Biomass and Biogas Options

8/8/2019 Biomass and Biogas Options

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Biomass Energy & Geothermal Optionsfor Africa

( partly address non-electric options )

By:Stephen Karekezi,Waeni Kithyoma,

Ken Muzeewww.afrepren.org

Climate Change and Energy Access

International Parliamentary Hearing for East African

LegislatorsSamburu Game Lodge,

7 th 8 th June 2008


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Outline

Why is biomass energy important for Africa?Why is geothermal important for our region?

Categories of biomass:- Traditional biomass- Improved biomass- Modern biomass

Sample case studies of successful biomass energy initiatives Geothermal case example of Kenya

Lessons learned and critical success factors from notable casestudies

Key policy and legislative measures


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N umber of People Relying on Biomassfor Cooking and Heating (Millions)

Largely Rural and Urban Poor

2000 2030

China 706 645

India 585 632

Other Asia 420 456Sub-Sahara Africa 583 996

Latin America 96 72


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W hy is Biomass Energy Important?

Linkage with 4 MDGs on poverty,health, environment & gender

Biomass & health/environmentBiomass, women & children

Improved & more efficient use beneficialto poor

Reduces expenditure on fuel Production, transformation & distribution generates jobs

and creates micro, small & medium scale enterprises

Biomass & agriculture Agriculture: key income source for poorSolves problem of collectionBiomass cogeneration could deliver significant benefits to4-7 million people in Kenya (up to 20% of population)


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Three Categories

Traditional Biomass Energy Technologies(TBTs)

Inefficient use of wood, charcoal, leaves, agriculturalresidues, animal/human waste & urban waste

Improved Biomass Energy Technologies (IBTs)Improved and efficient technologies for direct combustion of biomass such as improvedcooking/heating stoves and improved biofuel kilns

Modern Biomass Energy Technologies (MBTs)Conversion of biomass energy to advanced fuels/formsnamely liquid fuels, gas and electricity

TBTs

IBTs

MBTs


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Improved Biomass Option: Kenya Ceramic Jiko

Reduces charcoal consumption by 30-50

Accessible to the majority of the urban population(costs US$ 2-3)

K CJ a result of research initiated in 70 s andactively continued into 80 s

Several million K CJs produced in Kenya; (>80% of urban households in Nairobi and Mombasa use theK CJ and 16% in rural homes)

2.6 million stoves in use in Kenya alone(cumulative production now over 15 million)

One of the most successful stove projects in Africa used in Kenya, Uganda, Tanzania, Rwanda,Burundi, Sudan, Ethiopia, Somaliland, Mali,

Senegal and Burkina Faso (Madagascar?)


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Improved Biomass Technologies(IBTs)

Significant dissemination of improved biomass energy technologies

(IBTs) in Africa countries but Potential for wider dissemination of IBTs could be increased almost every country in Africa has an improved cookstove programme

Successful dissemination of improved biofuel heating stoves in a fewindustrialised countries - notable example being Austria (500,000) for8million population

Institutional cookstovesEfficient kilns for charcoal and brick-makingEfficient fish dryers (2 nd largest foreign exchangeearner for Uganda)Efficient tobacco curing kilns (largest foreign

exchange earner for Malawi)Efficient tea dryers (largest share of export earnings in Kenya)


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Biogas Status and Trends

Some experience in the region withmixed results

Institutional digesters moresuccessful than domestic units

Tanzania has registered good

progress - more than 4,000domestic-size biogas plants withencouraging success in institutionalmarket

Pilot biogas projects implemented inKenya, Uganda, Ethiopia, Sudanand Rwanda

Signs of success in Rwanda s biogasprogram aimed at institutions(prisons, rural educationalinstitutions) and now integrated in

agricultural program


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Biogas N etherlands GovernmentInitiative for Africa

Netherlands government and other partners launched biogasinitiative covering 25 African countries

Initial market surveys indicate market of 20 millionhouseholds

Objectives:Install biogas plants in 2 million households in the next 10 years

Offer business and investment opportunities

Establish 800 private biogas companies and 200 biogas appliancemanufacturing workshops

Generate at least 50,000 new jobs


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Modern Biomass (MBTs)

Agriculture & agro-industries: key income sourcefor poor

Solves problem of collection

Biomass cogeneration could deliver significant benefits to4 7 million people in Kenya (up to 20% of population)

Biomass by-products/waste-based co-generation

By-products/waste-based biofuels for transportation


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Modern biomass - key benefits

