The Use of Liquified Petroleum Gas (LPG) in Sudan December 2010 Cover image: Truck delivering gas cylinders in Khartoum This report is available online at: www.unep.org/sudan Disclaimer This report was prepared by Dr. Ahmed Hassan Hood, on behalf of the United Nations Environment Programme. Any views expressed within this document are the authors own, and may not necessarily represent those of the United Nations Environment Programme. The Use of Liquefied Petroleum Gas (LPG) in Sudan United Nations Environment Programme Dr Ahmed Hassan Hood December 2010 Table of contents Executive summary . 4 1 . Introduction . 6 2 . Energy consumption in Sudan . 9 2 .1 . Overall energy consumption . 9 2 .2 . Overall biomass energy consumption . 10 2 .3 . Biomass energy consumption – household sector . 11 2 .4 . Biomass energy consumption – Industrial and services sector . 13 2 .5 . Other sources of energy consumed by the household sector . 14 3 . Making the case for LPG – Environmental and health impacts of high dependence on biomass energy and benefits of LPG . 16 3 .1 . Environmental impacts of high dependence on biomass energy . 16 3 .2 . Health impacts . 18 3 .3 . Environmental and health benefits of LPG to households . .. 20 4 . Sudan’s energy policy . 22 4 .1 . Key stakeholders in the energy sector . 22 4 .2 . Energy policy . 24 4 .3 . Government subsidies for LPG . 26 4 .4 . A preliminary analysis of relevant policy issues . 28 4 .5 .Conclusions . 28 5 . Efforts to substitute LPG for biomass fuels . 30 5 .1 . Sudagaz/FNC project . 30 5 .2 . Practical action – Kassala/El Fasher . 30 5 .2 .1Kassala . 30 5 .2 .2 El Fasher – North Darfur . 32 5 .3 . Sustainable Action Group (SAG) – Abu Shauk and El Salam IDP camps in El Fasher . 36 5 .4 . Sudanese Organization for Building Materials and Construction (SOBMC) . .. 38 5 .5 . Green Bakery Project, Sayga . 38 5 .6 . Other initiatives . 39 6 . Findings, conclusion and recommendations . 41 6 .1 . Barriers to widespread use of LPG . 41 6 .1 .1 High upfront cost of LPG appliances and new technology . 41 6 .1 .2 Price competiveness of woodfuel . 41 6 .1 .3 Lack of adequate infrastructure . 42 6 .1 .4 Lack of information . 43 6 .1 .5 Social and cultural issues . 44 6 .2 . Recommendations . 45 Annex 1 . List of tables . 47 Annex 2 . List of figures . 48 Annex 3 . Acronyms and abbreviations . 49 Annex 4 . LPG consumption in the Sudanese states (1993-2006) . 50 Annex 5 . Summary of advantages and disadvantages of LPG . 52 Annex 6 . References . 53 Executive summary The depletion of forests in Sudan is a major challenge and automotive sectors, amongst others . So as to facing the country today . North and central protect supplies and ensure its policy commitment states of have lost 70% of their forest cover since to supporting the household and services sectors independence (UNEP, 2007) . Recurrent droughts, with clean energy, the government removed desertification, over-grazing and expansion of subsidies for LPG to the country’s industrial sector . agricultural land, as well as the collection of timber for firewood, charcoal production and other uses, Despite the success in uptake, it is clear that the are among the root causes of forest degradation . benefits of LPG have not been equally spread . The use of biomass fuels for household energy Poor households in the peripheries of large towns creates significant demand for forest products and and rural areas still have little to no access to leads to further degradation of an already scarce clean energy . The consumption of LPG is largely resource . concentrated in Khartoum state, which constituted about 75 percent of overall consumption in The impacts of household reliance on wood based 2006 . The other states had minor shares, with the fuels are considerable . Poor peri-urban households central states of Gezira and Sinnar accounting spend a sizeable percentage of their income on for 14 percent together; with the remaining states purchasing firewood and charcoal, while rural consuming the rest . households collect fuelwood, sometimes in inse- cure areas . As cleaner renewable energy options are still under development, LPG is presented as the Biomass energy use has been shown to be highly short-term solution in delivering clean modern inefficient . In households across Sudan, biomass energy for household use, and particularly for fuels are burned in stoves that are often only 10 to cooking applications . This study concludes that 15 percent efficient, wasting heat and releasing there are clear benefits from the use of LPG over excessive amounts of smoke . The latter contributes the existing biomass fuels that are widely used by to serious health problems for women and for chil- the household sector across the country . These dren below five years of age . Accordingly indoor air include improved environmental conservation and pollution measurements conducted in peri-urban reduced deforestation, climate change mitigation, households in Kassala, Eastern