ENDA Energy, Environment, Development

Bioenergy for Rural Development in West Africa The case of Ghana, Mali and Senegal

Final Report

Coordinating Author Touria Dafrallah (ENDA Energy Environment, Development)

Contributing Authors Ishmael Edjekumhene and Paula Edze (KITE, Ghana) Alassane Ngom (Ministry of Environment and Nature Protection) Verena Ommer (Intern at ENDA)

September 2010

i

Table of Contents TABLE OF CONTENTS ...... II LIST OF TABLES ...... III LIST OF FIGURES ...... III LIST OF ABBREVIATIONS AND ACRONYMS ...... IV 1 EXECUTIVE SUMMARY ...... 6 2 INTRODUCTION ...... 9 3 THE COUNTRY CONTEXT: ...... 10 3.1 GEOGRAPHY, POPULATION, INFRASTRUCTURE AND ECONOMIC CONDITIONS ...... 10 GHANA...... 10 MALI ...... 12 SENEGAL ...... 14 3.2 ENERGY CONSUMPTION – CURRENT AND FUTURE FOSSIL/RENEWABLE SOURCES ...... 18 GHANA...... 18 MALI ...... 19 SENEGAL ...... 20 4 CURRENT SITUATION OF BIO-ENERGY FOR THE SELECTED COUNTRIES ...... 21

GHANA...... 21 4.1 PRODUCTION, USE AND COST OF BIOMASS ...... 21 4.2 SECTORAL POLICIES ...... 26 MALI ...... 31 4.3 BIOENERGY PRODUCTION AND USE ...... 31 4.4 EXISTING POLICIES ...... 33 SENEGAL ...... 36 4.5 BIOENERGY PRODUCTION AND USE ...... 36 4.6 EXISTING POLICIES ...... 41 5 CASE STUDIES OF SELECTED BIOFUEL PRODUCTION ...... 43

GHANA...... 43 5.1 PRODUCTION OF BIOFUEL FROM THE JATROPHA CURCAS PLANT ...... 43 Case 1: Gold Star Farms Ltd (GSFL) ...... 43 Case 2: Biofuel Africa Limited ...... 44 Case 3: Jatropha Africa Limited ...... 44 Case 4: Gender Responsiveness Renewable Energy System Development Application (GRESDA-Ghana) Project ...... 44 5.2 PRODUCTION OF METHANE FROM AGRO-INDUSTRIAL WASTE FOR ELECTRICITY GENERATION ...... 45 MALI ...... 48 5.3 JATROPHA-FUELLED RURAL ELECTRIFICATION IN MALI ...... 48 SENEGAL ...... 54 5.4 FUELWOOD SUSTAINABLE COMMUNITY-BASED MANAGEMENT ...... 54 6 SUSTAINABILITY ASPECTS FOR CASE STUDIES ...... 58 6.1 SUSTAINABILITY ASPECTS RELATING TO BIOFUEL PRODUCTION FROM JATROPHA IN GHANA ...... 58 6.2 SUSTAINABILITY ASPECTS RELATING TO THE FAPSEED PROJECT IN GHANA ...... 60 6.3 SUSTAINABILITY ASPECTS RELATING TO THE JATROPHA PROJECT IN MALI ...... 60 6.4 SUSTAINABILITY ASPECTS RELATING TO THE SOLID BIOMASS PROJECT IN SENEGAL ...... 62 7 CERTIFICATION ISSUES ...... 66 8 EXISTING BARRIERS ...... 67 9 POLICY RECOMMENDATIONS ...... 69 10 CONCLUSIONS ...... 70

BIBLIOGRAPHY ...... 71

ii

List of Tables

TABLEAU 1: POVERTY INCIDENCE AND CONTRIBUTION DEPENDING ON ADMINISTRATIVE REGIONS ...... 16 TABLEAU 2: PERCENTAGE CONTRIBUTION OF BIOMASS TO TOTAL ENERGY CONSUMPTION BY SELECTED SECTOR ...... 18 TABLEAU 3: CONSUMPTION OF PETROLEUM PRODUCTS IN GHANA (2000-2006) ...... 18 TABLEAU 4: POTENTIAL AGRICULTURAL RESIDUES FROM SELECTED CROPS AND ENERGY POTENTIAL ...... 21 TABLEAU 5: TOTAL LIVESTOCK AND ESTIMATED DUNG PRODUCTION IN GHANA ...... 22 TABLEAU 6: LIST OF COMPANIES INVOLVED IN CULTIVATION OF JCP AND LAND AREA UNDER CULTIVATION ...... 23 TABLEAU 7: PRICE BUILD-UP FOR JATROPHA OIL AND BIODIESEL PRODUCTION IN GHANA ...... 24 TABLEAU 8: POTENTIAL BENEFITS OF 1 MILLION HECTARE JATROPHA PROJECT ...... 24 TABLEAU 9: COMPARATIVE COST OF FIXED-DOME BIOGAS DIGESTERS ...... 26 TABLEAU 10: SNAPSHOT OF THE FOOD AND AGRICULTURE SECTOR DEVELOPMENT POLICY ...... 27 TABLEAU 11: SNAPSHOT OF GHANA FOREST AND WILDLIFE POLICY OF 1994 ...... 28 TABLEAU 12: SUMMARY OF BIOENERGY TECHNOLOGIES IN USE IN MALI ...... 31 TABLEAU 13: TRENDS IN CHARCOAL PRODUCTION ...... 36 TABLEAU 14: PRICING OF A BAG OF COAL DELIVERED TO DAKAR ...... 38 TABLEAU 15: REMUNERATION OF CHARCOAL DISTRIBUTION IN DAKAR ...... 38 TABLEAU 16: GARALO PROJECTS PARTNERS ...... 49 TABLEAU 17: ENERGY CONTENT COMPARISON: JATROPHA AND DIESEL ...... 50 TABLEAU 18: CURRENT FUEL CONSUMPTION FOR THE POWER GENERATION IN GARALO...... 50 TABLEAU 19: RADIUS BASED ON THE NUMBER OF WOOD STERES ...... 56 TABLEAU 20: TURNOVER CONSTITUTION BASED ON MARKETING CHANNELS ...... 64

List of Figures FIGURE 1: GHANA ADMINISTRATIVE MAP ...... 10 FIGURE 2: RAINFALL INDEX OF SENEGAL (1950-1992) ...... 14 FIGURE 3: NORMALIZED VALUES OF ANNUAL PRECIPITATION ...... 14 FIGURE 4: LAND-USE AND LAND COVER OF SENEGAL ...... 15 FIGURE 5: EVOLUTION OF THE CONTROLLED PRODUCTION OF CHARCOAL (1937 TO 1992) ...... 37 FIGURE 6: BUSINESS MODEL OF THE CHARCOAL INDUSTRY ...... 39 FIGURE 7: AN OPERATOR POURING JATROPHA OIL INTO LISTER MACHINE ...... 45 FIGURE 8: WOMEN EXTRACTING JATROPHA OIL WITH SCREW PRESS AT GBIMSI ...... 45 FIGURE 9: SCHEMATIC OF BIOMETHANATION PLANT ...... 46 FIGURE 10: ONE OF THE THREE 100KW POWER GENERATORS IN GARALO ...... 51 FIGURE 11: THE THREE 100KW POWER GENERATORS IN GARALO ...... 51 FIGURE 12: LOCATION OF PROGEDE SITES...... 54 FIGURE 13: FOREST PATCHING MAP IN THE NETEBOULOU COMMUNITY ...... 55

iii

List of Abbreviations and Acronyms

ACP Africa, Caribbean and Pacific APANPP Association des Pays Africains Non Producteurs du Pétrole/ Association of Non-Oil Producing African Countries BAL Biofuel Africa Limited BPSD Barrels per Stream Day CDM Clean Development mechanism CIA Central Intelligence Agency CVGD Comité Villageois de Gestion et Développement/Management and Development Village Committee CVPP Comité Villageois de Producteurs de Pourghere/Jatropha producers’ village committees CPP Cooperative de Producteurs de Pourghere/Cooperative of Jatropha producers EC European Commission ECA Electricity Consumer Association ECG Electricity Company of Ghana ECOWAS Economic Commission of West African States EIA Environmental Impact Assessment ENATEF Ecole Nationale des Agents Techniques des Eaux et Forêts/National School of Water and Forests Technical operators ENDA Environment and Development Action in the Third World EPA Environmental Protection Agency FAPSEED Facilitating the Provision of Sustainable Energy and Environment FAO Food and Agriculture Organization FASDEP Food and Agriculture Sector Development Policy F CFA Franc CFA (Currency in Senegal and some other West Africa countries) GDP Gross Domestic Product GEF Global Environment Facility GHG Green House Gas GNESD Global Network on Energy for Sustainable Development GNPC Ghana National Petroleum Corporation GoG Government of Ghana GOPDC Ghana Oil Palm Development Corporation GPRSF Growth and Poverty Reduction Strategy Framework GRATIS Ghana Regional Appropriate Technology Industrial Services GRESDA Ghana Renewable Energy System Development Application GSB Ghana Standards Board GSFL Gold Star Farms Limited IIR Institute of Industrial Research IPP Independent Power Producer JAL Jatropha Africa Limited JCL Jatropha Curcas Linneaus KITE Kumasi Institute of Technology and Environment KNUST Kwame Nkrumah University of Science & Technology LPG Liquefied Petroleum Gas MDG Millennium Development Goals MFC Mali Folkcenter MoEN Ministry of Energy MOFA Ministry of Food and Agriculture MTOE Million Tons of Oil Equivalent MW Mega Watt NBRA National Biogas Resource Assessment

iv

NDPC National Development Planning Commission NED Northern Electricity Department NGO Non Governmental Organization NJP National Jatropha Programme NJPI National Jatropha Plantaion Initiative NJPP National Jatropha Plantation Project NREL National Renewable Energy Law NRES National Renewable Energy Strategy POME Palm Oil Mill Effluent PPP Purchasing Power Parity PPO Pure Plant Oil PROGEDE Programme de Gestion Durable et Participative des Energies Traditionnelles et de Substitution/Sustainable and Participatory Energy Management Programme PVO Pure Vegetable Oil RAINS Regional Advisory and Information Network System RE Renewable Energy REES Renewable Energy and Environmental Systems REDP Renewable Energy Development Programme RPR Residue-to-Product Ratio RTTU Regional Technology Transfer Unit SIE Système d’Information Energétique/Energy Information system ToE Ton of Oil Equivalent TOR Tema Oil Refinery UEMOA Union Economique et Monetaire Ouest Africaine/West African Economic and monetary Union UN United Nations UNDP United Nations Development Programme UNICEF United Nations Children’s Fund UNIFEM United Nations Development Fund for Women UNCEFS Union Nationale des Cooperatives et des Exploitants Forestiers du Senegal/National Union of Forest Operators cooperative of Senegal VRA Volta River Authority

v

1 Executive Summary

Importance of bioenergy in West Africa Biomass accounts for the bulk of most West African countries’ total national energy supply. Reliance on traditional biomass energy is particularly high and accounts for 70-90% of primary energy supply and up to 95% of the total households’ consumption in some countries. Traditional biomass is considered as a free-energy and represents the main energy source for the poor, especially in rural and periurban areas. Even oil producer countries in West Africa continue to rely on biomass energy to meet the major proportion of their household energy requirements (cooking and heating). In Nigeria, it is estimated that traditional fuels use accounts for about 82.3% of total energy use. The global energy balance in the eight UEMOA countries gives very eloquent evidence that traditional energy (biomass, in particular) plays a critical role with 80% of the total energy consumption (the average in the 15 ECOWAS countries is 82%) while the shares of hydrocarbons and electricity remain quite low (15% and 5%, respectively). Given the low penetration of efficient and modern biomass uses, there is question whether the heavy reliance on biomass energy in West Africa would change in the near future.

West African countries have a variety of potential bioenergy resources that could be used as modern bioenergy options, in solid, liquid or gaseous fuel forms. These range from forest and agricultural residues to industrial and municipal wastes.

Bioenergy policies and the private craze for agrofuels plantations in the sub region Biomass is a key sector in West Africa with economic, environment and social dimensions. However, the review of the Policy Framewoks leads to the conclusion that in most countries, there is no specific policy outline for bioenergy and this sub-sector is included in the general Energy Policy/Strategy or in the Renewable Energy Policy/strategies. Conventional sources of energy remain the priority in the Energy Policy. Although the agriculture, forestry, environment and energy sectors are inter-related, the respective sector policies have been developed largely in isolation with little or no cross-sectoral collaboration. It is undeniable that the interventions of all these sectors need to be harmonized if modern bioenergy is to play an effective role as a tool for poverty reduction and rural development. Lack of consultations and coordination will compromise the ability of each of the sectors to achieve their respective policy objectives. In many countries, private businesses (mainly foreign companies) are investing in biofuels production as Africa seems to offer a good environment in this purpose (available land, cheap labor and favorable climate). Unfortunately, policy and regulatory frameworks are not established to monitor the emerging private initiatives that seem to focus on exports.

Jatropha Curcas as a bioenergy source in West Africa Jatropha plantation for biodiesel production has recently gained a special interest in West Africa given the fact that this plant is believed not to require high quality land and rain. Thus, it does not seem to pose any competition for land and water uses nor does it impinge on food security. Despite the observed craze for Jatropha, commercial production of biodiesel from this tree has not started as yet at a large scale. One of the private companies in Ghana has recently tagged itself as being the first company in Ghana and even West Africa to commence the commercial production of biodiesel. It has declared 10 metric tons of biodiesel produced from its 650 hectare jatropha plantation.

The three countries studied show three types of approaches at national level with respect to Jatropha:

1- In Ghana, a National Jatropha Plantation Initiative (NJPI) was introduced in 2006 with an ultimate target of developing up to one million hectares of jatropha plantations on available idle and degraded lands in phases for the next five to six years. Private initiatives have evolved recently and over 20 companies (mostly foreign owned) are cultivating large tracts of jatropha plantations all over Ghana. An estimated 2.7 million hectares of land are either under cultivation or have been earmarked for jatropha cultivation, representing 11% of total land area and 19% of total agriculture land respectively. This rapid development is taking place without any policy and regulatory frameworks for the bioenergy industry and when the existing forest and agricultural policies do not cover the bioenergy sector.

6

2- In Mali, interest in Jatropha has been present for some decades. During the recent one, emphasis was directed toward piloting rural electrification from Jatropha-based oil. A unique Jatropha oil project was implemented in the Garalo village to provide electricity to 250 subscribers with a potential for more than 10 000 inhabitants including social services and incomes and local businesses. Mali intends to replicate the Garalo experience to a wider scale to support its efforts towards rural electrification. The national Strategy for the Development of Biofuels defines the regulatory framework for bioenergy in Mali. The National Agency for Bioenergy (BIOCARMALI) has recently been created and will operate these policies and strategies. In the Agriculture sector, the new agriculture legislation in Mali includes specific consideration for energy production from Agricultural crops. The “Loi d’orientation agricole”, recently adopted, focuses on biofuels production to meet rural energy needs.

3- In Senegal, a National Jatropha Plantation Programme (NJP) was launched in 2006 with the aim of planting 320000 ha nationwide for 2007-2012. With a very changing institutional framework and the management of the agrofuels moving from the responsibility of the Agriculture to the Energy Department and back, then to the Ministry of “Pisciculture”, the NJP does not seem to keep on the planned track defined in 2006 and its objective would not be reached on time. However, private Jatropha plantation initiatives are progressing on a much decentralized basis without a proper national coordination. A mapping project has been initiated by the energy programme of ENDA to get a clear idea of the location and purpose of the plantations. However, the biodiesel industry does not seem to emerge yet in the country.

In addition to bioenergy from Jatropha curcas, some other bioenergy forms have emerged in West Africa based on other crops conversion to energy (sunflower, cassava, cashew fruit, etc) or even on waste-to-energy (biomethanisation). The case studies analyzed in this report cover jatropha plantations initiatives (in Mali and Ghana) and a Waste-to-Energy for power generation (in Ghana). The latter confirms the potential of biomethanisation for communities’ electrification. Waste to energy ‘biomethanation’ of a agro-processing palm oil mill effluent promises to be a viable and cost-effective option for providing rural energy, process fuel, organic fertilizer as well as contributing to GHGs emissions reduction. The feasibility studies of the soon to commence Euro 3.5 million “Facilitating the Provision of Sustainable Energy and Environment for Development” project has confirmed that the benefits of the biomethanation technology are enormous and include generation and provision of 126 kW of clean electricity to three rural communities; 1.95 million m3 of biogas per annum (equivalent of 1,000 metric tons of diesel) as process fuel to replace diesel; 2,000 metric tons of organic fertilizer for agricultural purposes and other value-added products and services.

The case of Senegal on solid biomass, shows the potential and challenges of a sustainable improved production and use of forest based bioenergy (wood and charcoal), predominantly used for cooking purposes. Community based and participative management of forest resources have been implemented with a market oriented approach to insure community revenue generation from sustainable collection of fuel wood, an efficient production of charcoal and improved cooking devices.

Sustainability and certification of Bioenergy in West Africa The international debate on bioenergy, in particular on biofuels, has become highly expressed at several levels. The major concern has been around the negative effects of biofuels production and use and the focus has been on food security, environmental preservation and labor right. Insuring the sustainability of biofuels production is seen as a tool to prevent the negative effects based on sustainability criteria and indicators as well as principles. Several initiatives have been launched with respect to establishing sustainability standards and certification at national, regional and international levels. The criteria presented by different sustainability initiatives refer to three main sectors: Social, Economic and Environmental in addition to transversal sectors such as the compliance with other laws and agreements, the indirect land use change, the enhancement of the NGOs role, traceability of biomass and the improvement of conditions at local level. Sustainability is broadly mentioned in the national programs/initiatives in West Africa and alerts are directed towards the fact that bioenergy plantations are to be implemented on idle and degraded lands (Ghana and Senegal). However, this condition does not seem to clearly apply for private bioenergy projects. Although the present situation does not seem to pose any immediate threat to food security, it is likely that some subsistent farmers, who have had their lands taken over, have been deprived of their source of food and

7 livelihoods at the local/community level. The situation is bound to worsen if the current indiscriminate and uncontrolled acquisition of land is not curtailed or moderated by the appropriate authorities in West Africa. This study has attempted to analyze the sustainability aspects based on the selected case studies and according to the common axes developed in sustainability initiatives: Economic, Social and Environmental.

At the macro-economic level, the Jatropha programs in Ghana and Senegal are expected to lead to potential significant revenues and contribute to energy security and the conservation of the foreign exchange. If Ghana were to cultivate 1 million hectares of Jatropha, the benefit would be around US$ 4 billion annually. If 30% of the gasoil is replaced with biodiesel and 30% of Kerosene with bio-oil, by 2010, the reduction of the import bill could reach 15 to 20%. In Senegal, if the National Jatropha programme (320 000 Ha of Jatropha plantation) were achieved, the country could replace 100% of gasoil with biodiesel and reduce the energy bill. The solid biomass industry in Senegal involve a controlled turnover of around 10 million Euro of which 20% benefits to local production areas.

At local level, some indicators show some positive impacts in terms of job and revenue creation as well as improvement of communities’ access to energy. However, environmental impacts have not been assessed at local scale and concerns around land tenure and rural populations’ displacements have been raised. None of the West African countries has developed any specific criteria or certification schemes. Therefore, there is an opportunity for countries to analyze the existing sustainability schemes and adopt the ones that are suitable to their context if they are to enter the international trade market of bioenergy. Obviously, additional costs as well as national capacity building are needed for with this respect and environmentally responsive markets are to be promoted.

Major barriers to Bioenergy development The major barriers as identified from the analysis of Bioenergy development in the three selected countries can be summarized as follow: Absence of comprehensive national bioenergy policy; Absence of coherence between sectotrial policies that involves bioenergy; Lack of incentive mechanisms including appropriate financing schemes; Relatively high cost of bioenergy; Absence of high quality planting materials and feedstock; Feedstock availability; Lack of skilled work force project management capacities at local level.

For solid biomass, barriers are particularly related to: Difficulty for the private companies to participate in structuring investments in forest resources assessment; Financial profitability and market penetration of improved cooking devices; Lack of technical knowledge of planting and cutting techniques.

Key policy recommendations Based on the findings from this study, the following policy recommendations are proposed for consideration in the context of West Africa:

• Develop and implement national bioenergy policies; such policies should set clear and realistic targets for bioenergy in the national energy mix and develop strategies, including proper incentive mechanisms to help achieve set targets. • Set up supporting regulatory frameworks to insure sustainable production and use of bioenergy at the environmental, economic and social levels. • Institute sustainability approaches to help insure a sustainable production and use of bioenergy. This will safeguard the livelihood systems of the vulnerable and poor people. • Implement sustainability approach that should primarily target in-country productions, processing and uses of bioenergy and insure the improvement of local populations’ livelihood, energy and food security. • Insure transparency in bioenergy financial resources allocation. • Put in place supporting means to enhance capacities to implement the sustainability of bioenergy and promote environmentally and socially friendly bioenergy markets.

8

2 INTRODUCTION

‘Bioenergy’ can be defined as a renewable form of energy produced from biological/organic materials, which are collectively known as biomass. The term ‘modern bioenergy’ is usually used to distinguish biomass that may be either burned directly, further processed into densified and dried solid fuels, or converted into liquid or gaseous fuels using so-called first or second generation technologies from ‘traditional biomass’, which refers to the direct combustion (often with very inefficient devices) of wood, charcoal, agricultural residue, etc for thermal applications.

Globally, the production of modern bioenergy has been identified as a major tool for rural development and poverty reduction. This is in view of the fact that the development of new bioenergy industries could provide clean energy services to millions of people who currently lack access, while at the same time generating income and creating jobs in poorer areas of the world. Bioenergy can also help mitigate the negative climate change effects of conventional energy as well as ensuring enhanced energy security. However, unfettered development and accelerated growth of the industry can also have undesirable impacts on poverty since it can lead to increase in agricultural commodity prices, which can translate into negative economic and social effects, particularly on the poor who spend significant amounts of their income for food. It is therefore important for policy-makers to conduct economic cost/benefit analysis of the bioenergy industry to determine the full menu of impacts (both positive and negative) that the development of the industry can engender so as to be able harness the opportunities presented by the industry while reducing it adverse impacts.

It is against this background that the Global Network on Energy for Sustainable Development (GNESD) is conducting a thematic study to assess the potential contribution of bioenergy towards rural development and poverty reduction in developing countries. As part of the study, case studies on promising bioenergy forms were commissioned in several countries in Africa (East, West and Southern), Asian and Latin America to, inter alia, identify barriers, document success stories and best-practices and make recommendations as to how best bioenergy could be made to contribute toward rural development and poverty reduction in selected countries/regions.

This research study reports on West Africa and presents the findings of case studies from Ghana, Mali and Senegal. The case studies focus on the three forms of bioenergy: i) production of liquid biofuels from jatropha curcas for rural energy supply (in Ghana and Mali); ii) biogas (mainly methane) from palm oil mill effluence for the generation of electricity and other useful by-products (in Ghana); iii) Solid biomass management (in Senegal). Multiple cases are selected and studied under the liquid biofuels while a single case is considered for biogas and another is related to charcoal industry.

The present report is organised into 7 main sections. Chapter 3 provides the context of the three selected countries, discussing issues such as the geography and demographics, the economy, infrastructure and energy use patterns in Ghana, Mali and Senegal; Chapter 4 gives an overview of bioenergy productions and utilisation in the selected countries; Chapter 5 presents case studies of promising bioenergy projects; Chapter 6 and 7 discuss sustainability and certification issues; Chapter 8 presents existing barriers to the widespread adoption of bioenergy systems; Chapter 9 suggests recommendations for tackling identified barriers; Chapter 10 draws some conclusions from the study.

