Biofuels in Africa

Donald Mitchell

Description

A new economic opportunity for sub-Saharan Africa is looming large: biofuel production. Rapidly rising energy prices are expected to remain high for an extended period of time because of the increasing demand in prospering and populous countries such as China and India, the depletion of easily accessible supplies of crude oil, and concern over global climate change. As a result, there is renewed interest in biofuels as an alternative to fossil fuels.
Africa is uniquely positioned to produce these new cash crops for both domestic use and export. The region has abundant land resources and preferential access to protected markets with higher-than-world-market prices. The rapid growth in the demand for transport fuels in Africa and high fuel prices create domestic markets for biofuels. The European Union and the United States have approved legislation that requires large increases in the consumption of biofuels over at least the next decade. Imports are expected to be needed to meet these mandates, thus opening the door to African and other developing countries that can produce biofuels or feedstocks for biofuels competitively.
Expanding the production of crops for biofuels will affect the entire rural sector in Africa as resources are shifted away from traditional crops and the prices of all agricultural commodities rise. Even smallholders can participate in producing biofuel crops. To promote the sustainability and significant contribution of this enterprise, Biofuels in Africa provides guidance in formulating suitable policy regimes, which are based on protecting the rights of current land users, developing revenue-sharing schemes with local communities, safeguarding the environment and biodiversity, expanding institutional capacity, formulating new regulations and procedures, and emulating best practices from experienced countries.
This volume will be of value to anyone interested in biofuels, including policy makers, development practitioners, private investors, researchers, and the general public.
Now that African countries are trying to significantly increase their energy supply systems, biofuels are an attractive option using both dedicated crops and agricultural waste. This book provides guidance for them to develop a suitable policy regime for a significant contribution by biofuels.
-Professor Ogunlade R. Davidson, Minister of Energy and Water Resources, Sierra Leone
Biofuels in Africa is a sorely needed resource for our understanding of the problems of expanding biofuels production in Africa. A high point of the book is a description of the projects that were started in several countries. A very useful book!
-Professor José Goldemberg, University of São Paulo, Brazil
As Africa most likely will play the same role for global biofuels as the Middle East does for oil, this comprehensive book on African biofuels should be compulsory reading for anyone interested in either African development or biofuels. The book captures the essence of long-term drivers and opportunities as well the complex challenges for investors and society of this huge emerging industry.
-Per Carstedt, Executive Chairman, EcoEnergy Africa

Sujets

• Rural development
• Energy
• Agriculture
• África
• Jatropha
• Biodiésel
• Éthanol
• Biofuel

Informations

• Publié par: world-bank-publications
• Publié le: 24 novembre 2010
• Nombre de lectures: 28
• EAN13: 9780821385173
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

