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Biofuels for Industrial Development and Poverty Reduction in
Africa
Heinz Leuenberger
Director, Energy and Cleaner Production Branch.
United Nations Industrial Development Organisation (UNIDO)
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Outline
1. Global Energy Trends
2. Global and local drivers
3. Potential and opportunities for Africa
4. Key issues, potential risks and trade-offs
5. UNIDO’s biofuels activities
6. Way forward
7. Conclusions
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1. Global Energy Trends
 Climate Change and peak oil shaping future energy agenda
 Renewables account for about 17% of Global Primary
Energy (Traditional Biomass 9%, Large Hydro 5.7% and
Other Renewables 2%)
 Renewables Power capacity excluding large hydro-power
touched 182 GW in 2005
 Investments in New Renewable Capacity touched $ 70
Billion in 2006
 Fastest growth taking place in the field of liquid Biofuels –
Ethanol and Biodiesel
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Rising population & increase in energy demand
Primary Energy Demand (Indexed)
24000
21000
Developed (GDP/cap > $US 12,000)
Emerging (GDP/cap < $US 12,000)
Developing (GDP/cap <$US 5,000)
18000
Poorest (GDP/cap < $US 1,500)
15000
Population
[1,000,000 cap]
12000
9000
6000
3000
0
2000
Base case
Low poverty Prosperous
world
2050
Source: Basic Facts - Trends 2050 - WBCSD
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Global energy use per capita 2000
400
North America
Per capita energy use (GJ/cap)
350
300
Australia & NZ
250
200
Japan
EU-25
150
100
FSU
Middle East
Latin America
50
Asia & China
Africa
India
0
0
1
2
3
Population (billion)
Source: World development indicators, 2003
4
5
6
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World Electricity Demand
by Region in the WEO 2006 Reference Scenario
Source: IEA
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World Primary Energy Consumption 2000 vs A1 & B2 Scenario
Projections for 2030 (EJ)
AGRICULTURE
3%
TRANSPORT
22%
A1
INDUSTRIAL
36%
BUILDINGS
39%
Total 384 EJ
2000
A1 - High Growth Scenario
B2 - Low Growth Scenario
TRANSPORT
23%
B2
BUILDINGS
35%
TRANSPORT
25%
INDUSTRIAL
39%
BUILDINGS
37%
INDUSTRIAL
39%
Total 892 EJ
2030
Total 648 EJ
Source: IPCC
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2. Drivers of Biofuels Development – Transport Fuels
Incremental Oil Demand 2002-2030; figures from IEA (2004)
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2. Drivers of Biofuels Development – Global Context
• High and volatile oil prices
• rising demand (India, China);
• instability in major oil producing regions;
• higher exploration costs; and
• finite nature of global oil resources.
• Climate change agenda
• Agriculture and trade policies
• Sustainability issues
• Technological advances and emerging
more efficient conversion technologies.
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2. Drivers of Biofuels Development - Global Energy
Region
Africa
Latin America
Asia
China
Non-OECD Europe
Former USSR
Middle East
OECD
World
Primary Energy, in ExaJoules (EJ)
total
renewables
biomass
21,5
10,8
10,5
18,8
5,2
3,3
48,2
16,1
15,0
48,4
10,0
9,0
4,2
0,4
0,2
39,5
1,2
0,4
16,3
0,1
0,0
223,3
12,7
6,8
420,3
56,6
45,2
Global Resources (EJ/a)
Current Use
Technical Potential
hydro
0,3
1,9
0,6
1,0
0,2
0,9
0,1
4,4
9,3
Eco-potential
Hydro
10
50
20
Biomass
45
>1,000
100-500
Solar
0.2
>1,000
200
Wind
0.2
600
150
Geothermal
1.2
>1,500
200
Ocean
0
?
?