9

3 THE COUNTRY CONTEXT:

3.1 Geography, population, infrastructure and economic conditions

Ghana

Geography and population Ghana (formerly known as the Gold Coast) is the closest landmark to the centre of world, located near the equator and on the Greenwich meridian between latitude 40 and 120N and longitude 300W and 10E. It is bounded by the Atlantic Ocean/Gulf of Guinea to the south, Cote d’Ivoire to the west, Burkina Faso to the north and Togo to the east. Ghana has a total land area of 238,540km which is demarcated into ten administrative regions with Accra as the capital as shown in the following figure.

Figure 1: Ghana Administrative Map Ghana is divided into six agro-ecological zones on the basis of their climate, reflected by the natural vegetation and influenced by the soils. These agro-ecological zones from north to south are: Sudan Savannah Zone, Guinea Savannah Zone, Transition Zone, Semi-deciduous Forest zone, Rain Forest Zone and the Coastal Savannah Zone. Climatic conditions differ for each of the different agro- ecological zones. The Tropical Eastern Coastal Belt is warm and comparatively dry, the southwest is hot and humid and the north is relatively hot and dry, compared with the other parts of the country. Mean annual temperature in Ghana rarely falls below 25°C.

Rainfall in Ghana generally decreases from South to North with mean annual rainfall ranging from 800 mm in the Coastal Savannah to 2,200 mm in the Rain Forest. The rainfall pattern is uni-modal in the Sudan and Guinea Savannah Zones and bi-modal in all the other zones.

The 2000 Population and Housing Census, puts Ghana’s population at 18.9m, an increase of 53.8% over the 1984 population of 12.3m, which translates into an intercensal growth rate 2.7% (GSS, 2002). Currently the population of Ghana is estimated at 23.8 million. Ghana has a population density of 79.3 persons per sq/km. While the figure suggests no great pressure of population on land, it obscures regional and district differences in concentration of the population and a different picture emerges when regional figures are considered. For example, the population densities of the three most densely populated regions are as follows: Greater Accra Region (895.5), Central Region (162.2) and Ashanti (148.1) persons per square kilometre respectively.

The Economy of Ghana Ghana’s economy is predominantly agrarian with agriculture accounting for an average of 36% of GDP and 35% of export earnings since 2000. The agricultural sector is also a major source of livelihood for up to 60% of the country's labour force who are predominantly engaged in subsistence agriculture. The service (37.5 % share of GDP) and industry (25.3%) sectors respectively are the other two key sectors of the economy. Ghana’s economy has had strong economic growth since 2000 and has one of Africa’s best performing economies with a GDP of US$16billion (2008 estimates), which translates to per capita GDP of US$639 in current price (GDP per capita – PPP of US$1,572). The GDP grew from 3.7% in 2000 to 7.3% in 2008, due largely to the strong performance of exports.1 Incidence of poverty has also dropped from 52% in 1992 to 28% in 2005/2006.

1 World Bank ‘Ghana Country Brief,’ December 2007 10

Infrastructure Road transport is the main means of transported in Ghana with an estimated total road network size of 67,291 kilometers. Nineteen percent (19%) of the network are trunk roads, 18% urban road and the remaining 63% feeder roads (NDPC, 2009). According to the CIA only 16% of the roadways in Ghana had been paved in 2006 with the rest unpaved2. Ghana has 1 international airport and 3 domestic terminals.

Total installed electricity capacity is 2,050 MW; 1,180 MW of which is generated from hydro and 870 MW from thermal using light crude oil. Ghana has a relatively extensive electricity transmission network spanning over 4,000 kilometers and covering a large area of the country. The transmission system includes 42 transformer and switching stations for the transfer of power to the distribution utilities. The transmission network is also interconnected to La Cote d’Ivoire, Benin and Togo. Electricity distribution is undertaken by two utilities, Electricity Company of Ghana (ECG) and Northern Electricity Department (NED), a department within VRA. The two utilities, together serve over 1.6 million customers with ECG serving a larger proportion. Forty nine percent (49%) of households – 27% rural and 79% urban – have access to grid electricity.

Seventy-five percent (75%) of the total population of Ghana (88% urban and 64% rural) have access to improved drinking water sources. However, fewer percentage of households (19% - 37 urban and 4% rural) have connections to their houses. With regards to sanitation, only 18% of the population (27% urban and 11% rural) have access to improved sanitation.3

There are five mobile phone companies with total subscriber base of 11, 568, 850 and fixed line connections of 143,900, which translates to a teledensity of 49.2. Internet usage was estimated at 3.8% in 2008 but this is expected to increase significantly due to the fact that virtually all the mobile phone companies are providing internet services to their customers through their handsets.

2 CIA, World Facts Book, www.cia.gov 3 UNICEF/WHO, 2006 11

Mali

Population and geographic conditions The Republic of Mali, situated in the heart of West Africa, has an area of 1,241 000 km², two thirds of which are desert area leaving about three million hectares of arable land. The country divides up into three climate zones: the Northern semi-arid Sahelian zone, the wooded savanna; and finally the south with hot and dry climate. Average temperatures lie between 24 and 32 degrees Celsius rising when moving further north4. Precipitation of 1500 mm/year average is recorded in the South, rather less in the northern parts5. Mali is confronted with increasing environmental problems that are partly due to shortages in natural resources as a consequence of desertification, and due to human action causing progressive deterioration occurring in urban areas6.

The population of 12 million grows by 3% each year7 70% of the inhabitants are engaged in agricultural activities and the same amount live of less than 1$ per day. Although two thirds of the population lives in rural areas, high rates of rural exodus have become a main cause the socio-economic situation in Mali8.

Economic situation While the 2008 real GDP growth rate was at an estimated 3.6 %, it is expected to grow by 4.2 and 5.1 per cent in 2009 and 2010 respectively. High global cotton prices as well as high production rates in Mali both pushed the economic development of the country in the 1990s. The agricultural sector yet remains vulnerable due to frequent droughts and therefore does not reach a self-sufficient production level. This and falling cotton prices have impeded Mali’s positive economic development throughout recent years. The national government is actively promoting market liberalization to stimulate foreign direct investments. According to this policy, price controls as well as import quotas and export taxes have been abolished. The continued reforms have eased the results of the 2008 oil, food and financial crisis. Despite continued adjustment efforts of the Malian government, there are now serious challenges of promoting cotton and mining production. A crucial reason for this is the low domestic elasticity of supply: Hence, rising oil prices drove up the domestic price level reaching a 9.3 per cent inflation by the end of 2008 and sensibly reducing purchasing power. The named difficulties caused the government not to reinforce price monitoring, especially concerning petrol. The overall socio-economic prognosis for Mali for 2009 through 2011 is a positive one taking into account the Growth and Poverty Reduction Strategy Framework (GPRSF) which supports the government to further pursue the MDGs9

Infrastructure and energy situation As to the energy infrastructure, there is remarkable electricity scarcity outside the cities: two thirds of the population lives in rural areas of which less than 1% has access to electricity. The Saharan north is more affected than the south, where wood supplies exceed the demand. At large, Mali is overexploiting its wood resources10.

4 CIESIN: Center for International Earth Science Information Network, available at: http://www.ciesin.org/decentralization/English/CaseStudies/mali.html (09.10.2009). 5 Ouattara, Oussmane,2008: Jatropha Network Activities in Mali, Presentation at the COMPETE International Workshop: Bioenergy Policies for Sustainable Development in Africa. Nov 2008, Bamako, Mali, p.3. Available at: http://www.compete- bioafrica.net/events/events2/mali/Session2-2-Ouattara-COMPETE-WS-Mali-2008.pdf 6 COMPETE Bioenergy Policies 2008, 24. 7 The Mali Folkecenter, The Malian Context, available at: http://www.malifolkecenter.org/lowersection/mali-context.html (09.10.2009). 8 Cited from: The Mali Folkecenter, The Malian Context, available at: http://www.malifolkecenter.org/lowersection/mali- context.html (09.10.2009). 9 African Economic Outlook, available at: http://www.africaneconomicoutlook.org/en/countries/west-africa/mali/ (09.10.2009) 10 Sow, Hamed, Energy Minister of Mali: La politique energétique au Mali. Mettre nos resources au service du développement, in : Croissance Actualité (2007) Vol. 37, 11. 12

Due to generally high transport costs the surplus cannot be redistributed to the poorer regions of the north11. This lack of sufficient energy services clearly limits the opportunities to improve health and life quality in those areas12. The Malian road system is in a deficient state - more than two thirds of the roughly 18000 km road network consists of tracks. Some international connections routes have been tarred recently13.

The country is landlocked and is highly dependent on imported resources14. The totality of fossil energy comes from abroad making generating costs for grid electricity unaffordable for large parts of the population. Simultaneously these costs put a burden on the national trade balance. The largest part of the energy demand is covered by biomass, mostly wood and charcoal15. In contrast, Mali has an excellent basis for Renewable Energy (RE) production, namely through solar, biomass, hydro energy and partly wind. A natural and therefore valuable energy source is the Jatropha plant: The varieties Jatropha Curcas and Gossypiifolia grow naturally in five regions of Mali possessing a high biofuel potential16. Altogether, Mali faces critical challenges due to a constant under-exploitation combined with inefficient usage of its national energy resources, a low access rate to modern energy sources and an overall lacking energy offer comparative to the demand17.

11 Massing, Andreas, 2007: The household energy market in urban Mali. 12 Mali Folkecenter: The Malian Context, available at: http://www.malifolkecenter.org/lowersection/mali-context.html (09.10.2009). 13 Sentinel Security Assessment - West Africa, 25.03.2008, available at: http://www.janes.com/articles/Janes-Sentinel- Security-Assessment-West-Africa/INFRASTRUCTURE-Mali.html (consulted 09.10.2009) 14 COMPETE Bioenergy Policies 2008, 23. 15 Sanogo, Cheik Ahmed, 2005: Energie et écodéveloppement au Mali, Helio International : Observatoire de la viabilité énergétique 2005/2006, 6. Available at : http://www.helio-international.org/reports/pdfs/Mali-FR.pdf 16 COMPETE Bioenergy Policies 2008, 24. 17 Sinalou Diawara, 2008: Bioenergy Policies in Mali - Issues of Energy Supply and Energy Security. Presentation at the International Workshop Bioenergy Policies for Sustainable Development in Africa 13

Senegal

Geography Located between 12° and 16°30 North latitude and 11°30 and 17°30 West longitude, Senegal has an area of 196,722 Km2. It is bordered to the north by Mauritania, east by Mali, south by Guinea Bissau and Guinea Conakry and west by the Atlantic Ocean. The terrain is generally flat with elevations below 50 m on 75% of the territory. The peak is located in the extreme South East, within the Guinean border upon the Fouta Djallon buttress.

Senegal has two major drainage systems:

• The river Senegal and its tributaries with a drainage area of 60.000km2 out of 120.000km2 of total area. • The headwaters of the river Gambia and its tributaries with a drainage area of 54.631 km2 out of 77.054 km2 of total area.

In addition to these two systems, we have:

• The river Casamance entirely comprised within the Senegalese territory • The upper river of Kayanga 2874 km2 • The Saloum (11.500 km2) and the Sine (10.430km2) which are small river basins leading to a salted water complex estuary

The climate is of Sudano-Sahelian type, semi-arid, tropical with a temperature range relatively low and average temperatures rise from 20° C (November-April) to 35° C (May-October). The climate regime in Senegal is composed of two seasons: a hot and rainy season (July-October), marked by the movement of the monsoon and a dry season (November to June) during which the continental trade winds blow predominantly toward North/Northwest. Annual precipitations follow a north-south gradient with overlapping of 200 mm in the north and more than 1000 mm in the extreme south. The recent history of climate in Senegal shows many variations that resulted in series of drought (Figures 2 and 3). These droughts (extreme events) had a lot of ecological and socio-economic consequences. The reduction in rainfall has been at the core of the disruption of agricultural, pastoral and forestry production systems, reduction of timber resources and various forms of land degradation. All these factors reinforce the situation of rural poverty and increase their vulnerability to unpredictable climate changes. The most remarkable social changes resulted in significant migration to urban areas. In general, population growth is relatively high with an average of about 2.4%. This figure is more marked in big cities because of rural exodus.

Figure 2: Rainfall Index of Senegal (1950-1992) Figure 3: Normalized values of annual precipitation

2.5 2 1.5 1 0.5 0 -0.5

-1annuelles -1.5

-2 valeurs normalisées des pluies 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 années

14

The uneven distribution of rainfall across the country generated different climatic areas ranging from the Sahelo- Saharan in the north to a Sub-Guinean area south of the country. This leads to land use by plant formation ranging from the grassy steppes in the north to the dense dry forest in the south.

Figure 4: Land-Use and Land Cover of Senegal

Socio-economic context From 1960 to 1993, the average annual growth of the economy is estimated at about 2.7% per year, below the rate of population growth (2.9% per annum over the same period). This slow growth resulted in lowering both real incomes per capita and employment and in widening inequalities. This situation of social and economic crisis has been exacerbated by financial recovery and structural adjustment policies, the implementation of which dates back to 1979.

After the devaluation of the CFA franc in 1994, at the macro level, the economy has resumed growth for an average GDP growth of just fewer than 5% per annum from 1994 to 2002. This occurred in a context of inflation control and continued reduction of public deficits. The turnaround in growth is attributable to the renewed competitiveness of certain export products specially fish products, peanut products, phosphates, etc. Yet, this economic growth has been accompanied by increased poverty especially among the most vulnerable due to bad redistribution policies. From 2003 onwards, a strategy of poverty reduction has been implemented (2003-2005) with results such as the declining of poor households share from 61.4% to 48.5% and the decrease of poverty incidence by 16%.

The Inequalities measured by the Gini index remained stable and even slightly increased. Indeed, this index estimated at the individual level rose from 32.6 in 1994-1995 to 34.2 in 2001-2002. In other words the 20% richest people achieve over 41% of total annual expenditure against 8.1% for the 20% poorest18.

Thereby, the economic and financial performances recorded in recent years are still insufficient to reduce more significantly the poverty and achieve the Millennium Development Goals (MDGs), including reducing the incidence of poverty by half by the year 2015. Significant pockets of poverty still remain within the great divide between urban and rural areas. The growth is restrained by a number of structural constraints including the lack of diversification of the economy, the relatively high production costs and the difficult access to finance and land. Notwithstanding the rapid expansion of decentralized financial systems, the access to financial services remains limited for micro- enterprises and new entrepreneurs within the informal sector.

18 Source: Government of Senegal, PRSP II 15

The lack of developed industrial sites is also a major constraint on capital accumulation, the influx of foreign direct investment and private sector development. The growth pace of the economy remains dependent on agricultural production (23% of GDP) itself highly dependent on rainfall. Labor productivity is improving but is still very low compared to emerging countries. Nearly 70% of the predominantly rural population is working in this sector. The evolution of the agriculture sector over the last fifty years, largely dominated by the cultivation of groundnut, seems to have strengthened the role of brotherhoods oligarchs. The expansion of groundnut cultivation seriously degraded the groundnut basin which shifted the center of the country to the south east (Upper Casamance). The population increased from 3 million in 1960 to 5 million in 1976 and 6.9 million in 1988 and reached approximately 8 million inhabitants in 1993 of which 3.2 million are urban residents. This population is unevenly distributed across the country: 6.8 people per km2 in the region of Tambacounda contrasts with 2707 inhabitants/km2 in metropolitan Dakar. The national population growth is estimated at 2.9% in urban areas and 2.1% in rural areas. If this trend continues, the country's population will reach 12.6 million by the year 2010, with a strong concentration in the Dakar region where the density will be about 6,000 people per km2. The population is characterized by its youth: 47% are under 15, 58% are under 20 against 5% who are 60 and older. Women represent 52% of the total population.

Industry and mining account for 18% of GDP. The energy sector is heavily dominated by imports of petroleum products (almost 47 billion FCFA). Biomass energy plays a key role in household consumption in Senegal; wood and charcoal are used in large quantities by households at the expense of ligneous resources that are increasingly degrading. Mining and quarrying develop in the region of Thies, where it causes ravages on the vegetation and soils. The "offshore" oil extracting is imminent in Casamance, while gold, marble and iron in eastern Senegal are arousing high hopes. Peat found in the Niayes area could in future be subject to exploitation for energy production.

The regions of Ziguinchor and Kolda record the highest rates of poverty (above the national average): respectively 67.1% and 66.5% (see Table 1). These regions are followed by Kaolack (65.3%) and Diourbel (61.5%) which lie at the heart of the groundnut basin and suffer the effects of declining economic activity linked to peanut production in a context where alternative activities are lacking; then Tambacounda with 56.2%. The moderately poor regions of Thies (48.6%), Fatick (46.3%), St. Louis, Matam (42.1%) have more income in their disposal because of the activities in the tourist fields, irrigated crops, fishing, remittances from migrants (especially Matam), the presence of food industries (particularly St. Louis) and mining industries (Thies). Finally, two regions that are less poor Dakar (33.6%) and Louga (36.6%) benefit from large flows of remittances. Besides, Dakar polarizes economic, industrial, administrative as well as intellectual and cultural activities whereas the region of Louga offers wealth related to livestock.

Tableau 1: Poverty incidence and contribution depending on administrative regions Regions Poverty incidence Contribution Dakar 33.6 18.4 Ziguinchor 67.1 6.5 Diourbel 61.5 12.7 Saint Louis 41.2 8.6 Tambacounda 56.2 6.8 Kaolack 65.3 13.2 Thiès 48.6 12.7 Louga 36.2 5.1 Fatick 46.3 5.9 Kolda 66.5 10.1 Total 48.5 100 Source: DPS and World Bank (ESAMII, 2001/2002)

16

Infrastructures

Road infrastructures: Senegal has a road network of 14,500 km, more than 10,000 km of which are unsurfaced. The road provides more than 90% of the flows of people and goods. The road sector is currently undergoing a major institutional restructuring (creation of a Roads committee, of an Independent Road Works Agency, backed by an investment program amounting to 165 billion CFA francs is being carried out, 70% of which is spent on road component). This program is supposed to address the acute problems Senegal is facing in urban mobility and transport of agricultural, pastoral, forestry and industrial productions, from inland towards consumption, processing or export areas.

Railways: The railways network covers 1057 km of track with 905 km representing the main network and 152 km of secondary ways. It is composed of two main lines: the line Dakar - Kidira (Malian border) and the line Thies-Saint Louis. A program for the railways network development is planned with the support of the private sector.

Ports and airports: Senegal has 3 international airports: Dakar, Saint-Louis and Ziguinchor. The Leopold Sedar Senghor international airport of Dakar generates the major part of the air traffic. With a steady average growth of 7% annually over the past decade and a passenger traffic of 1.2 million people for 35,000 aircraft movements during the year, the Dakar airport is now positioning itself as a regional platform of prime importance.

The port of Dakar enjoys a unique geographical position because it is located on the tip of the more advanced West African coast. It is a perfect crossroads for many sea routes from Europe, North America, Latin America and the African continent.

The land area of the port covers a surface area of 3 260 000 square meters with 10 kilometres of quay, 40 berths for ships drawing up to 11 meters, 80,900 m2 of open space for short duration undercover storage, 170,600 m2 raw surfaces (container yard), a covered surface of 60,597 m2. The port of Dakar is mainly frequented by container carriers, cargo ships, tankers, fishing vessels. Great companies providing a range of services and various port facilities are established inside.

The port of Dakar has embarked on a major modernization program in constructing a bypass (loop line) of the Container Terminal of 1.2 kilometres, a distribution platform, a third container terminal, infrastructures for fruits and vegetables as well as a harbour, the Bargny ore tanker port.

Telecommunication: Senegal has invested heavily in recent years in the telecommunications sector. In 1994, Senegal was ranked first sub-Saharan African country by the Telecommunications International Union for the penetration rate of telephone and quality of service.

Mobile telephony is experiencing brilliant growth in Senegal. In early 2001, the total number of mobile lines exceeded that of land lines. Today the number of mobile subscribers is estimated at 700,000, for a teledensity of 4.8%.

Energy Senegal has few energy resources (some small pockets of natural gas and oil reserves in deep offshore not yet exploited). The national production capacity of electricity is exclusively thermal. The first kW-hours of hydropower are received in 2002 from the Manantali hydroelectric station which is a sub regional project. The transportation network is still in its very early stages and limited in the vicinity of the capital (Dakar). The electrification rate is still low, 33% in 2002 (57% urban area and 10% in rural one). Senegal has a very inadequate electrical system that requires a significant investment to achieve an appropriate electrification rate. The system’s structuring data are:

• Production capacity: 320 MW with 50 MW from an Independent Producer

17

• Power peak: 287 MW • Production and Purchasing: 1 725 GWh • Consumption: 1 352 GWh • Number of customers: 470 000 including 379 000 domestic customers • Average consumption: 2 877 kWh/customer/year; 1 576 kWh/domestic customer/year and 136 kWh/capita/year.

The energy balance is dominated by wood fuels which correspond to nearly 60% of final energy consumption.

3.2 Energy consumption – current and future fossil/renewable sources

Ghana

Ghana’s energy sector is characterized by huge dominance of traditional biomass resources. In terms of endowment and utilization, biomass (mainly woodfuels – firewood and charcoal – and to a lesser extent crop residues) is the most important primary energy resource accounting for an average of 69% of total primary energy and 63% of final energy consumed in Ghana between 2000 and 2003 [Energy Commission, 2005]19. The dominance of biomass in Ghana’s energy balance is also evident in all key sectors of the economy as shown in Table 2.

Tableau 2: Percentage Contribution of Biomass to Total Energy Consumption by Selected Sector Sector Year 2000 2001 2002 2003 Residential 90.4 90.5 90.3 90.0 Commercial & Service 77.4 78.5 79.2 78.9 Industrial 66 62 61 61 Agriculture and Fisheries 3.6 3.9 4.0 4.2

Petroleum is the second most widely used form of energy in Ghana accounting for 27% of total final energy consumed in 2003 (Energy Commission, 2005). Ghana imports all its crude oil needs and finished petroleum products. However, recent discovery of oil in off-shore Ghana in 2007 indicates that Ghana will become an oil producing nation by 2010 producing up to about 200,000 barrels of oil per day [GNPC, 2008]. The crude oil imported is refined at the Tema Oil Refinery (TOR), which is wholly owned by the Government of Ghana, with capacity of 45,000 Barrels per Stream Day (BPSD).20 An estimated 1.96 million tonnes of petroleum products were consumed in Ghana in 2006 as shown in Table 3.

Tableau 3: Consumption of Petroleum Products in Ghana (2000-2006) Products 2000 2001 2002 2003 2004 2005 2006 LPG 39,478 42,667 51,119 58,076 67,576 72,708 93,174 Premium Gasoline 526,027 521,270 567,493 524,917 584,366 631,292 541,498 Kerosene 65,003 69,244 75,346 70,458 72,711 73,854 164,998 Aviation Turbine Kerosene 96,344 76,578 90,371 89,233 107,233 119,047 45,839 Gasoil (Diesel) 735,666 720,999 777,076 815,074 897,134 912,664 1,008,102 Residual Fuel Oil 57,297 52,079 51,320 47,548 47,653 50,869 109,632 TOTAL 1,551,000 1,511,282 1,641,778 1,636,574 1,807,240 1,893,507 1,963,243 Source: Ministry of Energy/TOR, 2007

19 It is important to note that the percentage contribution of biomass to Ghana’s energy balance has averaged approximately 71% between 1974 and 2001. 20 The GoG has however dropped the hint in June 2006 of its intention of privatizing the TOR through the public flotation of shares on the Ghana Stock Exchange 18

Electricity is the third most utilized energy source in Ghana accounting for 7% of the estimated 6.1 million tonnes of oil equivalent (MTOE) of total final energy consumed in Ghana in 2004. Two hydro power plants, located at Akosombo and Kpong, with combined installed capacity of 1,180 MW provide the bulk (up to 70%) of electricity produced in the country. Total installed capacity from thermal sources is estimated at 870MW bringing to 2,050MW the total installed electricity capacity in Ghana (Oteng-Adjei, 2009). Current electricity demand is estimated at 1350 MW which means that technically there is excess reserve capacity in Ghana. However, periodic droughts coupled with high petroleum prices (which translates into high generation cost from thermal source) occasionally create supply shortfalls, which are usually supplemented with imports (up to 250 MW when available) from neighboring La Cote D’Ivoire.

