Jatropha seedsJatropha oil extraction Jatropha oil Oil / biodiesel in car Jatropha cake Jatropha cake as manure Cake No Cake RECURRENT FUEL PROBLEMS IN.

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Jatropha seedsJatropha oil extraction Jatropha oil Oil / biodiesel in car Jatropha cake Jatropha cake as manure Cake No Cake RECURRENT FUEL PROBLEMS IN ZAMBIA Available Options Presented at the Economics Association of Zambia Discussion Forum, 18 February 2010, Hotel Edinburgh, Kitwe. By Prof. Thomson Sinkala CHAIRMAN, Biofuels Association of Zambi a 1

CONTENT OF PRESENTATION 1.Introduction 2.Major transport fuels/energies 3.Government policy, regulations, etc 4.Choice of liquid biofuels feedstocks 5.Participation by Zambians 6.The liquid biofuels market 7.Country-wide industrialization 8.Conclusions 9.Recommendations / missing link 2

INTRODUCTION 3

POPULATION11.2 million LAND MASS75.2 million hectares LAND UNDER CUSTOMARY TENURE70% (About 52.6 million ha) ARABLE LAND42 million hectares ARABLE UTILIZED6 million hectares NUMBER OF FARM FAMILIES900,000 Small scale75% (About 675,000) Medium scale17% (About 153,000) Large scale8%(About 72,000) WATER RESOURCES35% of SADC Water Resources Some Underlying Data 4

Zambia, though totally landlocked, is totally landlinked to 8 neighbouring countries. The country lies between o S of equator. It is a tropical country, and the high altitude ( m above sea level) gives conducive climate. The land has potential for a large array of crops, livestock and fish production. Distinct seasons provide exceptional natural advantages for agriculture. Agriculture is currently largely rainfall dependent, and the country is divided into 3 agro-ecological zones based on rainfall. 5

Agroecological zones of Zambia Zone I: Zone 1 is a relatively dry area with less than 800 mm annual rainfall. Zone IIa: This has annual rainfall in the range of 800 mm to 1000 mm. Zone IIb: covers the Kalahari sand plateau and Zambezi flood plains. Zone III: This is a high rainfall area with amounts exceeding 1000 mm per year. SOURCE: USAID “Annual Harvest Analysis Report for the 2006/07 Production Season”. October. 6

Irrigation Potential Area Existing irrigation (ha) Additional potential (ha) Total potential (ha) Area as % of national potential Upper Zambezi Basin2,000110,000112, Kafue Basin13,000152,000165, Luangwa Basin-14, Luapula and Tanganyika Basin2,00062,00064, Commercial farms in different basins 8, TOTAL25,000398,000423, FROM: Pope A and Chitembo A Report on deliberations of the workshop for the “Establishment of the Zambia National Sugar Strategy”. Held at the Cresta Golfview Hotel, Lusaka on 11th March

CROPANNUAL YIELDS (Metric tonnes) 2005/ /2007 Cereal Crops Maize 1,424,4391,366,158 Wheat 93,959115,843 Millet 48,25921,707 Sorghum 21,04712,773 Rice 13,96418,317 Non-Cereal Crops Groundnuts 84,01055,215 Soybeans 57,81555,194 Cotton 118,42654,886 Mixed beans 27,69724,164 Tubers Cassava 1,059,8871,185,600 SOME CROP PRODUCTION IN ZAMBIA SOURCE: USAID “Annual Harvest Analysis Report for the 2006/07 Production Season”. October. 8

National Energy Mix (%) SOURCE: Energy Statistical Bulletin (2007) 9

Diesel and Petrol Consumption SOURCE: Energy Regulations Board (2009) Petrol (2009) 180,023,209 lit Diesel (2009) 509,291,904 lit 10

LOCATION PUMP PRICE PetrolDieselKerosene KwachaUS$KwachaUS$KwachaUS$ Lusaka6, , , Kasama7, , , Livingstone7, , , Solwezi6, , , Kabwe6, , , Chipata7, , , Mansa7, , , Mongu7, , , Ndola6, , , National Pump Price Disparities 1 US$ = K4330January

MAJOR TRANSPORT FUELS/ENERGIES 12

Comparison of major transport fuels/energies TRANSPORT SYSTEMMAIN FUEL/ENERGYREMARKS Road transport Liquid fuel, gas, electricity Flexible Rail transportElectricity, liquid (diesel) Rigid / expensive infrastructure Water Liquid, electricity (nuclear) Limited water routes AirLiquidExpensive/limited Most common liquid fuel is fossil/petroleum fuel, which has become a major problem. 13

TOO MANY RISKS IN PETROLEUM FUELS SUPPLY MAKE ZAMBIA’S ECONOMY VOLATILE AND INSECURE 14

For Zambia, biofuels are therefore a solid and sustainable option. We will soon see why. WHICH WAY ZAMBIA? 15

WHAT ARE BIOFUELS? Biofuels can be defined as combustible fuels produced from biomass. These fuels are generally in the form of alcohols, esters, ethers, and other chemicals produced from biomass. THE MAJOR FUELS FOR THIS DISCUSSION ARE: 1.Bioethanol (as a petrol substitute), and 2.Biodiesel / pure plant oil (as a diesel substitute) 16

GOVERNMENT POLICY, REGULATIONS, ETC in support of biofuels 17