BBiiooggaass ffoorr aa bbeetttteerr lliiffee

An African Initiative

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Upper illustration: Cows. Lower illustration: Tanzania Biogas digester

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BBiiooggaass ffoorr BBeetttteerr lliiffee IInniittiiaattiivvee wwiillll bbee::

• an African initiative offering investment and business opportunities; the right partners and local ownership are the keys to success;

• local companies selling biogas installations to households willing to buy;

• households enjoying better health and more comfort and having more opportunities.

Will biogas really bring better health and quality oflife? And mean fewer trees being cut down for fire-wood? Will it make the soil more fertile and increaseagricultural production? And will it cut greenhousegas emissions and create new jobs and a new busi-ness sector? Will a single initiative bring all thesebenefits on a massive scale to Africa? Is this just adream or can it really be done?

Experience in Asia has shown that it can. In Nepal,more than 155,000 households enjoy the benefits ofdomestic biogas. More than 95% of domestic instal-lations are in daily use and 12,000 people have foundemployment in the sector. A similar programme wasstarted in Vietnam in 2004 and is winner of theEnergy World Globe award 2007. More than 25,000installations have since been built and are now opera-tional.

Organisations dedicated to this project met on 2 and3 October 2006. They are willing to lead the way inmaking a dream come true in Africa. Partnerships arebeing forged.

The partnerships are committed and serious about theInitiative and to make it succeed. Professionalism andsuccess are the key operative focus. Desk studies,analyses, assessments, roles and responsibilities, sta-keholders, networking and commitment are the keywords. Experience with biogas in Africa has beenmixed. Few of the installations built there are still inuse. Past experience has shown that a technology-driven approach focusing on engineering and capacitybuilding does not always work and will not necessarily create a market. There are also successstories in Africa that will be built on, and based onlearned experiences from Nepal and Vietnam withdedicated market approach, well defined roles

between stakeholders (government, business, sup-pliers, contractors, consumers and credit institutions)proved to be the successful way forward. The techno-logy has to be robust and reliable. The benefits forboth the national economy and individual householdshave to be clear. A substantial market is needed toattract commercial interests. Consumers must haveconfidence in the technology and know how to useit. And above all the household consumer confidencewith guaranteed effective service delivery, maintenan-ce and safety is essential.

The prime key success is the role of women, and forAfrica the top essential foundation to build theInitiative that will succeed at a total cost of between600 and 800 Euros per installation, the total fundingrequirements of the initiative are in the order of 1.5billion euros. This includes all the costs of constructi-on, manufacturing, support to consumers and sup-pliers, promotion, monitoring and management.Micro credit, loans and cash contributions willaccount for 0.9 billion Euros. A grant of 600 million Euros will be used to subsidisepurchasing costs, promotion, training, quality control,promotion and management.

The initiative will focus on countries and regions inAfrica with the best market opportunities.Programmes will be implemented in these “pocketsof opportunity” by the coordinating organisationworking in close contact with the business communi-ty, operators of funding schemes and governments.The ultimate aim is to develop a sustainable, com-mercial biogas sector and to give people a better life.

Management of the initiative will be lean and inde-pendent. It will provide leadership and a fundingchannel for untied grants, facilitate the exchange ofknowledge, mobilise partnerships and encourageinnovation and market research

A biogas plant will reduce greenhouse gas emissionsby up to 5 tons of C02 annually. The CDM and voluntary markets are willing to buy these offsets for5 to 10 Euros a ton. This would provide householdswith an estimated average income of 30 to 40 Eurosa year.

