charlie henderson (climate futures)-biofuels case study

Biofuels in Malawi

Charlie Henderson

Climate Futures and JANEEMO

Global Community Links

Biofuels in Malawi

• drivers for biofuels

• what’s currently happening

• two case studies: BERL and JANEEMO

• big biofuel questions


Why biofuels?

• surging oil prices and tightening carbon budgets driving international demand

• FOREX shortages: agriculture provided over 90% in 2003

• Employment: over 85% of population in agriculture

• Fuel shortages: big contributor to unrest

• Land and climate suitable for many biofuel crops Global Community Links

National approach and shortcomings

• As presented by Malawi Energy Regulatory Authority (MERA)

• The energy laws 2004 recognise biofuels in the energy mix

• however, little or no regulatory environment on timing or implementation of targets, incentives for investment, feedstock types

• also: need for RTD, oil company embracing of blends, export/national level playing fields

Biofuels Association in Malawi

• producers, NGOs, government representatives

• holds events, lobbies government for overarching policies

• a single voice to Government

• chaired by BERL


BFA is lobbying for

• price parity, VAT

• consultants appointed to consider tax for industry sustainability, food production, poverty, land use

• protecting local producers by banning imports (‘side selling’)

• which feedstock? eg Jatropha, soya, sunflower

• standards

• alignment of policies ie agriculture, finance, trade, development planning


BERL • Bio-Energy Resources Ltd • Founded 2006, investment 2008 • 70 field staff – 10 districts including Salima, Kasungu, Lilongwe • signed up over 20,000 smallholders • planted Jatropha as boundary fences: 600-1000 trees • guaranteed 25 MK per kg, 10 year contract • processed to paraffin substitute


BERL

• proof of concept processing plant being built

• expecting 110,000 litres in 2012

• and 4m litres in 2016


JANEEMO • agro-forestry initiative at the smallholder level (2000 households)

• Jatropha, planted as boundary fence; Neem (pollarded for firewood); Moringa (intercropped and boundary)

• encourage use and trading locally

Comparison

- Malawian - Scot / Malawian

- commercial - Donor, NfP, local

- fixed price - n/a

- long term contract - n/a

-Jatropha (alongside - Jatropha, Neem other staples) and Moringa

- lobbies government - not political


Big biofuel questions • Does the emerging biofuels industry present a viable job market for Malawian farmers?

• Does this threaten food security?

• How therefore can a food/biofuel balance be struck?

• What are the best smallholder models for sustainable food / biofuel production?

• what crops?

• which planting techniques eg boundary fencing, alley cropping, river banks, monoculture


Big biofuel questions

• Should biofuel be exported?

• How do biofuels complement other environmental initiatives eg reforestation, erosion control?

• Will biofuels replace forests or grasslands?

• How can a partnership model between Malawi and Scotland best foster successful biofuel enterprises?


charlie henderson (climate futures)-biofuels case study

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