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Bio-diesel; powering growth for tomorrow PDF Print E-mail
Written by Mepukori Tumaina   
Friday, 24 August 2007

Global warming has taken centre stage in discussions on the future of mankind. Climate change and its impact on humans and the environment stand out already as the most pressing problems of our time.

For the already impoverished masses of the developing world, this catastrophe presents also an opportunity. We can ,if prepared, turn a global crisis into an opportunity for change in Kenya and in the whole East African region.

up in smoke

Following the American crusade in the Middle East, the Nigerian counter insurgency in the Niger Delta and the accelerated growth of the Indian and Chinese economies, the cost of fossil fuel has sky rocketed putting pressure on the emerging economies of East Africa. This has therefore spurred interest in bio-fuels as an alternative energy source. Even global multi-nationals, often reviled as wasteful and unfriendly to the environment are in on the act. Richard Branson's Virgin Atlantic for example, has committed its London- Nairobi route profits to research and development of alternative energy in Kenya.

Bio-diesel, a vegetable based alternative to fossil-fuel diesel, can if well developed change the lives of the people in this region. We are of course familiar with the Kenyan slowness on issues related to poverty alleviation. This vegetable diesel can be extracted from coconuts, jatropha, avocado and algae. At the moment though, Kenyan scientists and entrepreneurs are focusing on jatropha curcas.

The oil plant jatropha curcas (Jatropha) or physic nut is a multipurpose and drought resistant large shrub or small tree. Although a native of tropical America, it now thrives throughout Africa and Asia. It grows in a number of climatic zones in tropical and sub-tropical regions of the world and can be grown in areas of low rainfall and poor soils. Jatropha is easy to establish, grows relatively quickly and is hardy. Being drought tolerant, it can be used to reclaim eroded areas, be grown as a boundary fence or as a live hedge in the arid/semi-arid areas.

 In mid-2006 the world Agro-forestry research center (ICRAF) organised the first National conference in Nairobi whose theme was, ‘Towards bio-diesel production in Kenya'. This brought together stakeholders and players in the Jatropha value chain to share their experiences and to seek common approaches on issues. Notable absentees in the conference were the landowners, the poor pastoralists and peasant farmers from Kajiado, Turkana, Kitui and Northern Kenya.

Despite the concerted efforts being made by this corporations and Kenyan government, the full potential of Jatropha is far from being realized. There are several reasons - technical, economic, cultural and institutional that need further discussion and examination.

The growing and management of Jatropha, either on private public or community lands is poorly documented and there is little field experience that is being shared, especially with the Landowners. The markets for the different products have not been properly explored or quantified, nor have the costs or returns (both tangible and intangible) . Consequently, potential growers especially those in the subsistence sector do not have adequate information about the potential and economics of this plant to make decisions relating to their livelihoods, not to mention its commercial exploitation.

It is therefore necessary that the Kenyan government examine the potential role that Jatropha can play in meeting some of the needs for energy services for rural communities and also in creating avenues for greater employment. Most importantly representatives of local communities must be included to examine any existing or latent demand for the plant and to determine the framework for any future initiative based on the outcome of the discussions on the potential of jatropha curcas.

Information remains a key ingredient in the development process. Thus it is important that it must be packaged and disseminated with a lot of care. In this regard, the Maasai people like many other inhabitants of ASAL regions have been ignored. They lack information on the socio-economic and cultural effects of the bio-diesel push. Jatropha is toxic to animals and given that pastoralism is the economic backbone of the people living in the arid zones presents a potential catastrophe.

Pastoralism has no sustainable future for the Maasai. Jatropha offers the possibility of reforestation, improving climate and providing a new source of income for a rural people.... Millions of acres of under-used land is available if the project succeeds which would transform the economy of the Maasai people.