DIRECTIONS IN DEVEL OPMENT
Countries and Regions
Biofuels in Africa
Opportunities, Prospects,
and Challenges
Donald MitchellBiofuels in AfricaBiofuels in Africa
Opportunities, Prospects, and Challenges
Donald Mitchell© 2011 The International Bank for Reconstruction and Development / The World Bank
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Washington, DC 20433
Telephone: [phone]
Internet: www.worldbank.org
All rights reserved
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This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in this
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Office of the Publisher, The World Bank, 1818 H Street, NW, Washington, DC 20433, USA; fax:
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ISBN: 978-0-8213-8516-6
eISBN: 978-0-8213-8517-3
DOI: 10.1596/978-0-8213-8516-6
Cover image: “Baobab, Guineafowl, and Beadwork,” oil on canvas, by Andry Kashivi, South
Africa, 2000, courtesy of World Bank Art Program.
Cover design: Naylor Design, Inc.
Library of Congress Cataloging-in-Publication Data
Mitchell, Donald, 1947 Nov. 29-
Biofuels in Africa : opportunities, prospects, and challenges / Donald Mitchell.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8516-6 — ISBN 978-0-8213-8517-3 (electronic)
1. Biomass energy—Africa. 2. Power resources—Government policy—Africa. I. Title.
HD9502.5.B543M58 2010
333.95'39096—dc22
2010044318Contents
Foreword xi
Acknowledgments xiii
About the Author xv
Abbreviations xvii
Executive Summary xix
Chapter 1 Introduction 1
Chapter 2 Understanding Biofuels in Africa 5
Production 6
Consumption 20
Prices 27
Trade 30
Biofuel Standards 31
Greenhouse Gas Emissions, Carbon Credits,
and Biofuels 32
Summary and Conclusions 37
Notes 40
References 41
vvi Contents
Chapter 3 Biofuel Production Costs 47
Straight Vegetable Oil Production Costs
and Prices 49
Jatropha Plantation Production Model 52
Producing Biodiesel from Jatropha Oil 60
Ethanol Production Costs 61
Summary of Biofuel Production Cost Estimates 71
Volatility of Production Costs and Managing
Price Risk 72
Summary and Conclusions 74
Notes 76
References 77
Chapter 4 Global and Regional Demand for Biofuels 79
Energy Prices 80
Mandates and Subsidies 82
Biofuel Demand in the African Region 85
Global Demand for Biofuel Imports 98
Summary and Conclusions 108
Annex 112
Notes 113
References 113
Chapter 5 Case Studies 117
D1 Oils Plc 118
Diligent Tanzania Ltd. 125
SEKAB BioEnergy Tanzania Ltd. 130
Lessons Learned 133
Notes 135
References 136
Chapter 6 Policies for Biofuels in Africa 137
Policies for Biofuel Feedstock Production 139
Policies for the Manufacture of Biofuels 146
Policies for the Domestic Sale of Biofuels 146
Investment Incentives for Biofuels 147
A Biofuel Development Strategy 147
Development of the Policy Framework 150
The Role of Donors, Multilateral Institutions,
Foreign Investors, and the Development
Community 152Contents vii
Summary and Conclusions 152
References 153
Appendix A The Brazilian Experience 155
Historical Developments 155
Environmental Effects of Producing Sugarcane 157
Lessons from the Brazilian Experience 161
Note 162
References 162
Appendix B Selected Data for African Countries 163
Index 173
Boxes
2.1 Clean Development Mechanism 36
3.1 Comparison of Wages for Harvesting Jatropha and Tea 57
3.2 Ethanol versus Biodiesel: Production Costs in Iowa 62
3.3 Ethanol Producer VeraSun Bankrupt after Failed Hedge 73
4.1 Econometric Model of Transport Fuel Demand 92
6.1 Mozambique’s Biofuel Policy and Strategy 138
6.2 Malawi and Zambia: Neighboring Countries, Different
Biofuel Policies 140
6.3 Tea Research Institute of Tanzania 145
Figures
2.1 Consumption Mandates for Biofuels 23
2.2 The Impact of Biofuel Mandates on Food Crop Prices 25
2.3 Monthly U.S. Ethanol and Gasoline Prices, 2000–10 28
2.4 Monthly Brazilian Ethanol and Gasolina
Prices, 2001–10 29
2.5 Import Tariff on Biofuels 30
3.1 Elasticities of Jatropha Oil Production Costs to
Critical Variables 58
3.2 Monthly Minimum Wages in African Countries 60
3.3 Elasticities of Ethanol Production Costs to
Critical Variables 68
4.1 Real Primary Commodity Prices, 1900–2009 81
4.2 Retail Fuel Prices in Africa, 2008 85
4.3 Fuel Consumption versus GDP in Low- and
Middle-Income Countries, 2005 88viii Contents
4.4 Fuel Consumption versus Price in Low- and
Middle-Income Countries, 2006 89
4.5 Fuel Consumption versus Urbanization in Low- and , 2005 90
4.6 EU Ethanol Prices, July 2006–July 2010 101
4.7 EU Greenhouse Gas Savings from Biofuels 103
5.1 Jatropha Labor Requirements 121
5.2 Jatropha Crop Calendar, Zambia 123
5.3 Diligent Tanzania Ltd. Production Cost Shares, Year 10 128
Tables
ES.1 Estimated Biofuel Production Costs in
Sub-Saharan Africa xxvii
2.1 Biofuel Yields of Major Feedstocks 17
2.2 Oil Content of Oilseeds Used for Biodiesel 20
2.3 Carbon Dioxide Emissions from Transport Fuels and
Electricity 35
3.1 Prices of Major Vegetable Oils Used for Biodiesel,
Northern Europe, 2003–09 50
3.2 Smallholder Jatropha Oil Production Costs for Local Use 51
3.3 Jatropha Plantation Oil Production Costs,
Alternative Cases 53
3.4 Prices and Feedstock Costs of Major Ethanol
Feedstocks, 2008 61
3.5 Ethanol Production Costs from Sugarcane,
Alternative Cases 65
3.6 Estimated Biofuel Production Costs in
Sub-Saharan Africa 71
4.1 Biofuel Mandates and Targets, Production Incentives,
and Trade Policy for Major Consumers and Selected
African Countries 83
4.2 Gasoline Prices in Malawi, 2009 86
4.3 Recent Trends in Urbanization, Economic Growth,
and Population, 2000–07 91
4.4 Estimated Elasticities for Factors Determining
Transport Fuel Demand 94
4.5 African Transport Fuel Consumption: Actual 2005
and Forecast 2020 96
4.6 Transport Fuel Net Import Costs as a Share of GDP:
Actual 2005 and Forecast 2020 97