Sudan, showed that improvement in women and children health and the level of indoor air pollution caused by wood fires wider socio-economic development . is 20 times or more higher than standards specified by WHO . This study demonstrates that LPG use in Sudan is on a slow ascendancy, due in particular to govern- In the face of these challenges, the rationale for ment incentives, investment by LPG companies in clean and efficient energies is clear . One of the distribution infrastructure and dissemination efforts options that has emerged in Sudan is liquefied made by private, public and non-governmental petroleum gas (LPG) . Upon the onset of local organizations . production of LPG in Sudan, the Government of National Unity adopted a fuel-switching policy LPG use remains, however, concentrated in the cen- to increase the uptake of LPG amongst the tral region of the country . This has been attributed to population . The price of LPG was reduced by 50 high population density, the high price of woodfuel, percent and LPG appliances were exempted from greater awareness and infrastructure development . import duty tax . As a result of this intervention the use of LPG, particularly by the domestic sector, The study analyses a range of case studies of LPG increased from about 31,000 metric tonnes in promotion initiatives across Sudan and recognizes 2000 to 274,000 metric tonnes in 2006 . In addition the following as the main barriers for the widespread there was significant uptake in use by the industrial national use of LPG: 4 The use of liquefied petroleum gas (LPG) in Sudan 1 . The relatively large initial investment needed to acquire LPG appliances (cylinders and stoves); 2 . The higher price of LPG compared to woodfuel prices in parts of the country; 3 . The lack of infrastructure for LPG distribution; 4 . A general lack of information; 5 . Social and cultural issues . Based on the best practices and lessons learnt from existing initiatives, four broad recommendations are proposed . Together these should constitute the building blocks of any strategy to scale up LPG use in Sudan . The recommendations are: 1 . Public awareness and consumer education on benefits of LPG and safety precautions of LPG use; 2 . Government policies and initiatives to promote LPG market development, including strategy for full application of subsidies and national price stabilization; 3 . Increased focus on women as primary ben- eficiaries in LPG scale-up activities, including capacity building support for WDAs; 4 . Development of full cost recovery microfinance options to facilitate household access to clean modern energy such as LPG . Expanding the use of LPG in Sudan is one clear solution to help address the depletion of forest resources and the associated risks and to set Sudan on a Green Economy pathway . The use of liquefied petroleum gas (LPG) in Sudan 5 1. Introduction The forestry sector is very important in Sudan – fuel- climate change . The gum Arabic belt for example wood and charcoal constitute the main domestic (an area of 520,000 km2 between the latitudes of energy sources, while timber is the country’s primary 10° and 14° north), covering one-fifth of Sudan’s source of construction material . The forestry sector land surface, protects 40 percent of the country contributes as much as 13 percent to Sudan’s gross from desert encroachment . domestic product (GDP) . A large increase in the consumption of forest prod- Sudan is confronted by a number of processes ucts (mainly in Khartoum state where much of the of change which significantly threaten its existing population is concentrated), combined with the natural resource base . Increasing urbanization, uneven distribution of resources and changing which has in places been compounded by con- rainfall patterns, has led to serious inequalities in the flict related displacement, coupled with a growing supply of, and demand for, resources . The shortfall in population has led to significant demand in house- fuelwood in some areas is clearly demonstrated by hold energy needs and for construction material . the Woodfuel Integrated Supply/Demand Overview Sudan’s population grew from 21 million in 1981 Mapping by FAO (Figure 1 .1) . (1981 census) to 39 .2 million in 2008 (4th Census in 2008), representing a growth rate of 2 .8 percent The green areas in the map represent areas with according to the Central Bureau of Statistics . This a high surplus in fuelwood, while the red areas is recognized as one factor which has contributed represent areas with a shortage of fuelwood . It is to deforestation in Sudan . According to the UN clear from this that the Khartoum area in particular Food and Agriculture Organization (FAO, 2006), as well as the Darfur states need to consider alter- Sudan lost more than 5,500 km2 of forest per year native energy sources and more efficient energy between 1990 and 2000 – an annual deforestation consumption, particularly in the context of the 2011 rate of 0 .77 percent .