Ghana is endowed with a fair share of renewable energy resources, such as solar and biomass. However, virtually all these resources remain untapped and the contribution of modern renewable energy to the national energy mix is negligible. Total installed capacity of solar PV systems is estimated to be around 1MW and this is considered relatively low for a country endowed with a daily average sunshine of between 5.3-7.7 hours. Although, studies have shown that Ghana has good wind speeds along its coastal belt, the wind energy potential remain unexploited. Again, in spite of the abundance of biomass resources, the production of modern forms of energy, such as electricity and heat from biomass feedstock, can at best be described as experimental. Similarly, the small hydro potential of Ghana remains untapped.

Mali

The Malian energy sector is characterized by a nationwide lack of electricity access: While 80% of the Malian population uses fuel wood and charcoal for energy purposes, only 10% of the urban residents have access to grid-based electricity, gas or liquid fuel; kerosene, and diesel. In rural areas this number goes even down to 1%.21

Global energy consumption in Mali was around 3 million tonness of oil equivalent (toe) in 2002. The main energy sources are biomass (81%), petrol products (16%) and electricity (3%).

Overall energy consumption splits up into:

• Approx. 86% for households, of which 77% for urban and 23% for rural households; • Almost 10% for transport, of which 88% for land and 9% for air transport. • 3% for the industry sector, of which half is consumed by extractive industries; • Less than 1% for agriculture.22

The field of Renewable Energies plays currently yet a minor role in the Malian energy profile:23 The existing RE projects are realized in the field of water supply, refrigeration, cooking and transport and the electrification of rural areas as pursued by the national government. Some examples of successful installations include:

• More than 500 photovoltaic pumps • Dozens of solar ovens, ten air pumps and several hundreds of solar dryers • About 20,000 single lighting systems • Telecommunication use RE-equipment to a large extent.24

21 Maiga, A.S., G.M. Chen, Q. Wang, J. Y. Xu, 2006: Renewable Energy Options for a Sahel country: Mali, in: Renewable and Sustainable Energy Reviews 12 (2008), 573; Massing, Andreas, 2007: The household energy market in urban Mali, available at: http://www.hedon.info/TheHouseholdEnergyMarketInUrbanMali , last edited: 04.12.2008. 22 Cited from COMEPTE Bioenergy Policies 2008, 18. 23 FAO Final Report 2009, 51. 24 COMPETE Bioenergy Policies 2008, 19. 19

Senegal

The supply of primary energy is characterized by the prevalence of fossil fuels and biomass that account respectively for 52% and 43% of the total supply. Coal, hydro-electricity and natural gas account altogether for 5% whereas the contribution of renewable energies remains insignificant and does exceed 0.05% (2.5 MW). The oil bill is paid in foreign currencies, which negatively impacts on macro-economic aggregates. The Senegal oil bill increased from 185 billion FCFA in 2000 to 327 billion FCFA in 2005, and 353 billion FCFA in 2006. Ninety per cent of power generation is from thermal processes and hydro power accounts for only ten per cent [Direction de l’Energie, 2007]. This production comes from two sources: the public power company SENELEC that generates 83% of the electricity and the independent power producers (IPPs) that provide only 17% of the production. The final energy consumption in Senegal is estimated at 1972 ktoe in 2005 that is 0.19 toe per capita [Direction de l’Energie, 2006]. Final energy consumption increased from 1920 ktoe in 2000 to 2203 in 2006, this represents a 15% increase over 6 years (SIE, 2006). This energy consumption is dominated respectively by fossil fuels (52.9%), biomass (34.5%), electricity (7.6%) and then mineral coal (4.8%). Biomass accounts for 34.5% of the total energy consumption in 2005 and 76% of the households’ final energy consumption. The households and transportation sectors account for 83% of the total final energy consumption in 2005. Household’s consumption prevails in the structure of final energy consumption with 45.8% and the transportation sector comes second with 40% of the total consumption. The high share of households in the total final consumption profile can be explained by the fact that biomass is used in large quantities to meet the domestic energy needs. Moreover, the share of the industrial sector remains low and accounts for only 14% of energy consumption. The agricultural sector which involves almost 60% of the population, consumes only 1.6% of the modern energy used in Senegal. Indeed this sector remains characterised by manual labour for the production and transformation of agricultural products. When we exclude biomass from the consumption profile, the transportation sector takes the largest share with 56.6%, followed by the households sector.

20

4 Current situation of bio-energy for the selected countries

Ghana

Ghana is endowed with considerable amount of bioenergy resources that can be harnessed to produce modern forms of energy. The bioenergy resources in Ghana can be classified into two broad categories – woody and non- woody biomass. Woody biomass include woodfuels, logging and sawmill residues while non-woody biomass comprises of agricultural residues (crop and animal residues) and municipal (solid and liquid) wastes.

4.1 Production, use and cost of biomass

Woody Biomass Woody biomass include all bioenergy resources derived directly and indirectly from trees and shrubs grown in forest and non-forest lands. It also includes biomass resources derived from silvicultural activities (thinning, pruning etc.) and harvesting and logging (tops, roots, branches, etc.), as well as industrial by-products derived from primary and secondary forest industries, which can be used as fuel. Although, Ghana has lost over 76% of its forest cover since 1900, woodfuels continue to be the predominant form of primary energy produced and consumed in Ghana. Annual woodfuel production is estimated at 18million tonnes and this can be converted into modern energy carriers using the available technologies rather than their current uses as firewood or charcoal. Ghana also has vast areas of degraded lands which can be reforested or used to produce short-rotation energy crops.

Non Woody Biomass There are two forms of non-woody biomass resources that abound in Ghana – agricultural residues or agrofuels and municipal waste. Agricultural residues or agrofuels are obtained as products of agriculture biomass and by-products. They cover mainly biomass materials derived directly from fuel crops and agricultural, agro-industrial and animal by-products. As mentioned already, agriculture is the mainstay of the Ghanaian economy and the sector generates significant volumes of residues that can be converted to useful bioenergy for domestic and commercial applications. Table 4 shows the potential residues generated annually in Ghana from selected crops and the corresponding energy that can be potentially produced from the given residues while Table 5 contain the total livestock population and their potential daily dung production.

Tableau 4: Potential Agricultural Residues from Selected Crops and Energy Potential Crops Name of Quantity of food RPR26 Residue Production LHV27 Potential energy residue crops (in thousand metric (MJ/kg) production (metric tonnes)25 tonnes) (petajoules, PJ) Stalks 1.00-4.33 1,220-5,281 5.25-19.66 6.4-103.6 Maize 1,219,601 Cobs 0.20-1.80 244-2,195 14.64-16.28 3.6-35.4 Straw 0.42-3.96 78-734 10.9-16 0.85-11.7 Rice 185,341 Husks 0.20-0.35 37-65 12.69-19.33 0.82-1.3 Millet Straw 113,042 1.10-2.00 124-226 12.39 1.5-2.8 Sorghum Straw 154,834 0.90-7.40 139-1,146 12.38 1.7-14.2 Cassava Stalks 10,217,929 0.16-1.00 1635-10,218 17.5 28.6-178.8 Shells 0.48-1.20 145-362 15.66 2.3-52.5 Groundnut 301,775 Straw 2.26-2.90 682-875 17.58 12-15.4 Cocoa Pods 680,000 20 13600 13.2 179.5

25 Statistical Research and Information Directorate (SRID) of MOFA Data, 2007 26 Koopmans and Koppejan, 1997 27 Koopmans and Koppejan, 1997 21

Source: Authors’ Construct, 2009

Tableau 5: Total Livestock and Estimated Dung Production in Ghana Livestock Number of livestock28 Dung per head/day Quantity of dung/day (kg)29 (tonnes) Cattle including calves 2,750,185 12.00 33,000 Sheep 5,308,393 1.20 6,370 Goats 7,989,058 1.50 11,984 Pigs 1,463,747 3.60 5,270 Chicken 22,984,964 0.02 460 Source: Authors’ Construct, 2009

Municipal wastes are other bioenergy resources that are generated in fairly large quantities in Ghana. It is estimated that about 3 million tonnes of municipal solid wastes are generated annually in Ghana [Mensah and Larbi, 2005]. The bulk of the solid wastes are generated in the metropolitan and municipal areas with Accra, the national capital alone, producing up to 3,000 tonnes of waste every day.

Despite the huge potential of agrofuels and municipal wastes as feedstock for the production of modern bioenergy, these resources remain untapped. For example, less than 2% of households in Ghana use crop residues for cooking with the majority of agricultural residues being left to rot on the farms. Similarly, the use of animal waste as a source of energy is virtually non-existent. The story is no different for municipal wastes are disposed off unsustainably in open fields and drains even though there are proven conversion technologies that can be used to capture clean energy from municipal solid and liquid waste. Incidentally, the methods used to dispose off municipal wastes are posing huge environmental challenge for municipal and metropolitan authorities, many of whom have limited capacity to deal with the waste.

The Biofuels Revolution in Ghana

A- Jatropha Cuscas Initiatives One form of modern bioenergy that has received a lot of attention and attracted a lot of interests (both public and private) in recent times is the production of biodiesel from the jatropha curcas linneaus plant (JCL). The emergence of the biofuel industry in Ghana can be traced to the pioneering and crusading work of a Ghanaian industrialist, the late Onua Amoah, who in 1999 set out to investigate the feasibility of producing biofuels in Ghana. The preliminary investigation led to the identification of two products – bio-diesel and industrial ethanol – as the most feasible bio-fuels that could be promoted in Ghana.

The preliminary analyses also focused on the selection of the most appropriate feedstock for the bio-fuel industry. According Mr. Amoah, the most suitable feedstock needed to satisfy the following criteria: should be obtainable regularly and in adequate quantities; be comparatively much cheaper and be cultivatable in several agri- ecological zones in Ghana. Among all the locally available oil bearing crops, the JCL best satisfied the set criteria and the hitherto unknown plant became the obvious choice as feedstock. According to proponents of jatropha in Ghana, the fact that it can easily be grown throughout the country coupled with the fact that it has a short gestation period of between 3-12 months, has an economic life of up to 50 years, is not browsed by animals, non- edible by human, and has many other industrial uses, make the jatropha plant the preferred feedstock for bio- diesel and bio-oil production in Ghana.

A pilot jatropha research plantation was subsequently established by Mr. Onua Amoah and small-scale production of jatropha oil for demonstration and test purposes commenced. The Government of Ghana, through agencies such the MoEN, the Tema Oil Refinery (TOR) and the Ghana Standard Board (GSB) joined the crusade in promoting jatropha oil mainly as substitute for diesel. In 2001, the TOR and GSB began testing of the properties of bio-diesel produced by Anuamum Industrial Company Ltd, Mr. Onua Amoah’s company. Satisfied with the results obtained, sample of the bio-diesel was then tested in a 4 x 4 Toyota pick-up belonging to the

28 GLSS 5, Provisional results 29 Kartha and Larson, 2000 and Nketiah, 2000 22

Ministry of Energy. Emission test initiated by the Ministry of Energy was also undertaken by the Environmental Protection Agency (EPA). The result of this test was then telecasted at prime time on national television, which stimulated other interest in the further development of jatropha [KITE, 2007].

Ghana has now become a centre for intense jatropha activities, after having been identified recently to be one of “Top-5” (ranked 5th) developing countries with profitable biodiesel development potential (Johnston and Holloway, 2007). Presently, there is literally a mad scramble for land in Ghana by multinationals and local companies in partnership with foreigners vigorously pursuing plans in cultivation of the jatropha plant for its prized oil seed to produce biodiesel for export. It has been estimated that there are currently over twenty (20) companies from various countries in Ghana acquiring land to cultivate non-food crops and other crops for the production of ethanol and biodiesel, mostly for export. The table below shows the list of selected companies that have acquired land for the cultivation of the physic nut tree.

Tableau 6: List of Companies Involved in Cultivation of JCP and Land Area Under Cultivation Name of Company Country of Origin Region of Total Land Area Total Land Area under Operation in Ghana Acquired (in ha) cultivation (in ha)

Smart Oil Ghana Italy Mainly Yeji in the 35,000 50 ha under cultivation (SOIL), partnership Brong-Ahafo on a pilot basis (10,000 between GenCorp earmarked for jatropha). Industries Ltd, Ghana and Agroils slr, Italy Galten Global Israel 200,000 1,000 Alternative Energy ScanFuel Ltd. Norway Near Kumasi, Ashanti 400,000 10,000 Region Biofuel Africa Ltd. Ghana Sogakope, Volta 23,762 660 (subsidiary of Solar Region and Yendi, Harvest AS of Norway) Northern Region Gold Star Biodiesel Ghana Nkawkaw, Eastern 2,000,000 N/A (subsidiary of Gold Region (jatropha growing Star Farms, USA) commitment from farmers owning the land) Jatropha Africa Ltd. Ghana Buipe, Northern 100 (+400 ha of land 100 (subsidiary of Lion Region owned by outgrowers Bridge Ventures, UK) Source: Authors’ Construct 2009

If the figures provided by the companies are correct, then approximately 3 million hectares of land may either have been put under or earmarked for jatropha cultivation by only 6 out of the 20 (30%) who are into cultivation of jatropha in Ghana. Figures for the remaining 14 are not available but amount of land projected to be used for the cultivation of jatropha (about 2.7 million hectares) is still significant and translates to 11% of the total land area of Ghana and 19% of total agricultural land available in Ghana. Another 1 million hectares of land has been estimated to be the land requirement for implementing the National Jatropha Plantation Project (NJPP), which is intended to establish 1 million hectares of jatropha plantation. The only difference between the NJPP and the other private-sector led interventions is that the former is targeting idle and degraded lands while the others are not necessarily doing that.

Commercial production of biodiesel from jatropha is yet to commence in Ghana even though a number of private companies involved in the cultivation of jatropha have announced at the various times in the past the establishment of biodiesel plant. Biofuels Africa Limited has recently tagged itself as being the first company in Ghana (and even West Africa) to commence the commercial production of biodiesel in Ghana.

23

According a press release by the company, the company has produced 10 metric tonnes (about 50 barrels) of biodiesel from its 650 hectare jatropha plantation. This, the company describes, as a ‘major milestone for the biofuel industry in West Africa’ [Dogbevi, 2009].

Cost and Benefits of Jatropha Cuscas

The draft National Biofuel Policy has estimated the cost of producing a gallon of bio-oil and biodiesel from Jatropha at US$0.261 and US$3.12 respectively as shown in Table 7.

Tableau 7: Price Build-Up for Jatropha Oil and Biodiesel Production in Ghana Fuel Type Materials Required Cost of Production/gallon (US$) BIODIESEL Jatropha Oil 0.067 Catalyst 1.589 Alcohol 1.119 Acid 0.060 Water 0.005 Electricity 0.124 O&M (Staff & Admin. Expenses) 0.080 Capital Costs (Investments) 0.076 Total 3.12 JATROPHA OIL Plantation and Harvesting Cost 0.081 Oil Extraction Cost 0.180 Total 0.261 Source: Draft National Biofuel Policy, 2005

The draft national biofuel policy also provides some indicative estimates of how much it will cost to cultivate jatropha plantations and a biodiesel refinery. It estimates that an amount of US$5 million would be required to cultivate 7,245 hectares of jatropha plantation with US$1.75 million for establishment of medium-scale refinery.

Some preliminary estimates have shown that the benefits of a jatropha industry promise to be enormous. One such analysis has indicated that the establishment of a 1 million hectare plantation, as envisaged under the NJPP, will yield cumulative annual revenue of $4.39 billion as shown in Table 8.

Tableau 8: Potential Benefits of 1 Million Hectare Jatropha Project Description Quantity (tonnes) Unit Price ($) Revenue ($) Biodiesel 3.5 million 400 1.44 billion Organic Fertilizer 13 million 180 2.34 billion Glycerine 350,000 600 0.21 billion Carbon Credits 349 million 0.40 TOTAL 4.39 Source: Onua Amoah, 2006

In addition to these benefits, an estimated 1 million direct employment (mainly in the rural areas) are expected to be created while 349 million tonnes of carbon and 128 million of carbon dioxide are expected to be sequestered through the project.

B- Biodiesel Production from Sunflower Another feedstock that has been considered for biofuel production is sunflower. About 100 hectares of sunflower nucleus farm had been established at Gomoa Adzentem in the Central Region by a private company Tropical

24

Agricultural Marketing and Consultancy Services (TRAGRIMACS) Sunflower Ghana. Another 300 out-grower farmers in other parts of the country are believed to be producing Sunflower for processing into biodiesel.

TRAGRIMACS and the Tema Cooperative Sunflower Producers Society have recently built a US$217,000 factory at Winneba with the capacity of processing 4 metric tons of sunflower grains and 250 liters biodiesel daily. The UNDP/GEF Small Grants Programme contributed 11% (US$25,000) of the project cost with the rest of the project amount funded by the project investors.

C- Biogas Technologies The conventional use of cow dung as source of fuel for cooking has been a common practice for many years in Ghana, especially in the northern savannah regions where there are usually scarcity of firewood and charcoal for household cooking. However, the development of anaerobic digestion systems for conversion of waste to biogas for cooking and lighting became popular in Ghana only in the 1980s when the government and its environmental agencies became alarmed about the rapid devastation of large tracts of forest land for charcoal and firewood production.

The first biogas demonstration plant – a 10m3 Chinese fixed dome digester - was constructed in 1986 by the Ministry of Energy at the Shai Hills cattle ranch in the Greater Accra Region, with the support from the Chinese government. A year later in 1987 the United Nations Children Fund (UNICEF) supported the construction of a couple of domestic biogas demonstration plants at Jisonayilli and Kurugu in Northern region. The Ministry of Energy in the same year also established one of the first major comprehensive biogas demonstration projects in Ghana - the “Integrated Rural Energy and Environmental Project” at Apollonia, a village located some 46 kilometres from Accra. The Apollonia Biogas Plant used animal dung and human excreta to generate 12.5 kilowatts of electric power for street and home lighting as well as cooking, while the bio-slurry was used for agriculture. The Catholic Mission in Ghana also constructed 3 biogas plants (2 in the Eastern Region and 1 in the Volta Region) at as many hospitals between 1994 and 1995.

Apart from these isolated, largely donor-driven initiatives, there has not been any systematic attempt at promoting the biogas technology on a large scale in Ghana. In 1996 the Ministry of Energy commissioned a study – the National Biogas Resource Assessment (NBRA) Project30 to be conducted. The objective of the study was to assess the biogas energy potential of various geographical areas of the country, with the aim of promoting the dissemination of biogas technology nationwide to suitable rural communities, as a means to supplement their energy resource base and through that, help improve their socio-economic well being. This study was intended to be the first step in the planning and the development of a nationwide biogas programme. However, after over more than a decade since the study was completed and the report submitted to the Ministry, there is no sign that a national biogas programme to promote domestic biogas systems is in the offing. In 2007, the government announced in the budget statement a plan to increase the production and utilization of biofuels in the national energy mix. However, this was only targeting the production of jatropha oil as a substitute to crude oil.

Notwithstanding the absence of a clear-cut strategy for the promotion of the biogas technologies in Ghana, a number of systems have been built since 1996. A study by KITE in 200731 revealed that a little over 100 biogas plants have been installed in Ghana till date. The majority of these plants are bio-sanitation interventions such as waste/effluent treatment plants and biolatrines, which are largely, located in educational and health institutions in predominantly urban areas. It is also evident from the table that there are very limited number of domestic biogas plants in Ghana and that apart from the few donor-funded systems in Jasonayilli and Okushibli, none of the domestic biogas plants built so far can be found in rural areas. Three main types of digesters – the Indian Floating Drum, the Chinese Fixed Dome and the Puxin Biogas Digesters – have been designed, tested and deployed in Ghana.

Cost of Biogas Systems The cost of 6 m3 fixed-dome biogas digester is estimated at between US$ 1,200 and US$2,600 as shown in Table 9.

30 Ampofo, Kwame (RESDEM Ltd.): National Biogas Resources Assessment, (MoEN, 1996) 31 KITE, 2008 “Feasibility Study Report on Domestic Biogas in Ghana”, submitted Shell Foundation 25

Tableau 9: Comparative Cost of Fixed-Dome Biogas Digesters

Name of Company Cost Breakdown (US$) Digester Size 6m3 8m3 10m3 Materials 990 1,064 1,190 Labour 496 596 794 UNIRECO Supervision 199 298 298 Other cost 60 99 99 Total cost 1,745 2,056 2,382 Materials 1,232 1,683 Renewable Energy and Labour 798 1,137 Environmental Systems Supervision 300 500 (REES) Others 270 240 Total cost 2,600 3,660 Materials 840 1120 1,736

Institute of Industrial Labour 180 240 300 Research (IIR) Supervision 60 80 100 Others 120 160 200 Total cost 1,200 1,600 2,336 Materials 1,938 Labour 400 BETA Construction Ltd Supervision 300 (Puxin Digesters) Others 48 Total cost 2,684 KITE, 2008

The KITE study concluded, among other things, that commercialisation of domestic biogas systems in Ghana is not feasible at the time due to 3 main reasons: lack of existing demand for biogas digesters, the high digester costs and weak supply chain. However, the study recommended that the decision to invest in the biogas technology should not only be based on the profitability or otherwise of the investment since the non-direct financial benefit to the household and the overall benefits to the society at large provide the economic justification for public intervention that will create the necessary enabling environment to kick-start the development of the domestic biogas market.

4.2 Sectoral Policies

Agricultural Policy in Ghana

The development of Ghana’s agricultural sector is guided by the Food and Agriculture Sector Development Policy (FASDEP II), of 2007. According to the FASDEP, Ghana’s vision for the food and agriculture sector is to modernized agriculture culminating in a structurally transformed economy, evident in food security, employment opportunities and reduced poverty. The policy objectives and strategies being used to achieve the set objectives are as summarized in Table 10 below.

26

Tableau 10: Snapshot of the Food and Agriculture Sector Development Policy Objective Strategies Food security and emergency Introduce high-yielding and short-duration crops varieties preparedness Establish strategic stocks to support emergency preparedness Develop effective post-harvest management strategies, particularly storage facilities, at individual and community levels. Develop appropriate irrigation schemes for different categories of farmers to ensure production throughout the year Improved growth in incomes Promote primary grading, processing and storage to increase value addition and stabilize farm price Improve accessibility from farm to market centers Support diversification by farmers into tree crops, vegetables, small ruminants and poultry, based on their comparative advantage and needs Advocate the enactment and enforcement of laws on good agricultural practices Increased competitiveness and Build capacity within MoFA to provide marketing extension enhanced integration into Advocate a legal environment that supports agricultural production and trade domestic and international contracts. markets Provide improved and targeted tax relief for agro-processors Develop standards to be at par with those of competing imports, and advocate for their enforcement Sustainable management of Improve incentive and compulsion measures to encourage users of the environment to land and environment adopt less exploitative and non-degrading practices in agriculture Promote joint planning and implementation of programmes with relevant institutions to address environmental issues in food and agriculture Create awareness about environmental issues among all stakeholders and develop an effective and efficient framework for collaboration with appropriate agencies to ensure environmental compliance Improve access of operators in urban agriculture to sustainable land and environmental management practices Science and Technology Promote demand-driven research Applied in food and agriculture Promote coordination and collaboration between research institutions, locally and development abroad, to improve cost-effectiveness of research Promote research in the development and industrial use of indigenous staples and livestock Ensure sustained funding of research by partnering with the private sector (including farmer groups) and NGOs to identify and adopt innovative approaches to agricultural research funding and commercialization Improved Institutional Strengthen framework for coordinating activities among diverse stakeholders in the Coordination sector MoFA will ensure that its advocacy, collaboration and coordination roles are carried out within the laws and regulations of the country Create framework for synergy among projects Coordinate MoFA's policies, programmes, projects and activities with those of water, health and research Source: MOFA, 2007

Forestry Policy

The Forest and Wildlife Policy of Ghana (1994) is the policy framework guiding interventions and developments in Ghana’s forestry sector. The policy was designed to promote the conservation and sustainable development of the nation's forest and wildlife resources for maintenance of environmental quality and perpetual flow of optimum benefits to all segments of society. The policy objectives and specific strategies for achieving them are as tabulated in Table 11.

