1. Bioethanol Technologies in Africa Bothwell Batidzirai UNIDO/AU/Brazil First High- Level Biofuels Seminar in Africa (30 July–1 August 2007) Addis Ababa, Ethiopia

2. Contents  Overview  Drivers of bioethanol fuel  African experiences  Lessons learnt  Barrier analysis  Action plan  Conclusions

3. Key Drivers of Bioethanol  Energy security  Reduction of oil imports  High oil prices  Environmental commitments  Rural development opportunities  Diversification of agricultural industries  Lead/MTBE phase out programs

4. Global Ethanol Production  Ethanol production doubled to 46 Gl in 2000- 2005  Projected to 60-75 Gl in 2010  Growth mainly in US, Brazil, China  13 countries using ethanol fuel in 2003  At least 30 countries have/plan to introduce ethanol fuel programs SugarcaneMaizeWheat, beet

5. Bioethanol costs by feedstock Source: Davis, 2007

6. Ethanol production in Africa CountryAnnual production (million litres) Egypt30 Kenya15 Mauritius23 Nigeria30 South Africa410 Swaziland13 Zimbabwe25 Other Africa92 Total638 Malawi~18 Ml/yr Source: FO Lichts, 2007

7. Bioethanol experiences in Africa  Blending programmes Zimbabwe – blending from 1980-1992 Malawi – blending since 1982 Kenya – blending since 1983-1993  New programmes South Africa – new programme in 2007 Ethiopia – E5 mandate in Addis in 2007 Nigeria – Brazil partnership to create BioCity Sudan – new programme in 2007 Pan African Cassava Initiative

8. Zimbabwe ethanol program  Motivation Sanctions, security of supply, saving foreign currency, low sugar prices  Success factors Public-private partnership Local material (60%), construction and labour Well developed agriculture & industry Clear pricing policy Well planned implementation strategy Food-fuel dilemma not critical (sugar export crop)

9. Zimbabwe ethanol program  Annexed distillery at Triangle (40 Ml pa)  Blending at 13-18%  1992 drought reduced feedstock drastically  Resuscitation attempts failed  Economic reforms favoured export of ethanol  Triangle maximised sugar production for export  Current plans to resuscitate blending in 2007

10. Malawi ethanol program  Motivation Costly imports, security of supply (regional instability)  Success factors Clear & consistent policies including incentives & competitive pricing Steady availability of feedstock Availability of irrigation water (Lake Malawi)  Dwangwa plant produces 15-20Ml pa since 1982 Plant cost $8mln, savings $32mln (1982-1990) Blending at 15-22%  New plant at Nchalo with capacity of 12 Ml pa

11. Kenya ethanol program  Madhvani project failed due to costly design  Muhoroni plant annexed to sugar mill has capacity of 60kl/day, cost $15 mln  Blending at 10%  Project continuously registered losses due to uncompetitive pricing  Also poor management, resistance from oil companies, loan servicing burden  Blending discontinued in 1993  Ethanol currently being exported

12. New Ethanol Fuel Initiatives  South Africa Ethanol from maize programme (155 Ml pa) Mandatory E10 blending legislation pending Biofuels strategy being developed  Nigeria Using Brazilian model & partnership to start bioethanol programme Presidential Initiative on Cassava & ethanol from cassava plant in Niger with China  Ethiopia : Staggered E5 blending programme starting with Addis  Sudan: New 10-year sugar strategy include 250 Ml ethanol plant at Eljazeera

13. Lessons Learnt  Government support critical (not control)  Clear, consistent, sustained policies  Capital and pricing incentives  Close public-private partnership  Supportive institutional framework  Local construction & early capacity building  Simple designs & avoiding too rapid expansion  Sustained feedstock availability  Preparedness for weather induced feedstock shortages  Comprehensive program of action

14. Barriers  Lack of clear, consistent long term policies  Lack of government support  Lack of supportive institutional framework  Lack of technical expertise  Capital intensive nature of projects  Lack of access to affordable finance  Arable land and water availability (droughts)  Limited availability of feedstock  Competition with food production  Market uncertainty due to fluctuating oil, sugar prices

15. Action plan  Capacity building Stakeholder awareness raising on benefits, opportunities, technologies, policies Awareness raising on project development, financing strategies  Technical expertise development Training in sustainable feedstock production Training in equipment fabrication, civil works, production and maintenance Training in biotechnologies and yield improvement

16. Action Plan  Policy development Establish a consultative industry strategy Develop implementation plan incl institutional structure Develop supporting policies e.g incentives & supporting regulatory framework Establish pricing formula for ethanol  Research, Development & Demonstration Develop bioethanol research programme Conduct long term research on feedstocks, technologies Establish continuous market and policy review  International knowledge sharing Establish international knowledge sharing forum Promote joint RD&D

17. Conclusions  Enormous potential for bioethanol fuel  Significant benefits already demonstrated  Government support critical to project success  Mandates and incentives important for market transformation  Clear & consistent policy framework important  Need for ensuring & monitoring sustainability of programs w.r.t food-fuel dilemma, maintaining environmental integrity