BBiiooggaass ffoorr BBeetttteerr LLiiffeeAAnn AAffrriiccaann IInniittiiaattiivvee

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The “Biogas for Better Life; An African Initiative” visi-on is to succeed in African countries, as marketsoriented partnerships with governments, private sec-tors, civil society agents and international develop-ment partners. It aims to provide 2 million householdsby 2020, with biogas digesters, business opportuni-ties, improved household livelihood (good health,sanitation, food security, environment and new jobs).It offers households opportunity to own, control,operate sustainable energy for their own kitchens ataffordable costs. It is safe, reliable and manageable toany household in any African country

• Specific achievements to reach by 2020 • 2 million biogas plants installed and being used• 800 private biogas companies established and

operational • 200 biogas appliances manufacturing workshops

developed and operational • Comprehensive quality standards and quality

control systems developed • Minimum 90% of constructed plants are

operational • 1 million toilets constructed(motivated for

construction) and connected with biogas plants• 80% of bio-slurry is utilized as organic compost

fertilizer • Biogas programme fully developed as a first CDM

project in Africa • Biogas programme fully ISO certified for quality

and environmental performance• 1,500 micro finance organizations mobilized on

biogas lending • 10 million persons directly benefiting from the

programme • Over 140,000 persons get employment in the

programme.

On the supply side, commercial companies will haveto be developed, either basic small-scale enterprisesor larger construction companies. This will call fortraining (both technical and in business development)and capacity building. Loans will be needed and theconcept will have to be promoted. Quality control willalso be important to ensure that the installations thatcan be supplied to potential clients are reliable.The focus will be on an early success. A first start in apromising country like Rwanda would reallystrengthen the credibility of the initiative.

The opportunities presented in individual countrieswill set the pace of the initiative, and determine itsprospects. Money will not be spent on exploiting lesspromising opportunities. The country programmeswill be launched step by step, with desk studies follo-wed by a feasibility study and a marketing plan, andgo /no go decisions taken at each stage. Continuity isimportant between the various study and consultati-on stages and implementation.

To boost demand, the initiative will be operative forat least fiftteen years. The market mechanism envisa-ged by the initiative calls for a sustained effort overan extended period.

TThhee vviissiioonn::AA ccoommmmeerrcciiaall ddoommeessttiicc bbiiooggaass mmaarrkkeett

Uganda

Tanzania

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PPrrooggrraammss iinn ttaarrggeetteedd aarreeaassThe core of the initiative will consist of geographicallyconcentrated programmes, i.e. in countries or parts ofcountries, provinces, large irrigation schemes, etc. Theprogrammes will need to be a manageable size.

The programmes will be facilitated/enabled/run byoperating agents – dedicated local development orga-nisations with experience in biogas and with a provenperformance orientation. Transparency will be a soleguiding principle in partnerships building and marke-ting operation. The operating agents will be assistedby international expert organisations1. They will giveinstitutional support, advice, deliver complete marke-ting programmes including feasibililty studies, capacitybuilding support, promotion, development of localbusinesses, liaison with donors and funders, liason withmicro credit agents, national and local governmentsand civil society organisations stakeholders.

Governments will play the public role that correspondsto a market-oriented approach by creating an enablingenvironment for the market to develop and succeed,providing grants and tax breaks, drawing up standardsand legitimising the programme. Government role willnot be at national operational levels Special attentionwill be needed for cross-sectoral issues with specialreference to social and cultural issues, the role ofwomen and family livelihoods, since the initiativeaddresses such diverse policy fields as health, employ-ment, rural regional development, social welfare, jobcreation, attitudes change, livestock breeding, agricul-tural production and reducing greenhouse gas emissi-ons.

Local organisations will play specific roles in promo-ting, effective maintenance, sustaining and mobilisingconsumer trust, service delivery and household confi-dence and interest.

Local businesses (contractors, manufacturers, dealers inspare parts and appliances) will be crucial for the initia-tive. They will mobilise the supply side. Effective andtransparent local entrepreneurships governance, willassure sustainable and commercially attractive localbiogas business. The aspiration is that viable localwomen entrepreneurs will operate in the Initiative inall African countries

OOvveerraallll oorrggaanniissaattiioonn:: ssmmaallll // lleeaann // iinnddeeppeennddeennttOverall organisation of the initiative will be as lean aspossible, limited to what is needed to get the marke-ting programmes off the ground.It will provide added value for those components thatcannot be addressed at programme level:• Funding channel for grants• Knowledge exchange• Networking• Research• Promotion

The structure of the initiative is still subject to discus-sion, but may consist of the following:• Biogas Ambassador(s) for the initiative:• Independent Board: consisting of 3 to 5

individuals, selected for their knowledge, The Board will take decisions based on the Guidelines and Criteria for the initiative and advise the fund manager.

