Biofuel superpower Papua New Guinea signs first ethanol plant deal

The vast island state of Papua New Guinea (PNG) has long been identified as one of the true 'Biofuel Superpowers' of the 21st century (earlier post). The tropical country's estimated sustainable bioenergy production potential is in the tens of Exajoules per year (1 Exajoule equals around 164 million barrels of oil). PNG's agro-climatic conditions favor the cultivation of biomass and biofuel crops with very high yields - from grass species such as sugar cane and miscanthus, to tree species such as eucalyptus, or starch and sugar-rich crops such as cassava, nipa and sago.

PNG is still very much an agrarian society, with over 85% of all Papuans making a living in agriculture. Poverty levels are very high, and aside from a few large plantation estates, modern agriculture is virtually non-existent on this vast island.

The country now has signed its first agreement on a €39/US$52 million ethanol project to be implemented in PNG's Central province. Signed in the capital Port Moresby, the project paves the way for the development of a genuine biofuels industry in the country. The signatories included the Changhae Group of South Korea, landowner representatives, the Central provincial government and the State.

The ethanol will be made from cassava which will be grown on 20,000 hectares of land in Launakalana, Rigo district. Cassava is a starch-rich root crop that requires limited fertiliser and water inputs, that thrives on poor soils and withstands moderate droughts. Under optimal conditions, it yields some 30 to 35 tonnes of roots per hectare, which, at a 25% starch content, can be fermented into 5000 to 6000 liters of ethanol (for an interesting introduction, see the FAO's Ag21 Magazine issue devoted on cassava starch). In several other countries, including China, Thailand and Nigeria cassava is planned to be used or already being utilised on a large scale for the production of the gasoline substitute. The production capacity of the plant was not disclosed, but taking a cassava yield of 25 tonnes on 20,000 hectares, we estimate the plant's annual capacity to be around 85,000 tonnes of ethanol.

John Lim, Changhae Group chief operating officer, said that the company had a vision of making Papua New Guinea a leading production base of biofuels, and of helping local farmers become the new "biofuel sheiks" of this century.

"The biofuel industry is growing worldwide due to environmental and political concerns. PNG has the right natural resources to be an important player in these growing concerns," Mr Lim said. He said Changhae, while securing international markets for the products from PNG, would provide the necessary push to develop a new agricultural-based industry.

Social and economic benefits
Mr Lim said he was happy to see the people of Central province taking the lead in the venture, which hopefully would expand across the country and put PNG on the regional and international map as biofuel super power:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: cassava :: poverty alleviation :: rural development :: Papua New Guinea ::

Department of Agriculture and Livestock Secretary Anthony Benjamin said the project would provide an adequate level of investment capital of 46 million kina (€11.7/US$15.5 million) spread out over two stages of the project.

The first – worth US$6 million – will be invested in commercial cultivation of cassava under a nucleus and out-grower arrangement. Stage two will involve the creation of the bioethanol plant at a cost of US$26 million.

Mr Benjamin added that the project would play a key role in reducing greenhouse gas emissions under the Kyoto protocol.

Moreover, the minister estimated that 5,000 jobs would become available once the project is fully implemented and that there would be huge benefits to the people of Rigo and Central provinces as the project would bring much needed infrastructures such as better roads, schools and aid posts.

The minister also announced that the Papuan government intends to promote biofuels as the alternative source of fuel for the manufacturing industry as a whole, due to its long-term economic viability and the country's positive experience with the use of biodiesel derived from coconut oil.

More information:
FAO's Ag21 Magazine: Spotlight: Cassava starch (with a look at cassava ethanol), 2006

Cassava.org: Overview of the technical potential of ethanol production from cassava (case-study on Thailand) [*.pdf].