1. AU/Brazil/UNIDO Biofuels Seminar in Africa 1 Biofuels Assessment Report - ECOWAS Sub-Region Essel Ben Hagan Director, CSIR-Institute of Industrial Research Accra, Ghana ebenhagan@gmail.com AU/Brazil/UNIDO Biofuels Seminar in Africa July 30 – August 1, 2007 Addis Ababa, Ethiopia

2. AU/Brazil/UNIDO Biofuels Seminar in Africa 2 Biofuel Technologies Biomass Gasification – demonstration plants in Cote d’Ivoire shut down in 1980/90s for non-viability Biogas – e.g. Cote d’Ivoire, Ghana, Nigeria Bioethanol – plans in Senegal and Nigeria Biodiesel – e.g Mali, Ghana

3. AU/Brazil/UNIDO Biofuels Seminar in Africa 3 Barriers to Promotion of Bio-fuels - ECOWAS sub-region Absence of clear policy and regulatory frameworks for biofuel industry Inadequate access to high quality planting material - seeds and seedlings Poor support from traditional banks and other financial institutions Bushfires and pests on feedstock farms Competition with other arable crops for farm lands / labour

4. AU/Brazil/UNIDO Biofuels Seminar in Africa 4 Biofuels – the Ghana Experience

5. AU/Brazil/UNIDO Biofuels Seminar in Africa 5 Ghana’s Energy Sector Heavy dependence on woodfuels and imported petroleum products Final energy utilized –Woodfuels – 63% –Petroleum products – 27% –Electricity Major consumers of petroleum products –transport - 78% –households - 8% –Industry - 7% –agriculture - 5.4%

6. AU/Brazil/UNIDO Biofuels Seminar in Africa 6 Total primary energy - 6.2 million TOE in 2000 to 6.6 million TOE in 2003 Average expenditure on crude oil imports (2000- 2004) - US$563.18 million/year Expected expenditure on crude oil imports in 2007 - US$1.3 billion Growth of consumption of petroleum products (2005-2015) – 56% Heavy burden on Ghana’s balance of trade Ghana’s Energy Sector (cont’d)

7. AU/Brazil/UNIDO Biofuels Seminar in Africa 7 Biodiesel Initiatives Key players - non-profit organizations, private enterprises and Gov’t Major activities –cultivation of Jatropha plant –extraction of oil from Jatropha seed –small-scale production plants– R&D and demonstration Poor activities coordination and exchange of lessons learnt

8. AU/Brazil/UNIDO Biofuels Seminar in Africa 8 Comparative Prices of Jatropha-Based Oils and Petroleum Products

9. AU/Brazil/UNIDO Biofuels Seminar in Africa 9 Biofuel Committee In 2005, Biofuel Committee (BFC) set up by Ghana Energy Commission developed and submitted a National Biofuel Policy (NBP) NBP Objective- to accelerate the development of the biofuel industry in Ghana - special emphasis on production of biodiesel from Jatropha NBP Recommendations Substitute 20% of national gasoil consumption and 30% of national kerosene consumption with jatropha oil by 2015 Remove institutional barriers in order to promote private sector investments and management of biodiesel industry

10. AU/Brazil/UNIDO Biofuels Seminar in Africa 10 BFC Recommendations (cont’d) Create favourable regulatory climate to ensure development of –competitive market –favourable pricing regime –high quality product R&D to improve the efficiency of biodiesel production technologies –to reduce production costs –to raise quality and efficacy of product Medium to long term – Ghana to become a net- exporter of bio-fuels

11. AU/Brazil/UNIDO Biofuels Seminar in Africa 11 Cultivation of Jatropha

12. AU/Brazil/UNIDO Biofuels Seminar in Africa 12 Processing of Jatropha Seeds Anuanom Industrial Bio Products Ltd. (AIBP) - first company to build Jatropha oil processing factory in Ghana Originally AIBP planned to build 360,000 tonnes/yr plant at US$12 million  Currently, AIBP has installed  500-tonne plant for processing Jatropha seeds into biodiesel  2000-tonne equipment for producing organic fertilizer from by-product of biodiesel - seedcake  Commercial production of biodiesel is yet to commence

13. AU/Brazil/UNIDO Biofuels Seminar in Africa 13 Other Initiatives Biodiesel 1, Ghana Ltd - Jatropha oil processing plant -2,000 tonnes seeds/month Gbimsi Women’s Group – production of Jatropha oil to run a Multi Functional Platform for cereals processing Kwame Nkrumah University of Science and Technology –R&D on agronomy of Jatropha and its susceptibility to pests –R&D on chemical and biochemical properties of Jatropha oil –R&D Jatropha utilisation in diesel engines, especially MFPs –Local fabrication of nut-cracking machine and manual press

14. AU/Brazil/UNIDO Biofuels Seminar in Africa 14 Other Initiatives (cont’d) CSIR- Forestry Research Institute – R&D on improved species of the Jatropha plant with higher oil yields –genetic improvement of planting the jatropha seed –technologies in seed production –collection and handling of seeds –seed germination and viability testing

15. AU/Brazil/UNIDO Biofuels Seminar in Africa 15 Other Initiatives – cont’d Biodiesel 1 Ltd & University of Ghana, Legon – R&D on –behaviour of Jatropha plant under different agro-ecological and climatic zones in Ghana –development of planting material through tissue culture Bulk Oil Storage and Transportation (BOST) Ltd –offers to buy any quantity of biodiesel produced in Ghana –has initiated discussions with Biodiesel 1 Limited and AIBP Ltd

16. AU/Brazil/UNIDO Biofuels Seminar in Africa 16 Overcoming Barriers to Biofuel Promotion – ECOWAS Sub-Region Demonstrated support of Governments - clear biofuel policy Public awareness and education on biofuels Active participation of all stakeholders of biofuel projects – farmers, industry, policy makers etc Development of profitable supply chains in the biofuels industry Availability of micro-credit facilities for biofuel projects Build local capacity of local artisans on fabrication, repairs and maintenance of equipment of biofuel systems Detailed feasibility studies and financing plan on projects prior to implementation

17. AU/Brazil/UNIDO Biofuels Seminar in Africa 17 Potential Biofuels Projects in ECOWAS Sub-Region

18. AU/Brazil/UNIDO Biofuels Seminar in Africa 18 Recommendations Awareness creation workshops - potential of biofuels among the private sector, policy makers and financial institutions Adoption of ECOWAS Commission directives to develop biofuels market Support private sector to carry out feasibility studies on biofuel projects Support research institutions for R&D and technology transfer Development of agro-energy policies to facilitate the acquisition of large tracts of land for biofuels feedstock Establishment of Bioenergy Development Funds for private sector

19. AU/Brazil/UNIDO Biofuels Seminar in Africa 19