TOTAL
56.6
>4,000
+/- 1000
RE share
50%
28%
33%
21%
9%
3%
1%
6%
13%
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2. Global Pattern 2030
=Oil export
= oil & bio domestic
Source: IEA (2005)
= bio-export
= bio domestic
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2. Export potential of Biofuels
Targets EU
% Bio-fuels in Transport fuels
Targets Germany
% Bio-fuels in Transport fuels
2005
2010
2015
2020
2%
5.75 %
8%
10 %
2010
2015
2020
6.75 %
8%
17 %
Conclusion:
 To achieve these targets EU and Germany must import Biofuels from outside Europe
 Sustainability of Biofuels will be crucial for the future international market
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2. Alternative use of Biomass
1. Biomass used for Energy production
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Solid
Gas
Liquid
Combined Power-heat coupling
Transport fuel
Industrial applications for process heat
2. Biomass used as Raw Material for industrial activities
Cosmetic, washing powder, fertilizer, plastic, packing materials, Textiles, Cellulose, raw materials for pharma
products, etc.
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2. Drivers of Biofuels Development – African Context
Africa has 13% of global population yet uses 3% of electricity
used globally.
 Only 1 in 4 people in Africa has access to electricity.
Under exploitation of available resources : 6% of
hydroelectricity and 0.6% of geothermal potential exploited.
 Abundance and decentralized availability of biomass resources
Need to raise GDP growth rate from 3.5% to 8% if Africa is to
meet the MDGs & means a corresponding increase in energy
demand.
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3. Africa’s Biofuels Potential.
 Africa has ‘vast’ land resources and conducive climates.
 Estimating exact potential is complex –many variables.
 Several studies undertaken and converge on the following:
1. Africa has a very large potential to produce biofuels.
2. Under a high productivity scenario Sub Saharan Africa can
produce biofuels with energy content up to 410 Exa J compared to
global energy consumption of 440 Exa J (very optimistic!)
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3. Opportunities and Benefits of Biofuels in Africa
Sustainable use of Biofuels can lead to
- Reduction in oil importation bill.
- Revitalization of rural economies through higher farm incomes,
creating jobs and enhance local energy security.
- Increased availability of cleaner burning fuel with both global and
local environmental benefits.
- Reclaiming of degraded and marginal lands and opportunities for
carbon sequestration.
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4. Key issues, challenges and risks of biofuels include..
Environmental Challenges.
 Production chain and application should have positive energy and GHG balances.
 Sustainable water use and no additional water contamination
 Environmental responsibility and conservation of natural resources and biodiversity.
 Minimize soil erosion and degradation
 Minimum environmental emission from Bio fuels production technologies
Socio-Economic Challenges
 Reduce competition and strengthen synergies with food sector/land.
 Balancing between large-scale and small-scale production
 Production should lead to local and shared prosperity
Technology Challenges
 Identifying appropriate plants for specific regions.
 Appropriate technologies for communities and businesses.
 Increasing production efficiency
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4. Example : LCA for Bio-fuels, Indicators
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4. Example: LCA for Bio-fuels
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4. Example: LCA for Bio-fuels
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5. UNIDO’s Biofuels Activities : Objectives
 Increase security of energy supply through diversification of supply and
reduce reliance on fossil oil.
 Increasing access to energy for poor for productive uses
 reducing risks and uncertainties in investments in technologies.
 promote transfer and commercialization of appropriate technologies.
 demonstrating the biofuels value chain.
 Stimulate debate and ideas on key issues such as sustainability
standards etc.
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5. UNIDO’s Role
Biofuels Value Chain
Biomass
Resource
Agricultural
crops and
residues
Woody biomass
Supply
Systems
Harvesting.
Collection.
Oil bearing
plants
Industrial waste.
Handling.
Municipal waste.
Biochemical
Transport fuels.
Thermochemical
.
Heat
Physical/chemic
al processes.
e.g.
Solid fuels
Deoxygenation
Depolymerisatio
n.
Delivery
Pyrolysis;
Gasification;
Storage
End Use
Conversion
Hydrolysis;
Fermentation.
Electricity
Construction
materials
Plant based
pharmaceutical
s
Renewable
chemicals
including
polymers
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5. UNIDO’s Biofuels Activities : Draft Strategy
UNIDO’s biofuels strategy seeks to assist developing countries in realizing the potential benefits
of biofuels, especially by linking technology, investment, trade and sustainability issues, to
 assist countries to formulate adequate RE policies and define/adopt recognized sustainability
indicators;
 reduce uncertainties regarding investment opportunities;
 provide tailor-made technical assistance programmes;
 strengthen SME capacities to meet international biofuels standards.
