Role of Research and Development in Developing Biofuels Industries in

Africa

Mpoko Bokanga, PhDAfrican Agricultural Technology Foundation

The First High-Level Biofuels Seminar in Africa

A joint activity of the African Union Commission, Government of Brazil and UNIDO

30 July - 1 August 2007, Addis Ababa, Ethiopia

2004

1800

1900

6,385,564,899

Population Increase in the World The world's population will rise to 9 billion by

2050

The world's food production will have to double

Energy needs may triple

Key drivers of the energy future

Sources of renewable energy

Bio-diesel From oilseed crops From recycles vegetable oils

Bio-ethanol From starchy substrates From ligno-cellulosic substrates

Better molecules: butanol Wood chip energy conversions

Combustion, gasification, or pyrolysis and conversion to heat and electricity

Sources of Bio-ethanol

Sugarcane Sugar beet Maize Wheat Rice Potato Cassava

History of Ethanol Production in Nigeria

1963: Start of Nigerian Sugar Company (NISUCO)

1973: Start of NIYAMCO to use NISUCO’s wasted molasses

1990s: Sugarcane production declined, prompting NIYAMCO to face closing down

1996: switch to cassava as the feedstock was decided; some modifications were made to the factory to include a gelatinization, liquefaction and saccharification steps.

1999: NIYAMCO closed down due to financial mismanagement

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Me

tric

To

ns

1964/65 1967/68 1970/71 1973/74 1976/77 1979/80 1982/83 1985/86 1988/89 1991/92 1994/95 1997/98

Year

Sugar and Molasses Production at Bacita, Nigeria

MolassesSugar

Sugar and ethanol production in Nigeria

Demand for Ethanol in Nigeria

In the 1990s, Nigeria’s demand for ethanol was 90m - 160m liters per year Beverages Chemicals Pharmaceutical Food

NIYAMCO’s capacity (4m liters per year) was a mere 2.5 - 4% of the Nigerian demand

Nigeria’s decision to adopt the E10 standard for gasoline pushes the demand for ethanol to 400m liters per year

A strategic decision was made by Nigeria to produce ethanol from cassava

Demand Side

Exporters (?)

Processors (CAPAN, PAN, MBAN, FMAN)

Traders & Merchants (?)

Input Suppliers (CEFAN, PSO)

Transporters(NURTW)

SupplySide

Farmers

Producer Organizations

(CGAN ?)

&

Farmer Business

Associations

Global Context for Competition National Agribusiness Strategy

Related and Supporting Institutions Government (FMARD, FMC, FMI, RTEP, etc); Regulatory Agencies – NAFDAC, SON, Customs

Research and Academic Institutions – IITA, NRCRI, NCAM, UniversitiesTrade & Sub sector Associations (NASSI, NASME, Chambers of Commerce

Financial Institutions and NGO MFIs – Other BDS Providers – Donors

Cassava Industry

Chips

Flour

Starch

Ethanol

Why cassava?

Nigeria is the world largest cassava producer

Studies have shown that industrial uses of cassava could generate as much income as the oil industry

Nigeria needs to diversify from a single commodity economy

There is a wealth of research on cassava that has been conducted in Nigeria

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cassava Sorghum Millet SweetPotato

Plantain

Food Crop Productivity Potentials

Example of Optimized Cassava Growing Conditions in Ivory

Coast

80 t/Ha for some cultivars!80 t/Ha for some cultivars!

No virusesNo bacteriaHealthy cuttingsHigh densityNo weedsOptimal mangmt

Meeting the Ethanol Demand using Cassava as Raw Material

Total demand 400m LPY 1 ton cassava chips --> 400L ==> Total chips demand: 1m tons ==> Fresh roots demand: 3m tons

Total cassava production: 36m tons/year Use for ethanol: 8% With cassava productivity increases expected

from farm-industry linkages, the percentage of cassava going to ethanol will decrease.