27

Tableau 11: Snapshot of Ghana Forest and Wildlife Policy of 1994 Objective Strategies Manage and enhance Ghana's permanent estate of Some forest areas were gazette and bans of ‘no felling’ and ‘no forest and wildlife resource for preservation of vital soil hunting’ placed while others are open to selective logging and and water resources, conservation of biological diversity controlled hunting and the environment and sustainable production of Develop an integrated national land aimed at suitable use of all domestic and commercial produce natural resources, including particularly dedication of various land categories with potential for nature protection and production of timber and other products Enforce specifications prescribed in resource management plans, utilization contracts and logging manuals to ensure compliance of authorized users with approved harvesting practices and controls Establish and manage a network of National Parks and protected area categories in order to conserve representative samples of the country's biotic communities Promote the development of viable and efficient forest- Regulate utilization and trade in highly valued and endangered based industries, particularly in secondary and tertiary species to eliminate extinction threat, encourage regeneration and processing, so as to fully utilize timber and other ensure sustainability products from forests and wildlife resources and satisfy Deregulate and stream bureaucratic controls on wood export domestic and international demand for competitively- marketing to enable private sector initiatives for maintaining priced quality products competitive advantages Develop marketability and utilization of abundant lesser-used timber species to maximize benefit from the sustainably allowable cut Promote the development of viable and efficient forest- Promote investment in feasible projects for commercial wild animal based industries, particularly in secondary and tertiary production and forest plantations to ensure sustainable supplies of processing, so as to fully utilize timber and other marketable products products from forests and wildlife resources and satisfy domestic and international demand for competitively- priced quality products Promote public awareness and involvement of rural Promote and implement public education programmes to increase people in forestry and wildlife conservation so as to awareness and understanding of the role of trees, forest and maintain life-sustaining systems; preserve scenic areas wildlife and the importance of conservation enhance the potential of recreation, tourism and income- Develop consultative and participatory mechanisms to enhance generating opportunities land and tree tenure rights of farmers and ensure access of local people to traditional use of natural products Promotion agroforestry among farmer and cultivators to enhance food and raw material production and environmental protection Initiate continued contract and liaison with the local authorities and communities to pursue integrated development activities related to sustainable resource management Promote research-based and technology-led forestry Promote user-oriented instigations into the growth and success of and wildlife management, utilization and development to important tree species and forest types, wildlife species and ensure resource sustainability, socio-economic growth habitats, and develop appropriate systems for their sustainable and environmental stability management under a wide variety of conditions Promote client-oriented research into problems and prospects affecting viable processing and marketing of major timber species capable of being managed sustainably Promote development of research database on relevant forestry and wildlife knowledge for effective dissemination to a wide spectrum of users, particularly in industry and rural communities Develop effective capability at national, regional and development of mechanisms for review and adjustment of this district levels for sustainable management of forest and policy as deemed appropriate, from time to time wildlife resources Cooperate with international entities, trade associations, private interest groups and non-governmental organizations concerned with sustainable management of forest and wildlife resources in order to benefit from technological advances, technical assistance and action-oriented initiatives Source: Ghana Forest and Wildlife Policy, 1994

28

Bioenergy Policy in Ghana

The development of Ghana’s bioenergy (indigenous) resources has consistently been part of the energy policies of successive governments in Ghana. For instance, the current energy policy of Ghana has been crafted to achieve the following principal long term goals: (i) maintain energy supply adequacy and reliability; (ii) achieve self-sufficiency in energy supply; (iii) reduce energy intensity in the creation of wealth and economic growth; (iv) increase modern energy forms to all especially low income households and communities in environmentally acceptable manner; and (v) achieve high levels of end-use efficiency.

Promoting accelerated development of indigenous energy resources, is a key strategy being pursued to achieve energy self-sufficiency thereby enhancing energy security. The development of renewable energy resources comes under this broad strategy. The government has indicated its intentions to develop Ghana’s renewable energy resources by providing support for sustained regeneration of woody biomass resources; support the harnessing and use of solar, wind, as well as modern biomass resources through the creation of favourable regulatory and fiscal regimes and attractive pricing incentives; and assist in the creation of viable domestic market for biomass-based alternative fuels through regulation, financial intermediation and pricing incentives.

This notwithstanding, there are no specific policy and regulatory frameworks governing the promotion and development of the bioenergy resources of Ghana. Draft national woodfuel and bio-fuel policies have been prepared since 2002 and 2005 respectively and submitted for cabinet approval but these documents have not been ratified.

The objectives of the draft National Woodfuel Policy are as follows:

a. Promote sound management of the country’s natural woodlands for sustainable supply of woodfuel and maintenance of environmental quality. b. Improve the woodfuel marketing system to encourage producers and consumers to adopt more sustainable production practices and ensure equitable distribution of revenues accruing from woodfuel to all stakeholders. c. Introduce improved technologies and higher levels of efficiency in the production and consumption of woodfuels d. Establish a comprehensive institutional framework to enhance and co-ordinate woodfuel related activities as an integral part of natural resource management plans

The objectives of the draft National Biofuel Policy (2005) are as follows:

(i) Replace 20% of national gas oil and 30% kerosene consumption with biodiesel and jatropha oil respectively by 2015; (ii) Remove institutional barriers in order to promote private sector investments and management of biodiesel industry; (iii) Create favourable regulatory climate to ensure development of a contestable market, favourable pricing regime and high quality of product delivery; (iv) Improve the efficiency of production technologies and techniques of biodiesel with the aim of reducing costs and also raising the quality and efficacy of the product through well focused research and development programmes; and (v) Become a net-exporter of bio-fuels in the medium to long-term.

Currently, a National Renewable Energy Law is being drafted to provide an institutional and regulatory framework for the promotion, development and utilization of renewable energy for the generation and supply of electricity. The objectives of the draft Renewable Energy Act are as follows:

• Promote the development and utilization of renewable energy sources for electricity generation and supply; • Provide a framework for Government support for electricity generation and supply from renewable energy sources; 29

• Provide an enabling environment to attract investment in renewable energy sources; • Encourage businesses, households and communities to increase the use of renewable energy in their consumption mix; • Diversify supplies and thereby safeguarding energy security; • Improve access to electricity for the poor using renewable energy sources • Build indigenous capacity in technology for renewable energy sources; and • Build knowledge and awareness around renewable energy generation and consumption

It should be pointed out here that Ghana’s NREL that it hopes to promulgate soon is very much electricity- biased and does not contain provisions on liquid and solid biofuels, except for their use as feedstock for generation of electricity.

Synergies between Agriculture, Forestry and Bioenergy Policies in Ghana

Although the agriculture, forestry and energy sectors are inter-related, the respective sector policies have been developed largely in isolation with little or no cross-sectoral collaboration. However, it is clear that the activities of all these sectors need to be harmonized if modern bioenergy is to play an effective role as a tool for poverty reduction and rural development. Lack of coordination will compromise the ability of each of the sectors to achieve their respective policy objectives.

There is an important provision in the FASDEP document, which is targeted at improving institutional coordination and sustainable management of land and environment through the promotion of joint planning and implementation of programmes with relevant institutions to address environmental issues in food and agriculture. This present an avenue for collaboration between MOFA and other ministries such as energy, environment, natural resources, forestry and local government and rural development, which should be fully exploited if the sustainability issues associated with the emerging bioenergy industry are to be handled effectively. Similar provisions should be enshrined in the National Biofuels Policy before it becomes operational.

30

Mali

4.3 Bioenergy production and use

Bio-energy is currently the major source of energy in Mali. The share of bioenergy in the country energy balance is around 70%; however, its use is still made in a traditional and non efficient manner (wood, charcoal, residues, etc). The total consumption of charcoal is close to 60,000 tonnes per year equivalent to 300,000 tonnes of wood to be converted. The growing use of fuel wood for domestic energy supply entails a serious risk of overstraining the forest stands on a long term basis, given the dry climate conditions32 At the same time, the potential of agricultural waste as an energy source is still used insufficiently.33. Jatropha plants, as naturally growing source of bioenergy are widespread and well-known among farmers in all of Mali. Interest in Jatropha has been present for some decades. During the recent one, emphasis was directed toward piloting rural electrification from Jatropha-based oil. Mali is today the most experienced country in West Africa in the field of electricity generation from Jatropha34. A unique Jatropha oil project was implemented in Garalo, Mali to provide electricity to 250 subscribers with a potential for more than 10 000 inhabitants including social services and incomes and local businesses. Mali intends to replicate the Garalo experience to a wider scale to support its efforts towards rural electrification.

Costs and benefits This section broadly discusses costs and benefits based on qualitative indications. An in-depth analysis and field based data are needed to give an appropriate analysis of the cost and benefits of the bioenergy sources in the context of Mali.

Traditional use of bioenergy has direct costs as well as additional costs related to environment and social issues. Rational use of bioenergy, based on using energy efficient devices (improved stoves and efficient production of charcoal) provides significant impacts both environmentally, by saving natural resources and reducing negative effects on health and also economically by reducing energy and small businesses energy budget. Modern biomass projects (local energy plantations and residues valorization) are micro economically advantageous since associated local incomes are generated, investments stay within the community sustaining local economies. On a macroeconomic level, modern bio-energy helps limiting expensive bills from fossil fuels imports. The national take advantage from these saved foreign currency35

Technologies in use The main traditional as well as improved and modernized technologies currently used in Mali are summarized in table 12 below. This reflects on the common situation of bioenergy use in West Africa.

Tableau 12: Summary of bioenergy technologies in use in Mali Technology Raw material Purpose Type of usage Tradtional stove Wood/ charcoal Cooking Traditional Improved stove Wood/ charcoal Cooking improved bioernergy Power plants Forest/Agricultural Power co-generation modern bioenergy Residues (Cotton seeds) Power plants Jatropha oil Power generation modern bioenergy briquetting Residues/ green biomass, Heat production for cooking Improved bioenergy systems ground nut shells and small businesses

32 Massing, Andreas, 2007: The household energy market in urban Mali, available at: http://www.hedon.info/TheHouseholdEnergyMarketInUrbanMali , last edited: 04.12.2008. 33 Maiga et al. 2006, 573. 34 FAO Final Report 2009, 51. 35 FACT Foundation: The Garalo Project Description, p. 2, available at: http://www.fact- foundation.com/en/Projects/Mali/Documentation 31

Biogas plants Animal manure and other Cooking, lightening Modern bioenergy organic wastes Power plants Ground Nut shells, sugar Power/heat generation Modern bioenergy cane bagasse Distillation Sugar Cane Molasse Bio fuel (motor vehicles) Modern bioenergy

Traditional and improved stoves technologies Traditional stoves consist of very simple cooking devices used to directly burn collected wood and residues or charcoal. These devices cover options from basic tree-stones stoves to metallic/mud stoves with very limited efficiency.

Modern stoves are cooking devices with higher energy efficiency. Few types of them are locally designed and commercialized. Their efficiency can reach up to 40%36. These devices have been disseminated in several countries of West Africa with support of bilateral cooperation initiatives.

Jatropha oil technology Since the most used modern bioenergy used in Mali is the one that generates and uses Jatropha oil, the focus in this section is a summary description of this technology. A detailed description is provided in chapter 5 related to the case study of Garalo. The main technical steps Jatropha based bioenergy include:

• Seed selection and planting techniques Before planting, a careful seed selection should include criteria such as a seeds from high-yielding origins, heavy and large in size and if possible not older than six months37. Additionally, the soil needs to be sufficiently humid, aired and at high nutrient levels38. Jatropha can either be directly seeded in the field or grown in nurseries: Both bring advantages - while direct seeding gives way to an optimal root development and saves labor and material costs, nursery growing assures controlled conditions and facilitates the selection of the most high-yielding plants39.

• Oil pressing Pure Plant Oil (PPO) or Straight Vegetable Oil production requires as basic equipment an oil press and filter to clean the oil. Yet, newer pumps are often equipped with electronic control and refined filtration steps40. More details are provided in the case study of Jatropha cultivation in Mali (Section Process and Associated Technologies).

• Electricity generation The power generation unit of the technology is similar to any other electricity generation section that uses (power engine and alternator, transformers, xxxxxx). A detailed description of this type of technology is provided in chapter 5, case study of Mali).

Business model - structure of production and delivery to consumers This section will briefly focus on the Jatropha project in Garalo, Mali. The main reason for this choice is the availability of information.

In Garalo, Mali, a business model with strong involvement of local authorities was developed to encourage ownership of the Jatropha production system by the rural communities. Jatropha producers’ village committees

36 Touria Dafrallah and Secou Sarr, ENDA-GNESD Study “Policies and measures for large-scale dissemination of Improved stoves in West Africa”, November 2006. 37 Van der Putten, Eric 2009: The Jatropha Handbook, Chapter 2, 2nd edition – June 2009, 7, Available at: Available at: http://www.fact-foundation.com/en/Home 38 COMPETE Bioenergy Policies 2008, 70. 39 Van der Putten 2009, Chapter 2, 8. 40 Togola, Ibrahim 2009: MFC Jatropha activities and case studies. Barriers and opportunities for financing - COMPETE Conference Dakar, 29 Sept - 1 Oct 2009, 2. 32

(CVPP) have been created in 33 villages including 30 in the commune of Garalo to deal with the key activities at the village level, such as seed collection and transport to the co-operative41. Given the competition regarding Jatropha seeds, local authorities have at times prohibited their sales outside the commune to secure a sustainable supply for the hybrid power plant.42 The co-operative of Jatropha producers (CPP) (or CVPP) takes care of any technical, commercial and financial concerns during the process from the raw material (Jatropha seeds) to the biodiesel43. Co-operative members benefit from fixed prices for seed production. The agreed current price of 9.8 cents per kg creates a reasonable margin for the farmers as well as a competitive selling price of Jatropha oil44. This guarantee provides for an important economic and social network which is crucial in a region with little opportunities for income generation. In the unlikely event of a sharp fall of oil prices and diesel oil however, the farmers might encounter difficulties to sell their seeds. On the other hand, an increase of oil prices may open a margin for the co-operative to negotiate higher prices with the power plant’s owner45. Furthermore, an Electricity Consumer Association (ECA) protects the rights of the end users and intermediates between the consumers and the electricity company ACCESS. The latter is responsible for distribution and generation of electricity in the community and bound to the tariffs dictated by the Malian government agency in charge of rural Electrification (AMADER)46.

Mali Folkecenter (MFC) has the primary task as a supporting service and central coordinator in this project47: MFC is not only coordinating different actors, but has been directly supporting the Jatropha committees by setting up nurseries and distributing Jatropha seeds as well as providing for educational trainings through the village committees48.

Use according to income groups Detailed information on bioenergy uses according to income groups is not available. The general information found states that about one tenth of the annual average Malian household income is spent on fuel wood; these expenses are probably to rise with growing transportation costs49. Specific households surveys are highly needed to give an overview of energy consumption, uses and expenses according to income groups. More detailed data on bioenergy use are also required to analyze the role of bioenergy based on social and economic situation of the population.

4.4 Existing Policies

In Mali the framework of bioenergy is formed by the National Energy Policy, the National Strategy for Renewable Energy and the National Strategy for the Development of Biofuels. The recently founded National Agency for Bioenergy (BIOCARMALI) is responsible for implementing these three strategic plans50. The creation of such institution is a significant policy signal towards bioenergy development.

41 FAO Final Report 2009, 52 and Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008, 1. 42 FAO Final Report 2009, 53. 43 FAO Final Report 2009, 54. 44 FAO Final Report 2009, 53. 45 FAO Final Report 2009, 54. 46 FAO Final Report 2009, 54. 47 Wijker 2008, Report on Visit to Bamako and Garalo, 7. 48 FAO Final Report 2009, 53. 49 Massing, Andreas, 2007: The household energy market in urban Mali, available at: http://www.hedon.info/TheHouseholdEnergyMarketInUrbanMali , last edited: 04.12.2008. 50 Enda, Bio energy for rural Development and Poverty alleviation, 12/13. 33

The National Energy Policy of Mali adopted by the government in 2006 presents by itself a framework to all programs in the field of energy51. It takes other relevant policy fields into consideration, i.e. economic reforms and industrialization policies such as the National Strategy for Poverty Reduction (CSLP), the environmental protection, the decentralization strategies, the Development and Education Program as well as the Sanitation and Social Program52. Its global objective consists in strengthening the sustainable development of the country by providing widely accessible energy services and simultaneously encouraging socio-economic investments53.

It further pronounces four specific objectives54:

1. Providing large parts of the population with access to modern energy solutions at affordable prices Modern solutions include hydroelectricity, new and RE sources55. A special emphasis is put on developing the field of biofuels within the framework of the national strategy of reforestation, especially the Jatropha plant to make energy available to a higher percentage of Malians for diverse usages (electricity production, transport, agricultural motorization, etc.)56. To enhance energy accessibility in rural and peri-urban areas, the national government founded the Malian Agency for Domestic Energy Development and for Rural Electrification (AMADER)57. The institution is equally linked to the objective to protect “people, goods and the environment from inherent risks associated to energy services” 58.

2. The protection and sustainability of existing fuel wood resources One outstanding feature of the Malian energy access reform is the twofold approach of connecting the rural electrification development strategy with a domestic energy strategy: It promotes energy saving equipment for cooking, suggests LPG and Kerosene as substitution for wood and charcoal59. As one of the strategic axes of the energy policy environmental impacts have to be considered in the planning, realization and evaluation phase of new energy infrastructure60.

3. The mobilization of national energy resources potential In order to reduce oil dependence and the huge deficit of its balance of trade, the national energy policy in Mali aims at promoting RE and particularly Jatropha oil for energy end users, as main national energy potential61. The approach highly involves local authorities based on municipal by-laws62. In this context, the Malian government has launched the Programme for the Promotion of Jatropha in Mali (PADFP) in order to: i) “[Improve] the energy commercial balance; ii) [Increase] food security through the improvement of soil fertility; iii) [Increase] employment”; [promote] Jatropha based processing63.

51 Bioenergy Policies 2008, 16. 52 Sinalou Diawara, 2008: Bioenergy Policies in Mali - Issues of Energy Supply and Energy Security. Presentation at the Workshop Bioenergy Policies for Sustainable Development in Africa, 2; Ministre des Mines, de l’Energie et de l’Eau, Secrétariat Général, 2006: La Politique Energétique du Mali, 2006 : 24. 53 ENDA Draft Inception Report. April 2009, 12 ff and COMPETE Bioenergy Policies 2008, 20. 54 The four objectives are primarily found in: Ministre des Mines, de l’Energie et de l’Eau, Secrétariat Général, 2006: La Politique Energétique du Mali, 2006 : 25 ff. 55 Jumbe 2008, 28. 56 Bioenergy Policies 2008, 25. 57 Agalssou 2008, 3. 58 Cited after: Enda Energy, Environment, Development: Bioenergy for rural Development and Poverty alleviation in West Africa. Draft Inception Report. April 2009, 12/13. 59 Agalssou Alassane/ AMADER, 2008: Atelier International de COMPETE 25 Nov 2008: Bioenergie et Electrification Rurale. Cas de Garalo, 3. See also: Sow, Hamed, Energy Minister of Mali: La politique energétique au Mali. Mettre nos resources au service du développement, in : Croissance Actualité (2007) Vol. 37, 11. 60 La Politique Energétique du Mali, 2006 : 27. 61 FAO Final Report 2009, 55. 62FAO Final Report 2009, 52. 63 Diarisso, Dalla, Direction of Agriculture, Government of Mali: Bioenergy Policies in Mali – Agriculture and Land Use Issues, in: COMPETE Bioenergy Policies 2008, 23. 34

4. Efficiency strategies for the energy sector and its sub-sectors64 The government is willing to intensify international cooperation in the energy sector to elaborate further efficiency strategies; it thereby aims at increasing “capacities for guidance, management, monitoring, and strategic steering of the energy sector”65. The following principles have to be taken into account with any programs implemented: i) decentralization; ii) liberalization, iii) Program approach; iv) a participative approach; v) competitiveness; vi) transversal coherence; and vii) public private partnerships.66. In this framework, a close communication between different actors is one of the strategic axes of the Malian energy policy. Concerning traditional energy sources, the entire sub-sector is to be controlled more effectively: In the first place, the demand for fossil sources shall be actively reduced, thereby lowering the dependence on ligneous fuels in the energy balance67. Instead, the government focuses on energy production from agricultural crops. Henceforth, public administration will assure the required energy offer. It is further envisaged to boost the community-based management from 321,100 hectares (2008) to 1,5 million hectares in 2010 and 3 million in 2015 68. As to RE, there are three main goals to be attained: i) reaching a percentage as high as 6% in 2010 and 10% in 2015 of RE in the national energy production; ii) improving conditions to implement RE services and iii) finding sustainable finance mechanisms well-adapted to RE69. Besides, awareness campaigns have been raised to promote energy-efficient materials for construction as well as alternative energies (such as wind, sun and solar- heated boilers)70.

64 World Bank, Africa Technical Department, Review of Policies, Strategies and Programs in the Traditional Energy Sector. In: Proceedings of Workshop 1, Bamako, Mali, May 10–12, 1993 (Working-level translation from French, 1993, 23. 65 Enda Energy, Environment, Development: Bio energy for rural Development and Poverty alleviation in West Africa. Draft Inception Report. April 2009, 12/13. 66 La Politique Energétique du Mali, 2006 : 25. 67 The proportion of ligneous fuels in the national energy consumption is planned to be reduced from 81% presently to 70% in 2010 and 60% in 2015, see Enda, Bio energy for rural Development and Poverty alleviation, 12/13. 68 Enda, Bio energy for rural Development and Poverty alleviation, 12/13. 69 Agalssou 2008, 6. 70 Sow, Hamed, Energy Minister of Mali: La politique energétique au Mali. Mettre nos resources au service du développement, in : Croissance Actualité (2007) Vol. 37, 11 35

Senegal

4.5 Bioenergy production and use

The major source of energy in Senegal is biomass that meets almost 60% of its final energy, far ahead the petroleum products that account for 37%, electricity for 5% and agricultural residues for 1%. The main biomass forms are wood and charcoal used for cooking purposes. The minimum quantity used in the country is 50 000 tonnes of charcoal mainly in urban areas. In rural areas, the fuel wood is the main source of energy. This consumption is difficult to estimate because of uncontrolled removals operated by side-forest populations that benefit from the right of use, according to the Forestry Code. Contrary to charcoal, firewood is not submitted to formal quota. The conclusion of a study conducted by the State of Senegal and the World Bank in 1993 showed that, given its macroeconomic and social conditions, Senegal will continue for a long time, to depend on forest resources so as to meet the energy needs of urban and rural households. Thus a minimum annual quota of 50 000 tonnes of charcoal is allocated to the country and collected in the forests (Tambacounda and Kolda). This demand is expected to increase over time if we take into account population growth and the costs of LPG, especially since the State subsidy on LPG has been eliminated.

The production of charcoal contributes to supply populations with energy in order to meet basic needs such as food cooking. This production was until recently a major factor in deforestation and still constitutes a serious threat to the preservation of the environment. Thirty years ago, charcoal production was taking place in the region of Thies, less than 80 km from Dakar, before moving afterwards to the north, particularly in the Saint Louis region. This was meant to increase the value of forests deadwood highly degraded by the 1970s drought. Today, charcoal production takes place in Tambacounda (400 km from Dakar) and Kolda; these two regions along with that of Ziguinchor are currently the only ones to record stock excess in fuel wood.

In this context and through the Ministry of Water and Forest Resources, the State fixed for each forest campaign, the national production quota.

Tableau 13: Trends in charcoal production Years National Quota (tonnes) Implementation rate (%) 2008 50,000 2007 74,000 41,086 (55.5%) * 2006 50,000 33,399 (66.7%) 2005 50,000 44,524 (89 %), * Implementation rates are influenced by the overlap of operating campaigns

The quota is mainly exploited by cooperatives and forest development companies consolidated into a union called the National Union of Forest Operators of Senegal (UNCEFS).