-Peter Moll, Project Head BioDiesel Kenya

 

Kajiado district is where all the multi-nationals want to set-up shop, ICRAF, Bio-diesel Kenya, GTZ, Vanilla Development Foundation (VDF) and even Virgin Atlantic. Mr. Peter Moll, the project director Bio-diesel Kenya in his article posted online says, ‘Pastoralism has no sustainable future for the Maasai, Jatropha offers the possibility of reforestation, improving climate and providing a new source of income for a rural people....The need is for injection of capital to carry the concept through initially neighbouring Maasai landowners and eventually across the whole of Kajiado. Millions of acres of under-used land is available if the project succeeds which would transform the economy of the Maasai people.' What economy?

I do not on my part believe that it is Moll's place to tell the Maasai how to live. In my first article on this site, ‘Where's the beef? Adding value to livestock farming' clearly pointed out the potential of the livestock industry and what could be done to improve it. Studies have shown that pastoralists are not only resilient, but also open to innovations meant to improve their lives. It is unlikely that these communities would stand in the way of this progress. What is needed is measures to involve them in policy formulation so that they can plan ahead and place themselves in a better position to protect their livelihoods.

It is ill-advised for our government to get into bed with the foreign investors in the Bio-fuel industry. Yes we know the potential of bio-diesel but what is there for us the local Kenyan? Will this be another Lafarge, Magadi Soda or Tiomin? What the Kenyan people need is to enjoy the fruits of independence not paper economic growth that is a mirage to most of them. If change cannot be avoided, it would be much better to be part of it and not observers.

Kenyans, ‘every cock that crows belongs to a home, but its voice belongs to the village' (West African saying).

My question to you is, are we ready?

Mepukori Tumaina
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written by Timothy Wainaina , August 24, 2007
The relevance of the last proverb escapes me and in my opinion sullies a timely and relevant article.

We do need to be looking out for energy alternatives, especially such alternatives as are cheap and provide multiple benefits. I do not think Moll means any harm, and surely fencing off the plants in the same way as one would any other cash crops is not asking for too much now is it.

As always, the key is in diversifying and innovating business solutions,
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written by Stephen Wanyama , August 24, 2007
We have failed across the board to pay adequate attention to the issues of climate change and energy efficiency. I will be writing an article soon about Peak Oil, a phenomenon which coupled with what the writer sets out above will lead to a sky-rocketing of energy prices and more of the conflicts like we are seeing in Iraq and Afghanistan.

As for biofuels, I am reading now about how Mexicans are feeling the heat as their unga prizes hit the roof following diversion of such supplies to biofuels. Surely a plant that is useful for nothing else but decoration, holding the soil and providing fuel is a godsend.

Remember that as Climate Change continues to make rainfall patters less regular, and reliable, our energy backbone reliant as it is on hydro plants will start to feel the heat. Plants such as IberAfrica's, Orpower or Tsavo Power's will get even more expensive and our entire impact will feel the impact.

Here is a quote of 2004 rates to KPLC.
Iberafrica - Ksh9.43 (11.7 US cents) per kilowatt hour,
Westmont - Ksh10.50 ($13.1 US cents) per kilowatt hour
Tsavo Power -7 US cents per kilowatt hour
OrPower-4- 9 US cents per kilowatt hour
KenGen - Ksh 1.76 (2.2 US cents )per Kwh

KPLC then sells power to its consumers at Ksh7 (8 US cents) per kilowatt hour.


That was 2004.
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nice article
written by james aldrich , August 25, 2007
All this consultations going on and there is nothing being done!The goverment has no framework to regulate bio-diesel. Is it going to be taxed the same as oil does prepayment of tax apply to bio-deisel?
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A broader Framework
written by pndiangui , August 26, 2007
Well well, a relevant article but we also need to really understand and appreciate the polarizing effects of discussions skewed on only espoused social gain without putting al together in the balance of the environment, Social contexts and the overall sustainability through profitable entities.

To begin with Bio-diesel is just a small part of the jigsaw that is the Renewable energy.

One of the most important points to make in the context of Kenya's renewable energy drive is that we haven’t been caught-up in the cheap dirty energy. This hasn’t been by any informed strategic intents, but by default that our laziness in the past in exploring and investing in the cheaper dirtier fuels like Coal Plants might turn out to be a competitive edge.

