INITIATIVES ON SMALL SCALE LIQUID BIOFUELS PRODUCTION AND USE IN Presentation outline

„ Introduction. „ Tanzania Location and other particulars. „ Energy status. UNITED NATIONS EXPERT GROUP „ Bio energy sub sector status in Tanzania. MEETING ON BIOFUELS FOR SUB-SAHARA-AFRICA „ Liquid bio fuel status and Potentials. March 29 to 30th, 2007 „ Small Scale Bio fuel Pilot Projects (Jatropha and MFP). E.N. SAWE –Director „ Challenges. TaTEDO-Tanzania. „ Conclusion. E-mail: [email protected] [email protected] or [email protected] „ Way forward strategy. Website. www.tatedo.org

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INTRODUCTION TANZANIA-LOCATION

Map of Tanzania

„ Location:Between 1o and 12oS and 30o and 41oE between „ This presentation provides brief three great lakes - Victoria (north), (west) and overview of Tanzania bio fuels and Nyasa (south west) in the Western Rift Valley and the Indian pilot efforts on small scale production and use of bio-fuels. Ocean (east) in East Africa. „ Altitude: Between the summit of 5,950 m. „ The country has total land area of above sea level and the floor of Lake Tanganyika 358 m. 93.8 million hectares (Mha). below sea level. Potential area for rain fed crop production is 55.2 (Mha) of which 10.8Mha are in use for crop production, the rest, 44.4 Mha are available for crop production.

Mt Kilimanjaro (5,950 m above sea level) Lake Tanganyika-Gombe Shore (358 m below sea level) 19/04/2007 3 19/04/2007 4

1 TANZANIA-SELECTED INDICATORS ENERGY STATUS

„ Rich in Energy resources ( biomass, coal, hydro, natural gas, „ Country Size: Covers an area of about 945,087 sq. solar etc.) but its population has low access to modern km. energy services.

„ Population: Estimated at 34.6 million (with annual „ Energy consumption pattern, 90 percent from solid biofuels growth rate of about 2.1%). About 70% of the total (charcoal and firewood), 8 percent from petroleum population lives in rural areas. products, 1 percent electricity and others 1 percent.

„ Economy: GDP (2005) amounted to USD 10.5 billion. „ Characterized by low per capita consumption of modern Economy depends on agriculture, Minerals and energy, net importer of petroleum products. tourism. „ Low electricity consumption 10 percent of the population „ Economic growth: is around 6.8% (2006) picked up have access to electricity in rural areas only 2 percent, from sales and retail trade, substantial industrial annual per capita 100 kWh. investment and an increase in minerals, led by gold „ 80 percent of energy is consumed in rural areas where and tourism. about 70 percent of the population live. „ Industries: Mostly for processing of agricultural „ Solid biofuels consumption is on the increase in absolute products and production of light consumer goods. terms. 19/04/2007 5 19/04/2007 6

BIO ENERGY SUB-SECTOR STATUS Modern Bio Energy production & use IN TANZANIA

Traditional Bio Energy. Liquid bio fuels. „Ethanol: No past experience in Tanzania, however in the „ Wood fuels (firewood and charcoal), crop residues meets about 90% of total energy. region , Malawi & Zimbabwe have experience from Sugar Plant molasses „ There are several concerns, environmental, Indoor Air Pollution & health, deforestation and livelihoods. „Bio diesel: No experience in Tanzania neither in the region. Traditional use of solid bio-energy will continue for the Gaseous bio energy: foreseeable future due to lack of affordable alternatives. „More than 6000 biogas plants built (Pilot biogas plant with sisal waste as feedstock for electricity generation in a Improved bio energy production and use. private farm under development).

„ More and more households are adopting improved „Gasification: Only demonstrated in some institutions and wood fuels (charcoal and firewood) stoves. rural areas. „ Uncoordinated efforts for sustainable production of Solid bio energy. woodlots, agro forestry and residue use etc. „Co-generation:-practiced at a low scale in sugar „ Increasing efforts to improve charcoal production plantations. kilns. „Briquette production interest is on the increase. 19/04/2007 7 19/04/2007 8

2 Benefits of bio fuels development Pre requisites for Successful biofuels in Tanzania development Programs Based on experience from India (Jatropha) and Brazil (ethanol), :

Could include among others: „ Broad involvement and close co-operation between all „ Agriculture/ rural development creating new stakeholders (Government, NGOs, private sectors, jobs and income opportunity thus contribute to farmers) for the elaboration and the implementation poverty reduction, of bio-fuels development programs.