There is a difference between the figures announced for the production. The regions of Tambacounda and Kolda constitute the main providers of charcoal in the country. Charcoal consumption in major urban areas is estimated at 300 000 tonnes per year according to surveys conducted by the Department of Energy. The predominance of biomass (wood and charcoal) among primary energy sources causes removals on forest resources in an unsustainable manner. Household energy consumption to meet cooking needs is still being subject to fuel wood by 90% of the population leading to a serious source of sustainability concern. In addition, the intensity as well as the operating and carbonization techniques do not ensure sustainable production of wood energy. The trend of charcoal controlled production since 1937 (see figure 5 below) shows an exponential growth. Up to 1992, the average annual increase exceeded 2,000 tons. This means it has doubled in 10 years nearly up to 15,000 tons of annual growth. Today, the controlled production of coal is estimated at nearly 50,000 tons while the consumption -estimated through surveys conducted for households- amounts to 300,000 tons. These figures remain controversial, hence the necessity for a study with a consensus-based methodology for information collection in order to achieve an acceptable measure for all parties.

36

Figure 5: Evolution of the controlled production of charcoal (1937 to 1992)

y = 0,0441x2 - 170,99x + 165698 180 R2 = 0,9131 160 140 120 100 80 60 40 20 production (tonnes1000) x 0 1920 1940 1960 1980 2000 Années

The main characteristic of the demand is its concentration in urban areas that represent 74% of domestic consumption. The Dakar region taken alone accounts for nearly 41% of this consumption.

Regarding the production operations, the most visible involved parties in the charcoal sector are forest operators who, until recently, held the entire operating permits. Since the approach of managed areas has been endorsed (see case study), rural populations organized into village-committees now operate in charcoal sector. Actually, the rights of access to forest resources are transferred to local authorities since the entry into force of the texts concerning the transfer of competence from State to Local Communities as regards Natural and Environment Resources Management.

The forest operators hire charcoal merchants which come often from the Republic of Guinea (Conakry). After production, charcoal is filled into jute bags and transported to major consumption areas.

Costs and benefits For the member of the village committee (CVGD71), selling at the field edge provides an income of 780 F CFA per 50 kg bag (900 F CFA minus 20%). If he sells his product in Dakar, he has a net gain of 2280 F, which is almost three times the field income. His charges when he sells in Dakar amount to 2220 francs per bag, while the selling price is 4500 FCFA. The forest operator’s net gain is 1270 F per bag if the product is delivered in Dakar (the costs per bag amount to 3230 F for a sale price of 4500 F/bag). The difference in costs between operators and local producers (members of village committees) stands in the fact that local producers achieve themselves some works (making kilns and undertaking carbonisation), while the operators pay external labour to do it.

The analysis of the price structure of the charcoal allows the appreciation of the levels of profitability of each segment of the sector and can help guide reforms and also better establish the regulation.

On the basis of information collected throughout the charcoal chain, pricing structures of charcoal delivered in Dakar are represented in table 14 presented below. The pricing is for two types of areas (managed areas and unmanaged ones) and depends on two operational schemes (traditional operator and CVGD members):

71 Comité Villageois de Gestion et de Développement. 37

Tableau 14: Pricing of a bag of coal delivered to Dakar Managed Area (MA) Unmanaged Area (UMA) Operator CVGD Operator Amount Amount Amount 1 Timber fees owed to the State 350 350 600 2 ‘Sourgha’72 registration 5 5 3 Professional card renewal 10 10 4 Sourgha remuneration 900 900 5 Sourgha Superviser's remuneration 50 50 6 Handling (loading+ unloading) 150 150 150 7 Deductions for local authorities 225 180 8 Sourgha equipment depreciation 50 50 50 9 Licenses and visas from Forests” offices 50 50 50 10 Reforestation fund levies 20 20 20 11 Municipal taxes 20 20 20 12 Transportation 1400 1400 1400 13 Total costs to Dakar (1 to 12) 3230 2220 3255 14 Operator’s margin 1270 2280 1245 15 Wholesale sale prices (Coxeur73) 4500 4500 4500 16 Coxeur’s margin 500 500 500 17 Retailer transfer price 5000 5000 5000 18 Retailer margin 1500 1500 1500 19 Retailer Sale price 6500 6500 6500

This table shows that the differentiation of forest fees between managed areas (MA) and unmanaged areas (UMA) -350F/bag as against 600F/bag- does not provide a sufficient incentive for the MA; in fact, the difference between the operator’s margin based on the type of arrangement is only 25 F/bag (1270F compared to 1240F) which is about 2% of gap. Such a difference is not significant when we consider the constraints related to MA operating unlike with UMA where control is much less present. This outcome was predictable when one knows that the difference of fees between the MA and the UMA (250 F per bag) is almost offset by deductions of 25% (225 F for a bag valued at 900F) in force in the MA.

The following table summarizes the remunerations emitted by the different segments of the charcoal industry. The transport of charcoal is lucrative and forest operators involved have full command on the industry.

Tableau 15: remuneration of Charcoal distribution in Dakar Cumulative margins for an operating villager per bag generated and % Assumptions sold in Dakar (FCFA) Retail bag value in Dakar 6500 100 % A Production net price 720 11.1% B Transportation margin 344 5.30% 0.48x A C Net income if sold in Dakar 2280 35.1% 2.9xA; B+C= 3.6xA D Margin on whole sale 500 7.70% C+D= 2780= 3.9xA 2xA E Margin on retail sale 1500 23% C+D+E=4280= 5.9xA

An important aspect of how the industry operates is related to the impact of the tax system and other compulsory charges made for various reasons.

72 Sourgha: Temporary hired worker 73 intermediary 38

It appears that the taxation of the State absorbs about half of the levies, but reported to the wholesale selling price amounting to 4500Fcfa, the State levies are estimated to 8.1%. The question is whether the forest fee fixed to 350 F/bag can regenerate enough resources to ensure sustainability.

Technologies in use Before the advent of managed areas, the forestry operating techniques used to supply household with charcoal were too much degrading. This explains the decline of forest formations along with the charcoal exploitation front. Trees were cut down with axes that happened to be obsolete. The techniques used did not meet the cutting standards (height of cutting, protected species, preservation of buds, etc...). Removal rates did not meet the potential of forests. Once the wood obtained, carbonization was done with traditional inefficient kilns. Its efficiency is estimated at 18% on average. As for consumption, charcoal is used in general within the “Malagasy” stove74 that has a low efficiency (20%). In managed areas, cutting techniques are improved with respect of the cutting height allowing the formation of waste, respect for the forests possibility in the removal, regeneration of the forest, etc. The technology used in efficient carbonization is the Casamance kiln instead of the traditional one. These techniques and technologies are designed to streamline the supply in wood energy.

At the consumption level, projects (see case study) are investing in the promotion of efficient cooking equipment such as the "Diamabar" stove75 in order to control the energy demand for cooking.

Business model Once the charcoal is produced in the forest either by a local producer (participatory management) or a charcoal- man (Guinea), it is sold to the forestry operator who, beforehand, gave livelihood to the coal seller. After having deducted his advances (charcoal seller), the operator transports the charcoal in an area of consumption. Through an intermediary called “coxeur”, the charcoal is sold either for cash or credit to the retailer (Diallo keurigne). He retails charoal either by weighing or by pot.

Figure 6: Business model of the charcoal industry Local Producer (Villager) Transporter

Forest Operator

Foreign Charcoal- man (Guinea)

Coxeur (intermédiar

Retailler (Diallo End-user keurigne)

74 Traditional cooking stove 75 Stove with higher efficient 39

Knowing the substantial gains that can be collected by bringing their charcoal in consumption areas, some local farmers trained by participatory forest management projects are more and more trying to sell their charcoal in Dakar.

Use according to income groups Revenues drawn from the traditional use of charcoal were mainly attributed to forest exploiters, transporters, intermediaries (“coxeurs”) though they did not use to invest in the regeneration of the forest. Rural communities and the charcoal men had a bare minimum income. In fact, local people drew income only by renting their carts to the charcoal sellers for the collect of wood before carbonization. As for charcoal men, they still owe the advances the operators grant them. At the sale of their production, these advances are deducted and it happens that the coalman be left with a too low value at the end of its production.

With the participatory management, local populations' income increased due to the increased control they now have on the forest resources. There are now in the managed forests a key for the sharing of revenues from exploitation of wood-energy among local producers, village and inter-village committees and local Government. This key varies according to the experiments. They arise from negotiations between the stakeholders of the organization. According to a study conducted in 2008 in the region of Kolda, income derived by rural exploitation of wood-fuel are used primarily in order of importance for the purchase of food, building up savings through the purchase of livestock, building or rehabilitation of housing, clothing and farm equipment. The proportionate share provided to the local Government allows them to improve the budget of rural councils.

Environmental and Social Impacts The traditional use of charcoal has generated quite negative environmental impacts, including degradation of exploited forest ecosystems that have resulted in: • Land degradation by accelerated wind and water erosion; • Decline of wildlife and its habitat destruction; • Depletion of valuable species (timber, timber, medicinal plants etc..); • Loss and the premature drying of ponds and water points.

In the social scale, this degradation has resulted most often in a gradual impoverishment of populations due to declining productivity of farming and pastoral production systems. Populations from the first areas who have allowed forest exploitation saw their pastoral and agricultural production fall due to resource degradation combined with drought and the peanut monoculture.

In environmental terms, the exploitation in managed area has a significant impact. In fact, many exploitability criteria were adopted to avoid over-exploitation and thus ensure sustainable management of forest resources. The first criterion is that only wood-energy oriented species are exploited, specially the combretaceae. Previously, farmers used to cut the essence of value for wood-energy usage. The second criterion is about the diameter of operability fixed between 10 and 25 cm meant on the one hand, to promote the regeneration of forests (less than 10 cm) and on the other hand, avoid cutting the seed-threes. The main concern of this exploitation in managed areas is the renewal of the resource. The ponds and streams are preserved.and exploitation is not allowed on a 100 m radius around the ponds and 50 m on each side of the rivers. Using the Casamance kiln (With chimney) that has a good yield (35%) contrary to the traditional kiln (18%) helps preserve forests.

On the social level, many involved parties find it lucrative to operate in a managed area. The local communities, in particular, find it a good way to raise revenues and improve local finances. Thus, only for the year 2008, local authorities involved in the exploitation were expected to obtain a turnover of 90 million F CFA, 472 million for the local producers, 34 million for the forest operators, 227 million for the exploiters and 1 400 million F for the transporters.

40

4.6 Existing policies

Forestry

Senegal has adopted a new forest policy since 2005 to replace the Forestry Action Plan of Senegal dating back to 1992. The revision of the forest policy has been strongly marked by the deepening of the decentralization policy of the State. Actually, in 1997, the Region has been erected local community and responsibilities transferred to local authorities as regards to natural resources and environment management.

The vision of the new forest policy is that by the year 2025 Senegal will succeed in: "Contributing to poverty reduction thanks to the conservation and sustainable management of forestry potential and biodiversity, maintaining socio-ecological balance so as to meet the needs of populations in timber and non timber specially through, the coherent implementation of regionalization/decentralization policy”, through: • a sustained policy of empowering local communities, • an integrated agro-forestry-pastoral development policy, • capacity building of government structures, communities and local partners, • active involvement of the private sector and civil society, • a better understanding of the potential and dynamics of forest plantings and ecosystems.

Agriculture

Agriculture takes an important place in the economic and social life in Senegal. It increasingly contributes to the formation of the GDP and involves a large proportion of the workforce. In addition, agriculture remains the main basis of agro-industrial and craft development. Therefore, faced with population growth and increasing urbanization, the increase of national agricultural production becomes a necessary condition for food security in the country. Thus, the achievement of food security and the fight against poverty are the major objectives of the Government of Senegal as far as agriculture is concerned.

This political will is articulated around three main axes: • Reduce food deficit within a relatively short time-span, particularly the grain deficit, by the significant increase in production, relying in particular on promoting the family farming through the shift from extensive systems to intensive, diversified, sustainable and environment friendly systems; • Develop export crops and improve the competitiveness of agricultural and agro- industrial products; • Develop agricultural products processing in order to create added value, secure and improve producers’ incomes.

Energy and biofuels

The State of Senegal devotes over 45% of income drawn from its exports to ensure supplies of petroleum products in the country. Imports of energy have increased from 184 billion FCFA in 2000 to 278 billion in 2004 and to 431 billion in 2005. It has reached 460 billion CFA francs in 2006

The recently updated Energy Policy Paper (to cover 2007-2012 period) aims at achieving three major goals, namely: i) to guarantee a sufficient and sustainable supply the country with quality fuels at lower costs; ii) to increase access to energy services by the population; iii) to reduce the country vulnerability to negative externalities, in particular the fluctuations of oil prices in the international market.

The promotion of biofuels as a substitute for petroleum products is a major option that the Government has taken to reduce the country's energy dependence.

This political will for the promotion of biofuels has been emphasised on through the commitment of the President of the Republic who held in July 2006, a meeting of non-oil producing African countries, which led to the creation of the Association of Non-Oil Producing African Countries (APANPP).

41

The action plan adopted by the APANPP envisages the development of biofuels use by the establishment of common strategies combining the setting up of a legislative and regulatory regime, the application of incentives and funding mechanisms.

At national level, the will has resulted in the preparation of a several measures for the establishment of a legislative and regulatory framework conducive to the promotion of biofuels. These measures include specifically: • The definition and design of specific applicable standards; • Determination of blending/incorporation rates in fuels; • Harmonization of biofuel prices compared to prices of hydrocarbons; • The eligibility of biofuel in the Investment Code and the funding of biofuel projects from the CDM mechanism.

In its plan “Return to Agriculture” (REVA Plan), the government of Senegal grants a key role to the development of biofuel.

The strategy for biofuel development in this plan aims to: • Enhance agricultural production; • Increase incomes and living conditions of rural farmers; • Mitigate the oil bill of the country; • Reduce greenhouse gas emissions.

As for Biodiesel production, a National Jatropha Programme (NJP) was launched in 2006 with the aim of planting 320000 ha nationwide for 2007-2012. With a very changing institutional framework and the management of the agrofuels moving from the responsibility of the Agriculture to the Energy Department and back, then to the Ministry of “Pisciculture”, the NJP does not seem to keep on the initially planned track defined in 2006 and its objective would doubtfully be reached on time. However, private Jatropha plantation initiatives are progressing on a much decentralized basis without any proper national coordination and the biodiesel industry does not seem to emerge yet in the country.

Bioethanol production has also been targeted with the installation of a processing plant within the Senegalese Sugar Company (CSS). The company produces approximately 35,000 tonnes of molasses with strong sugar content. It ethanol plant can transform the molasses into 2,500 m3 of industrial ethanol and 10,000 tonnes (12,500 m3) of anhydrous ethanol as biofuels.

42

5 CASE STUDIES OF SELECTED BIOFUEL PRODUCTION

Ghana

As mentioned in the introductory section, the case studies will focus on two forms of bioenergy – liquid biofuels using jatropha as the feedstock and biogas production from industrial waste. Biofuels from jatropha has been selected because it is the bioenergy form that has received considerable amount of public and private interest/investment over the past 5 years as well being an emerging industry that has been touted as holding a lot of promise for alleviating rural poverty. Multiple cases will be examined under the liquid biofuel from jatropha case. Four cases have been selected based on progress made by the companies in the industry and the willingness of business owners to divulge accurate information on their businesses. The biogas case study has been chosen because of its uniqueness as an integrated bioenergy project, which demonstrates vividly the direct impacts of bioenergy on rural development. Information for case studies was collected largely through key informant interviews and desk studies of published reports. It should be noted that these information could not be authenticated due to lack of resources to visit some of the farms to obtain first hand information.

5.1 Production of Biofuel from the Jatropha Curcas Plant

Case 1: Gold Star Farms Ltd (GSFL)

Gold Star Farms Ltd (GSFL), a subsidiary of Gold Star Biofuels, is a wholly owned Ghanaian business entity described as an “integrated grower, manufacturer and seller of bio-diesel fuels”. Gold Star’s business strategy is to “cultivate the largest energy field in the world by developing “oil fields” throughout West Africa and other countries around the world, while positively contributing to the infrastructure and economic well-being of Africa”. 76 GSFL prides itself as a company that has a very strong commitment to its social responsibility, ecological standards and its full commitment with the concept of sustainable and renewable energy. Gold Star began cultivating jatropha in Ghana in 2005. The company intends to cultivate over 5 million acres of jatropha plantations in Ghana.77 Gold Star cultivation initiative has two main components – a joint-venture and out grower scheme. Goldstar enters into a joint venture arrangement with farmers who are able to commit over 250 acres of land to the cultivation of jatropha plants. Under the joint venture arrangement, Gold Star will bear the entire cost of establishing the plantation(s) and subsidiary company will be mutually established to supervise the farms. A binding contract of sale, valid for 50 years, will then be signed between Gold Star and the farmer under which the farmer is obliged to sell all seeds produced to the subsidiary company at a predetermined minimum price. The proceeds from the sale of the seeds will be shared between Gold Star and the farmer at the ratio of 80:20 gross, with the former taking the largest share of 80% (KITE, 2007). A different arrangement pertains under the outgrower scheme, which is used in the case of all interested farmers having less than 250 acres of land areas to dedicate to jatropha cultivation. In this case, the cost of establishing the plantation is exclusively borne by the farmer but Gold Star undertakes to offer technical assistance on demand. The farmer in return signs a contract, valid for 50 years, to give the first option to buy the seeds to Gold Star at a predetermined minimum price. Gold Star supplies the planting material to farmer under both arrangements from its nursery located at Buduatta in the Central Region. The seeds bought is expected to be used as the feedstock for a yet to be constructed bio-diesel processing plant.78 According Mr. Jack Holden, an Executive Director of the company, Gold Star has already secured the commitment of farmers to grow the crop on approximately 5 million acres of land. Two million acres of the targeted plantations are currently under cultivation throughout the country, with the exception of the Western region. Currently, the company is constructing a processing plant at Nkawkaw in the Eastern Region to produce biodiesel for exports

76 See www.goldstarbio-diesel.com 77 See www.goldstarbio-diesel.com 78 Personal Communication with officials of Goldstar, June 22-26 2007 43

Case 2: Biofuel Africa Limited

Biofuel Africa Limited (BAL) (originally called Biodiesel Limited), is a Ghanaian company wholly owned by Norway-based biofuel company – Solar Harvest AS. BAL focuses on growing sustainable alternative fuels in West Africa. BAL has acquired 23,700 hectares of lands in the Northern and Volta regions to cultivate jatropha for the production of jatropha oil and/or biodiesel. Six hundred and fifty (650) hectares of the land acquired has been cultivated with Jatropha. BAL’s operations are mechanised, involving tractors, ploughs, harrows and water irrigation equipment. According to BAL, all the tractors run on neutral bio-diesel (B100); 5,000 litres of the bio- diesel were imported alongside the tractors The company has already started harvesting jatropha seeds from its plantations just after one year of cultivation, which they have processed into to 10 tons of jatropha oil (about 50 barrels). In view of the fact that BAL does not have any processing plants/equipment of their own as yet, the oil has been produced from rented expellers owned by a local company based in Tamale. The company however intends to install its own processing plant in the near future. Part of the oil produced is being used to run the vehicle of one of the company’s directors, Mr. Ove Martin Kolnes (Dogbevi, 2009). In a press release issued by BAL, the company indicated that it has started commercial production of jatropha oil and went on to make a bold claim that “it is the first company in West Africa to move from growing and selling Jatropha fruits and seeds to production and sale of Jatropha oil on a commercial scale for direct use, without modification, and as a feedstock for biodiesel and synthetic diesel.” However, considering the scale of oil production and the fact that BAL does not even have its own processing plants, the talk about ‘commercial production’ might be a little bit premature.

Case 3: Jatropha Africa Limited

Jatropha Africa Limited (JAL), a subsidiary of Lion Bridge Ventures of UK, is a biofuel feedstock company committed to the creation and expansion of biofuels plantations throughout the developing world. Its commercial activities include, supplying jatropha seeds for cultivation and for oil expelling, growing seedlings in nurseries, harvesting and supplying Jatropha oil for Pure Plant Oil and for biodiesel refining companies. JAL’s goal is to achieve 3.79 million litres per year of feedstock by 2015. JAL claims to have cultivated 100 hectares of jatropha farms in the Northern region of Ghana with outgrowers owning another 400 hectares of jatropha farms. JAL has so far harvested and stored 12 tonnes of Jatropha seeds and intends to start processing of the seeds in 2011. A total of US$ 400,000 has been invested in the business. The company is seeking additional US$65million for the development of available land, support equipment, a crushing plant, local biodiesel plant, generators, on-water logistics and other operational costs until cash flows are self-sustaining in approximately three years time.

Case 4: Gender Responsiveness Renewable Energy System Development Application (GRESDA-Ghana) Project

The Gender Responsiveness Renewable Energy System Development and Application (GRESDA- Ghana) project is a shea butter and jatropha processing initiative that was undertaken by a women’s group at Gbimsi, a town located about 2 kilometers from Walewale in West Mamprusi District of the Northern Region of Ghana. It is the only known small-scale jatropha cultivation and extraction project by women at the village level in Ghana. The GRESDA-Ghana project was designed to demonstrate the use of renewable energy extraction equipment and energy efficient appliances to support sustainable rural industries and economic empowerment of rural women. The development objectives of the project include the following:

• Strengthen women’s economic empowerment and contribute to food security in Ghana by enhancing women’s ability to reduce post-harvest losses and improving their agro-processing enterprises without contributing to environmental degradation – through an integrated and participatory renewable energy programme, and promotion of gender-responsive energy policies. • Introduce women processors in Northern Ghana to an improved shea butter extraction technology that avoids the use of excessive firewood and water, and does not expose processors to smoke and heat. • Provide a readily available and renewable fuel to serve as a diesel substitute/additive for motorized equipment.

44

• Provide a readily available fuel to serve as a kerosene substitute for use in local lanterns. • Strengthen women’s economic capacity and sustainable livelihoods as entrepreneurs, producers and rural-based community workers. • Strengthen the capacity of women processors to access markets and appropriate technologies, and conserve the environment.

The GRESDA-Ghana project is funded by the United Nations Development Fund for Women (UNIFEM) and UNDP-GEF/Small Grants Programme Funds and coordinated by the Ghana Regional Appropriate Technology Industrial Services (GRATIS) Foundation. Although the project focus is primarily on the processing of shea butter, the diesel engine used to power the processing equipment is run by a blend of diesel (30%) and jatropha oil (70%) extracted by the women themselves. At the outset, the Jatropha seeds were brought from various sources throughout the country to be processed. However, in collaboration with New Energy – a local NGO, the project has since developed a 10-acre (4-hectare) jatropha plantation near Nasia in the Northern Region, to provide the feedstock (seeds) for the production of oil. The equipment used in producing the jatropha oil comprises of a sheller and grinding mill (both coupled to a Lister engine), a Bridge Press and a solar dryer. The oil extraction process is similar to the shea butter extraction process which the local women are very conversant with. A separate grinding mill (from the one used in milling the jatropha seeds for processing the oil) is installed for processing cereals because of the toxicity of jatropha. With the exception of the corn mill, all the machines/equipment used in the GRESDA-GH project were produced by the Regional Technology Transfer Unit (RTTU) of Bolgatanga with design support from the Engineering Design Centre (EDC) of the GRATIS Foundation.

Figure 7: An Operator Pouring Jatropha Oil into Lister Figure 8: Women Extracting Jatropha Oil with Screw Machine Press at Gbimsi

The GRESDA-Ghana project now serves as a guide for all those interested in village biofuel production and empowerment of women, including entrepreneurs, project developers, policy makers and donors. Efforts are also under way to secure funding in order to replicate it in other interested villages.