Fuel Jobs per T W h

Bio-ethanol 3,770

Gas 130

Nuclear 80Coal 700

Biogas 1,341

Source: Earthlife Africa/SE CCP report 2003

Job creation potential of renewables


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Case study: Cogeneration in Mauritius

Cogeneration attractive asit offers alternative revenuestream to Mauritius keyeconomic sector sugarindustry

Power sales revenue forsome sugar millers recentlyexceeded that from sugar

Diversified sources of power thus providingprotection against unstable& high oil price increases


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Accounts for close to 40% of a725MW national generationcapacity (of which 20-25% is

bagasse)Sugar industry accounted for41.5% of total electricitygenerated in 2005

Began with smaller installations(1.5MW - 5MW, recently installedan 82MW plant)

Cogeneration inMauritius


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Successful Revenue Sharing

Firm Corporate sector 51% Strategic Partner 27% SIT (Small planters/workers) 14% State Investment Corporation 8%

Continuous Corporate sector 80% SIT (Sugar Investment Trust) 20%

Equitable sharing of ownership of and revenue fromcogeneration ensures even smallest low-income farmer/land-owners gets a portion of revenue (could contribute to conflictsassociated with agro-industrial development)

In turn, leads to exceptionally strong & consistent policysupport


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Sugar Sector Reform initiatives & Bagasse Energy Y ear Policy initiatives Emphasis on

1985Sugar Sector ActionPlan Bagasse energy policy evoked

1988 Sugar IndustryEfficiency Act

-Tax free revenue from sales of bagasse andelectricity-Export duty rebate on bagasse savings forfirm power production-Capital allowance on investment in bagasseenergy

1991Bagasse EnergyDevelopment

Programme

-Diversify energy base-Reduce reliance on imported fuel-Modernise sugar factories-Enhanced environmental benefits

Cogeneration in Mauritius


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Sugar Sector Reform initiatives & Bagasse Energy

Y ear Policy initiatives Emphasis on

1997

Blue Print on the

Centralisation of CaneMilling Activities

Facilitate closure of small mills with concurrent increase in capacities and investment inbagasse energy

2001Sugar Sector StrategicPlan

-Enhance energy efficiency in milling-Decrease number and increase capacity of mills-Favour investment in cogeneration units

2005

Roadmap for theMauritius SugarcaneIndustry for the 21 st Century

-Reduction in the number of mills to 6 with acogeneration plant annexed to each plant



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Energy PricingBased on informal consultation

Power mode PowerPlant

Price Rs (us)/k W h

Y ear Characteristics

Intermittent - 0.16 (0.6) 1982 Price frozen since 1982

Continuous Medine 0.55 (1.9) 1982 No change in price since 1982 no changesbrought to the plant

Continuous 6 PPs 1.05 (3.7) 1997 44% of kWh price indexed to changes in oilprice and the other 56% is fixed

1.40 (4.9) 2000

Firm FUEL coal - 1.63 (5.7)bag. - 1.56 (5.5)

1985 Invested in new equipment Indexed to coal price

Firm DRBC coal - 1.53 (5.4)bag. - 1.46 (5.1)

1998 Invested in second hand equipment Indexed to coal price

Firm CTBV both - 1.72 (6.0)

Recent UScents 9

2000 Indexed to coal price, cost of living in Mauritius,

foreign exchange rate fluctuations



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South Africa Cogen Programme

Call for Expression of Interest target 900MW

Overwhelming response 5000MW received

Offered a standard PP A

Feed-in tariff to be based onavoided cost of thermalpower units


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Cogeneration in Africa Attractiv e Op tion in th e Reg ion

Country Cogeneration potentialat 150k W h/tonne (M W )

% of currentinstalledcapacity

Ken ya 159.2 14Ethiopia 32.4 4

Tan zania 102.6 11

Sud an 16 21Ma la wi 59.2 24

Swa zi lan d 194.0 145

Ugan da 48.3 15


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Biofuels Key Drivers

Oil importers - rising oil costs (peaked toover $130 per barrel recently & moving to$200 per barrel)

Increase in oil import bill for Africancountries is higher than total recent debt relief for Africa (IEA, 2005)

High oil prices have negative impact ontransport fuel and electricity prices Biomass is a good alternative as source of biofuels (from biomass by-products/waste)and power generation

Oil exporters - dwindling oil reserves


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Biofuels Key drivers

Source: AfDB,2006 - C omputed using African Development Bank data

2004 oil extract ion rate

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Remaining Y ears of Oil Extraction


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Challenges in Development ofBio-fuels in Africa

Competition between food and fuel1. Biofuels could lead to higher food prices2. Higher commodity prices are a concern for net food importing countries

particularly sub Sahara Africa3. More fundamental problem external food dependence on Africa