„ Reduction of oil imports – foreign exchange „ Establishment of long-term, stable and clear policies, savings. regulations and incentives.

„ Improved energy securities at all levels. „ Legislation on mandatory blending (as one option to support the development of liquid bio-fuels, produced „ Creation of local industries. in the country). Low taxation on bio fuels vehicles.

„ Reduction of GHG emissions – opportunity for „ Initial market guarantee for biofuels (say through CDM and carbon trading. regulated prices by the Government) in order to secure returns on investment in the bio fuels sectors. „ Reduction of air pollution (lead, So2,Co)

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BIOFUEL DEVELOPMENT EFFORTS LIQUID BIOFUELS DEVELOPMENT IN TANZANIA EFFORTS Policy Issues There exist limited efforts on modern Bio fuels

„ Clear policies, strategies and (solid, liquid and gaseous) development in regulations for modern bio fuels development are still not in place. Jatropha in Schools the country due to:

„ There are no specific targets yet set „ Low awareness at all levels on the potential for bio-fuel development and blending in Tanzania. benefits of modern bio fuels especially among the rural population. „ A national task force has been Sugarcane Farm formed under the Ministry of Planning and Economic „ Empowerment working on Policies, Limited knowledge, experience and capital strategies and regulations to to invest on modern bio fuels . streamline the development of bio- fuels in Tanzania. „ Lack of fiscal and financial incentives. Jatropha Farm 19/04/2007 11 19/04/2007 12

3 LIQUID BIOFUELS DEVELOPMENT EFFORTS Bio Energy Development Options

Small Scale (size ??) However, there are increasing uncoordinated Large Scale 1. Jatropha 1. Sugar Cane 2. Sugar Cane efforts by government, private and NGOs 2. Palm/ Jatropha 3. cassava

institutions to promote modern bio-fuels in Large plantation Small holder led (contract ) Very competitive Higher cost base Inter Cropping Single crop the country. globally Less globally competitive-

„ Current actors include Govt. Ministries i.e. High value added Complex, value added Value added to local MEM, MPEE, MAC, private sectors KAKUTE Little value added to local communities to local communities Communities to local communities export potential High risk High risk Ltd, FELISA, Diligent Ltd, TaTEDO, University export potential Local production and use Local markets Complex food fuel social issues, crops Cash – crop interactions of , and other stakeholders.. not well characterized

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LIQUID BIOFUEL STATUS Size and structure of the farms POTENTIALS

„ No significant production and use of liquid bio- „ About 20 percent of the total farm areas is under private fuels exist in the country. large farms.

„ A review of the distribution of large farms by regions shows „ Growing interest in the production and use of that one third or more of the area in large farms is in ethanol and bio diesel. , Tanga,, Lindi, Iringa, Singida, Shinyanga, and Mwanza regions.

„ Several investors have shown interest to grow „ Around 75 percent of the arable land in Tanzania is not bio fuels crops in large scale farms with small under cultivation. holder contract farming. „ However, availability of land in other regions for large and small investments in energy crops is possible. „ Plentiful availability of land suitable for growing energy crops. (large & Small scale). „ Huge potential exist for energy crops also to be grown by smallholder farmers if they are supported and assured of market.

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4 Ethanol Crops: Sugar and Starch Crops are potential bio fuel (Ethanol) source ENERGY CROPS

Oil Seed Crops „ Starch based ethanol production- „ Oilseeds plants (crops) include both from different crops such as wheat, industrial (castor seeds) and edible oilseeds (sunflowers, groundnuts, rice, maize, potatoes, cassava etc, is cashew-nut, sesame, cottonseeds, possible although would compete peanuts, avocado, palm seed and soya beans). with food requirements under „ Of oil producing tree species, some current production levels. have been evaluated and found that Jatropha carcus most suitable for bio- „ Sugarcane-ethanol production in the fuel. country can be processed through „ Jatropha is drought resistant plant and can be grown in marginal lands, sugarcane–sugar route. Ethanol farmers’ field boundaries, fallow lands could also be extracted from on farmers’ holdings as agro-forestry along with agricultural crops, public sugarcane-sugar-molasses route. Sugarcane – a potential lands, limited other commercial value The route could be developed by source of ethanol than oil for biodiesel. sugar companies KSC,TPC, NSC and KSC. 19/04/2007 17 19/04/2007 18