5.2 Production of Methane from Agro-industrial Waste for Electricity Generation

Background The “Facilitating the Provision of Sustainable Energy and Environment for Development” (FAPSEED) project is a public-private development initiative aimed, inter alia, at increasing access to modern energy services to non- electrified populations in selected communities in the Eastern Region of Ghana. The overall objective of the project is to mitigate poverty and improve livelihoods of the beneficiary communities through the provision of clean energy, while at the same time reducing environmental pollution.

45

The FAPSEED project entails the construction of an anaerobic digester with biogas extraction system to capture methane from the Palm Oil Mill Effluent (POME) produced at the Ghana Oil Palm Development Company (GOPDC) at Kwae in the Eastern Region and use the captured gas partly to generate electricity and as a fuel for the GOPDC’s refinery plant, which currently consumes 511 metric tonnes of diesel annually. Currently the POME is treated through the open anaerobic lagoon system, which emits greenhouse gases harmful to both humans and the atmosphere.

The Technology In view of the high organic strength of the POME, anaerobic digestion has been identified as the best option for first stage treatment of the wastewater.79 Consequently the biomethanation technology is the technology being used in the FAPSEED project. Biomethanation or methanogenesis is the process of converting the organic matter in waste (liquid or solid) to ‘BioMethane’ (sometimes referred to as "BioGas) and manure by microbes (methanogens) in a bio-reactor (or digester) in the absence of air, known as "anaerobic digestion." The term biomethanation is widely used synonymously with anaerobic digestion, although it may sometimes lead to confusion with other anaerobic digestion processes that do not stringently involve the generation of methane. The biomethanation plant to be constructed will have the following four main components, as shown in the schematic diagram in Figure 4-2: • Bioconversion plant comprising the bioreactors and their ancillary parts such as entrance chamber and hydraulic tanks • Digested sludge-to-organic fertilizer processing units comprising solar pasteurizer and ancillary section • Biogas gas processing and storage plant comprising gas holders, gas scrubbers, compressors and gas reservoirs • In-plant waste water treatment plant comprising overflow hydro segregation tanks and biological beds.

Figure 9: Schematic of Biomethanation Plant

79 See Yeoh, B. G. 2004 46

Expected Output The project is expected to produce the following output when completed: • 126 kW of clean electricity to three communities • 1,000 metric tons equivalent of diesel (in the form of 1.95 million m3 of biogas per annum • 2,000 metric tons of organic fertilizer per annum • Bio-oil and charcoal for domestic cooking • Approximately 7,800 tCO2e emission offset per annum • Productive Uses of Energy component to provide gender-sensitive enterprise development services to inhabitants of the beneficiary communities to take advantage of access to electricity and establish income generating activities

Financial Analysis The total cost for the 4-year FAPSEED project has been estimated at €3.5 million, incurring an annual operating cost of €75,000. The project is being jointly funded by a €1.5 million grant from the ACP/EU Energy Facility and €2.5 million equity from the GOPDC. The cost-benefit analysis of the project has shown that the project is financially viable and economically sustainable.

Status of the Project The contract for the project was signed in November 2007 between KITE, the project developer/manager, and the European Commission. Project start-up activities, such as the establishment of project office, procurement of project vehicle and conduct of baseline studies in the beneficiary communities, were carried out in 2008. However, actual construction of the biomethanation plant has been delayed as result of the global financial meltdown, which made it impossible for the GOPDC to finance its 57% equity; the company posted significant losses in 2008 and the greater part of 2009. Consequently the project was suspended for a one-year period to allow the GOPDC finances to pick. Project implementation has been resumed since October 2009 and tendering process for a pilot biomethanation has been initiated. The plant is now expected to be completed by 2011 and the whole project by completed by 2012.

47

Mali

5.3 Jatropha-fuelled Rural Electrification in Mali

After a seven year period of pilot projects to experiment the use of Jatropha oil in rural areas for energy generation for domestic and productive uses, Mali has embarked on an outstanding Jatropha*fuelled Rural electrification Project. Located in the village of Garalo, home to a significant potential of Jatropha trees, the project covers an areas with 10 000 inhabitants. It has been developed by the NGO “Malifolkcenter” (MFC) in cooperation with other partner organizations and through two major implementation axes:

Rural Electrification: Installation and operation of 300 kW power plant by a rural energy service company (ACCESS) with support from MFC and Fact foundation. The power generator can run on diesel or on pure Jatropha oil and provide energy services for domestic uses and productive costumers. This part of the project is funded by the Malian Agency for the Development of Domestic Energy and Rural Electrification (AMADER) with support from Dutch cooperation.

Agriculture/Production of Jatropha oil: The population of the rural commune of Garalo is setting up 1 000 ha of Jatropha plantations to provide the oil needed for the power plant. The total area is made up of many small plantations of between 0.5 and 5 hectares, belonging to and managed by local farmers who use intercropping. Around 600 hectares have already been achieved. The Oil production provides new and additional incomes for the rural community. This part is operated by MFC (technical support and organization of the project activities) in partnership with the local population and the support of FACT Foundation and funding from the Netherlands.

The general information on the project is presented in the box below:

Initiative name Small-scale Jatropha Plantation for Rural Electrification of Garalo Commune

Location Garalo Commune, capital of Garalo, Mali, West Africa

Initiation date and duration 1st August 2006 (36 months)

Project Initiator Mali Folkcenter (MFC)

Overall Budget $ 756,000

Output 300 kW (3 units of 100 kW electrical)

Area of Land Potential of 10 000 ha out of which over 600 ha currently cultivated

Beneficiaries: More than 300 farmers (323), 247 electricity subscribers currently; with a potential for more than 10 000 inhabitants including social services and incomes generation activities. Source: Small-Scale Bioenergy Initiatives: Brief description and preliminary lessons on livelihood impacts from case studies in Asia, Latin America and Africa; FAO Final Report, January 2009, 51.

48

The Garalo project represents a community level approach to the energy challenges in rural areas of Mali. It is bound to be extended on larger agrarian land.80

The village of Garalo, home to 10 000 residents, qualified for the pilot project due to several reasons: Significant amounts of wild Jatropha plants surround the village, the plant is well-known among local farmers and certain residents have the technical skills to operate and maintain the necessary machineries on a long term view.81

The main initiator and central actor is the NGO “Mali Folkecenter” (MFC) which assists in the operation of technical support and organization of project activities. It closely cooperates with the local population. The locally based energy service company ACCESS has installed and currently operates a 300 kW power plant.82 Further partners within the projects are briefly presented below:

Partners in the Garalo Bagani Yelen Project 83 The partners involved in Garalo Jatropha project implementation and their responsibilities are presented in the following table.

Tableau 16: Garalo projects partners Actor Responsibility Mali Folkecenter (MFC): Malian NGO Central action and coordination of the project SHGW: Dutch private foundation Main funding of the project AMADER: Malian government institution Monitoring of construction phase; choice of materials; and long term maintenance Stichting DOEN Main financer/ loan provider FACT Foundation: Dutch NGO Technical assistance to MFC; monitoring and reporting to SHGW ACCESS: commercial company located Electricity generation and distribution within Garalo in Garalo Bagani Cooperative: 90% locals Coordinating organization for all local Jatropha committees: collecting Jatropha from nearby villages when local storages are full. Local Jatropha Committees Contracting party to the farmers: salary, counseling, registration of seed amounts. Electricity Committee Discussion of electrical issues at monthly meetings; communication with ACCESS Woman association Seeds sales; soap production from press cake; assistance in nursery construction and watering Farmers Production and harvest of Jatropha African Bioenergy Center Execution of research on Jatropha BORDTECH: Dutch company Testing and adapting generators to local circumstances SAEM: Malian company Construction of electricity grid in Garalo Electricity Users Inhabitants of Garalo village; divided in different kinds of users: All have to register to obtain a meter (kWh) per household. Government Ministry of Energy Stimulating rural electrification through AMADER: Regulation and control in the energy sector. Future support of similar projects to Garalo.

Process and associated technology The process and associated technology of energy generation from Jatropha comprise the following steps:

80 Small-Scale Bioenergy Initiatives: Brief description and preliminary lessons on livelihood impacts from case studies in Asia, Latin America and Africa. FAO Final Report, January 2009, 51. Available at: 81 Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008, 2-3. 82 Togola 2009, 8. 83 Wijnker,, 2008: Report on visit to Bamako and Garalo, 7-10. 49

• Jatropha plantation and seed selection

“The population of the rural commune of Garalo is setting up 1,000 ha of Jatropha plantations to provide the oil needed for the power plant. The total area is made up of many small plantations of between 0.5 and 5 hectares, belonging to and managed by local farmers who use intercropping. Around 600 hectares have already been achieved. The Oil production provides new and additional incomes for the rural community.” 84 A special emphasis is put on the selection of high quality seeds by establishing seed banks.85

• Fruit dehusking

The seeds can be separated from fruits manually, semi-mechanically or fully by mechanized means. In Mali, simple hand ‘dehullers’ are built and frequently used and are supposed to divide the manual work time by five.86

• Pressing and storage facility

In general, there are hand-operated ram presses or mechanical presses, so-called expellers.87 For Jatropha, cold pressing is usually preferred. In Garalo, the pressing unit used is a mechanical press locally manufactured. Besides the pressing unit, a filtering system and a large storage hall have been built.

Jatropha’s oil content is almost equally high as the one of diesel (See table 17). Additionally, it is applicable to diesel engines without having to be transformed to bio-diesel. This explains the relevance especially to African countries where conversion equipment is not always available88

Tableau 17: Energy content comparison: Jatropha and Diesel Energy content (Mj/kg) Specific gravity (Kg/l) Energy per litre (Mj/l) Diesel 42.5 0.85 36 Jatropha 37 0.92 34 Source: Wijgerse 2008, 14.

Tableau 18: Current fuel consumption for the power generation in Garalo Loading Fuel Hours per day Fuel Diesel Jatropha oil (kW) consumption consumption consumption consumption per hour (kg/h) per day (kg/day) per day (l/day) per day (l/day) 38 7.6 5 38 31 33

With a good press, 4 kgs of Jatropha seeds give 1 litre of oil, which means that 132 kg of seeds will be needed per day. This is 48,180 kg seed per year. With an annual yield of 1500 kg seeds per year, approximately 32 hectares will be needed to give enough seeds to run for 5 hours per day with a loading of 38 kW. And, at least 46.5 ha of Jatropha should already be in place. Source: Wijgerse 2008, 32.

• Power generation and distribution

The power generator stands out by its twofold functionality running on diesel as well as on pure Jatropha oil (Hybrid power plant). Three 100 kW generators have been installed throughout the village with a total of 13 km cables installed. The so created low voltage overhead grid gives most inhabitants access to electricity.

84 Togola 2009, 8. 85 COMPETE Bioenergy Policies 2008, 70. 86 Van der Putten 2009, Chapter 3, 6. 87 Van der Putten 2009, Chapt. 4, 6. 88 Rijssenbeek, Winfried, Ibrahim Togola, FACT Foundation, 2006: Jatropha Village Power in Garalo, Mali. A new Dimension for People, Planet and Profit Actions, 2, available at: http://www.fact-foundation.com/en/Projects/Mali/Documentation 50

All registered households receive an electricity meter (in kWh). The project produces sufficient electricity to run the generators for more than five hours daily 89.

Figure 10: One of the three 100kW Power generators Figure 11: The three 100kW Power generators in in Garalo Garalo

• Monitoring system

The enterprise ACCESS takes and digitalizes regular controls of all technical parameters in place, covering voltage, current power, frequency, temperature, oil pressure, use, etc. Computer programs such as Excel serve for the registration and consumption of users. Another program – ETC Energy – is solely designed to manage invoices on the basis of individual consumption values that users can pay through a bank transaction90.

• Potential for energy services delivery and local development

Local development goes with rural electrification: Energy services are currently offered to currently 173 productive customers and private households as well as community facilities. It is further used for 42 public streetlights91. This spurs educational progress, not only as students have reading lights at night, but also as multimedia can be used at village level, such as TV sets, radio and personal computers. Furthermore, local infrastructure has been remarkably developed with the help of the project, including the creation of a local jatropha cooperative, a village electricity committee to represent the population in energy questions, and the construction of a powerhouse and offices. On the whole, at least 300 electricity connections serving over 3000 customers are the present result92. It further creates income for farmers and women’s groups who participate in the Jatropha seed production.

• Potential for duplication

The outcomes of the project indicate that decentralized energy solutions for a decentralized community are at stake.93 Renewable Energy can contribute to local sustainable development with reduced reliance on fossil fuel

89 Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008, 2-3; Wijgerse 2008, 10. 90 Wijnker 2008, 2-3. 91 Wijgerse 2008, 29. 92 Togola 2009, 8. 93 Ouattara 2008, 3. 51 and to a diversification of incomes. The Garalo community clearly supports the project which is precondition for its long term success. It is directed to be a model for future bio-energy projects94.

From a technical viewpoint, several upgrades are feasible, since the grid is already installed:

“- The use of other cables; thicker or other conductor and other insulation […] - The generator sets can be relocated - Parts of the system can be transformed to a higher voltage level - Extra generation can be used at a different location”95.

Yet, for an improved predictability of production, more research will be necessary to fully explore the different Jatropha species that yield between 2 and 20 tonnes per hectare96.

In order to share the experience of the Garalo project, several policies are foreseen:

The MFC Nyetaa has collected for a 1.8 million multi-partner project which will extend the Garalo model to ten other villages. Partners comprise SenterNovem (Netherlands), DOEN Foundation (Netherlands), Christian Aid, ACCESS and AMADER. The project aims at 1500 ha of Jatropha using intercropping techniques. A 500 kW capacity is to be installed equivalent to 2400 connections (diverse domestic and productive users, including cooperatives in target villages) assuring electricity access to 19 200 people; another 6800 will be provided by battery charging97. The extension of the Jatropha project entails the potential of improving the overall living conditions: electrification by itself enables the installation of lights, refrigerators, access to media such as radio and TV. This progress calls small enterprises into existence, for electricity and agricultural equipment supporting the local employment market. Thus, in ten neighboring villages, the replication of Garalo was studied and arranged based on participatory village discussions98. On a larger scale these dynamics will enhance economic development and hence make a lasting contribution to reduce poverty99.

Concerning the RE sub-sectors the Malian government puts much effort in further technology advancement in the RE sector which increasingly meets users’ demands. Efforts are additionally supported by duty and tax exemptions to encourage RE apart from the existing natural potential of solar and micro-grid solutions100.

• Precondition aspects

A minimum of economic potential at community level is required to profit from the early dynamics of the project and to sustain it on a long term view. As the president of Mali Folkecenter underlines, “sufficient time and resources to ensure community participation and appropriation” is therefore central101.

• Some key issues

A first hampering factor to a large scale installation of RE are at first the insufficiency of private and public finances, since access to loans is mostly very limited and biofuels suffer from a bad reputation among certain donors102.

94 Garalo Bagani Yelen – un nouveau paradigme énergétique pour le développement durable en Afrique. L’électrification des 10 000 habitants de Garalo à partir de l’huile de pourghère, MFC Nyetaa (Mali-Folkecenter) 2007, 2. Available at: bionecho.org/bamako/docs/MFC_Garalo07_fr.pdf (25.09.2009). 95 Cited from Wijgerse, Inge, 2008: The electricity system for a rural village in Mali, Master Thesis Sustainable Energy Technology, V. 96 Wijgerse 2008, 13. 97 Togola 2009, 14. 98 COMPETE Bioenergy Policies 2008, 70. 99 Garalo Bagani Yelen, MFC Report 2007, 11 100 Jumbe 2008, 28. 101 Cited after Tologa 2009, 10 102 Togola 2009, 17. 52

Secondly, there is a lack of skilled work force and an overall deficient involvement of the population in setting up and maintaining the projects as well as a lack of local production units. Often, no differentiation is made “between small scale locally oriented and sustainable biofuel activities and vast unsustainable monoculture projects”103. The competition between food and fuel production also impedes small scale sustainable projects. This and the small size of the national market result in an under-supply of the operators.104

A season-related problem is that of clearing fields to increase fertility and for livestock farming. This process often harms young Jatropha plants. Regular weeding presents a gentler alternative. As Jatropha is harvested at the same period as other crops, farmers are afraid of possible shortages of equipment and assistants for harvesting. If prices go up, additional workforces will become unaffordable.

• Financial burdens

Connection costs include internal wiring of each household which causes supplementary costs between 60 and 90 Euros. Over 400 households face this problem as they have already paid their connection fee. The existing tariff structure is problematic as well: As long as the number of users remains low, small scale users has relatively higher expenses as 6000 FCFA are a fixed price for 34 kWh or less. This would be only subject to change if the number grew significantly larger. A slight change in tariffs could enable more consumers to acquire a grid connection. It is currently being discussed between ACCESS and AMADER105.

• Satisfaction

Most villagers show an overall satisfaction with the project, due to the benefits from electricity and the opportunities tied to it. Despite the generally positive attitude towards the project, they are critical towards the tariff structure, the short availability of electricity each day, holding back larger users from buying electricity. Feedback from the government institution AMADER as well as from MFC is yet very optimistic: Among 40 electrification projects, Garalo turns out to be the most promising one as it is progressing fast, showing a good co- operation between all parties106.

• External factors

The water scarcity posed an initial problem to setting up the nursery, but was solved locally by digging out a well. Members of the woman association bridged the distance by transporting the water manually. This infrastructure proves to be of value. As the villages lack a tarred road and public transport in between, trading and economic exchange has not yet reached its full potential.107

103 Tologa 2009, 10-12. 104 Bioenergy Policies 2008, 20. 105 Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008, 4/6. 106 Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008, 6. 107 Wijnker 2008, 5. 53

Senegal

5.4 Fuelwood sustainable community-based management

The case study concerns mainly the Sustainable and Participatory Energy Management Project (PROGEDE). It is a program that embodies the Government will to address the degradation of forest resources caused by exploitation of wood-energy, given that the country, like the Sahelian countries will still depend on fuel wood for a long period.

The World Bank, the Kingdom of the Netherlands, the GEF and the Government of Senegal, have funded the project that aims at developing a strategy for domestic fuel market with interventions focused on three components:

1- A component “Supply Regulation» of woodfuel with:

• Participatory management of 402 696 ha of natural forests (setting up an environmental and forestry information system and organizing people into committees) for the production of wood energy; • Community reserves of biodiversity conservation around the Niokolo Koba national park; • Increase of the productivity of agro-pastoral production systems

2- A Component “Cooking Energy Demand Management” with:

• Distribution of efficient cooking equipment to households; • Promotion of alternative energy to fuel wood; • Development of a local industry of Jatropha oil; • Increase of the value of agricultural by-products (rice processing residues) and invasive plants into green coal; • Establishing a support fund within a micro-finance entity for economic operators in the sub-sector (craftsmen, etc.)

3- A component “Institutional environment improvement” in the domestic fuel sub-sector:

• Reform of the Forestry Code and forest taxation; • Reform of the organization of forest production; • Reform of the marketing system of products and cooking equipment (standards etc.).

The program's overall objective is to contribute to the household supply in domestic fuels, to protect the environment and provide Senegalese households with choice and comfort possibilities as well.

Location of PROGEDE Figure 12: Location of PROGEDE sites

The areas of intervention targeted for the management of wood fuels are the regions of Tambacounda and Kolda where the PROGEDE Project operates through its “Offer” component (forest management for wood-energy production). See Map in figure 12.

54

Technologies

On the forest management side, operations achieved on the basis of a development plan (divided into land sections). This development stems from a forest and pastoral inventory that shows the potential and possibilities of exploitation. Forest patching is undertaken based on its division into production, protection and agricultural areas. While giving clear vocations to these different parts of forest, a second division into blocks is set-up resulting in the formation of management units. Each management unit has eight (8) plots of which one (1) is exploited annually, resulting in a rotation of eight years.

Figure 13: Forest patching Map in the Neteboulou Community

For the carbonization, the technique used is the Casamance kiln the efficiency of which (between 30 and 35% on average) is higher than the traditional one (18%).

The Casamance kiln is of hybrid fabrication combining the Swedish kiln (skorstensmila) and the traditional Senegalese one (I. Ndiaye, 1988). It bears the name of the southern region of Senegal where it was invented in 1978 (E.G. Karch & I. N'diaye). This is an improvement of the traditional kiln by installing a chimney and a floor pan.

Of circular texture as the traditional Senegalese one, the Casamance kiln is equipped with a chimney (Swedish one, modified and adapted to local conditions - see photo). It is most of the time made of three 200 litres metal barrels welded to each other and which bottoms have been preserved by keeping fixed to the barrel just 15cm of width so as to form a baffle/chicane. This cools the gases by driving them in the bottom of the chimney where a small opening allows the recovery of pyro-ligneous acid tars (used in place of creosote for the treatment of products from teck plantations clearings).

The chimney which moves around the kiln activates its ventilation and reduces the duration of carbonization.

The kiln comprises in addition:

55

♦ A floor pan made of logs, 15 to 20cm in diameter, arranged in a radial manner with a small ignition hole in the centre. These logs are then covered with two layers of small wood of 3 to 7cm diameter circle placed to form the kiln’s grille. This floor pan or grille allows better air circulation;

♦ A radius the length of which depends on the amount of wood to bake. It varies from 2 to 6m (Source: Training Manual for ENATEF).

Tableau 19: Radius based on the number of wood steres Number of steres (cubic meters) Radius 20 2m 30 3m 60 4m 100 5m 150 6m

The slopes of the kiln must be comprised between 35° and 45°. If the kiln is too flat, there is a bad draw that results in a slow and irregular movement of gas and heat. This can lead to an extension of time of carbonization and a larger production of “not baked” wood.

A steep slope causes a shift of the soil layer which results in the appearance of cracks. These slots are air pathways into the grindstone and results in some places to complete combustion of wood. It results in a decrease of yield (Source: Handbook of carbonization ENATEF, 1980)

♦ Recovery in plant material and soil (see picture) is made with a layer of plant material followed by another layer of clay. The thicknesses permitted for soil and plant materials are respectively of 5 and 10 cm. Recovery helps prevent heat losses and contributes to rapid drying of wood, resulting in a more homogeneous combustion;

♦ Vent holes or holes for air: the holes are separated by 3m on both sides of the chimney so as to prevent the load of wood lying around it from carbonizing first, this would oblige the charcoalman to move it the opposite side, an extremely painful operation. The holes are evenly spaced of 2 to 3m. Carbonization consists of heating wood in a confined atmosphere in the absence of oxygen; a compliance with the spacing between vent holes allows homogeneous timber combustion. When the spacing between holes is reduced (1m for instance), wood combustion is very rapid and complete, resulting in reduced efficiency. The reverse process has the same effect if the kiln’s slopes are low.

56

The compliance with these peculiarities of the kiln can improve the process of carbonization for the following reasons:

• Better ventilation of the kiln or air flow control (the vent holes can be opened or closed depending on the different stages and according to the oxygen needs and the wind speed as well); • A downdraft (generated by the chimney, that is to say the wind enters through the vent holes, gases and fumes are formed and are evacuated through the chimney) increases quickly the rise of temperature up to 500 °C, thereby carbonizing large diameter wood while shortening the cycle time. This technique of downdraft also prevents the problems posed by the direct draft. With this downdraft, fumes circulate in the load of wood before escaping through the chimney. This provides a kind of self-regulation, a regular spread of heat inside the kiln as well as a homogeneous carbonization. • Recovery of pyroligneous acids and tar at the base of the chimney; • Reducing of the carbonization cycle (1 to 5 days depending on the size of the kiln Casamance); • Better quality of charcoal (Higher fix carbon content); • Greater weight efficiency (30 to 35%) for the kiln while the performance of a traditional kiln varies between 18 and 23%. This means that with the amount of wood equivalent to three (03) traditional ovens charred by the "Casamance" method, you win the coal production of a fourth kiln. This implies that generalizing this method could reduce the exploitation and deforestation by 25% (DUCENE, 2001); • Preservation of the environment through the recovery of pyroligneous acids and tars that no more percolate into the soil since recovered at the base of the chimney. They constitute also a source of income (the liter of tar is sold at 500 francs) for people and help fight against termites and reptiles. In addition, the floor prevents from burning the land in depth and allows replanting or cultivating after the carbonization, contrary to the traditional kiln.