(American farmers feeding Africans)4. Cost of rice has risen by 300% in Sierra Leone, 50% in Cte d'Ivoire,

Senegal and Cameroon. Cost of palm oil, sugar and flour also surged5. Need for policymakers to be careful that biofuels are not developed at

expense of food production

6. Use of by-products and wastes of existing agro and forest industries, thusnot requiring new land

Forests could be cleared for food crops displaced by biofuel plantationsUse of by-products and wastes of existing agro and forest industries, thusnot requiring new land & new forest areas


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Challenges in Development of Bio-fuels in Africa

W ill the poor benefit or be victims?o Revenue sharing (experience of Mauritius)o Land-ownership: preference given to out-growers

scheme & be careful about giving out land

Other challengeso Loss of bio-diversity and soil fertilityo Nutrient replacement o Producing biofuels very energy intensive (fertilizer,

agric. machinery & transportation of biofuel feedstocks)o Use more energy efficient biofeed stock such as sugar

cane and avoid energy-intensive biofeed stock such asmaize


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Case Study: Ethanol in Malawi

Ethanol production started in 1982 at Dwangwa Sugar Mill, run by EthanolCompany of Malawi (Ethco)

Second ethanol plant was built in 2004 at Nchalo Sugar Mill run by Press Cane

Both plants have combined capacity of 30million litres per year

Functional and useful ethanol blendingprogram in existence for over 25 years


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GeothermalDevelopment

inKenya


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Kenya Geothermal Power

Kenya geothermal power plants account for about 10% of country s installed capacityInstalled geothermal power 128MW

A low-cost source of power that provides some protectionagainst high and fluctuating oil prices and drought-relatedhydropower problems


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Geothermal Development in Kenya

Power PlanBy 2020, geothermal power expected to account for a quarter of total power

installed capacity up from current 10%


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Kenya s Planned Power Generation CapacityExpansion


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Geothermal Power

Most of Kenya's Geothermal potentialareas (>20 fields) occur within Kenya sRift ValleyKenya s geothermal power potential isestimated at over 3,000 MW

Less than 10% of country s geothermalresources exploited huge potential forgrowthLarge potential for thermal use of geothermal resources pilot plant inflower farm has provided encouragingresults & could potentially benefit largenumber of farm workersExpansion of geothermal heat use couldpiggy back on the dynamic horticultural

sector


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Geothermal Energy in Africa

- Significant potential along Rift Valley (9,000MW - for steam/hot water only) for grid-connected electricity generation fromgeothermal resources exists in Ethiopia, Tanzania, Uganda,D jibouti, Rwanda (170-300MW current 60MW) & other Rift

Valley countries that extends to Malawi

- Huge geothermal heat potential in use in North Africa (Tunisiaand Algeria) and Kenya (flower farms)


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Other Embryonic Signs of Successful Programsfor Future Consideration

Wind-power in Egypt, Morocco, South Africa, Kenya (significant potential in island states such as Mauritius and Comoros)

Wind-pump in Kenya, South Africa and NamibiaSmall hydro in Uganda, Kenya and MadagascarSolar water heaters in SeychellesEfficient lamps/ CFLs in Ghana, Uganda and South Africa

(sustainability is key)Industrial energy efficiency program in Kenya and buildingefficiency program in Cote d IvoireField missions/study tours by Parliamentarians


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4 Key Success Factors

1. Piggy-back cogen/ethanol built on sugar sector and potentially otheragro industries throughout Africa &geothermal built on existing powerutility

2. Local champions and longterm commitment - shoulddemonstrate long term commitment andshould have significant control over thedesign and implementation of initiative

3. Specialisation - preferencesshould be given to specialised initiativeswith specific focus on a single option

4. Income generation and

revenue sharing


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5 Key Policy and LegislativeMeasures

1. Targets : Setting targets for increased contribution of improved and modern bio-energy in total energy consumption & other renewables

2. Standard power purchase agreements : For by-products/waste-based bio-energy generated power & other renewables

3. Predetermined feed-in tariff/price : For by-products/waste-based biomasselectricity, biofuels & other renewables (Mauritius, Kenya, Uganda and Tanzania)

often cogenerated power lower than cost of electricity from oil-firedemergency/Independent Power Plants (I PPs)

4. Mandatory blending ratios : For bio-energy fuels for by-products/waste-based(Malawi, Zimbabwe and Kenya in past shows importance of law)

5. Dedicated institution : Charged with promoting renewables (rural electrification

agency?)


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Thank you

For more information:

www.afrepren.org

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