      organizations, private
      enterprises and Gov’t
    • Major activities
        – cultivation of Jatropha plant
        – extraction of oil from Jatropha
        – small-scale production plants–
          R&D and demonstration
    • Poor activities coordination
      and exchange of lessons

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Comparative Prices of Jatropha-Based Oils
       and Petroleum Products
               PRODUCT                                 PRICE (US$/gallon)
                         Jatropha Oil Versus Kerosene
Jatropha Oil                                                 0.261
Kerosene ex-refinery                                          2.45
Kerosene ex-pump                                              3.29
                Jatropha-based Biodiesel Versus Petroleum Diesel
Biodiesel                                                     3.12
Gas oil ex-refinery                                           2.49
Gas oil ex-pump                                               3.88
Gas oil Import Parity                                         2.67

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            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
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   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 net-
  exporter of bio-fuels
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               Cultivation of Jatropha
Institution              Land area under                Funding sources
B1 Ghana Ltd                      700               Private investment
ADRA/UNDP                         800               UNDP-GEF/ADRA
New Energy                             6            Donor funding
Gbimsi Women Group                     4            UNIFEM/UNDP-GEF
AngloGold Ashanti Ltd             20                Corporate Funds
Valley View University                 4            University funds
 Total                          1,534

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     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
Currently, AIBP has installed
   500-tonne plant for processing Jatropha seeds into
   2000-tonne equipment for producing organic fertilizer
   from by-product of biodiesel - seedcake
Commercial production of biodiesel is yet to commence

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                 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
   – R&D on chemical and biochemical properties of Jatropha
   – R&D Jatropha utilisation in diesel engines, especially
   – Local fabrication of nut-cracking machine and manual

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       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
  – technologies in seed production
  – collection and handling of seeds
  – seed germination and viability testing
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         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

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Overcoming Barriers to Biofuel Promotion –
         ECOWAS Sub-Region
• Demonstrated support of Governments - clear biofuel
• 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
• Availability of micro-credit facilities for biofuel projects
• Build local capacity of local artisans on fabrication,
  repairs and maintenance of equipment of biofuel
• Detailed feasibility studies and financing plan on
  projects prior to implementation
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    Potential Biofuels Projects in
       ECOWAS Sub-Region
        Country     Biofuel        Capacity,       Raw Material
                                  million litres
1   Benin           ethanol              20          cassava          14.0
2   Burkina Faso    ethanol              20         sugarcane         12.0
3   Côte d'Ivoire   ethanol              20         molasses          12.0
4   Ghana           biodiesel            50          jatropha         15.0
                                                   cashew tree
5   Guinea-Bissau   ethanol              10                           9.0
6   Mali            ethanol              20         molasses          12.0
7   Niger           biodiesel            10          jatropha         6.0
8   Nigeria         ethanol              70         sugarcane         30.0
9   Senegal         ethanol              15         molasses          10.0
10 Togo             biodiesel            10          jatropha         6.0
                                 Total                               126.0
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• Awareness creation workshops - potential of biofuels
  among the private sector, policy makers and financial
• 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
• 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
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