Most of the wood used for charcoal production is usually cut when green, dried for two to three months before being hauled (See photo) and stacked on the site chosen for carbonization (carbonization platform). It should be noted that the wood drying before carbonization has a decisive influence on the charcoal production yield. The more the wood is dry, the less it will burn.

The stere making is a method that allows making into cubes the small wood pieces intended for carbonization. It allows knowing the volume of wood available before carbonization. The firewood is usually measured in stere. The stere is a unit that corresponds to a volume of wood contained in a cubic meter of stacked logs.

The performance of the kiln is still subject to the experience of the producer, including its ability to meet the standard technical norms prescribed.

57

6 Sustainability aspects for Case studies

The international debate on bioenergy, in particular on biofuels, has become highly expressed at several levels. The major concern has been around the negative effects of biofuels production and use and the focus has been on food security, environmental preservation and labor right.

Insuring the sustainability of bioenergy production is seen as a tool to prevent the negative effects based on sustainability criteria and indicators as well as principles.

Several initiatives have been launched and with respect to establishing sustainability standards and certification at national, regional and international levels. The criteria refer to three main sectors: i) Social, ii) Economic, iii) Environmental; in addition to others general criteria such as the compliance with other laws and agreements, the indirect land use change, the enhancement of the NGOs role, traceability of biomass and the improvement of conditions at local level.

This section will attempt to analyze the sustainability aspect for the selected case studies according to the common axes developed in sustainability initiatives: Economic, Social and Environmental. The analysis is based on quantitative evidences when they exist and on qualitative description using what is available as information in different related documents collected. A thorough analysis can only be conducted based on a focused field work, in-situ observations and interviews.

6.1 Sustainability aspects relating to Biofuel Production from Jatropha in Ghana

Economic issue

Although the economic impacts of the fledgling liquid biofuel industry is yet to become visible, the potential benefits of the industry to the Ghanaian economy promise to be significant. We have already indicated in section 4.1 some of the benefits that would accrue to the nation if Ghana were to cultivate 1 million hectares of jatropha for bio-oil/biodiesel production: something in the region of US$4.3 billion annually. Thus the biofuel industry is expected to bring in significant amount foreign exchange if the private foreign investors are obliged to retain a reasonable amount of their profits/revenues in Ghana. The industry will also help conserve foreign exchange since it will help reduce Ghana’s oil import bill which topped US$2.3 billion in 2008. For example, the proposal to replace 30% of national consumption of gas oil with biodiesel and 30% of kerosene with bio-oil by 2015 could lead to a reduction in the national petroleum import bill of between 15% and 20%. On the flip side however, this fuel-substitution policy if and when it comes into force will result in a reduction in government revenue from petroleum products since taxes on petroleum products is a major source of revenue in Ghana.

Social Issue

One area where the emerging biofuels industry has received a lot of flak has to do with the social impacts of the industry. Although the new industry is highly expected to help create jobs thereby creating new sources of income and livelihood for rural households, critics of the bioenergy revolution have expressed concerns that the unregulated acquisition of land for the cultivation of jatropha will lead to social displacement, landlessness and food insecurity among other things. So what are the evidences from the case studies?

Employment The case studies have confirmed that some employment has been created but the full employment potential of the industry has barely been reached since the majority of companies are a little bit inactive due to the global financial crisis. Biofuel Africa Limited said that about 400 people were employed at the peak of their operation but this has been reduced to 60 at the moment as a result of the slowing down of the company’s operations; Jatropha Africa Limited has employed a total of 5 full time employees and engaged 220 outgrowers; Gold Star Farms has employed about 100 employees on their 8 farms and 12 managerial/administrative staff.

58

We don’t have records of the number of out-growers GSFL has engaged at the moment but report that it has secured the commitment of farmers to grow up to 5 million acres of jatropha suggests that there could be a lot of out-growers working with JSFL.

Land Acquisition, Displacements and Landlessness The case studies have revealed that there are serious concerns within civil society and even government regarding the mode and processes being used by private entrepreneurs to acquire land for their jatropha plantations. Such concerns are founded on the fact that prevailing land tenure systems permit chiefs and family heads to unilaterally dispose/release large tracts of land without recourse to their subjects thereby potential creating a landless class in the communities. A typical case that received extensive media coverage (both local and international) is the campaign launched by the Regional Advisory and Information Network System (RAINS) against Biofuel Africa Ltd concerning the way the latter (BAL) acquired large tract of land in Northern Ghana for cultivation of jatropha curcas in late 2007. According to RAINS, BAL’s acquisition of 23,700 hectares of land in Northern region had forced inhabitants of seven farming communities out of their lands without any provisions for alternative land or payment of compensation. Quoting a number of farmers who claimed to have lost their farmlands on which they used to farm without any prior notice nor compensation, RAINS accused BAL of having ‘illegally’ acquired those lands and proceeding to develop them without permit from the appropriate authorities. The RAINS campaign led to the suspension of BAL operations in those villages. In response to the RAINS allegation, BAL categorically debunked all the allegations insisting that due process was followed in acquiring the lands, which in any case were degraded area with very little farming activities. BAL pointed out that although no cash compensation was paid, it gave the 25 farmers whose 22 hectare farm fell within their 400 hectares plantation two reasonable options: 1) either to continue farming on the land, or 2) to move to a new land within the same area, cleared and prepared by BAL. BAL insists that ‘there was never a relocation of farmers since they would have left to other lands prepared at their own expense anyway. The company added that all farmers who took their second offer were given new and fertile land in return. As a result of this, BAL said they have cleared and plough additional 220 hectares for local farmers, which on the contrary, has led to “over 880% increase the areas for food production”. It is not possible for us to validity the claims and counterclaims made by either party. What is certain however is that this could be just one of the many instances where some voiceless citizens might or could have, either wittingly or unwittingly, lost agricultural land to bioenergy production. Indeed a recent phone-in programme held on JOY FM (an Accra-based radio station) on the biofuel industry seems to suggest that there are a lot more farmers in Ghana who may have lost their arable lands to the cultivation of biofuel feedstock. The majority of those who called into the programme said they were farmers or knew of farmers whose lands hard been taken away from them by landowners and given to foreign investors for the cultivation of jatropha. The likelihood of this incidence repeating itself across the entire country is high considering the fact that there is currently no regulation in place to check such practices. It should be pointed out however, the implication of large scale cultivation of jatropha and other bioenergy crops for land rights and land access have not yet been fully studied and experiences from the case studies do not allow for a generalization as to whether risks exist for small farmers.

Biofuels and Food Security

Although the case studies have shown that portions of hitherto agricultural lands have been taken over by jatropha, the evidence does not point to the fact that the bioenergy industry poses an immediate threat to food security in Ghana. This conclusion is premised on two reasons: 1) that the industry is not at present focusing on feedstock from food crops, and 2) that only 51% of total land area suitable for agriculture is currently under cultivation. This notwithstanding, it is still possible that there will be (and possibly are) location-specific challenges to food security in Ghana whenever individual subsistence farmers are deprived of their farmlands and by extension their sources of livelihood. This calls for a more stringent and well-regulated land acquisition process.

Access to Modern Energy

The case studies have shown that the liquid biofuels being produced or expected to be produced are not intended for local consumption; virtually all the companies involved so far are targeting the export market.

59

The use of the pure vegetable oil from Jatropha curcas for rural electrification, lighting, cooking and mechanization have not yet featured in the plans of private investors. The draft biofuel policy talks about local fuel substitution but this is far-fetched at the moment since the policy is even yet to be endorsed.

Environmental Issues

Bioenergy crops may have a wide range of effects (both positive and negative) on soils, water, air quality, habitat and GHG emissions. The net effect will however depend on the particular type of energy crop and the previous use of the land, the cultivation methods adopted, the overall effort to integrate the crop with regional landscape ecology, etc. It is important for all these impacts to be comprehensively assessed and mitigation strategies identified before any large scale development of bioenergy resources commences. Even though, Ghana has no policy, regulations nor structures in place specifically for the biofuels industry, the Environmental Protection Agency Act, 1994 (Act 490) requires that any company or person cultivating any land in excess of 10 hectares for any purpose whatsoever is required to conduct an Environmental Impact Assessment (EIA) for approval by the EPA. The case studies have shown that virtually all of the over 20 biofuel companies, with exception of one – Biofuel Africa Limited108 – have not conducted the EIA and thus were without the EPA’s permit to commence operations. This is worrisome given the rate at which large jatropha plantations, in most cases in excess of 10 hectares, have been established throughout the country. This is not a healthy development because there is proven scientific evidence that any increased landscape homogeneity due to single crop expansion, either at the local or national level, would be highly detrimental to biodiversity.

6.2 Sustainability aspects relating to the FAPSEED Project in Ghana

The FAPSEED project as described throughout the previous section has been designed to address all major sustainability issues associated with bioenergy production. The project will score high marks when run against the UN Energy sustainability indicators for bioenergy and represents an interesting case of how bioenergy can be used as tool for socio-economic development. The challenge has to do with successful implementation of the project. However, all relevant project partners, especially the GOPDC and the EC, have demonstrated such unflinching commitment to the project, which makes the project highly likely to be completed. Successful implementation and demonstration of the technical feasibility of the project will lead to the replication of the project in the other oil processing mill and food processing industries in Ghana and in the West African sub- region.

6.3 Sustainability aspects relating to the Jatropha Project in Mali

General principles are guiding the intervention of Mali-FolkCenter in the field of bioenergy. These principles comprise the following aspects109: • Exclusion of competition with food production through small scale exploitation • Sustainable small scale projects rather than few large scale monoculture projects • Priority to local use of biofuels with benefits to local population • Maintaining the existing land ownership and tenure patterns to avoid social unrest • Secondary position to international markets (insatiable market)

In addition, Mali Folkcenter is seeking to develop National Sustainability criteria for bioenergy based on three pillars as follow: 1. Local Production: generation of new source of income to combats poverty; Using intercropping & sustainable agriculture techniques, No irrigation or chemical fertilizer, No risk to food security 2. Local Transformation: Local added value, Local job creation, Press cake used as organic fertilizer 3. Local Use: Meet local energy needs first; Stimulates concrete local economic development

108 BAL is the only company to have completed an EIA and obtained EPA permit to work on the 23,700 hectares of land it has acquired. 109 Ibrahim Togola, COMPETE Final Conference, November 2009. 60

Sustainability aspect of the Garalo Jatropha project:

Economic aspects

The Jatropha project in Garalo village was implemented at a local level. In the section below, sustainability is analyzed at the microeconomic scale. The analysis is based on some qualitative information.

A co-operative of producers (CPP) encompassing all the villages has been set up for the purchase, commercialization and processing of the Jatropha seeds by a co-operative owned press. The co-operative is also responsible for the distribution to its members of the revenues generated by these activities on average twice a year. The agreed current price is currently 9.8 cents per kg which should allow both a reasonable margin for the farmers and a competitive selling price of Jatropha oil110. Instead of revenues drain, there is a principle of local value creation. MFC states that the micro economic indicators are satisfactory111. In addition, 15 years of clean electricity production will transform the local economy. The Power plant is run either by Jatropha biodiesel or diesel.

Apart from obtaining new income sources, especially for families and women the Jatropha system incorporates another essential benefit: The costs saved at national level due to diminished fuel imports can be reinvested at the local level so that the cultivation and selling of seeds covers the famers’ personal energy costs112. On food security side, the inter-cropping model (Jatropha in association with other crops for food) which is being largely used contributes to limiting the negative impact on food security113.

Social aspects

The whole model in the case study is based on the land ownership of small-scale farmers and the availability and status of the land. The guiding principles mentioned above safeguard social interest of the population and so far, there no critical issues related to Jatropha plantations in Mali. The national sustainability criteria initiative launched by Mali-Folcenter will help better preserve social rights for local communities.

Environmental aspects

It is stated that the Jatropha requires less water and fertilizers when compared to other crops. It is stated also that the positive environmental impacts can be associated to the possible use of the residues as an organic fertilizer. As long as specific techniques such as organic direct planting, permanent soil cover, and crop rotation are taken into account, the plantations can prevent erosion to a large extent; they maintain soil stability and organic matter content.114. It is also possible to make an energy use of the cake to produce biogas115. 1 Kg of Jatropha oil and 3 Kg of residues can be produced from pressing 4 kg of Jatropha seeds. Revenues from residues sale can improve the economic performance of the Jatropha system […]. An area of 1000 hectares of Jatropha plantation can deliver 2250 tonnes of organic fertilizers that contribute to the reduction of chemical fertilizer and improve the soil productivity116.

110 FAO Final Report 2009, 53. 111 Garalo Bagani Yelen, MFC Report, 10. 112 Garalo Bagani Yelen, MFC Report, 10. 113 FAO Final Report 2009, 51. 114 Roundtable on Sustainable Biofuels 2009, Part I, 3. 115 FAO Final Report 2009, 51/52. 116 Garalo Bagani Yelen, MFC Report, 10. 61

6.4 Sustainability Aspects relating to the Solid biomass Project in Senegal

Economic Aspects

The annual turnover for the controlled wood-energy amounts to about 6.5 billion FCFA [M. SENE, June 2008]. This turnover does not include the uncontrolled flow of charcoal. Given that the demand for charcoal evolves rapidly, this figure should increase in coming years accordingly to the raise of both urbanization and population in Senegal. As stipulated in a study conducted by the World Bank in 1993, Senegal will, for a long time, continue to depend on charcoal which is strongly rooted in the culinary habits. In addition, one can note the high price of gas with the State's phasing out of subsidies. Hence, the market situation is very favorable to the production of charcoal that may help generate sustainable gains.

Estimation of the capacity of the forest fee to cover the cost of forest regeneration

Works carried out on the determination of the cost of facilities, considering the pattern PROGEDE is implementing, lead to fix a cost of 4722 francs per hectare117. Taking as a reference an area of 300 000 ha, the analysis that led to this cost comprises the assessment is based on:

Direct expenses: 813,308,278 F CFA

Participatory and integrated approach cost: 201,877,878 F CFA Operation expenses allocation (Supply side): 611,430,400 F CFA

Indirect expenses: 603,403,495 F CFA

Aerial photographs in Inventories: 146,791,585 F CFA Operation expenses allocation: 456,612,910 F CFA

The total cost is 1,416,711,773 F CFA and a cost per hectare of 4722 F CFA

To compare this cost to the amount of the fee (royalties), it is necessary to appraise the potential for timber production of the types of management in question. In this regard, the ecological and forest inventories carried out have permitted to determine accurately the forest areas ready for exploitation in the regions of Tambacounda and Kolda and identify exploitable potentials in a prospective sustainable management of forest resources.

In the light of these strata within the forest formations submitted to management (i.e. the shrub savanna, tree savanna, woodland savanna, open forest and fallow), an average potential of 7.15 m3/ha of exploitable wood- energy was achieved for all the natural forests formations of Tambacounda and Kolda. It is about 1.44 tons of charcoal/ha. This considers that the coefficient for dry wood is 0.65 m3 to 0.45 ton and assumes that one uses the Casamance kiln with an efficiency of 0.35.

The operating system adopted by the PROGEDE advocates the removal of 50% of usable volume, corresponding to a productivity of 0.7 tonnes of charcoal per hectare or the equivalent of 14 bags of 50 kg.

The forest fee corresponding to the 14 bags is 14 x 350F or 4900F, an amount that exceeds the management cost estimated at 4722 F. In fact, this comparison suggests that the fee covers largely the regeneration cost of the resource, if we assume that indirect costs are not necessarily attributable to regeneration of resources and that once the management made, maintenance of parcels on the eight-year period corresponding to the exploitation rotation is inexpensive. In the logic of transferred powers in particular, this maintenance must be local communities' duty, from deductions collected in the sale of charcoal produced in community fixtures.

117 Moussa FALL, Graduation research report, INSA 62

Assessment of involved actors’ incomes

The estimation of the revenue that different actors derive from their respective activities is based on the pricing of the bag of charcoal.

After three months of operation, the “sourgha” is able to produce a track capacity of 300 bags, or a total income of 270 000 F FCA. With two trucks in the year, the “sourgha” earns the equivalent of a monthly income of 45 000F or about 100 U.S. dollars. If this amount may seem insufficient compared to the tremendous efforts deployed by the “sourgha”, it remains significant in the context of the production area and compared to other activities. A farm worker hired in the area earns approximately 200 000 F for a period of about six months. For a comparable period, a hired shepherd is paid between 100 000 F and 200 000 F depending on the importance of the herd.

When it comes to exploitation conducted by local populations, the term Management and Development Village Committee (CVGD) may suggest that production is done in a group in a community setting. In fact, the exploitation is done on a rather individual basis, each head of family managing to produce according to his ability and availability. Local people are able to hold simultaneously charcoal production with traditional activities, without major problems, including fieldworks. The men deal with it whereas women take care of vegetable crops. A household happens to produce the equivalent of a truck capacity during the off season, without too much difficulty. With a net margin of 720 F/bag, if the sale takes place on the field, the member CVGD earns an average income of 216 000 F. If he manages to convey his production to Dakar, the gain amounts to 684 000 F.

The net margin derived from the transportation of charcoal is estimated between 103 200 F and 196 800F per trip, depending on whether the load is 300 bags or 400 bags, usually it is about a return cargo. Assuming that the outward margin is the same and the vehicle makes two trips in the month, the carrier earns a monthly income estimated between 206 400F and 397 600 in terms of charcoal coal transport.

As far as the forestry operator is concerned, it should be noted that the margin generated amounts to 381 000 F per truck capacity of 300 bags. To benefit from this margin, one must be authorised and then pay 105 000 F of fee. In forest area, a cutting license refers to a 300 bag loading truck. This explains that on quota trafficking, a license can sell for up to 400 000 or even 500 000 (for its potential value is 486 000F). It is admitted that the license be sold at a price agreed by comment consent, or else share the margin after completion. One mode in practice for circumventing the quota mechanism consists in the delivery of a proxy by the grantor to the purchaser operator. If we consider that the average quota allocated by operator in 2008 is the equivalent of 3617 bags (340 000 quintals for 188 authorized operators), the average annual margin can be estimated at 4 593 000 F, if the quota is completely carried out. This margin amounts to 3 674 400 F if the quota carried out by 80%. The quota decrease trend per operator because result in the fact that many operators are left with quotas representing few truckloads and prefer therefore to sell to other operators. Regarding the intermediaries (“coxeurs”), they receive a margin of 150 000 F by 300 bags truck. Based on the fact that the regular supply of Dakar is six trucks each loading about 350 bags a day according to the grading from Bargny, we can estimate that the 23 intermediaries approved by the UNCEFS118 sell on average half of deliveries, an average of 4 trucks per month, or approximately 700 000 F as monthly income. It should also be borne in mind that many intermediaries have several parks at their disposal managed by resellers. This means that the estimates above are only part of actual earnings. It is estimated that only 47% of the retailers have their own parks119.

Global economic impact estimation of charcoal industry

Considering the same charcoal pricing and applying it to the operating program of the forest campaign in 2008, it is possible to simulate the macro-economic impacts of the sector, particularly through the allocation of its turnover between the main participants, or otherwise on the basis of the main functions.

The following table provides the results of this simulation.

118 Union Nationale des Coopératives d'Exploitants Forestiers du Sénégal/National Union of Forests operators Cooparatives 119 PROGEDE INGESAHEL Study 63

The analysis is conducted considering three possible patterns of marketing:

1- Production made under contract by operators who carry out their sales in the main urban markets, Dakar being considered for this exercise; 2- Village committees Producers members who sell on field part of their production (half is regarded as hypothesis); 3- The other part of the production of village committees is supposed to be sold on the market in Dakar, as is currently the case.

It should be noted that:

30.8% of sales goes to the distribution, notably intermediaries and retailers, the distinction between them is really hard to do; 21.5% is for transport; 17.2% is the margin of operators; 16.6% represents the share devoted to production activities (hired workers i.e “sourghas” and village committees).

Tableau 20: Turnover constitution based on marketing channels Production under contract and collection Local Production National Quota on field evacuated to Dakar Contracting: 340000 Collection on field: 160000 bags 500000 quintals tonnes or 680000 bags 160000 bags or 1 000 000 bags 1. Forest fee 238 000 000 56 000 000 56 000 000 350 000 000 2. «Sourgha» registration 3 400 000 3 400 000 3. Renewal of professional card 6 800 000 6 800 000 4 Remuneration to «sourghas» 612 000 000 107 200 000 364 800 000 1 084 000 000 or local producers 5. Superviser's remuneration 34 000 000 34 000 000 6. Handling (loading+ 102 000 000 24 000 000 24 000 000 150 000 000 unloading) 7. Deductions for local 153 000 000 28 800 000 28 800 000 210 600 000 authorities CR: 61 200 000 CR: 14 400 000 CR: 14 400 000 CR: (90 000 0 8. Depreciation of the 34 000 000 8 000 000 8 000 000 50 000 000 production equipment 9. Licenses and visas of 34 000 000 8 000 000 8 000 000 50 000 000 «Waters and Forests» offices 10. Reforestation fund levies 13 600 000 3 200 000 3 200 000 20 000 000 Municipal taxes 13 600 000 3 200 000 3 200 000 20 000 000 Transport 952 000 000 224 000 000 224 000 000 1 400 000 000 Operators' margin 863 600 000 257 600 000 1 121 200 000 «Coxeurs»' margin 340 000 000 80 000 000 80 000 000 500 000 000 Retailers' margin 1020000000 240 000 000 240 000 000 1 500 000 000 Turnover 4 420 000 000 1 040 000 000 1 040 000 000 6 500 000 000

The result of these figures leads us to conclude that the distribution channel of coal accounts for almost one third of the income generated by the industry. If we add the share of transport and the margin of operators, 70% of incomes are shared in the process.

64

By taking aside the State taxes and trying to estimate the share of turnover which is supposed to remain in production areas, it turns out that these areas receive but a small share (20.5%) out of the whole revenue generated. Hence, there is a need to promote a better integration of local population in the operation process.

Environmental aspects

At the environmental level, the necessary arrangements made through the management plans (patchy, usability criteria and improved carbonization techniques, protection of ponds and streams, etc.) ensure sustainability of resources. In fact, in managed areas, we note the strong decrease in clearings for the sake of farmlands needs. The committees supported in terms of inputs in order to diversify productions have set up multi-purpose gardens to develop horticulture as well as an intensification of cereal and pastoral productions let alone the incomes generated from the production of charcoal.

Thus, perimeter firewalls opened around managed forest formations along with internal firewalls provide protection of forests against wildfires that are a key factor of forest formations degradation.

Similarly in order to fight the scourge of wildfires, the endowment of committees with fighting equipment against wildfires has greatly increased their ability to quickly control the fires that happen to break out.

As traditional beekeeping was originally identified a frequent cause of wildfires because of fire torches used to keep the bees away, PROGEDE introduced an improved apiarian technique through the introduction of Kenyan hives. This technique allows the collection of honey without the use of fire but with a wetsuit to protect beekeepers from the sting of bees. Collection techniques that spare larvae grubs ensure the sustainability of bee populations.

The management plan greatly increases the appropriation of resources by the population. In fact, people watch over demarcated managed areas and the planning of their use is known of local partakers to such an extent that fraudulent cuts are almost impossible. In these areas the appearance of species, highly endangered before, such as the porcupine, is currently noticed. In managed areas, deforestation is avoided and the degradation of natural habitats greatly reduced.

Social issues

The high demand for charcoal and the possibilities given to people living beside forests to exploit managed forests for their region allow job creation to be maintained or even increased, and provide considerable gains. These fixtures also allow forests managing local authorities to have an efficient command of their land through the management plan.

There was a great increase in technical and organizational capacities of local populations living beside managed forest formations. In fact, villagers organized into village and inter-village committees negotiate with forest operators so as to get access to the resource.

