Issues hindering the Adoption of BioEnergy in Pakistan Umair Usman (Usman Group)

Pakistan 180+ million, second largest in South Asia Next Eleven Countries SAARC, G-20 and OIC Frontline state of terror

Pakistan Growth

Pakistan-Energy Demand

Pakistan Energy Crisis GDP growth fell to 2.3% by 2008-2009—, 4.1% by 2009-2010 Manufacturing declined by 3.3%, Large Scale manufacturing by 7.7% Energy Supply and Demand Gap (MTOE: Millions of Tons Oil equivalent)

Pakistan Energy Profile Total Primary energy supply Natural Gas 48.8% Oil 31.4% Hydroelectricity 10.6% Electricity overall 15.6% of total primary energy consumed Energy mix skewed towards, Oil, Gas and Hydroelectricity

Pakistan Energy Profile-Crisis Natural gas- Depleting reserves, Creating shortage. Transport effected. Cripples economy by 2025 (Hagler Bailly, 2005) Oil, 80-82% is imported, 29.2% of imports. Presently $12 billion. Puts huge pressure on finances Hydroelectricity- reduction in hydro 3000-6000 MW Transmission losses. Oil making 68% of generating capacity A few expensive and insecure sources.

Potential for Biomass 62% of the population lives in the rural areas Agriculture accounts for 21.6% of the GDP and employees 43% of the total workforce. 18th most competitive Of the Total area of 79.61 million hectares of the country, 27% is cultivated Maize and Sugar , among the top 5 crops of the country

Potential for Biomass Livestock -53.2% of Agricultural output and 11.4% to GDP Estimated livestock population 30.8 million Buffaloes, 34.3 million cattle,59.9 million goats, sheep 27.8 and  610 million chickens Average  2 cattle/household Biogas estimates varies between 57488  million m³

Biogas Small Business Selling small Domestic BioGas Digestors to Rural Households Turn Key operations and Instructions Outskirts of Lahore, sophisticated customers

Biogas Small Business-Hindrances Micro High initial cost-Rs70,000, subsidies Rs7500- 17000 New utensils

Biogas Small Business-Hinderances Macro-Long term, industry and country level Houesholds without sufficient manure of their own <4 buffaloes Resistance to change of society way of cooking, heating and using manure Little Government support

BioEthanol Small Business Producing and Direct Marketing E-10 Households and large businesses Sweet Sorghum 1 million gallon annual capacity

Biogas Small Business-Hindrances Micro Not enough Sorghum production 12-14 hour power shortage Little economic sense / Electricity inflation

Biogas Small Business-Hindrances Macro-Long term, industry and country level Using Maize /Sugarcane/Wheat can cause price hikes No available distribution unless dealing with Oil Marketing Companies Little government support/action

Recommendations Private and Public Sector alone cannot create a thriving Biomass Industry Universities, NGOs, Business people, Development agencies, most of all Government

Public Private Partnerships-BioGas Larger Community bio gas plants for domestic use Government identifies and directs funds, collects revenue Constructed by private sector who will also ensure a distribution network of manure, and sell utensils

Public Private Partnerships-BioGas Manure prices in informal market Regulations for promotion, phasing out of traditional biomass in rural areas Transport requires a different model Industry requires, business specific models

Public Private Partnerships-BioEthanol Excellent plan that needs work Government subsidies Ethanol produced by Sugar Mill owners Beyond PSO and include all Oil Marketing Companies Incentives, steady feedstock prices ensure input costs and food costs do not rise

Public Private Partnerships for Biomass BioEthanol and BioGas require bigger scale for economies, impact and expertise Funding from Development agencies and Banks Consultants and experts such as Sintex, SNG for BioGas, and industry leaders from Brazil Several stake holders necessary. Corruption, miss- appropriation of funds require Stakeholders as Accountability, Lobbying and long-term policies

Conclusion Big issues for energy crisis in Pakistan and everyone needs to work together Water shortage a big issue for Biomass BioEnergy not enough, energy mix needs to diversify. Broaden energy mix & create a sustainable alternate/BioEnergy industry for continuous economic growth & prosperity

Thank You Umair Usman Umair@uch.com.pk