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www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United Nations Industrial Development Organisation (UNIDO)

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Page 1: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

www.unido.org

Biofuels for Industrial Development and Poverty Reduction in Africa

Heinz Leuenberger

Director, Energy and Cleaner Production Branch.

United Nations Industrial Development Organisation (UNIDO)

Page 2: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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Outline

1. Global Energy Trends

2. Global and local drivers

3. Potential and opportunities for Africa

4. Key issues, potential risks and trade-offs

5. UNIDO’s biofuels activities

6. Way forward

7. Conclusions

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1. Global Energy Trends

Climate Change and peak oil shaping future energy agenda

Renewables account for about 17% of Global Primary Energy (Traditional Biomass 9%, Large Hydro 5.7% and Other Renewables 2%)

Renewables Power capacity excluding large hydro-power touched 182 GW in 2005

Investments in New Renewable Capacity touched $ 70 Billion in 2006

Fastest growth taking place in the field of liquid Biofuels – Ethanol and Biodiesel

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Rising population & increase in energy demand

Source: Basic Facts - Trends 2050 - WBCSD

0

3000

6000

9000

12000

15000

18000

21000

24000

Primary Energy Demand (Indexed)

Developed (GDP/cap > $US 12,000)

Emerging (GDP/cap < $US 12,000)

Developing (GDP/cap <$US 5,000)

Poorest (GDP/cap < $US 1,500)

2000 Prosperous world

Low povertyBase case

2050

Population

[1,000,000 cap]

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Global energy use per capita 2000

0

50

100

150

200

250

300

350

400

0 1 2 3 4 5 6

Population (billion)

Pe

r c

ap

ita

en

erg

y u

se

(G

J/c

ap

)

North America

India

FSUEU-25

Japan

Australia & NZ

Latin AmericaAsia & China

Middle East

Africa

Source: World development indicators, 2003

Page 6: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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World Electricity Demand by Region in the WEO 2006 Reference Scenario

Source: IEA

Page 7: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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World Primary Energy Consumption 2000 vs A1 & B2 Scenario Projections for 2030 (EJ)

A1 - High Growth Scenario

B2 - Low Growth Scenario

TRANSPORT22%

BUILDINGS39%

INDUSTRIAL36%

Total 384 EJ

AGRICULTURE 3%

2000

INDUSTRIAL39%

BUILDINGS37%

TRANSPORT25%

INDUSTRIAL39%

TRANSPORT23%

BUILDINGS35%

Total 648 EJ

Total 892 EJ

2030

Source: IPCC

A1

B2

Page 8: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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Incremental Oil Demand 2002-2030; figures from IEA (2004)

2. Drivers of Biofuels Development – Transport Fuels

Page 9: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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2. Drivers of Biofuels Development – Global Context

• High and volatile oil prices

• rising demand (India, China);

• instability in major oil producing regions;

• higher exploration costs; and

• finite nature of global oil resources.

• Climate change agenda

• Agriculture and trade policies

• Sustainability issues

• Technological advances and emerging more efficient conversion technologies.

Page 10: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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2. Drivers of Biofuels Development - Global Energy

Region total renewables biomass hydro RE shareAfrica 21,5 10,8 10,5 0,3 50%Latin America 18,8 5,2 3,3 1,9 28%Asia 48,2 16,1 15,0 0,6 33%China 48,4 10,0 9,0 1,0 21%Non-OECD Europe 4,2 0,4 0,2 0,2 9%Former USSR 39,5 1,2 0,4 0,9 3%Middle East 16,3 0,1 0,0 0,1 1%OECD 223,3 12,7 6,8 4,4 6%World 420,3 56,6 45,2 9,3 13%

Primary Energy, in ExaJoules (EJ)

Global Resources (EJ/a) Current Use Technical Potential

Eco-potential

Hydro 10 50 20

Biomass 45 >1,000 100-500

Solar 0.2 >1,000 200

Wind 0.2 600 150

Geothermal 1.2 >1,500 200

Ocean 0 ? ?