A study showed that extra income earned by rural populations serves to improve food, savings, and housing in the areas of intervention. In the consumption centres (Dakar), the project has assisted young people to improve the presentation and distribution of charcoal. Charcoal is used to be sold in town by Guineans inside enclosures poorly maintained. Young people supported by PROGEDE project have developed initiatives to pack the charcoal in brown wrapping paper and placed in district and energy shops so that coal can be purchased at any time and under cleaner conditions. This has created jobs in urban areas because promoters are hiring young people for charcoal packaging.

65

7 CERTIFICATION ISSUES

The case studies have demonstrated, among other things, the potential contribution of bioenergy to the socio- economic development of developing countries. However, they (case studies) have also shown that the development of the biofuel industry ought to be carried out in a sustainable manner otherwise some unintended outcomes would occur that can easily negate the benefits of bioenergy. Certification, defined as a procedure by which a third party gives written assurance that a product, process or service is in conformity with certain standards, offers a significant opportunity to qualify bioenergy/biofuels as a truly sustainable energy source. Consequently, there are a number of initiatives globally by national governments, development partners, civil society organizations and the private sector to set standards and develop certification schemes aimed at ensuring that biofuels are produced in a sustainable manner.

Ghana does not have any certification scheme for bioenergy in place nor is any such scheme even in the offing. The draft National Biofuel Policy recommends that “a quality of service standards be developed and enforced through legislation by the Energy Commission/National Petroleum Authority”. However, this policy recommendation only focuses on extreme end of the biodiesel production chain – “ensuring that quality of biodiesel supplied to market is of high standard” – and not the entire chain.

To ensure that biofuels produced in Ghana are acceptable in the European market, which appears to be the likely destination for the bulk of the planned production of biofuels, it is important for Ghana to establish a comprehensive sustainability standards and biomass/biofuels certification system before commercial production of biofuels commences. Although the development of certification scheme can be very involving, Ghana needs not reinvent the wheel as there are a number of standards and certification schemes that can be comparatively analysed and adapted to suit the Ghanaian context.

In Mali, as discussed in Section 6.3, general principles guide the intervention of Mali-FolkCenter in the field of bioenergy. In addition, Mali Folkcenter is seeking to develop National Sustainability criteria for bioenergy based on three pillars as follow: 1) Local Production; 2) Local Transformation; and 3) Local Use. However, Senegal does not have any certification scheme for bioenergy so far.

In Senegal, and with respect to solid biomass, the current implementation level reached by the management of natural forest formations for timber production and achieved with PROGEDE can now allow locating of the whole exploitation of charcoal quota within managed areas. Thus, some stakeholders are currently claiming the increase of forests managed in order to expect a drop in the price of charcoal and mitigate the impact of the poverty of populations. But this requires the setting up of a certification policy for charcoal exploited from managed areas to make sure that production:

- Does not break into the forest capital and biodiversity; - Does not generate greenhouse gas emissions; - Guarantees the rights of rural populations in relation to local natural resources (forests, land etc.); - Ensures the needs of populations in forest products and services etc. but this implies that the institutional provisions for the determination of the principles, criteria and indicators of sustainability consensus are in place, and this is not yet the case in Senegal.

The development of certification is progressing slowly in Senegal. A national committee has been created but the process of setting up the mechanism is still unfinished.

66

8 EXISTING BARRIERS

The key barriers to effective development of the bioenergy are the following:

Absence of comprehensive national Bioenergy Policy In Ghana for example, there is no formal national policy on the development of bioenergy. A draft national biofuel policy that was prepared in 2005 has not been endorsed and operationalised as yet. This policy even had a limited scope since it focuses only on production of biofuels from jatropha curcas but did not consider other feedstocks. Similarly a draft National Renewable Energy Strategy (NRES) developed in 2002 under the DANIDA- funded Renewable Energy Development Programme (REDP) never got implemented. A draft Renewable Energy Bill prepared in 2009 and awaiting parliamentary enactment only focuses on production of electricity from renewable energy sources. However the draft bill recommends, inter alia, the development of a Renewable Energy Policy for Ghana. This lack of clear-cut and comprehensive policy direction and strategy for harnessing Ghana renewable energy potential has been identified by stakeholders and experts as a major bane to the development of the industry.

The same situation in Senegal, where there are but broad indications on bioenergy within the Energy Policy Paper and a specific household energy policy paper that mentions bioenergy among other domestic fuels. Bioenergy from Jatropha is subject to a separate national programme without regulatory or institutional framwok for its implementation. The bioenergy strategy is failing to emerge in Senegal as well.

Lack of incentive mechanisms, including appropriate financing schemes All over the world, bioenergy industries have tended to thrive mainly in jurisdictions where significant amount of government support, in the form of subsidies, special tariffs, tax breaks/holidays and ‘soft’ loans, have been provided. To date large amounts of government subsidies have been provided to liquid biofuels in countries like Brazil and the USA and this has led to phenomenal growth in the industry in these countries. There are no such incentive schemes in African countries. Private entrepreneurs venturing into commercialization bioenergy have often bemoaned the virtual lack of access to financing schemes. They have always complained about unwillingness of local financial institutions to provide loan facilities on favourable terms for the development of the industry and have consistently called on the government to come out and support the emerging industry. One could argue that the lack of financial/fiscal incentives is the direct consequence of the lack of policy framework for bionenergy development.

Absence of high quality planting materials and feedstock Access to high quality planting material (seeds and seedlings) is a prerequisite for successful cultivation of jatropha on a large scale. However, there is currently limited stock of high quality seeds and other planting materials for the propagation of jatropha curcas, the preferred feedstock for the production of biodiesel in Ghana. Vegetative propagation is the main method for cultivating jatropha Curcas in Ghana. This has, among other things, delayed commercial production of biodiesel or pure vegetable oil in Ghana since harvested seeds have to be used as planting materials on the large acreages of jatropha plantations being cultivated.

Relatively High Cost of Bioenergy For technologies such as domestic biogas systems, the initial cost of the technology – estimated to be between US$1,200 and US$2,600 for a 6m3 biogas digester – is high for rural households who are unable to afford. The high up-front cost has been identified as a major barrier to the commercialization of biogas technologies in Ghana.

Institutional/Bureaucratic Barriers In Ghann for example, some private energy entrepreneurs who have attempted to generate electricity from municipal solid waste have complained about the difficult in securing the approval and collaboration of the municipal/metropolitan authorities, even though they have power purchase agreements from the utilities.

Feedstock Availability In the case of agricultural residues, there are concerns about their availability; not in terms of total volumes but in terms of having the right quantities at specific locations. In view of the fact that subsistence agriculture is the

67 predominant farming practice in West Africa, agricultural residues are usually dispersed and insufficient at specific locations. This situation means that a lot more resources would need to be expended collecting the residues to the points of usage, which will lead to an increase in the cost of production of bionergy from crop/animal residues.

Market and private sector involvement issues These kinds of barriers were identified in the case of Senegal with respect to forest management for solid bioenergy supply, they include:

Difficulties for the private sector to assume or participate in structuring investments such as forest inventory, aerial (air) photographs, feasibility studies etc.

The lack of good and comprehensive knowledge on charcoal market for new involved actors.

High interest rates charged compared to the level of profitability of coal production projects and bioenergy in general as well (Support Fund PROGEDE);

High collateral security compared to the financial capacities of economic operators in question;

Financial profitability of improved cooking equipments lower than products / traditional equipments (additional costs);

Difficulties of penetration for the improved cooking devices market (purchase price barrier, information, etc...)

In terms of the involved actors’ ability, the barriers are:

The need to master the confection of efficient carbonisation kilns by local producers;

The difficulty of acquiring the manufacturing techniques of improved cooking devices as well as the compliance standards

The technical mastery of cutting plots to operate and the difficulty of overcoming the extra efforts required to meet the requirements of management plans (greater distance in the plots of cutting, stere making, respect of carbonization platform, etc...)

68

9 POLICY RECOMMENDATIONS

Based on the findings from the countries case studies, the following policy recommendations are proposed for consideration of Policy-makers in West Africa towards the scale-up and commercialization of the bioenergy industry:

• There is an urgent need for a comprehensive and holistic renewable energy policy to be developed in respective West African countries. Such a policy would have to cover all forms of renewable with bioenergy being a sub-section in the policy document;

• The preparation of such RE policy should cover the full menu of renewable energy technologies and not elaborated on a piecemeal basis - focusing only on selected technologie;

• The policy document should, among other things, include clear targets for the various forms of renewable energy and must have a cross-sectoral focus;

• Following the development of National Energy Renewable Policy, a strategy for harnessing the nation’s renewable energy potential should be developed to help achieve the policy objectives set out in the policy document. The strategy should include incentive schemes (fiscal, financial, regulatory, etc) that will help enhance the competitiveness of bioenergy vis a vis conventional fuels.

• Social and Environmental standards should be set to compel all bioenergy actors (Investors, farmers, industries, forests’ operators, transporters, local communities, etc.) to adopt cost-effective technologies to meet the set standards for all bioenergy forms.

• Adoption of adequate financial mechanisms and partnerships to enable rural people and local communities to derive maximum benefit, etc.

• Ensure proper policy certification of timber forest products including charcoal so as to ensure sustainability;

• Involve the private sector in the implementation of participatory forest management.

69

10 CONCLUSIONS

The countries case studies analyzed in this report have shown that West Africa has abundant bioenergy resources that can be harnessed to provide much needed modern energy services in rural areas to catalyze development in these areas. Unfortunately, this potential remains largely untapped while current uses of bioenergy resources endanger both the local and/or global environment as well as contributing to aggravating the poverty situation of rural households.

The recent biofuel craze in Ghana that has led to a mad scramble for land in the absence of policy and regulatory guidelines has highlighted some of the potential sustainability issues that uncontrolled/unplanned development of the biofuel industry can engender in Ghana. Although, Ghana currently have enough unused land as well as degraded lands that can be used to cultivate jatropha and other feedstock, the indiscriminate acquisition of land – usually through bilateral negotiations involving traditional rulers and/or individual farmers on one hand and foreign companies and their Ghana counterparts on the other hand could create landlessness, food shortage, etc in some rural areas. This has to be checked and so must the ecological and environmental consequences of large jatropha plantations be investigated and dealt with.

The Malian experience has shown the important potential for small scale jatropha projects to boost up local development based on decentralized power generation from a local resource. Mali is vigilant with respect to food security concerns and on the priority for modern bioenergy to insure local communities’ needs instead of international markets. In Mali, the national Strategy for the Development of Biofuels defines the regulatory framework for bioenergy. The National Agency for Bioenergy (BIOCARMALI) has recently been created and will operate these policies and strategies. In addition the new agriculture legislation in Mali includes specific consideration for energy production from Agricultural crops. The “Loi d’orientation agricole”, recently adopted, focuses on biofuels production to meet rural energy needs. All these measures express the strong political will to further develop the Bioenergy sector.

In Senegal, forest exploitation for wood-energy production has always been a major cause of degradation of forest resources. The areas that could be exploited have shifted from north to south-east which contains the latest forestry potentials. To reverse this trend, Senegal has been practicing a market oriented strategy so as to streamline the wood- energy supply, to rationalize the households’ energy demand for cooking and consolidate the institutional environment of the households energy sub-sector. Participatory and integrated management plans have been implemented to prevent removals and degradation of forest formations. These plans have enabled the increase in forest assets and the valuation of forest products. There was then a high environmental gain and a better organization of local communities as well as the increase of their income. The promotion of improved stoves in the targeted areas has allowed a more important saving in energy consumption. To increase the impacts of this initiative, the certification of products, the involvement of the private sector, the transparency in resource allocation, etc are the institutional measures that must be taken.

Currently, there are some major barriers impeding the development of the bioenergy industry that need to be tackled as a matter of urgency. These include: the absence of policy and regulatory framework for the industry and with it the absence of policy instruments and strategies for promoting widespread adoption and commercialization of bioenergy; high upfront cost of certain technologies; Lack of incentive mechanisms, including appropriate financing schemes.

In tackling these barriers, the study recommends, inter alia, that a comprehensive and holistic national renewable policy document should be developed; that targets and incentive mechanisms be put in place to ensure a level playing field for bioenergy; and environmental standards ought to be tightened-up to compel stakeholders to adopt cost-effective and environmental-friendly energy systems/technologies.

70

Bibliography

Central Intelligence Agency. (2009). The World Factbook: Ghana. Updated October 28, 2009. Retrieved from https://www.cia.gov/library/publications

Dogbevi, E. K. 2009. “Biofuel Africa Produces First 50 Barrels of Biodiesel from Jatropha”. Retrieved from https://www.ghanabusinessnews.com

Energy Commission. (2005) Strategic Energy Plan and Policy: 2005-2020, Vol. 1

Ghana National Petroleum Corporation (GNPC). 2008. Status Report on the Jubilee Field Oil and Gas Development

Ghana Statistical Service (GSS). (2002). 2000 Population and Housing Census Report. Accra, Ghana

Ghana Statistical Service. (2008). Ghana Living Standards Survey; Report of the Fifth Round (GLSS 5), Accra, Ghana

Johnston M & Holloway T. 2007. A Global Comparison of National Biodiesel Production Potential, Environmental Science and Technology, Vol. 41(23) pp: 7967-7992

KITE, (2007). “Review of Jatropha Initiatives in Ghana”. Report submitted to the UNDP Agenda for Growth Project

KITE, (2008). “Feasibility Study of Domestic Biogas in Ghana”. Report submitted to the Shell Foundation.

KITE. (2009). “Biomass Energy for Sustainable Development: An Assessment of the Feasibility of Using Agricultural Residues and Municipal Waste to Produce Modern Energy Services in Selected Communities in the Eastern Region of Ghana”. Final Report Submitted to the American Physical Society

Koopmans, A. and J. Koppejan, 1997. “Agricultural and Forest Residue – Generation, Utilization and Availability”, Paper presented at the Regional Consultation on Modern Applications of Biomass Energy, 6-10 January, Kuala Lumpur, Malaysia

Mensah, A. and E. Larbi. 2005. “Solid Waste Management Disposal in Ghana”, WELL Factsheet – Regional Annexes in Developing Countries, November

Ministry of Energy, 2002. “Draft National Woodfuel Policy”

Ministry of Energy, 2005. “Draft National Biofuel Policy”

Ministry of Food and Agriculture (MOFA), 2007. Food and Agriculture Sector Development Policy (FASDEP II)

Ministry of Lands and Forestry, 1994. Forest and Wildlife Policy of Ghana

National Development Planning Commission (NDPC). (2009). 2008 Annual Progress Report, Accra, Ghana

Onua Amoah, 2006. “Jatropha: A Catalyst for Economic Growth”. Paper Presented at a Regional Workshop on Financing Biofuels and Jatropha Plantations, La Palm Royal Beach, Accra, Ghana, 13-14 November. Retrieved from http://www.unctad.org/sections/wcmu/docs/ditc_comb_jatropha001

71

Oteng-Adjei, J. (2009). “Energy for Growth – Vision and Agenda”. Statement presented by the Minister of Energy at a Press Conference, May 5

WHO/UNICEF. (2008). Coverage Estimates for Improved Drinking Water and Sanitation. Joint Monitoring Programme Report.

World Bank. (2009). Country Brief: Ghana. Updated September 2009. Retrieved from https://www.go.worldbank.org/OAKWTY7640

Yeoh, B. G. 2004. “A Technical and Economic Analysis of Heat and Power Generation from Biomethanation of Palm Oil Mill Effluent”. Paper Presented at an International Conference on Electricity Supply Industry: Issues and Prospects for Asia, AIT, Thailand, 14-16 January

Ampofo K. 1996: National Biogas Resource Assessment. Ministry of Energy, Ghana

Bioenergy and Biofuels: Opportunities and Constraints by International Assessment of Agricultural Knowledge, Science and Technology for Development.

Energy Commission, 2003. “Indigenous Energy Resources Catalogue”, A background assessment report prepared as part of the Strategic National Energy Plan

Indigenous Energy Resource Catalogue, School of Engineering, KNUST, April 2003.

National Policies and Strategies on Bioenergy in Africa, Ghana case study, COMPETE, January 2008.

UN Energy, 2007. Sustainable Bioenergy: A Framework for Decision Makers

UNCTAD (2008) – Making Certification Work for Sustainable Development: The Case of Biofuels, New York and Geneva

Touria Dafrallah, Secou Sarr, Etude RETs II, ENDA-GNESD ‘Policies and Measures for Large Scale Dissemination of Improved Stove in Africa: the Case of Senegal’, 2006

African Economic Outlook, available at: http://www.africaneconomicoutlook.org/en/countries/west-Africa/mali/ (09.10.2009)

Agalssou, Alassane/ AMADER, 2008: Atelier International de COMPETE 25 Nov 2008: Bioenergie et Electrification Rurale. Cas de Garalo, 2.

CIESIN: Center for International Earth Science Information Network, available at: http://www.ciesin.org/decentralization/English/CaseStudies/mali.html (09.10.2009).

COMPETE International Workshop: Bioenergy Policies for Sustainable Development in Africa. 25-27 Nov 2008, Bamako, Mali. Proceedings, December 2008, p. 10. Disponible sur: http://www.compete- bioafrica.net/events/events2/mali/COMPETE-Workshop-25Nov-Mali-Proceedings-090331.pdf (21.09.2009) - Short citation: COMPETE Bioenergy Policies 2008 .

Commission of the European Communites, COM(2008) yyy final: Directive of the European Parliament and of the Council on the promotion of the use of energy from renewable sources. Version 15.4

Diawara, Sinalou, 2008: Bioenergy Policies in Mali - Issues of Energy Supply and Energy Security.Presentation at the COMPETE International Workshop: Bioenergy Policies for Sustainable Development in Africa. Nov

72

2008, Bamako, Mali, 2. Available at: http://www.compete- bioafrica.net/events/events2/mali/Session1-1- Diawara-COMPETE-WS- Mali-2008.pdf

Encyclopedia of the Nations, available at: http://www.nationsencyclopedia.com/Africa/Mali- ECONOMIC- DEVELOPMENT.html (09.10.2009)

Enda Energy, Environment, Development: Bio energy for rural Development and Poverty alleviation in West Africa. Draft Inception Report. April 2009, 12-13.

FAO Final Report 2009: Small-Scale Bioenergy Initiatives: Brief description and preliminary lessons on livelihood impacts from case studies in Asia, Latin America and Africa. Final Report, January 2009, 51-55. Available at:

Garalo Bagani Yelen – un nouveau paradigme énergétique pour le développement durable en Afrique. L’électrification des 10 000 habitants de Garalo à partir de l’huile de pourghère, MFC Nyetaa (Mali- Folkecenter) 2007. Available at : bionecho.org/bamako/docs/MFC_Garalo07_fr.pdf (25.09.2009).

Jumbe, Charles; Frederick Msiska; Lewis Mhango: COMPETE First Periodic Activity Report, January 2008. Annex 6-I Report on National Policies and Strategies, 6.

Maiga, A.S., G.M. Chen, Q. Wang, J. Y. Xu, 2006: Renewable Energy Options for a Sahel country: Mali, in: Renewable and Sustainable Energy Reviews 12 (2008), 564-574.

Massing, Andreas, 2007: The household energy market in urban Mali, available at: http://www.hedon.info/TheHouseholdEnergyMarketInUrbanMali , last edited: 04.12.2008.

Ministre des Mines, de l’Energie et de l’Eau, Secrétariat Général, 2006: La Politique Energétique du Mali.

Outtara, Ousmane, 2008: Jatropha Network Activities in Mali. Presentation at the COMPETE International Workshop: Bioenergy Policies for Sustainable Development in Africa. Nov 2008, Bamako, Mali, 2. Available at: http://www.compete-bioafrica.net/events/events2/mali/Session2-2-Ouattara-COMPETE-WS-Mali-2008.pdf

Rijssenbeek, Winfried, Ibrahim Togola, FACT Foundation, 2006: Jatropha Village Power in Garalo, Mali. A new Dimension for People, Planet and Profit Actions, available at: http://www.fact- foundation.com/en/Projects/Mali/Documentation

Rijssenbeek, Winfried/ FACT Foundation, 2008: Jatropha for Rural Development Applications and Revenue Sources, Presentation for the COMPETE Workshop, Bamako 25 Nov 2008, 8.

Sanogo, Cheik Ahmed, 2005: Energie et écodéveloppement au Mali, in : Helio International : Observatoire de la viabilité énergétique 2005/2006, 6. Available at : http://www.helio-international.org/reports/pdfs/Mali-FR.pdf

Sentinel Security Assessment - West Africa, 25.03.2008, available at: http://www.janes.com/articles/Janes- Sentinel-Security-Assessment-West-Africa/INFRASTRUCTURE-Mali.html (consulted 09.10.2009)

Sow, Hamed, Energy Minister of Mali: La politique energétique au Mali. Mettre nos resources au service du développement, in : Croissance Actualité (2007) Vol. 37, 11. Available at: http://www.ffa- int.org/files/p.11EURSOWEURCA37.pdf

Togola, Ibrahim, 2009: MFC Jatropha activities and case studies. Barriers and opportunities for financing. COMPETE Financing Conference Dakar, 29 Sept – 1 Oct 2009, 2.

73

United Nations Conference for Trade and Development, 2008: Making Certification work for Sustainable Development: The Case of Biofuels.

Van der Putten, Eric 2009: Jatropha Handbook, 2nd edition – June 2009. Available at: http://www.fact- foundation.com/en/Home

Wijgerse, Inge, 2008: The electricity system for a rural village in Mali, Master Thesis Sustainable Energy Technology. TU/e

Wijnker, Mara, FACT Team Member, 2008: Report on visit to Bamako and Garalo, Mali, January 2008.

World Bank, Africa Technical Department, Review of Policies, Strategies and Programs in the Traditional Energy Sector. In: Proceedings of Workshop 1, Bamako, Mali, May 10–12, 1993 (Working-level translation from French, 1993). p. 23.

DIARRA, A. : Etudes des retombées économiques et financières liées à l’exploitation du bois énergie pour les populations locales dans le cadre d’un aménagement participatif au Sénégal : cas du massif de Thiéwal dans la Région de Kolda, 2006, memoire ISFAR, 46 pages,

FAO, situation des forêts dans le monde, 2002,181 pages.

MANGA, D. Etude de l’apport des produits forestiers non ligneux dans un programme d’aménagement forestier participatif et intégré : cas du massif forestier communautaire de Thiéwal dans la zone d’intervention de PROGEDE/KOLDA. 2003, Mémoire de fin d’étude, ENCR Bambey,42 pages.

NGOM A. Analyse de la filière du charbon de bois pour une implication des populations rurales et une gestion durable des ressources forestières. 1994 Mémoire de fin d’étude, ENSA ;106 pages.

NIANG, M. Production de bois d’œuvre et opportunités d’exploitation et de commercialisation au profit des populations locales dans le cadre de l’aménagement participatif et intégré du massif forestier communautaire de Saré gardi(Département de Kolda) dans la zone d’intervention du PROGEDE. 2005 Mémoire de fin d’étude, ENCR Bambey, 64 pages.

DEFCCS, Nouvelle politique forestière du Sénégal, 2005 DEFCCS, 143 pages.

PROGEDE, 1998, diagnostic économique des villages riverains de la forêt communautaire de Thiéwal, compilation des rapports MARP.

NGOM, A et al, Eude de la filière du bois d’œuvre pour la réforme du régime fiscal forestier au sénégal, 2006, 56p

NGOM, A., Analyse de la viabilité financière et institutionnelle du projet de production de charbon de bois par les populations rurales dans les régions de Tamba et de Kolda. Mémoire IFACE(UCAD) 20003, 67p

Mame Cor S., Etude de la filière du charbon de bois au Sénégal, 2008, 61p, Banque mondiale

Lucien NDECKY, Vérification et réactualisation éventuelle des cœfficients de conversion de la meule Casamance sous zones aménagées : cas du massif aménagé de Missirah/Kothary, région de Tambacounda. Mémoire ISFAR, 61p

DEFCCS, document du projet de réhabilitation des forêts et espaces ruraux, 2007, 132p MEF, Document de stratégie pour la croissance et la réduction de la pauvreté au Sénégal (2006-2010), 2006, 103p

74