It hasn’t been a blessing since many corporations have shied away from investing in the country due to the erratic supplies from a 70% hydro fed national grid during droughts. The fact that Hydros’ have been 'costing more' to run has lead to this cost in terms of KWH cost far above other African counterparts using 'dirtier' fuels like South Africa.

Inefficiencies in the monopolized parastatals tasked with the delivery of energy mostly due to their politicized nature all nailed this demise to a lack of a proper framework on how to manage energy resources in the past.

Going back to my earlier assertions, this laziness has resulted into a portfolio of energy assets reminiscent of many countries in the 1930's when Hydro made the bulk of the Energy assets before the industrialization drive led into the continued usage of Coal-fired stations.

Now that we know that the days of these simple Coal-fired plants are numbered if the current global drive for renewable energy is sustained, it places Kenya at distinct position to actually turn-around the 'curse of an all renewable energy' portfolio country into a competitive edge.

This is so because the organizations managing the Energy assets have processes aligned with the production and distribution of renewable energy like Hydro and Geothermal.

What this means is that as the global implication of tax credits starts to bite , the differential in KWH cost from a renewable plant in Kenya and a coal-fired plant in Australia or South Africa, plummets.

And as we become more efficient from our experience in managing renewable energy and if we put more resources into R and D to improve other sources and streamline delivery, running a manufacturing plant from Kenya would even become more attractive when manufacturers take into consideration their carbon foot prints.

In the end we can brand almost of Kenyan products and services green. From growing Flowers in Naivasha through Solar and Geothermal technology, tourists staying in hotels that only utilize green energy in their services to agro-processing plants that rely on green energy.

In a nutshell the slow uptake of green energy alternatives in the ‘West’ is the high switch-over costs the users associate with them.

We don’t have much existing infrastructure of this ‘dirty fuel’ generators, in fact we have more of the renewable energy infrastructure putting us the very earliest adopters by default of absolute green energy users.

We need to ride on this competitive edge, much of which is a creation of our own laziness in the past. We need to turn it into an opportunity the entrepreneurial way.

This is well aligned with now creating a mass drive locally into the biodesel powered cars. Which gets me to my take of the narrow focus of the ICRAF conference;

What I think we should be discussing as far as meeting Kenya's Energy needs is concerned is a broader framework that recognizes the different and diverse parts of building a Renewable and sustainable Energy based economy.

The focus on the use of Jatropha curcas in biodesel is a good step as part of he bigger picture, and especially from its relevancy to ICRAF as a sustainable Agro-forestry champion, but it is just part of the Renewable fuels story.

A broad Renewable energy framework in this country (Kenya) would touch on the development of Micro-hydros’, Solar, Biomass and even recycling vegetable oil waste from restaurants and from abattoirs like KMC ,Farmers choice & other butcheries through-out the country , all to be implemented through well-thought out energy policies that have institutionalized the understanding of the vision to make Kenya a country that leaves and breathes sustainable clean green energy.

Now what this would create is a major local market for bio-diesel to drive local production through cooperatives just like milk and tea before thinking of regional and international exports.

We have seen the success of Milk cooperatives in the 70’s and 80’s before political interference and the competencies they have created locally in the processing of raw milk relative to other developing countries.

This success is on track to be achieved again. It shows the power of organizing communities around cooperatives to meet specific commercial goals.

In fact the value chain at the processing level and the supply chain in the transportation level are the sweet-spot of complexity but which if sorted would lead to a an entrenched culture of the use of bio-fuels in every sector of economy leading to a very competitive economy.

For example the cooperatives of bio-diesel farming under a Renewable Energy Cooperative body would see the formation of processing cooperatives, the injection of technological capabilities and the lobbying of construction of a sophisticated pipeline infrastructure that leads to distribution points in major districts.

This is not a hard feat if the synergies among the players were put together and the liquidity in this country chasing non-productive stock market gambling and pyramid schemes was harnessed towards creative financial capital accumulation domestically and internationally to fund these activities through vehicles like infrastructure bonds and such.

