A successful community based Biofuels project in Zambia

MARLI INVESTMENTS ZAMBIA LIMITED

INTERNATIONAL CONFERENCE OF SUSTAINABILITY SCIENCE, ICSS 2012.ARIZONA STATE UNIVERSITY.20TH TO 23RD FEBRUARY 2012.

KAMAL DESAI

BACK GROUND• BIO DIESEL PRODUCTION IS AS FOLLOWS:• 1- Production of Feed Stock• 2- Feed Stock processing into Bio Diesel• 3- Distribution of Bio Diesel to markets.• For Bio Diesel production, various feed stocks can be used e.g

soya beans, sun flower and ground nuts to mention a few. However, these feed stocks are food based and conflict with food security.

• It is for this reason our choice of feed stock is JATROPHA CURCUS, a plant that produces a non-edible oil suitable for biodiesel production.

BACK GROUND: CONTINUED• There are two ways to farm Jatropha.• 1- large Scale Production – Commercial farming, Plantations.• 2- Small Scale Production- Small Holdings .• Marli has chosen and selected the Small Scale production

based on Participatory and community based approach.

Participatory and Community- based Approach

Biofuel Production by Marli• Biofuel Plant centrally located in Kabwe• Proven Technology to be used• In the process of completing purchase of land on title to set up a processing

plant.• The company uses an outgrower model to secure feedstock• Outgrowers inter-plant with food crop (sustainable model)

Ownership of the biofuels wealth at national and individual levels It is preferable if the wealth derived from Zambia’s biofuels activities is fully

owned and controlled by Zambia and her citizens. The feedstock (JATROPHA) which facilitates local ownership would create a base for further developments and would ensure sustainability of the industry. The Outgrower scheme currently has in excess of 14,000ha in plantations and approximately 8000ha in seedling stage cultivated ( at last count) by 25,000 farmers.

Farmers

Type Of Knowledge Used And ProducedMarli Outgrower scheme’s success is based on the combined use of modern and traditional systems and knowledge• Have to date applied knowledge acquired in land use

(reclaiming disused land by reforesting it with jatropha and inter cropping) ,

• Modern processing technologies (being assisted by CEEEZ)• Production techniques (3 x 3 spacing and different pruning

techniques.)• Traditional farming practices/knowledge• Combined traditional and commercial farming practices has

produced a hybrid system enables the farmers to take full ownership of the process, allowing for innovation and motivation to strengthen the Marli outgrower scheme

Challenges faced by Marli

• Access to Project Finance is difficult in a risk averse financial market, as the project is deemed a green field project

• In Zambia Biofuels are not considered a priority sector and hence Industry is not successful in developing incentives which affect pricing issues

• Industry and government require enhanced training and capacity building to better service the market potential

• Lack of adequate infrastructure to support the industry is a hindrance (Transportation – road network)

Benefits accrued from this Project

• Increased depth of Private sector participation ensuring competitive pricing (Profit = revenue)

• Benefits to the Government, as the project addresses issues of job creation and poverty alleviation

• Being a landlocked country, security of supply of fuel is a major national concern, in addition to the High fuel demand by the mining sector

• Benefits are accrued through Carbon trading• Carbon emission reduction necessary to adapt to climate

change and protect our environment is achieved.

Increased livelihood opportunities

Food production still being maintained

Reclaiming abandoned land

Expectations

PROJECT OWNERS• Successful competitive project • To achieve secured feedstock supply• To produce quality bio-diesel able to meet standards and

specifications

Expectations

FARMERS• Need for secure market for produce• Fair price• Knowledge transfer. Best farming practice – • Seed oil crop• Empowerment-inputs and implements• Improved livelihood

Roles of Institutions • Ministry of Energy and Water Development - policy• Energy Regulation Board – licensing• Zambia Environmental Management Agency - Regulation• RESEARCH INSTITUTIONS ( UNZA, NISIR ZARI CEEEZ)• CIVIL SOCIETY ORGANISATIONS• Biofuels Association Zambia - Advocacy• MEDIA – Awareness ,commercialization• FINANCIAL INSTITUTIONS – Project finance• Zambia Bureau Standard – standards and specifications

Results Achieved

• Government approves the Energy Policy (comprising biofuels), published in May 2008. November 2007:

• B/FUEL. LEGAL FUEL BY S.I . 16th April 2008• STANDARDS AND SPECIFICATION PRODUCED. May 2008• BLENDING RATIOS ANNOUNCED 18th April 2011. • REGULATORY FRAMEWORK• LICENCING OF B/F PROCESSING PLANTS• COMMITMTENT BY GOVT. TO BUY B/F’S• PRICING MECHANISM UNDER CONSIDERATION

Interaction with Scholars & Partners

• CEEEZ• CEEEZ FACILITAING MASTERS STUDENTS • SPONSORED MASTERS STUDENT IN COLLABORATION WITH

COMPETE AND CEEEZ IN AUSTRIA FOR A COURSE IN STANDARDISATION ,QUALITY CONTROL,CERTIFICATION OF BIOFUELS

• WORKING RELATIONS WITH PROF CHINGAMBO (AFRICA CARBON CREDIT EXCHANGE)

• DR MWENDA IN TECHNICAL ISSUES

Usefulness of Compete Programme

• ACQUIRED USEFUL INFORMATION ON LAND USE, PRODUCTION TECHNOLOGIES AND POLICY FRAMEWORK DEVELOPMENT WHICH HAS ASSISTED ZAMBIA DEVELOP POLICY SOME OF WHOS PRONOUNCEMENTS I HAVE HIGHLIGHTED EARLIER.

Contact Details

Marli Investments Zambia LimitedMr Kamal DesaiAddress: 50 marshal avenueTel : 260 977 458 511Email : kamalbiod@yahoo.com marli.investments@yahoo.com