TOTAL 56.6 >4,000 +/- 1000

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2. Global Pattern 2030

Source: IEA (2005)

=Oil export = oil & bio domestic = bio-export = bio domestic

Page 12: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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2. Export potential of Biofuels

Targets EU

% Bio-fuels in Transport fuels 2005 2 %

2010 5.75 %

2015 8 %

2020 10 %

Targets Germany

% Bio-fuels in Transport fuels 2010 6.75 %

2015 8 %

2020 17 %

Conclusion: To achieve these targets EU and Germany must import Biofuels from outside Europe Sustainability of Biofuels will be crucial for the future international market

Page 13: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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2. Alternative use of Biomass

1. Biomass used for Energy production Solid Gas Liquid

Combined Power-heat coupling Transport fuel Industrial applications for process heat

2. Biomass used as Raw Material for industrial activitiesCosmetic, washing powder, fertilizer, plastic, packing materials, Textiles, Cellulose, raw materials for pharma

products, etc.

Page 14: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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Africa has 13% of global population yet uses 3% of electricity used globally.

Only 1 in 4 people in Africa has access to electricity.

Under exploitation of available resources : 6% of hydroelectricity and 0.6% of geothermal potential exploited.

Abundance and decentralized availability of biomass resources

Need to raise GDP growth rate from 3.5% to 8% if Africa is to meet the MDGs & means a corresponding increase in energy demand.

2. Drivers of Biofuels Development – African Context

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3. Africa’s Biofuels Potential.

Africa has ‘vast’ land resources and conducive climates.

Estimating exact potential is complex –many variables.

Several studies undertaken and converge on the following:

1. Africa has a very large potential to produce biofuels.

2. Under a high productivity scenario Sub Saharan Africa can produce biofuels with energy content up to 410 Exa J compared to global energy consumption of 440 Exa J (very optimistic!)

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Sustainable use of Biofuels can lead to

- Reduction in oil importation bill.

- Revitalization of rural economies through higher farm incomes, creating jobs and enhance local energy security.

- Increased availability of cleaner burning fuel with both global and local environmental benefits.

- Reclaiming of degraded and marginal lands and opportunities for carbon sequestration.

3. Opportunities and Benefits of Biofuels in Africa

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4. Key issues, challenges and risks of biofuels include..

Environmental Challenges. Production chain and application should have positive energy and GHG balances. Sustainable water use and no additional water contamination Environmental responsibility and conservation of natural resources and biodiversity. Minimize soil erosion and degradation Minimum environmental emission from Bio fuels production technologiesSocio-Economic Challenges Reduce competition and strengthen synergies with food sector/land. Balancing between large-scale and small-scale production Production should lead to local and shared prosperityTechnology Challenges Identifying appropriate plants for specific regions. Appropriate technologies for communities and businesses. Increasing production efficiency

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4. Example : LCA for Bio-fuels, Indicators

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4. Example: LCA for Bio-fuels

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4. Example: LCA for Bio-fuels

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5. UNIDO’s Biofuels Activities : Objectives

Increase security of energy supply through diversification of supply and reduce reliance on fossil oil.

Increasing access to energy for poor for productive uses

reducing risks and uncertainties in investments in technologies.

promote transfer and commercialization of appropriate technologies.

demonstrating the biofuels value chain.

Stimulate debate and ideas on key issues such as sustainability standards etc.

Page 22: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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5. UNIDO’s Role

Biofuels Value Chain

Biomass Resource

End UseConversionSupply Systems

Agricultural crops and residues

Woody biomass

Oil bearing plants

Industrial waste.

Municipal waste.

Harvesting.

Collection.

Handling.

Delivery

Storage

Biochemical

Thermochemical.

Physical/chemical processes. e.g.

Deoxygenation

Depolymerisation.

Pyrolysis;

Gasification;

Hydrolysis;

Fermentation.

Transport fuels.

Heat

Electricity

Solid fuels

Construction materials

Plant based pharmaceuticals

Renewable chemicals including polymers

Page 23: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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5. UNIDO’s Biofuels Activities : Draft Strategy

UNIDO’s biofuels strategy seeks to assist developing countries in realizing the potential benefits of biofuels, especially by linking technology, investment, trade and sustainability issues, to

assist countries to formulate adequate RE policies and define/adopt recognized sustainability indicators;

reduce uncertainties regarding investment opportunities;

provide tailor-made technical assistance programmes;

strengthen SME capacities to meet international biofuels standards.

