The 'business' of #Renewable #Energy

The 'Business' of Biofuels

Its a new dawn in Zambia as the biofuels industry received the much needed boost from the Ministry of Energy. The pronouncement of the buying price and blending ratio by the government, opens the doors for major investment opportunities.
Facts about Biofuels: Biofuels are produced from living organisms; they can be referred to as a solar energy source because they are derived from photosynthesis. More specific is Biodiesel fuel, which is more commonly produced from oils extracted from a variety of vegetable oil seeds which include soybean, jatropha, cottonseed, sunflower, Castor bean and used cooking oil. Biodiesel has been observed to reduce engine wear and produce less harmful emissions.
Recently, the government, through the Ministry of Energy announced their intention to purchase up to 31,000,000 liters each of biodiesel fuel and bi ethanol fuel annually; in order to meet the blending ratio targets set by the Ministry. What this means for the biofuel producers is that there is renewed hope to achieve a sustainable local liquid energy source in Zambia. The pronouncement is also a major milestone for the Biofuels Association of Zambia after years of advocating for the creation of a sustainable biofuel market.
Other such notable milestones in the biofuels industry include:
1. In December 2006:The announcement of the Biofuels Association of Zambia as a driver for the advancement of the biofuels industry in Zambia.
2. In 2008, the Statutory Instrument (SI42) was issued in order to officially recognize biofuels as an energy source. This move in turn led to the development of the technical framework to pave way for official licensing of biofuels.
3. In April 2011, the government announces the official blending ratio for biofuels to fossil fuel. This means that a demand has been created for the biofuels thus a market and further the industry has impetus to develop infrastructure around the biofuel market.
4. In August 2013, the announcement of the official gate wholesale price for biodiesel and bioethanol. At this point, anyone wishing to invest in the biofuels sector can use these prices to see the viability of any biofuel venture they want to undertake.
Some of the companies business in the biofuels are the Copperbelt Energy Cooperation, Schultz and Schultz Green fuels, Brunos Jatropha, Southern Biopower, Nakambala sugar estate, Tapera Industries Ltd and Oracle Biofuels just to mention a few. These businesses participate actively at different levels in the value chain of the industry starting from out-grower schemes providing seed for vegetable oil production, to processing the oil into a usable biodiesel fuel in unmodified diesel engines. Even though several companies have been in the biofuel industry over the years, the lack of a market made it impossible to stay in the business of biofuels without a foreseeable income, this led to diversification/ clearing of energy crop fields to grow stable food crops that can be sold easily. So in the case of biodiesel fuel, to achieve the 5% blending ratio, a crop like Castor beans would have to be cultivated on a minimum of 70,000 hectares. With the vast arable land under utilized, and holding 40% of sub-Sahara's fresh water, Zambia has the ideal conditions to achieve renewable energy independence.
Currently, due to the underdevelopment of the energy crops, the industry biggest challenge is access to a stable source of vegetable oil as a raw material. To address this challenge, several entities such as Tapera Industries Limited have embarked on a commercialized Castor bean farming exercise to cultivate and supply Castor bean oil to the biofuel processors. This will help stabilize already existing supply from small scale farmers and out growers, hence create jobs and reduce on the demand of biofuels production on food crops like soy bean oil. The processing entities like the Copper belt Energy Cooperation, Oracle Biofuels and Schultz & Schultz Green fuels will greatly benefit from a reliable source of raw materials through sustained and consistent biofuels production, hence the end users of the biofuels produced will have a consistent supply of a renewable energy source which will save costs and be cleaner for the environment..
The notable benefits of local biofuels production are:
-increased job base which include farmers transporters, processers and wholesalers.
-cheaper source of locally produced fuel for transport and industry ( biofuels price is determined by the raw materials processed).
-diversification of crops to include a significant portion of energy crops like Castor beans, will enhance Zambia's export potential and maximize on the efficient use of the vast land and abundant water resource.
According to the recent feasibility study conducted by the Brazilian government, Zambia has the full requirements and potential for a sustainable renewable energy industry. The business of biofuels is an industry which should be pursued by both environmentalists and business people, because apart from the financial benefits, the environment and the general health of the masses will be conserved due to the reduced pollution. The is an industry that addresses food security, climate change, fuel sustainability and a good return on investment. That's the 'business' of Biofuels...

Registered Technologist - MEIZ