SMALL SCALE BIOFUEL PILOT PROJECTS SMALL SCALE BIOFUEL PILOT PROJECTS

(1) JATROPHA PRODUCTION, USE AND PROMOTION (1)JATROPHA PRODUCTION, USE AND PROMOTION Over view Features of the project area

„ Number of households- 2254, Population- 6800 At the moment Jatropha is grown mostly as farm hedges in „ Major Community- Maasai some villages. „ Major Occupation-Agro pastoralist „ Small holder farmers cultivating farm size Objective: averaging 1 to 3.0 hectares Work completed today: To increase jatropha oil supply and use from small holder farmers as a source of alternative energy for rural „ Villages baseline information collected. „ PRA carried out to determine priority population. needs, opportunities and stakeholders. „ Village energy development plans Location: prepared. Moduli and Arumeru districts in , „ Establishment of Village energy teams and ward, villages of Mlimani, Olarashi, Sinon Ngarashi and centers. „ More than 50,000 jatropha seeds grown . from the nursery and most sold to farmers and schools at about USD.01 Partners: UNDP,NORAD and the Hivos, Districts and village governments; Kakute and farmers 19/04/2007 19 19/04/2007 20

5 Nursery and other activities undertaken Jatropha Seeds production cost

Seeds Production Cost (USD/ha) Establishment Annual average Women group, private farmers USD cost-USD informed on: Nursery 400 -600 500(transplanted „ Modern energy benefits after 3 months) „ Jatropha growing benefits Land clearing 90 - 100 95 (Once per year) „ Nursery establishment and maintenance skills Manure (organic) 100 - 300 200

„ Jatropha intercropping encouraged. planting 100 100 (Once per year) „ Jatropha seeds (30-40% oil) harvesting (more than 30 Pruning 20 - 30 25 tones harvested in 2006) oil pressing and soap Harvesting 300 -400 350 production. Other Management costs 100 - 200 150 „ Simple jatropha lamps field Total cost per ha 1420 tested and stove laboratory test conducted. Cost of one Kg. of seeds .08 to .20

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SMALL SCALE BIOFUEL PILOT PROJECTS SMALL SCALE BIOFUEL PILOT PROJECTS

(1)JATROPHA PRODUCTION, USE AND PROMOTION (2) Piloting Multifunctional Platforms (MFP) Use Overview

„ The Jatropha plant is traditionally used as a medicinal plant: MFP which should be demand driven provides modern energy „ The sap for wound healing; The leaves services for rural population especially for women. as tea against malaria; etc. „ is planted in the form of hedges around Objectives: gardens or fields to protect crops against animals i.e cattle or goats; ƒTo install three MFPs and associated machineries for oil seed „ hedges are planted to reduce erosion extraction, grain de-hulling/milling and battery charging, caused by water and/or wind; „ is planted to demarcate the boundaries of ƒTo bring knowledge and capacity to develop and implement fields and homesteads; MFPs projects in Tanzania, „ In some parts of Tanzania, Jatropha plants are used as shade and support ƒTo develop capacity among beneficiaries on the use of MFPs, plant for vanilla plants;. management and small business development, and „ Jatropha seeds is harvested and processed for oil used for soap making by ƒTo demonstrate to policy makers, investors and donors how women and now powering MFP managed by men entrepreneur. innovative solutions can provide better energy services.

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6 SMALL SCALE BIOFUEL PILOT PROJECTS SMALL SCALE BIOFUEL PILOT PROJECTS

(2) Piloting Multifunctional Platforms (MFP) (2) Piloting Multifunctional Platforms (MFP) Location and Partners Features of the project area-Engaruka Village

ƒNumber of households- 1700, Population- 5300 Location: .ƒMajor Community- Maasai Villages of Engaruka , Village of ƒMajor Occupation-Agro-pastoralist Ngarinairobi, both in Arusha Region and Mbezi Juu, Peri-urban area of Dar es Salaam, TaTEDO Centre.

