The First High-Level Biofuels Seminar in Africa

1. Role of Research and Development in Developing Biofuels Industries in AfricaMpoko Bokanga, PhDAfrican Agricultural Technology Foundation The First High-Level Biofuels Seminar in Africa A joint activity of the African Union Commission, Government of Brazil and UNIDO 30 July - 1 August 2007, Addis Ababa, Ethiopia

2. Population Increase in the World 6,385,564,899 • The world's population will rise to 9 billion by 2050 • The world's food production will have to double • Energy needs may triple 2004 1900 1800

3. Key drivers of the energy future

4. Sources of renewable energy • Bio-diesel • From oilseed crops • From recycles vegetable oils • Bio-ethanol • From starchy substrates • From ligno-cellulosic substrates • Better molecules: butanol • Wood chip energy conversions • Combustion, gasification, or pyrolysis and conversion to heat and electricity

5. Sources of Bio-ethanol • Sugarcane • Sugar beet • Maize • Wheat • Rice • Potato • Cassava

6. History of Ethanol Production in Nigeria • 1963: Start of Nigerian Sugar Company (NISUCO) • 1973: Start of NIYAMCO to use NISUCO’s wasted molasses • 1990s: Sugarcane production declined, prompting NIYAMCO to face closing down • 1996: switch to cassava as the feedstock was decided; some modifications were made to the factory to include a gelatinization, liquefaction and saccharification steps. • 1999: NIYAMCO closed down due to financial mismanagement

7. Sugar and ethanol production in Nigeria

8. Demand for Ethanol in Nigeria • In the 1990s, Nigeria’s demand for ethanol was 90m - 160m liters per year • Beverages • Chemicals • Pharmaceutical • Food • NIYAMCO’s capacity (4m liters per year) was a mere 2.5 - 4% of the Nigerian demand • Nigeria’s decision to adopt the E10 standard for gasoline pushes the demand for ethanol to 400m liters per year • A strategic decision was made by Nigeria to produce ethanol from cassava

9. Global Context for Competition National Agribusiness Strategy Supply Side Farmers Producer Organizations (CGAN ?) & Farmer Business Associations Demand Side Exporters (?) Processors (CAPAN, PAN, MBAN, FMAN) Traders & Merchants (?) Input Suppliers (CEFAN, PSO) Transporters (NURTW) Cassava Industry Chips Flour Starch Ethanol Related and Supporting Institutions Government (FMARD, FMC, FMI, RTEP, etc); Regulatory Agencies – NAFDAC, SON, Customs Research and Academic Institutions – IITA, NRCRI, NCAM, Universities Trade & Sub sector Associations (NASSI, NASME, Chambers of Commerce Financial Institutions and NGO MFIs – Other BDS Providers – Donors

10. Why cassava? • Nigeria is the world largest cassava producer • Studies have shown that industrial uses of cassava could generate as much income as the oil industry • Nigeria needs to diversify from a single commodity economy • There is a wealth of research on cassava that has been conducted in Nigeria

11. Food Crop Productivity Potentials

12. Example of Optimized Cassava Growing Conditions in Ivory Coast No viruses No bacteria Healthy cuttings High density No weeds Optimal mangmt 80 t/Ha for some cultivars!

13. Meeting the Ethanol Demand using Cassava as Raw Material • Total demand 400m LPY • 1 ton cassava chips --> 400L • ==> Total chips demand: 1m tons • ==> Fresh roots demand: 3m tons • Total cassava production: 36m tons/year • Use for ethanol: 8% • With cassava productivity increases expected from farm-industry linkages, the percentage of cassava going to ethanol will decrease.

14. Number of farmers benefiting • 3m tons roots/year • Assumptions: • Cassava yield: 10 ton/ha • Average farm size: 0.5ha • Need 600,000 farms/year • Opportunities for farm clustering to introduce farm mechanization, best management practices to drive productivity up

15. 100% 13.6% 27.9% 40.5% 11.6% The Challenge: Reducing the Cost of Production Cassava agro industries will begin to grow in Nigeria when root prices are low and available (<N3500/t) and will lose to the traditional market when root prices are high.

16. Number of factories required

17. Opportunities for equipment manufacturing • The high number of cassava chips factories present an added opportunity for equipment manufacturing in Africa rather than importing • AATF is working with Brazilian and African equipment manufacturers to facilitate the transfer of equipment fabrication know-how • UNIDO may need to save the African Regional Center for Design, Engineering and Manufacturing (ARCEDEM) that it started but is now moribund

18. Technology trends • The conversion of simple sugars (sugarcane) and starchy substrates (maize, cassava, potato) to ethanol is a short term approach • In the long term: • ligno-cellulosic fermentation • C5/C6 fermentation • Production of butanol rather than ethanol

19. The industry is investing in Ethanol conversion costs reduction

20. Implications for a cassava-to-ethanol industry • Ethanol plants will need to adopt new raw materials and new processes: relatively easy • Cassava chips factories will need to find new outlets: there are multiple uses for cassava

21. The multiple uses of cassava in industries • In food products • Pie fillings, cream pudding, confectioneries, baby foods... • In the production of adhesives • gums for envelopes, postage stamps, bottle labeling, lined cardboards, wood adhesives ... • In paper manufacturing • internal sizing, filler retention, surface sizing, paper coating, toilet paper, disposable diapers, feminine products, … • In textile manufacturing • warp sizing, fabric finishing, printing • In the cosmetic and pharmaceutical industry • dusting powder, make-up products, soap filler/extender, tablet binder/dispersing agent, pill coating, ... • As a lubricant in the oil drilling process

22. Complete utilization of cassava Leaves: proteins for food and feed Stems: for ligno-cellulosic fermentation for ethanol and butanol Roots: for food and industrial products

23. Cassava use in producing regions Data from FAOSTAT 1999

24. Optimizing biofuels requires fusing the petroleum and agricultural value chains

25. What Strategy for African R&D? • Energy Bioscience Intelligence Unit • Include experts from various ministry • Energy, Agriculture, Industry, Infrastructure, Transportation, Lands, Science and Technology, Higher Education • Access and archive all open information • Establish partnerships to access proprietary technology when needed • Identify areas of the value chain for national focus and specialization • Fund local applied research by universities and research institutes with strategic partnerships (maybe through a bio-energy levy)

26. What Strategy for African R&D? • Researchable issues • Technology development • Check information in the scientific public domain, especially patent literature • Technical and economic feasibility • How to access intellectual property owned by others • Value chain management and benefit sharing systems • New uses of bio-energy: how to solve the problems of access to energy by the vast majority of Africans • Smart subsidies • Land tenure systems • Environmental impact • Need to be guided by national and regional Bio-Energy Strategies

27. Conclusion • The world needs more and cleaner energy: biofuels are here to stay • Like any new technology, early adopters will derive more benefits (e.g. Brazil) • Biofuels are a great opportunity to promote agro-industrial development, drive increases in agricultural productivity and encourage investment in infrastructure that serves agriculture and trade of agricultural products • R&D efforts should focus innovations in agricultural and energy value chains, access to IP, wealth creation and benefit sharing

28. . FONDATION AFRICAINE POUR LES TECHNOLOGIES AGRICOLES