• Advisory Committee.• An Africa Leadership Group

The Advisory Committee and African Leadership Group will advise the Board on the orientation of the Initiative at policy levels, not at operational national level The Advisory Committee will consist of experts from national programmes, regional organisations such as NEPAD, AfDB, UEMOA, ESAMI and ECOWAS, governments, business community, consumers’ associations and donors. The Africa Leadership Group will consist of individual experts, and will function as such, and not representing organisations and national bodies and governments

FFuunndd MMaannaaggeerr The Fund Manager will be responsible for financing,accounts, providing support services, management,procurement regulations, reporting, approving feasibi-lity studies and national implementing initiatives. TheFund Manager is the institutional, organisational,financing centre of the Initiative .The preferred optionto locate the Fund Manager in an existing organisati-on able to act in line with the decisions taken by theIndependent Board.The Fund Manager will have an administrative struc-ture that generates confidence among sponsors Itwill apply stringent rules for tendering and awardingcontracts, and will provide for professional advice,monitoring, quality control, capacity building supportand auditing to national promotion programmes.

AApppprrooaacchhFFooccuuss oonn aa ttaarrggeetteedd mmaarrkkeett aanndd aarrmm''ss lleennggtthh mmaannaaggeemmeenntt

1 (Practical Action, SNV, CHUDI INTERNATIONAL ADVICE, GTZ,Winrock, IT-Power, SenterNovem, AfDB, UEMOA, ESAMI and others.)

OOppttiioonnss ffoorr ggrraanntt ffuunnddiinngg aarree::• Foundations such as the Rockefeller, Oak and

Shell Foundations• Service Clubs such as Rotary. They may possibly

be looking for new challenges.• Gas distribution companies looking for opportuni-

ties to green their operations.• CDM mechanism and/or voluntary carbon

compensation need further investigation• US Millennium Challenge Account• Bilateral donors, EU

So that the initiative can start and the first successescan be achieved, some 1.5 to 2 million Euros areneeded in the short term for feasibility studies and todraft marketing plans for promising markets.

Implementation started already in Rwanda in thesecond quarter of 2007. Feasibility studies are nowongoing in Ethiopia, Senegal, Kenya, Zambia, SouthAfrica, Mali and Uganda. Desk studies are now con-ducted in Ghana, Malawi, Lesotho, Swaziland, Sudanand West Africa Region. Other countries are likely tobe identified in the months to come.

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The entire initiative requires an estimated total invest-ment of around 1.5 billion euros, with a cash flowrequirement to be specified in due course.This investment requirement is based on 2 milliondomestic biogas installations at an overall cost ofbetween 600 and 800 euros per installation.

OOvveerraallll ccoossttss ccoommpprriissee::11 Market promotion and management estimated

at 150 Euros per installation.22 Down payment of between 100 and 250 Euros

for biogas to be financially attractive to households.33 Micro credit in combination with cash contribution

of between 350 – 400 Euros per installation.

A grant fund will cover the costs under 1) and 2), tothe tune of between 250 and 400 Euros per installa-tion/ household. For investments (under 3), the initia-tive will rely wherever possible on existing fundingmechanisms, with possible additional loans frominternational credit providers.

The down payment is justified, since biogas is econo-mically attractive, even including all the programmecosts involved. The economic rate of return (ERR) forAfrica is in the order of 20% or more while the inter-nal and financial rate of return (IFRR) for householdsis in the order of 10%. For households with a lowincome this is too little. Experience has shown thatlow income farms/households become interested atan IFRR of between 30% and 40%. Grant levels willbe based on these criteria and might well vary fromcountry to country.