For this, UNIDO will work with networks of experts, research institutes, industrial associations,
and cooperate with UN partners, multi / bilateral agencies and regional initiatives.
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5. UNIDO’s Biofuels Activities : Focal Areas
 Profiling Bio-fuels (BAT, BEP, Sustainability, Employment, Costs, efficiency, emissions, maintenance
requirement, specification data, south-south cooperation for program implementation etc.)
 Solid biofuels: South-South technology transfer, and commercialization (technology
transfer, south-south cooperation, cogeneration)
 Liquid biofuels: Ethanol from residues and wastes – demonstrating the value
chain (technology assessments on all biofuel pathways)
 Liquid biofuels: Biodiesel – building the local-global bridge for SMEs (foster
decentralized production, feedstock availability, costs quality, labor safety, environmental performance,
technology and human skills requirements etc.)
 Gaseous Biofuels (biogas for industrial and transport applications)
 Biorefineries: (providing clearinghouse services) in cooperation with ICS-Trieste
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5. Proposed Biofuels Strategy: Key Projects
 Biofuels projects in: Cuba, Zambia, India, Sri Lanka, and Croatia
 Centre of Excellence for Biomass Gasification Technologies proposed at Indian
Institute of Sciences, Bangalore, India
 Applications:
– Biomass gasification for power generation & process heat in industries
– Bio-diesel and Bio-ethanol: Feasibility studies & applications
– Biogas: residential & industrial energy, motive power for small industry
– Bio-refineries: Awareness raising
 Biomass Conversion Technologies on-line Information Forum (BIOTIF)
 Bio-fuels Capacity Building Programme (BIOCAB)
 Bio-refineries: providing clearinghouse services (ICS Trieste)
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5. UNIDO’s Bioenergy Activities : Global Forum
Activities
•
International Conference on Biodiesel in Malaysia (July 2007)
•
The First High-Level AU-Brazil- UNIDO Biofuels Seminar in Africa.
•
Regional Workshop on Promoting Sustainable Biofuels Production and Use in Central
& Eastern Europe. (Nov. 2007)
•
Energy for Development: The Importance of South-South and North-South
Technology Exchange for Promoting Renewable Energy and Energy Efficiency in
Senegal, (Feb. 2008)
•
Global Renewable Energy Forum in Brazil, (Mai 2008)
•
Follow-up of our Seminar : Sub-Regional workshops in Africa, (2008)
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6. Way forward
Design and implement Regional Action programs and pilot projects to:
 Develop appropriate policies, strategies and investment plans to promote biofuels development
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(Renewable Energy) within a sustainable development framework i.e energy self sufficiency
should be priority.
Provide and measure datas for the discussion and verification of sustainability standards for
biofuels
Create investment vehicles/funds to mobilize financial resources to invest in national priority
biofuels projects.
Mainstream use of biofuels in Country Assistance Strategies ( PRSPs and CSPs)
Forster market-oriented partnerships between governments, the private sector, civil society and
international development partners.
Promote engagement on North-South and South-South basis and between public and private
sectors.
Encourage multi-disciplinary approaches,
Support biofuels research and development in Africa.
Concentrate our focus on regional initiatives for scale and markets within existing RECs, SADC,
ECOWAS, IGAD
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7. Conclusions
 Biofuels can play a significant role for the development in Africa
 Policies, research cooperations, partnerships and technology transfer should be the
basis for future biofuels program in Africa.
 Sustainability (GHG-Reduction, Competition with food and local applications,
Biodiversity, Environment, Prosperity and Social well being) is critical to its success
 Initial focus of biofuels programs should be self-sufficiency in energy with national,
sub-regional, regional and global linkages.
 This seminar should result in a common plan/program of action on how Africa can
exploit its biofuels potential in a sustainable manner.
 Follow-up action is required at the national / sub-regional level for ensuring an
consistent, integrated and multi- disciplinary approach to develop biofuels projects
in a sustainable manner for improved access, increased use in industrial / transport
sectors and enhancing energy security in Africa.
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Thank you
for your attention
Heinz Leuenberger
United Nations Industrial Development
Organisation (UNIDO)
Director, ECB
E-mail: h.leuenberger@unido.org