Liquid Biofuels Strategies and Policies in selected African ... - Pisces

the land deals are attracting hundreds of millions of dollars of foreign investments andcreating tens of thousands of jobs. A spokesman said “Ethiopia has 74m hectares offertile land, of which only 15% is currently in use – mainly by subsistence farmers. Ofthe remaining land, only a small percentage – 3 to 4% – is offered to foreign investors,who are never given land that belongs to Ethiopian farmers”.According to data from the Ethiopian Investment Agency, over 60 companies wishing toinvest in the sector were issued licenses, but presently only 10 companies are believedto be operational. These include Indian, German, British, Israeli, American and Saudicompanies. While horticulture, floriculture, food and meat still predominate FDI’s focus,biofuels investments have expanded enormously since 2006 (Weissleider 2009).Other strategies in biodiesel production include promoting fuel blending for transport;importing flex fuel vehicles; developing and implementing guidelines to replacekerosene for cooking; promoting the local manufacture of ethanol cook stoves andcreate a market for export. Additional regulatory measures include co-ordinationbetween government institutions, creating stakeholder forums and public awarenesscampaigns; market development through the provision of financial incentives forthe private sector; the support of technology transfer and research; and developinglinkages with international initiatives on technology (Ministry of Mines 2007).4.2.4 GhanaIn 2005, the government of Ghana set up a Biofuels Committee (BFC) with the objectiveof developing a National Biofuel Policy (NBP). After a “study”, the BFC recommended,among others, that the National Biofuels Policy should accelerate the development ofthe biofuels industry in Ghana with special emphasis on the production of biodieselfrom jatropha. To date this draft policy has not been finalised while concerns growabout Norwegian, Brazilian, Dutch, Swedish, German and British firms all competing forfarmland to grow energy crops in different parts of the country. Seven private companiesfrom these countries are currently farming about 55,000 hectares of land for biofuelswith up to 20 currently seeking land deals (Nanna G 2010).Local civil society and NGO’s are vocalin asking for clear policy frameworksand guidelines that include mapping andzoning the country to exclude biofuelsfrom highly productive areas to avoidcompetition with prime productiveagricultural land and other productiveresources, reduce environmentaldestruction of biodiversity andecosystems (the Ghanaian environmentalprotection agency eventually put a stopto Bio-fuel Africa’s clear-cutting, after6,422 acres of forest had already beencut down), and prevent the extensiveFigure 9: Woman cooking on clean ethanol stove, Kenya (credit: PISCES) application of agro-chemicals for biofuels.Many say that they are not againstbiofuels production or investment per se, but that productive lands being used bysuch are a genuine threat to food security.At the same time, according to COMPETE (COMPETE 2008), the governmentstimulates the development of the biofuels industry and supports a series of small-scaleinitiatives. A clear case is the creation of a US$1.6 million fund for the development ofJatropha Curcas plantations across the country. In addition, Community Based RuralDevelopment Projects (CBRDP) is managing a US$5 million overseen by the NaturalResources Management subdivision. This fund addresses the rehabilitation of degradedecosystems, thereby providing opportunities for jatropha projects due to their positiveimpact on soil erosion. Other legislation and regulation relevant to bio-energy includeenvironmental policies, energy policies and agricultural policies.4.2.5 KenyaKenya is a mostly arid to semi-arid country with only 17% of its land receiving morethan 750mm of rain a year. The choice of widespread commercial cropping feedstock’sis limited to specific feedstock’s in specific areas, along with a higher likelihood ofcompetition with food crops, pastoralism, and wildlife dependent ecotourism, thesecond largest industry. Kenya’s forest areas have reportedly been reduced to 1.7%of land cover and a growing rural population is very highly dependent on increasinglyscarce woody biomass. With limited climatic potential, there is a stronger governmentfocus on geothermal and wind, long-standing hydro schemes, with some focus onbiomass and solar resources. Ironically this has led to a perceived lower urgency toenact a specific biofuels policy, while large-scale FDI projects are slated for developmentin what some regard as socially and environmentally sensitive areas and others as areasripe for development under the 2030 vision.An ethanol plant was first set up in 1977 in Kisumu, but ceased operation in 1979.With new investment, ethanol blending was introduced in 1983, but collapsed againin 1993 due to diminishing investment, proper pricing and a policy framework. Thegovernment is starting to pilot an E10 blend in Kisumu and Nakuru in 2010, but withup to 60% reported shortfall in ethanol supply versus potential demand, it still needsto address some of the deep financial and efficiency issues that have dogged thepredominantly government owned sugar industry. Mumias Sugar Company is set toexpand sugar cane production by 40,000 in the Tana River Delta, leading to a longstandingcontroversy on the best use of this very unique highly diverse wetland region.Imminent changes in the sugar industry are likely and sweet sorghum and cassava arealso being explored as Bioethanol crops. Chinese investors are reportedly discussingsupporting 40,000 hectares of Cassava on Galana Agricultural DevelopmentCorporation land with Kenyan Energy Alliance Ltd linked for export of starch andethanol to China.In biodiesels, NGO’s have started to promote jatropha with small holders, and someground research is being conducted by NARI’s, PPP’s and small-scale donor fundedprojects. Some of Kenya’s first biodiesel was produced from Croton Megalocarpus,an indigenous oil bearing tree that thrives at higher altitudes in central Kenya. One USbased company is first promoting supportive institutional reforms as preparation fora large scale croton biofuels investment. Two or three large-scale, irrigated, Jatropha,sunflower, castor and crambe export projects have been given EIA clearance in theTana and Malindi districts.The Italian owned Kenyan Jatropha Energy Company has been applying to start witha smaller pilot project as protest formed over cutting down thousands of hectaresof sensitive indigenous forests in Malindi district (Gitau, 2010). Bedford Biofuels has34 Liquid Biofuels Strategies and Policies in selected African Countries Liquid Biofuels Strategies and Policies in selected African Countries 35