I am not sure if international exports of Bio-diesel might make sense at this point in time due to the carbon foot-print that the transportation of these fuels might be leaving but probably weighed against the cost of their production costs in the European and some Asian countries like Japan that have serious Kyoto deadlines to meet it might make feasible business case.

But I suggest an initial focus for the broader framework that creates local demand for blended bio-diesels and sustainable farming practices that truly reflects the fuel as renewable in its production value chain.

As Ole Mepukori puts it, production should also focus on the strong alignment with the social and economic advancement of the local communities. That’s why I think that leveraging the Kenyan cooperative movement makes perfect sense. However the reap into Bio-diesel, needs to be carefully checked with time especially if the focus is on energizing auto-mobiles and other transportation vehicles.

The evolving hydrogen technology would needs to be taken on board and R and D resources put into using the cash-flows from Bio-diesel and other renewable energy sources as part of achieving the green energy vision. I have reiterated this in an article here on the Opportunities waiting to be exploited due to climate change.
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written by Tim Norwood , August 26, 2007
Peter,
Great comment. There's a lot in the media here about Carbon Foot Prints, and Kenyan horticultural exports may well be faced with a drastic reduction in their viability due to the distance flown. There certainly is an opportunity to turn the tragedy into money if we are ready to innovate and abandon the old recipes.

On ICRAF,
The ICRAF conference was I think targeted at the Maasai and other people in ASALs. That explains its narrow focus, no doubt the government should play a leading role in this. Putting the entirety of our national destiny in the hands of NGOs is irresponsible.

Finally, the exports needn't be to Europe or Japan. We could even export to countries closer by. Uganda's oil is not that much and it is likely that unrest will keep it unviable especially in the fallout after Museveni's term ends. Sudan? Well there's the matter of the pipeline. All things said, we still have a large hinterland, and if as Wanyama points out global prices rise we will need to have alternatives at hand to maintain our standards and ways of living.
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written by emmo opoti , August 26, 2007
Stephen,
Those diesel plants will certainly cost us more than that by now. Our lazy and foolish decision to privatise KPLC and then to select a shoddy group of Canucks to manage it is proving very unhelpful.

Maybe there would be less leakage if the prices were lower. Maybe there would be more FDI and more jobs and a wider tax base if the energy was cheaper and more reliable.

We already have a peculiarly high impact from hikes in petrol prices ( many plants have to run a diesel based back-up). This will leave us naked going into a period of high energy prices, can you imagine a plus $100 barrel ( likely if Hillary or Obama win and invade Iran ).

P.S. Today's Nation has in its letters section.
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Bio-tecnology is the ict of th
written by mickey , August 28, 2007
I concur with ole mepukori, biodiesel and the whole field of biotechnology is the future of the developing world. Why should we continue to die of hunger if we can produce more food using better seeds, why should we put haLF our GDPs in the importation of fossil fuel if we can develop cheap alternatives as we reforestate our lands, it is high time kenyans start thinking outside of the box.
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written by simon , August 28, 2007
i beg to differ, kenyans are not lazy, they just put too much emphasis on not so important issues, like tribalism and cheap politics. we should start looking at the whole issue of leadership, and institutions that support our economic growth and we should all support what the leadership is doing
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written by Kanyoro , September 07, 2007
Cant agree more with Mickey! We need to think out of the box.
I am of the opinion that we need to explore the opportunities available in green energy. I respect the opinion that the government needs to do more, yet think that it is the private sector and the civil society that ought to take full responsibility. It is amazing how far nations of West Africa are in these initiatives. While we are at it, lets us not only look at the aspect of bio-diesel but the potential in savings on use of jatropha oil for lighting and cooking for the rural poor in Kenya. I think it makes sense to set up a think tank that shall get things moving. If you may be interested, drop us a line at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . Keeping on lamenting wont help.....we need to take massive action and produce biodiesel.
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written by kezia , September 09, 2007
recently i have seen a number of adverts in the local dailies on Jatropha seedlings and business opportunities and if Ole is right of which i dont doubt what is going to happen if the poor landowners decide to make it economically unrealistic to invest?
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Last Updated ( Sunday, 26 August 2007 )
 
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