For this, UNIDO will work with networks of experts, research institutes, industrial associations, and cooperate with UN partners, multi / bilateral agencies and regional initiatives.

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5. UNIDO’s Biofuels Activities : Focal Areas

Profiling Bio-fuels (BAT, BEP, Sustainability, Employment, Costs, efficiency, emissions, maintenance

requirement, specification data, south-south cooperation for program implementation etc.)

Solid biofuels: South-South technology transfer, and commercialization (technology

transfer, south-south cooperation, cogeneration)

Liquid biofuels: Ethanol from residues and wastes – demonstrating the value

chain (technology assessments on all biofuel pathways)

Liquid biofuels: Biodiesel – building the local-global bridge for SMEs (foster

decentralized production, feedstock availability, costs quality, labor safety, environmental performance,

technology and human skills requirements etc.)

Gaseous Biofuels (biogas for industrial and transport applications)

Biorefineries: (providing clearinghouse services) in cooperation with ICS-Trieste

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Biofuels projects in: Cuba, Zambia, India, Sri Lanka, and Croatia Centre of Excellence for Biomass Gasification Technologies proposed at Indian

Institute of Sciences, Bangalore, India Applications:

– Biomass gasification for power generation & process heat in industries

– Bio-diesel and Bio-ethanol: Feasibility studies & applications

– Biogas: residential & industrial energy, motive power for small industry

– Bio-refineries: Awareness raising

Biomass Conversion Technologies on-line Information Forum (BIOTIF)

Bio-fuels Capacity Building Programme (BIOCAB)

Bio-refineries: providing clearinghouse services (ICS Trieste)

5. Proposed Biofuels Strategy: Key Projects

Page 26: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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• International Conference on Biodiesel in Malaysia (July 2007)

• The First High-Level AU-Brazil- UNIDO Biofuels Seminar in Africa.

• Regional Workshop on Promoting Sustainable Biofuels Production and Use in

Central & Eastern Europe. (Nov. 2007)

• Energy for Development: The Importance of South-South and North-South

Technology Exchange for Promoting Renewable Energy and Energy Efficiency in

Senegal, (Feb. 2008)

• Global Renewable Energy Forum in Brazil, (Mai 2008)

• Follow-up of our Seminar : Sub-Regional workshops in Africa, (2008)

5. UNIDO’s Bioenergy Activities : Global Forum Activities

Page 27: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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6. Way forward

Design and implement Regional Action programs and pilot projects to:

Develop appropriate policies, strategies and investment plans to promote biofuels development (Renewable Energy) within a sustainable development framework i.e energy self sufficiency should be priority.

Provide and measure datas for the discussion and verification of sustainability standards for biofuels

Create investment vehicles/funds to mobilize financial resources to invest in national priority biofuels projects.

Mainstream use of biofuels in Country Assistance Strategies ( PRSPs and CSPs) Forster market-oriented partnerships between governments, the private sector, civil society and

international development partners. Promote engagement on North-South and South-South basis and between public and private

sectors. Encourage multi-disciplinary approaches, Support biofuels research and development in Africa.

Concentrate our focus on regional initiatives for scale and markets within existing RECs, SADC, ECOWAS, IGAD

Page 28: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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7. Conclusions

Biofuels can play a significant role for the development in Africa Policies, research cooperations, partnerships and technology transfer should be the

basis for future biofuels program in Africa. Sustainability (GHG-Reduction, Competition with food and local applications,

Biodiversity, Environment, Prosperity and Social well being) is critical to its success Initial focus of biofuels programs should be self-sufficiency in energy with national,

sub-regional, regional and global linkages. This seminar should result in a common plan/program of action on how Africa can

exploit its biofuels potential in a sustainable manner. Follow-up action is required at the national / sub-regional level for ensuring an

consistent, integrated and multi- disciplinary approach to develop biofuels projects in a sustainable manner for improved access, increased use in industrial / transport sectors and enhancing energy security in Africa.

Page 29: Www.unido.org Biofuels for Industrial Development and Poverty Reduction in Africa Heinz Leuenberger Director, Energy and Cleaner Production Branch. United

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Thank you for your attention

Heinz Leuenberger United Nations Industrial Development

Organisation (UNIDO)Director, ECB

E-mail: [email protected]