Bioethanol Production in Africa: Untapped Potential

Bioethanol production in Africa is a story about potential. The continent is rich in sugar and starch resources that could be developed as bioethanol feedstock, and it is rife with opportunities. But challenges of scale, funding, logistics and priorities hold back production – and economic opportunity – today.

Current production, demand

Africa currently has bioethanol production capabilities of about 700-900 Million Liters (180-240 million gallons) per year, according to Makarand Joshi, Head of Business Development - MEA for Praj Industries. However, the vast majority of that is used for beverage alcohol, and the continent’s actual production is well below its capacity.

“Almost 20-25% of the installed base cannot operate through every season of the year, and that’s why there’s a shortfall,” Joshi said.

There are a number of reasons for that low productivity, including a lack of government support, import/export policies and enough feedstock production and logistics support.

Nonetheless, opportunities exist to take advantage of demand outside of beverage alcohol.

Clean cooking could put bioethanol in millions of homes. With about half a billion people in Africa using fuels like firewood, charcoal and kerosene in their homes, the untapped opportunity is “massive,” Joshi said.

“If the fuel replacement happens, a preliminary estimate suggests total demand potential of about 10-15 billion liters (2.6-4 billion gallons) per annum for cooking ethanol fuel for the continent. On a conservative basis, if only 10% of this population switched to clean cooking, the demand for clean cooking fuel would still be about 1.5 billion liters!”

In addition, dozens of nations in Africa have renewable energy policies in different stages of development, while three countries – Malawi, Zimbabwe and Ethiopia – are actively blending bioethanol for fuel at varying levels today.

Opportunity

The primary feedstock for bioethanol production in Africa is molasses, but Joshi sees an enormous opportunity in another feedstock: cassava.

Cassava – a drought-tolerant crop with starchy roots – is widely grown throughout Africa. Nigeria is the largest producer in the world. It’s a more affordable feedstock than things like sugarcane, and it is plentiful.

The downside is storage. If it is not dried, cassava will spoil within a few days.

“If they do not have a long term, committed buyer, they actually struggle to sell cassava sometimes,” Joshi said.

Joshi sees the opportunity in cassava to develop a steady feedstock supply chain that could meet new demand for bioethanol in clean cooking and fuel. At the same time, it would boost local economies.

Impact

Bioethanol production creates enormous opportunities for local economic growth and prosperity.

A 2018 study published in “Development Southern Africa” looked at potential feedstock supply chain scenarios in Zambia. In that country alone, they estimated a potential to create 55,000-260,000 new jobs just in the agriculture sector and total GDP growth for the nation as high as .07%.

According to the study, “Biofuel production could have a positive impact on real GDP growth, employment and rural and urban household welfare in Zambia regardless of the feedstock crop chosen without any negative effects on aggregate household food security.”

In addition to that, Joshi said, a robust bioethanol industry would lead to better efficiency in both agriculture and bioethanol production. Consistent demand motivates improved production practices and better yields.

“If it can happen, it will be a good boost to the agri sector,” Joshi said. “The farmers would earn from it because they would need to be on their toes to make the feedstock available around the year. So naturally it would also mean improvement in their practices, application of skills.”

It will take a concerted effort to get this done. Joshi points to building a robust ecosystem wherein the collaborators including farmers, traders, producers, government agencies, energy producers and others must work together. Technology and plant suppliers such as Praj Industries “have a crucial role to play to make sure the project is viable.” Praj has been a trusted partner to customers around the world with 1000+ references in 100+ countries across 5 continents for innovative, sustainable solutions in bioenergy. 

Despite the challenges, he is optimistic.

“That is happening, I believe,” Joshi said. “It is a slow process, but I am sure it will happen.”