Partners: ESMAP, Winrock International, Ease, Village and District government, Entrepreneurs.

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Jatropha-MFP Energy System -Benefits MFP Work Completed Biogas Electricity Mill

„ Villages baseline information Fertilizer collected. PRA carried out to Oil Cake determine priority needs, opportunities and stakeholders. Environment „ Assessment of MFP services Firewood conservation potential markets MFP „ Village energy development plan prepared. Jatropha Plant „ Establishment of Village energy teams and centers. Diesel engines „ One MFP with lister engine, Jatropha Oil expeller, generator, De huller, battery charger installed and Jobs Biodiesel operational engine powered Soap interchangeably with diesel and Jatropha oil.

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7 Cost of Jatropha oil at Engaruka

MFP COSTS at Engaruka

Installation -USD Annual costs Annual USD USD Cost of seeds (08 to .16 per kg.) current 1200 Income from seedcake Nitrogen -6 percent None at the moment: prices Phosphorous -3 percent (could be used as fertilizer, Potassium - 1 percent biogas feedstock or EXPELLER 2500 (Sundhara) 300 insecticide)

FILTER 60 30 Income from residuals/ by None at the moment:- products, fruit hull could be used as firewood Engine (10HP) 600 (Lister) 100

Cost of Jatropha oil Variable, depend on seed .75 Generator (7.5kW) 500 50 (USD/L) price and extraction labor cost Conventional diesel When jatropha oil not 300 available De huller, battery 2000 90 charger, labour, etc. Diesel cost per liter at 1.4 Engaruka Savings if use jatropha oil .65 Total Costs 5660 2070 per litre 19/04/2007 29 19/04/2007 30

Results and outcome Challenges for replication

„ Complete MFP installed and „ operational. Organized availability of quality seeds „ Village mini grid constructed necessary-presently not readily available. „ 50 households connected to the grid „ Lack of awareness on jatropha plant and its and have access to electricity at USD 3 per month flat rate. benefits. „ 12 shops connected at USD 5 per month. „ No clear source of Jatropha information in „ One tourist camp connected to the mini most parts of the country. grid at USD 9 per month. „ Two operators trained. „ Oil expeller not readily available in the „ One entrepreneur supported and market. managing the MFP under the supervision of village energy team. „ Lack of ingredients for local bio diesel „ 20 households accessing electricity processing i.e. methanol. through charged batteries „ Possibility of more modules connected „ Policy and regulation on bio fuels not yet in on demand. place. 19/04/2007 31 19/04/2007 32

8 Conclusion Forward Strategy

„ Benefits of Jatropha- MFP system have been „ To continue with the Jatropha-MFP pilot projects in appreciated by the villagers in particular women. other two more villages. „ To monitor and assess closely and in depth the Economics, management, performance and benefits „ Use of local resources, skills and knowledge has of the system at the village. been enhanced. „ Organize decision and policy makers workshop to present results of the pilot project and agree on way forward strategy. „ The system has been integrated into the local „ To pilot small scale local production and use of Bio- economy and adapted into different needs of diesel in appropriate village sites. beneficiaries and costumers. „ Prepare up scaling strategy to more than 200 villages. „ Improve on traditional way of production, marketing „ System is offering crucial social and economic and use of Jatropha. services to the community, i.e. extended business „ Explore Carbon income through sell of VERs. and working hours. Value addition locally.

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Forward strategy Should… Forward strategy Should…

„ Enhance share of renewable energy. „ More supportive policies, strategies and regulations „ Not comprise on food security but need to be in place. harmonized. „ Integrate bio fuels development efforts in the „ Not be at the expense of existing natural overall sustainable rural development efforts. forests. Use of waste land. „ Increase public awareness on potentials and „ Rehabilitate degraded land. limitations of biofuels. „ Focus on local people centered „ Increase more support and investments. development liquid bio fuels. „ Lobby for fiscal and financial incentives. „ Reduce role of middle traders and multinationals to benefit small holder farmers.

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9 THANK YOU FOR YOUR ATTENTION.

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