The feasibility study will provide the basic informationneeded to decide on the size of the down payment.The initiative will operate where good market oppor-tunities are to be expected. The grant funding moda-lity may not therefore be attached to specific coun-tries but to the most promising market opportunities,with sponsors contributing to a fund that allocates tomarkets in regions or countries where these opportu-nities have been identified and partnerships havebeen entered into.

Investments may be funded from existing localmechanisms such as microfinance facilities, or throughextra facilities supplied by national and internationalcredit providers.

FFuunnddiinnggGGrraannttss ffoorr mmaarrkkeett ddeevveellooppmmeenntt aanndd ddoowwnn ppaayymmeenntt oonn iinnvveessttmmeenntt

Tanzania, biogas digester

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Past experience with biogas in African countries, indi-cates few success stories but not total pessimism. Fewof the installations built there are still being used insome African countries.

• Biogas technology as local knowledge has not been institutionally operational in many parts of Africa. The implication in Africa is that expectations must be realistic and modest in the initial introductory phase for the Initiative

• Convenience is the key to ensuring long term operation and functionality and this has to be a key design and installation feature – slurry handling and application in fields, cow dung mixing, distance between cattle stable/pen and plant, source of water etc play a big role running a successful biogas plant.

• Plant Size and Subsidy. Who bigger the plant the less likely that it would operate under optimum conditions hence consideration should be given to offering more support to smaller plants through a sliding scale subsidy.

• Design Adaptation. There is a need for design adaptation between Nepal and Africa because of the different physical and cultural contexts – volume of storage, materials etc.

However, experience in Asia – in Nepal and Vietnamin particular, but also in India and China – gives morereason to be optimistic. In Nepal, a dedicated marke-ting approach has already sold biodigesters to morethan 155,000 households. Over 95% are operational.

It may be argued that circumstances in Africa differfrom those in Asia. Yet differences within Asia are asgreat as those between Asia and Africa and withinAfrica itself. There is no fundamental reason whydedicated marketing programmes would not work inAfrica.

The main difference with the past is the market orien-tation. Large volumes can be sold, justifying a sub-stantial promotion programme. An initial survey hasidentified a market of around 20 million householdsin Africa. The numbers certainly justify a dedicatedinitiative for 2 million digesters,

“NEVER GIVE A PRODUCT AWAY”. That is one ofthe lessons learned from the past.

The initiative will not take new programmes in Africalightly. It will learn lessons from the past and incorpo-rate the success factors from programmes in Asia.

Guidelines and criteria derived from the successes inAsia will be applied rigorously throughout the initiati-ve. Stakeholders in Asia have offered all the helpthey can to share their knowledge and experiencewith their colleagues in Africa. Field missions to Nepaland support from Nepalese and foreign experts toAfrican countries are just two possible ways of wor-king together.

LLeessssoonnss LLeeaarrnneeddFFrroomm ttoopp--ddoowwnn tteecchhnnoollooggyy ppuusshh ttoo bboottttoomm--uupp mmaarrkkeettiinngg

Biogas cooking and dried dung sticks (used before biogas).

KwaZulu-Natal: Gogo (grandmother) is looking into the top of adome with her son Michael Gwala.

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HHeeaalltthhBiogas installations have a positive impact on health.Cooking using biogas is much cleaner, cutting therisk of contracting the respiratory and eye diseasescaused by the black smoke inherent to traditionalmethods. Women in particular benefit.Manure is fed directly to the biogas plant, keepingthe farm yard cleaner and producing valuable organicfertiliser (bio-slurry).

For even more efficiency, latrines can be connected tothe digester. Whether or not this is an optiondepends on cultural factors. It will not be forced uponcustomers but supplied on demand as an additionaloption. The design and construction of biodigestersenable them to be connected to a latrine at a laterdate. In Nepal very few households were initially inte-rested in latrines, but more than 60% have now hadthem installed.

EEccoonnoommyyThe International Resources Group (IRG) performed afinancial and economic analysis of biogas digesters forthis initiative. The outcome was positive, but stronglydepended on the price of firewood. Biogas is a veryattractive option for the economy but less so forhouseholds.

