Ghana enters the biofuels era

Ghana is one of Africa's most successful economies. The nation of 22 million has remained politically stable for several decades, its economy has been growing steadily, and poverty levels are relatively low compared to African standards. Ghana has become entirely dependent on imported oil after its own resources had been depleted, though. This makes the country economically vulnerable. As many others, it is therefor looking to biofuels as a way out. The country already showed its commitment by becoming a founding member of Africa's 'Green OPEC', the PANPP (earlier post).

The country's Energy Commission recently held a stakeholders meeting to discuss the potential of bioenergy in the country and progress made at creating frameworks aimed at exploiting it. Ghana's Minister for Energy and Mines Mr. Kofi Adda summed up the nation's advantages in this field and the rationale behind a transition towards biofuels:

• Ghana's extreme dependence on imported petroleum products involves enormous risks both on the front of energy security and the environment. Increasing fossil fuel prices set in motion an uncontrollable rush on the country's forest resources; therefor modern biofuels play a key role in preserving the environment.
  
• "We have abundant arable land and a stable climate good for growing energy crops and food". Ghana's total arable land base is around 18 million hectares of which some 23% or 4.3 million hectares are currently used to produce food, feed and fibre, leaving ample room to grow bioenergy feedstocks [FAO Terrastat].
• Ghana is blessed with agro-climatic and plant resources that can be used to produce both ethanol, biodiesel and bioenergy in a competitive way: oil palm, sugar cane, cassava, jatropha and a host of tropical grass species
  
• "Modern biofuel technology will make us cultivate fuel to grow our economy, protect our available energy source and environment, as well as reduce dependency on imported fuel"
• if the right technological know-how is used, Ghanaian farmers will be proud to say "We are energy producers"; some 60% of Ghana's entire labor force is active in the agricultural sector, which, compared to that of other African countries, is quite performant.

In short, Ghana has the ideal combination of resources to create a viable green energy industry, with the potential to export to the international market.

In order to exploit these resources for the benefit of the Ghanese people, a range of institutional measures is being undertaken. A draft National Biofuel Policy Recommendations document and licensing requirements for biofuel producers have been introduced. These documents have been developed as a guideline to encourage entrepreneurs and business developers to transfer some of their laboratory trials to large industrial production.

Mr. Adda further suggested institutional training, research and human resource development, science and technology transfers to ensure the smooth running of existing and future biofuel projects in Ghana. "It is only through drastic implementation decisions and commitment that we can bring biofuel at parity with fossil fuel in terms of availability, cost effectiveness, technology, quality of service and marketing," Adda added.

South South cooperation
But starting from zero is in this industry means facing a steep mountain to climb. Therefor, Ghana is looking abroad for cooperation with developing countries that have considerable experience with biofuels. More particularly, at Thailand:
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When Ghana's Vice President Alhaji Aliu Mahama visited Thailand at the beginning of September this year, he was fascinated by that country's level of technological advancement in biofuel generation. According to media reports including that of the Ghana News Agency, the Deputy Director of the Royal "Chitralada" Projects, Ms Rosarin Smitabhim told the Vice President that Thailand would be switching to the use of biodiesel and gasoline next year.

She said currently the official vehicles of the King were being powered solely by biofuel. The Royal projects include a solar energy system that could serve a large area of Bangkok, the use of rice chaff for charcoal production, recycling of used household oil for soap and the manufacturing of candles from bee wax.

Alhaji Mahama on his part said Ghana would tap the expertise of Thailand in large scale production of bio-fuel for national consumption. He said although Ghana had set in progress the development of biodiesel, the stride Thailand has made by way of research would illuminate the path for Ghanaian researchers.

Existing efforts show biofuels are competitive with oil
Supporting the government's current policy efforts, the Managing Director of Biodiesel 1 Company Mr. Christian Kofi Marfo said he had already developed biodiesel from soybeans at a cost of 5800 cedis per liter (€0.49 per liter/US$2.4 per gallon). He proved his point by putting several litres of the soybean fuel in a four wheel drive vehicle and moving it. But the point remains that biofuel from soybeans are more expensive than fuel from Jatropha which costs only 3970 cedis per liter (€0.34 per liter / US$ 1.63 per gallon) compared to petro-diesel which currently costs about ¢9500 per liter (€0.81 per liter / US$3.9 per gallon).

In short, two types of biodiesel have already been produced in Ghana at prices that are lower than fossil fuels. Palm oil and sugarcane, with their much higher yields, will only make the economics more favorable.

Ghana reacts to NGO's from the West
"Third World Advocacy" organizations, as they are called in Ghana, are worried about the biofuel projects in Africa and other developing countries.Their beef is that these projects will benefit advanced countries to the detriment of the developing countries.

According to one of such organizations, the Institute of Science in Society, based in London various European countries have established goals to increase their use of biofuels as a substitute to gasoline and diesel. For instance the European Union has established that by the year 2010, six percent of fuels will be biofuels and hopes that by 2020 the percentage will increase to eight percent.

Critics say it is unlikely that Europe will dedicate its soils to the growth of these types of crops and as such third world countries will provide the land and cheap labour and the environmental effects caused by large plantations from which the biofuels are grown and refining. According to the Institute, companies dedicated to the business of biodiesel have placed their sights on Latin American, African, Asian and Pacific countries, since they consider that these countries can obtain raw material at competitive prices.

These organisations are forgetting that biofuels boost the economy of poor nations, solve unemployment and migration issues, and ultimately protect the environment by reducing poverty (the single most important factor driving for example deforestation in Africa).

According to declarations made by the CEO of the D1 Oils, a renewable energy company based in the UK with activities in Africa (also in Ghana) and Asia, they are working with plantations of crops known as jatropha for the production of biodiesel. Up till now they have established 26,000 hectares and have the intention of expanding to nine million hectares in the future. UK-based D1 Oils predicted in 2004 that the world market for biodiesel would grow by 14.5 percent annually to 2.79 million tonnes by 2010. Currently, Brazil is said to be the largest supplier of biofuel to the UK.

Countries such as Thailand, India, Guatemala, Mali, Cambodia Tanzania, Argentina, Malawi and Madagascar are all doing studies or are already benefiting from biofuel projects.

Adapted from:
Isabella Gyau Orhin: Ghana: Biofuel Begins to Attract As Crude Oil Prices Fluctuate - Public Agenda (Accra) - Oct. 30, 2006