Number of farmers benefiting

3m tons roots/year Assumptions:

Cassava yield: 10 ton/ha Average farm size: 0.5ha

Need 600,000 farms/year Opportunities for farm clustering to

introduce farm mechanization, best management practices to drive productivity up

The Challenge: Reducing the Cost of Production

The Challenge: Reducing the Cost of Production

2621.2

17.5

25.429.4

05

101520253035

Traditionalsystem

Mechanizedplanting

Mechanizedplanting

&harvesting&improved

varieties

US$/t

on

100% 13.6% 11.6% 27.9% 40.5%

Cassava agro industries will begin to grow in Nigeria when root prices are low and available

(<N3500/t) and will lose to the traditional market when root prices are high.

Number of factories required

Scale of ethanol plant operation

Small Medium Large

LPD 30,000 120,000 350,000

Number 45 12 4

Scale of cassava chips plant operationSmall Medium Large

Ton chips/day 0.5 2.5 10

Number 17,000 1,500 350

Opportunities for equipment manufacturing

The high number of cassava chips factories present an added opportunity for equipment manufacturing in Africa rather than importing

AATF is working with Brazilian and African equipment manufacturers to facilitate the transfer of equipment fabrication know-how

UNIDO may need to save the African Regional Center for Design, Engineering and Manufacturing (ARCEDEM) that it started but is now moribund

Technology trends

The conversion of simple sugars (sugarcane) and starchy substrates (maize, cassava, potato) to ethanol is a short term approach

In the long term: ligno-cellulosic fermentation C5/C6 fermentation Production of butanol rather than ethanol

The industry is investing in Ethanol conversion costs reduction

Implications for a cassava-to-ethanol industry

Ethanol plants will need to adopt new raw materials and new processes: relatively easy

Cassava chips factories will need to find new outlets: there are multiple uses for cassava

The multiple uses of cassava in industries In food products

Pie fillings, cream pudding, confectioneries, baby foods...

In the production of adhesives gums for envelopes, postage stamps, bottle labeling, lined cardboards, wood adhesives ...

In paper manufacturing internal sizing, filler retention, surface sizing, paper coating, toilet paper, disposable diapers, feminine products, …

In textile manufacturing warp sizing, fabric finishing, printing

In the cosmetic and pharmaceutical industry dusting powder, make-up products, soap filler/extender, tablet binder/dispersing agent, pill coating, ...

As a lubricant in the oil drilling process

Complete utilization of cassava

Leaves: proteins for food and feed

Stems: for ligno-cellulosic fermentation

for ethanol and butanol

Roots: for food and industrial products

Cassava use in producing regions

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Food Feed Industry Export Waste

Africa

Asia

Americas

Data from FAOSTAT 1999Data from FAOSTAT 1999

Optimizing biofuels requires fusing the petroleum and agricultural value chains

What Strategy for African R&D?

Energy Bioscience Intelligence Unit Include experts from various ministry

Energy, Agriculture, Industry, Infrastructure, Transportation, Lands, Science and Technology, Higher Education

Access and archive all open information Establish partnerships to access proprietary

technology when needed Identify areas of the value chain for national

focus and specialization Fund local applied research by universities and

research institutes with strategic partnerships (maybe through a bio-energy levy)

What Strategy for African R&D?

Researchable issues Technology development

Check information in the scientific public domain, especially patent literature

Technical and economic feasibility How to access intellectual property owned by others Value chain management and benefit sharing systems New uses of bio-energy: how to solve the problems of

access to energy by the vast majority of Africans Smart subsidies Land tenure systems Environmental impact

Need to be guided by national and regional Bio-Energy Strategies

Conclusion

The world needs more and cleaner energy: biofuels are here to stay

Like any new technology, early adopters will derive more benefits (e.g. Brazil)

Biofuels are a great opportunity to promote agro-industrial development, drive increases in agricultural productivity and encourage investment in infrastructure that serves agriculture and trade of agricultural products

R&D efforts should focus innovations in agricultural and energy value chains, access to IP, wealth creation and benefit sharing

FONDATION AFRICAINE POUR LES TECHNOLOGIES AGRICOLES

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