At macro economic level, biogas programmes areprofitable even when overall programme costs aretaken into account. For Rwanda, the EIRR is estima-ted at more than 20%. Additional benefits accruefrom better health. With no more time and effortgoing into fuel gathering, and with the extra incomefrom emission credits, women in particular find theyhave a lighter workload. A biogas installation also inc-reases agricultural production. Winrock and IRG arecurrently carrying out studies to substantiate the eco-nomic and financial benefits.

MMaarrkkeett ffoorr bbiiooddiiggeesstteerrssThe Netherlands Development Organisation (SNV)has made a preliminary analysis of the market inAfrica based on availability of domestic cattle, presence of water, scarcity of firewood, populationdensity and temperature. The study shows a potentialof some 20 million installations spread over variousregions in Africa.

SSuuppppoorrttiinngg EEvviiddeenncceeHHeeaalltthh,, eeccoonnoommiicc ddeevveellooppmmeenntt,, mmaarrkkeett ppootteennttiiaall

Uganda

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The operation of a biodigester mainly consists of fee-ding the installation with a mixture of dung andwater. Biogas digesters convert animal dung, humanexcrement and other organic materials into combusti-ble biogas. Biogas can be used in simple gas stovesfor cooking and in lamps for lighting. The bio-slurryleft over from this process is easily collected and canbe used as a potent organic fertiliser to improve cropyields.

Various types of biogas digesters have been develo-ped including the floating drum, fixed dome andplastic bag design. Depending on the context, anytype may be used. Most of the plants built so far areof the fixed dome type. They are constructed frombricks and/or concrete and are usually installedunderground in the yard. To operate, they must befed daily with a mixture of dung and water. For far-mers with livestock on site and access to water, thisjob will take no more then 20 to 30 minutes a day.The fermented material is removed automatically; thebio-slurry is discharged into a compost pit or channel.

The robust design of this type of biogas plant (fixeddome) ensures a lifetime of over 15 years.Maintenance is restricted to occasional inspectionsand where necessary – repairs to pipes and fittings.The installation itself – if operated properly – needslittle maintenance. Investment costs range from lowerthan 225 Euros in Asia to more than 450 Euro inAfrica.

Farmers with at least 2 cows or 7 pigs (or a flock of170 chickens) can generate sufficient gas to meettheir daily basic cooking and lighting needs. Withinthe same design, different plant sizes can be con-structed to allow for actual numbers of livestock andthe family’s biogas requirement.

Clearly, the obvious advantage of domestic biogas isin providing energy for cooking and lighting.Replacing conventional cooking materials – oftenwood, briquettes or dung cakes – the installationnot only saves money, but also reduces the workloadof the women and girls usually responsible for collec-ting and preparing these traditional energy sources.Equally important, the indoor air pollution caused bycooking on inefficient wood stoves is virtually elimi-nated.

With manure being deposited directly into the dige-ster, the farmyard is no longer littered with animaldroppings, so hygiene immediately improves. A toiletcan be also be connected to the installation, bringinga significant improvement to sanitary conditions.

The bio-slurry discharged from the installation retainsall the nutrients present in the original material, and isan excellent organic fertiliser. It can either be useddirectly or composted with other organic farm resi-due. Proper application produces higher yields thancomparable fertilisation with manure, and provides aviable solution to soil nutrient depletion in developingcountries.

Biogas installations reduce the demand for firewood,mitigating deforestation. Applying bio-slurry as anorganic fertiliser closes nutrient cycles, and halts soildegradation and erosion. The biogas process is car-bon neutral, contributing to the global reductionof greenhouse gas emissions.

TTeecchhnnoollooggyyHHooww ddoo bbiiooggaass ddiiggeesstteerrss wwoorrkk??

Sketch Biogas plant.

Tanzania. Lighting biogas lamp.

