BIODIESEL DEVELOPMENT IN TANZANIA:
RESEARCH REVIEW REPORT
Michael A. Martin
Linköping University
Department of Management and Engineering
Environmental Technology and Management
INTRODUCTION
Tanzania; the name conjures visions of Mt. Kilimanjaro, safaris, prairies and the famous
Spice Island of Zanzibar. However, biodiesel is becoming a vision in Tanzania as many
foreign investors look to produce biodiesel from a number of raw materials, including the
famed plant, jatropha. By and large, with jatropha and other crops, Tanzania has the capacity
and resources to produce biodiesel to subsidize its demand for fossil fuels. However, it is
currently hampered by increasingly rising fuel prices, an inadequate infrastructural capacity
and a lack of a relevant biofuel policy. In the future, these issues could become alleviated with
the introduction and production of biofuels. In the meantime however, this study examines the
potential feasibility of biodiesel production in Tanzania.
AIMS AND OBJECTIVES
The overall aim of the research project was to provide a review of the status and potential for
the production of biodiesel in Tanzania. Throughout the research project, information is
provided that outlines the impending biofuel development and business ventures currently in
practice and coming to Tanzania. Essentially the study identifies the necessities required to
implement their small scale production in several areas and show the feasibility of doing so.
In retrospect, research report shall provide the following important aspects for Ageratec in
their pursuit to implement biodiesel solutions in Tanzania.
In more specific terms the research project aims at developing upon the following:
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A further understanding of the Tanzanian biofuel environment.
Develop Understanding of Tanzanian biofuel environment.
Discover barriers in infrastructure.
Using Value Chain Analysis, find possible and all actors.
Categorize actors to discover relevant customers.
Provide a listing and analysis of potential clientele.
Present a method/tool to use for future developing countries.
METHODOLOGY
Information on biofuel development in Tanzania, and most technical matters, is very difficult
to obtain. In order to produce research as such on the potential of biodiesel production,
availability of raw materials and listing of potential actors for Ageratec, the following
structure/steps were used in the research process:
 Literature Review
o Documenting current research in the biofuels
o Showing industrial activities in the country
o Reviewing all things Tanzania
 Value Chain Analysis
o Discover actors in all fields involved in biofuel production
o Raw material supplies
o End-users for biodiesel
 Research Trip
o Obtain hard-to-find information
o Conducting seminars and interviews
Thereafter, the report has been separated into two separate sections; Part 1 describing
conditions and information on Tanzania which are important for business, and Part 2
describing the potential for biodiesel production and customer suggestions in Tanzania.
Supplementary information for the main report sections were provided in the Appendices, and
include the following:
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Raw Materials Report
Actors Matrix Listing
Scientific Reports (written by the author) from research
Conference/Seminar proceedings and notes
RESEARCH FINDINGS
BIODIESEL POTENTIAL
Throughout Tanzania a number of biofuel projects are underway. It can be noted that these
projects are being completed on a relatively small scale using primarily jatropha oil, and not
converting the oil to biodiesel as of yet. These projects are growing, and soon will provide the
necessary supplies of seeds and oil to bring the market further. On the other end of the
spectrum, however, large scale projects are being hindered by a lack of governance and
policy. As previously mentioned, once this document is in place many companies will have
the incentives and will be relieved of risks for investment into this popular new area of
business. However, there are a number of sustainability related issues plaguing this
developments as well. In retrospect, the small scale developments are thriving and are easy to
implement throughout Tanzania in a number of fashions, including out-grower schemes.
RAW MATERIALS
With the current hype on the “wonder-plant,” jatropha, many companies are losing site of the
abundance of naturally occurring raw materials available in Tanzania. Research efforts are
being invested into a foreign plant species which has not been fully domesticated within the
country on a large scale yet. A number of species of plants do exist throughout Tanzania.
These species have not been thought of as biodiesel production inputs, but this report gives
precedence to these materials for the application of an Ageratec processor and thus large scale
production is out of the question. Jatropha should not be disregarded however. Many small
scale developments throughout Tanzania have successfully begun producing jatropha oil, and
are expanding their operations. Out grower schemes and cooperation with local farmers give
this crop the opportunity to become a better cash crop than other previous attempts from the
developed world, i.e. vanilla, coffee and cotton. Once the biofuel policy is in place and risks,
speculation and concerns are lifted
VALUE CHAIN ANALYSIS AND ACTORS
A value chain analysis was used to find actors throughout Tanzania involved in the current
industry. The goal was to find what raw materials and by-products are available currently and
link these to users, producers and other relevant organizations. Three distinct classifications of
actors came from this study; the dependent, independent and biofuels actors. Each of these
classified actors have their own primary business concerns, though all can be involved in
biofuel development, production and use in some way or another.
Several industries throughout Tanzania produce an abundance of oil bearing by-products and
seeds which were not thought of to produce biodiesel previously. With the high price of diesel
and concerns on the security of supplies, biodiesel poses a feasible option to many of these
industries. Such is the case with many biodiesel processors sold by Ageratec in Africa. The
machines were not sold to make a “green/eco-friendly” fuel, but merely to supply the
industrial efforts with a secure supply of energy. This case holds for Tanzania as well, and
future production of biodiesel to subsidize energy expenses is a major selling point for the
product.
AGERATEC MACHINES IN AFRICA
Ageratec, with their small scale, batch-production
processors are thus set to make a large mark in the market
in Tanzania and throughout Africa once the biodiesel
companies begin expanded production. Currently
machines are employed in a number of countries, as
previously mentioned, due to the need for secure supplies
of energy. Additionally, as the market expands, Ageratec
processors can be coupled using the “multi-link” setup
and run simultaneously giving the processors a huge
advantage over other types of machinery. Moreover the
flexibility to use many types of oils, as is the case for
several machines currently in Africa, especially during
harsh periods when supplies of oil seeds from certain
crops fluctuate, offers a primary benefit for this particular
brand.
CONCLUSIONS
The said research report outlines a number of raw materials and actors to be followed up by
Ageratec. These actors come from a variety of activities, but require or can produce biodiesel
from oil bearing crops and by-products. An investigation and review of these materials,
including their sustainability indices and possible concerns has also been outlined for a further
understanding into the market. Competitors, barriers and sales support models have also been
reviewed and documented to ease implementation of Ageratec machines in Africa, as well as
other new markets, especially in developing nations.
Nonetheless, Tanzania offers many opportunities for Ageratec in the near future with a wide
array of raw materials. Many of these raw materials come from non-typical industrial
activities and offer synergies for an industrial symbiosis, thus benefiting the environmental
performance of Ageratec machines and biodiesel production.
CONTACT/FURTHER INFORMATION
Specific questions directly dealing with the research findings for Ageratec can be addressed to
the Sales Department at Ageratec. For more information on the project and other material
related to biofuel development in Tanzania, you may contact the author of this report at the
following address. Please notice that some information is proprietary and may not be shared
without the consent of Ageratec.
Michael Martin
PhD Candidate
Environmental Technology and Management
IEI-Dept of Management and Economics
SE 581 83 Linköping, Sweden
michael.martin@liu.se
Phone: +46 737016981