African Union/Brazil/UNIDO Bio-Fuels Seminar in Africa 30th July – 1st August 2007 Addis Ababa, Ethiopia Action Plan for Biofuels Development in Africa.

African Union/Brazil/UNIDO Bio-Fuels Seminar in Africa

30th July – 1st August 2007Addis Ababa, Ethiopia

Action Plan for Biofuels Development in Africa

Draft

Bio-fuels in AfricaDraft Action Plan

• 10 year (short & medium/long-term)

• Priority options

• Main programmes

• Key actors and roles

• Platform for implementation – Regional Biofuels Network

Bio-fuels in Africa Action Plan

• 10year action plan– Short/Near Term programme (4

years)– Medium to Long Term

programme (next 5-10 years)

Priority Options

• Focus on– Bio-ethanol– Biomass cogeneration– Biogas– Bio-diesel– Biomass Gasification

Priority Options Will Vary According to Country’s

Specific Characteristics

• Ecological Regions– Drylands (Arid and Semi Arid

areas)– Wetlands (Moist and rainland

areas)

• Different biofuel feedstock best adapted to different ecological regions e.g. biodiesel in drylands and bioethanol in wetlands

Priority Options Will Vary According to Country’s Specific

Characteristics• Drylands (Arid and Semi Arid

areas)– Short Term Options

• Biodiesel• Bioethanol• Cogeneration

– Medium to Long Term options• Biogas• Biomass Gasification

Priority Options Will Vary According to Country’s Specific

Characteristics

• Wetlands (Moist and rainland areas)– Short Term Options

• Bioethanol• Cogeneration• Biogas

– Medium to Long Term options• Biodiesel • Biomass Gasification

Key Programmes Will Vary According to Country’s Specific

Characteristics

• Enabling policy and institutional framework

• Financing mechanisms

• Resource assessment - feedstock availability and sustainability

• Strengthening technical expertise

DRY LANDS/ WETLANDS

PROGRAMMES

KEY ACTORS AND ROLESAfrican Governments (Technocrats and Policy Makers) – Ministries in charge of

Agriculture, Energy, Industry, Finance; Environment; Agro-industries (Private and Public Sector); Research institutions, Regional Bodies (AU, UNIDO, UNDP,

UNEP, ECA); International Organizations (World Bank and EU) Financial Institutions such as African Development Bank (AfDB); Other Stakeholders

(Refineries and Fuel Distributors, Farmers Associations, Automobile Industry, Quality Standards Boards, Private Entrepreneurs and Banks, Media

PLATFORM FOR IMPLEMENTATION - REGIONAL BIOFUELS NETWORK

Enabling Policy and Institutional Framework

Financing Mechanisms

Resource Assessment – Feedstock Availability and SustainabilityStrengthening Technical Expertise

Bio diesel Bio ethanol Biomass Cogeneration Biogas Biomass Gasification

Enabling policy and institutional framework

• Outputs and Indicators:

– Technical studies on policies, institutional structures and associated trade issues

– Policy events to debate policy options and review policy documents

– Training workshops – Study tours

• Key indicators of progress and success:

– Number of countries that establish supportive policy measures such as pre-defined prices/tariffs ($/litre and/or $/kWh) and national targets for biofuels (millions of litres and/or MW installed capacity).

Financing mechanisms• Outputs and Indicators:

– Technical studies on pricing and incentives for biofuels;

– Pre-feasibility and Feasibility assessments on viability of bio-fuels projects

– Training workshops and study tours on financial assessments and pricing may be organized based on the requirements of specific countries

• Key indicators of progress and success:

– Additional investment funds successfully mobilized for biofuel investments

– Number and capacity of Greenfield biofuel investments (joint venture or other packages) that are successfully initiated

Resource Assessment & Sustainability Indicators

• Outputs and Indicators:

– Reports, studies and assessments on biofuel resource assessment and sustainability indicators/standards

• Key indicators of progress and success:

– Widely available, regularly updated and verified resource assessment database and development of widely accepted, flexible, adaptable and cost-effective sustainability indicators/standards

Capacity Building & Strengthening Technical

Expertise• Outputs and Indicators:

– Biofuels pilot and demonstration projects– Training workshops and study tours on

biofuels technologies organized based on the requirements of specific countries

• Key indicators of progress and success:

– Number of pilot and demonstration projects– Number of African biofuel specialists that

are trained and the level of technological development.

– Proportion of equipment used in biofuel investments that is locally designed, assembled and/or manufactured.

Key Actors and Roles

• African Governments (Technocrats and Policy Makers) - Ministries in-charge of Agriculture, Energy, Industry, Finance, Environment;– Policy formulation and enactment of

legislation– Establishing incentives for biofuels

• Agro-industries (Private and Public Sector)– Project development – Greenfield

investments– Supply of biofuel feedstocks

Key Actors and Roles

• Regional & Sub-Regional Bodies (AU, UNIDO, AFREC, ECA, Sub-regional agencies)– Coordination of institutions/stakeholders– Lobbying commercial and marketing

bodies to expand local markets for biofuels

– Mobilizing financing – Promoting investment and joint ventures– Coordinate exchange of skills and know-

how

Key Actors and Roles• Financial institutions such as the

African Development Bank (AfDB)– Guidance on investment strategy for

biofuels– Assist with assessment and prioritization of

biofuels investment opportunities– Mobilizing of co-finance

• Other stakeholders (Refineries and fuel distributors; Farmers associations; Automobile industry; Quality and Standards Boards; Research Institutions; Private entrepreneurs and banks)– Actively engaged in development process

and should provide inputs

National LevelSuggested Way Forward to be

Adapted to Country’s Priorities and Specific Charateristics

• Short Term

– Focus on proven options that build on existing agro-industries that use available agro-wastes (such as bioethanol in existing sugar industries) to minimize start-up costs and reduce risk

– Undertake regularly updated detailed resource assessments, stocktaking on existing bio-energy investments, initiatives and planned expansions

• Short Term

– Set pre-determined prices for bioenergy options

– Establish supportive regulatory and policy measures such as standard PPAs and blending requirements

– Concentrate on investment analysis and preparation of “bankable” investment proposals

– Encourage national, regional and international exchange of experience, skills and technologies (regional bioenergy network)

National LevelSuggested Way Forward to be

Adapted to Country’s Priorities and Specific Charateristics

• Medium to Long Term

– Continue to regularly update detailed resource assessments, stocktaking on existing bio-energy investments, initiatives and planned expansions

– Support R&D and local adaptation

– Initiate pilot and demonstration investments

– Strengthen national, regional and global technical exchange of skills, experience and information

National LevelSuggested Way Forward to be

Adapted to Country’s Priorities and Specific Characteristics

Platform for Implementation

Regional Biofuels Network• Assist in coordinate and supporting implementation

of action plan which African Governments are expected to lead

• Subject to support from African Governments, the Network could possibly be part of International Biofuels Network initiative UNIDO in collaboration with AU, AFREC, ECA and subregional institutions

• Core membership from African countries and institutions

• Participation of global biofuel leaders such as Brazil

• Expected to establish Centers of excellence for each biofuel option and/or agro-ecological region

• Centres of excellence to spearhead development of option in the region – nodal points for action and follow-up

• Centres of excellence could be jointly hosted or jointly managed by sub-regional agencies and leading research institutions/independent research centres/NGOs within a continental umbrella of African Governments, AU, AFREC and ECA