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PPaarrttnneerrss wwhhoo ccoonnttrriibbuutteedd ttoo tthhee ffoorrmmuullaattiioonn ooff tthhee iinniittiiaattiivvee

• ESAMI

• UEMOA

• ASER

• Practical Action

• Energia

• IITA

• BSP-Nepal

• SNV

• BMZ

• Winrock

• IT Power

• IRG

• E+Co

• Advise

• Chudi Communication Consult

• HIVOS

• Shell Foundation

• African Development Bank

• KfW

• FMO

• SenterNovem

• Dutch Ministry of Foreign Affairs, Development Cooperation

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GGuuiiddeelliinneess ffoorr nnaattiioonnaall pprroommoottiioonn pprrooggrraammmmeess iinnttaarrggeetteedd aarreeaass::The initiative will go where good marketing opportu-nities are expected.The initiative will adhere to the following guidingprinciples:

CCrriitteerriiaa ffoorr tthhee sseelleeccttiioonn ooff ccoouunnttrriieess• Short term potential of between 10,000 and 20,000

biogas plants; this target can be achieved within 5 years

• Digesters can be built in clusters of 20 to 25 • Strong national demand/commitment (government

endorsement)

SSoocciiaall FFaaccttoorrss• Participation of women at all levels• Established rural household with some cash income• Ownership / land rights with households• Improvement of environment and health• Favourable social/ cultural conditions• Higher agricultural production• Gender balance in household expenditure decisions

FFaavvoouurraabbllee MMaarrkkeett FFaaccttoorrss• Scarcity and/or high price of firewood• High prices of alternative cooking fuels• Reasonable density of rural populations to manage

programme• Effective private sector• Demand for the services that can be delivered by

the technology• Develop a marketing and awareness strategy

FFaavvoouurraabbllee FFiinnaanncciiaall//EEccoonnoommiicc FFaaccttoorrss• Transparent, direct grants (where possible to the

end-user and linked to quality control)• Equity (contribution from own funds in cash and/or

kind/ initial investment by household) about 10%• Credit availability (at affordable rates, with or

without collateral through co-financing arrangements)

FFaavvoouurraabbllee IInnssttiittuuttiioonnaall FFaaccttoorrss• Good rural extension system (government or NGO)• Good rural banking/credit system• Established private sector/rural masonry enterprises• Support by traditional and/or local institutions• Active participation of stakeholders

FFaavvoouurraabbllee TTeecchhnniiccaall//RReessoouurrccee FFaaccttoorrss• Robust and tested standardised biogas designs that

meet local needs and conditions• Availability of affordable biogas appliances (valves,

stoves, lamps)• Availability of after-sales service (not a prerequisite)

FFaavvoouurraabbllee PPoolliittiiccaall FFaaccttoorrss• Stable and secure rural areas• Commitment by national governments• Initial programme support from government and

donors• Linking up with existing policy framework for

energy, health, agriculture, sanitation

CCoommmmuunniiccaattiioonn FFaaccttoorrss • Structuring National Communications Policy• Identify capacities• Monitoring and evaluation mechanisms• Identify local champions (early adopters to Biogas)• Identify credible information channels• Language and Social Factors• Effective branding strategies

GGuuiiddiinngg pprriinncciipplleess ffoorr nnaattiioonnaall pprroommoottiioonn pprrooggrraammss

TThhee iinniittiiaattiivvee iiss eessttiimmaatteedd ttoo rreessuulltt iinn::

• clean cooking for at least 10 million Africans

• 5000 fewer deaths among women and children

each year

• a rise in agricultural production of up to 25%.

• at least 50,000 new jobs

• household workloads being cut by two to three

hours a day

• better health and quality of life, fewer trees

being cut down for firewood, more fertile

soil, higher agricultural production, fewer green

house gas emissions. Health costs will be cut by

between 60 and 100 Euros per family per year

• a saving of 6,400 tons of fossil fuel per year

• a saving of 3 to 4 million tons of wood per year

• an annual reduction in greenhouse gas emissions

of 10 Mtons of CO2

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