Tanzania in Africa
We’ve reported here before on the state of Tanzania’s energy poverty and biomass policies.
Tanzania may get more attention than other countries because it’s one of the larger Sub-Saharan states facing all the attendant problems associated with a serious biomass energy crunch.
But Tanzania is also a thriving laboratory of biomass projects where new ideas are constantly being tried out.
Nicholas Harrison is the driving force behind one new idea: the East Africa Briquettes Company. Harrison purchased the factory in Tanga in March 2009 where he now produces the “mkaa bora,” a briquette that burns “longer, hotter, and cheaper” than conventional vegetable charcoal.
The country consumes about one million tons of wood charcoal each year, so the market is huge. And with a deforestation-to-replacement rate of 3-to-1, there is little chance Tanzania will be able to keep pace with the country’s demand for charcoal, especially in the growing capital.
Harrison took a few moments out of his busy schedule to explain to us how his venture will help close the country’s biomass deficit.
The Charcoal Project: How did you get involved in this venture?
I had been living in Tanzania for four years with my wife farming and working in safaris. I saw the unsustainable demand for tree charcoal that is prevalent in Tanzania and realized any solution would have to be economically profitable for potential distributors in order to be sustainable in the long run. Instead of buying new machinery I bought a company that had been running for about six years but for several reasons had not been breaking into the market successfully.
How is your company structured?
The company does not have partners per se at the moment but as I expand I will be starting joint ventures with entrepreneurs.
What challenges have you encountered in starting your business?
We are a little behind the curve as I had underestimated the difficulty of selling to the bottom of the pyramid clients. However we are selling 60 tons a month now, which means we can now open a second factory.
What’s the strategy for growing the market?
Close to 97% of Tanzanian’s use charcoal as their primary fuel, so it is a larger market than just the ‘Urban Poor.’ I want to take a larger and larger percentage every year in the urban and peri-urban sector. I am establishing the brand to give confidence to consumers to switch fuel and then I want to franchise out the factories so that local entrepreneurs can make good money by making and distributing the briquettes, as well as protecting their environment.
Unlike community briquette groups, the end product burns hotter and longer than normal charcoal. It also produces no smoke and it’s cheaper than traditional charcoal. By using a franchise system I can assist in keeping the quality very high.
Briquettes burn like charcoal
Let’s talk about the briquette itself. How are people responding to it?
People are just starting to embrace the briquettes, due largely to the success of women’s groups (such as EFFORT) who can talk to other users, usually women and show them the benefits. Our marketing campaign, partly funded by USAID, has also started having an impact.
The briquettes burn longer and hotter which is a great benefit once you know how to use them.
However there are other differences which are cultural, for example: cooks want to shake and poke charcoal, if you do that with a compressed briquette once it has been burning for a couple of hours and covered with ash it will break apart and no longer produce good heat. So we have to change people’s habits as well.
People in particular like the fact that there is no smoke so, with normal ventilation, they can cook inside without danger of being ‘smoked’ and the associated health problems that it causes.
How do you partner with the local communities to support your project?
We create a new income stream by purchasing waste and we also teach communities how to carbonize the raw material, which can be almost anything, such as maize stalks, banana leaves, even grass. At our factory in Tanga we use coconut husks, cashew nut shells and chardust (the waste from the traditional charcoal making process, which is normally left to rot). The idea being that we have a recipe that will work in all areas, allowing local agricultural waste to be used.
The carbonistation process is simply burning organic material in controlled oxygen (pyrolysis). We partner with NGOs to assist us with teaching the communities the most efficient way of doing this. For the new factory in Dar we will work with a group called Joint Environmental Techniques.
Are you getting requests from individuals or communities to partner with you?
Because we will buy the raw material (by the bucket or by 20-ton lorry load) and pay cash at the gate we have established a large network of people that supply us full time from young to the nearly infirm! Because our product is cheaper in real terms and is 30% more efficient a normal family saves $87 /year by using Mkaa Bora. Our product is priced to allow the retail price to be below that of charcoal which allows all the distributors to make a fair cut, our new factory will have the added bonus of being much closer to the Dar users which will also reduce transport costs which are reflected in the retail price. We have a lot of people that are interested, some perhaps for a quick buck, but the start up capital usually scares them off. I always insist that people start off as distributors and once they have an established client base we can look at a joint venture with them to put a factory in their location.
Any idea what impact your company has had so far in terms of reducing vegetable charcoal consumption?
Since I bought the company (3 March 09) we have sold 550 tons, it is estimated that each ton of charcoal requires 88 medium size trees to be felled so: 48,400 trees. In 5 years time I hope to be producing 18,000tons/yr from five factories, which will result in the avoided deforestation of 1.5 million trees annually.
Do you think this is a model that could be replicated elsewhere in Africa? What are the limitations/opportunities?
Absolutely! The emphasis of everything that we do is that we can easily and profitably replicate the whole system (collection, production, marketing and distribution) wherever charcoal is used, as long as there is a dedicated entrepreneur to persuade people to get the ball rolling.
What does the future hold for the EABCL?
More factories, we hope! And more local entrepreneurs who we hope will come forward as the brand gains recognition. I am also developing a firewood alternative (Kuni Bora – Best Firewood) production system that will be aimed mainly at industrial use, which is very high. The challenge is to get the delivered price equal to, or ideally, lower, than that of firewood. Because nearly all firewood is gathered for free, it means the final price reflects only transport and profit charges). Beating that price-point is going to be a healthy challenge! We will use economies of scale to reduce the price.
Any plans to get the program certified so you can sell carbon-offset credits?
We are in the process of receiving our Tanzania Bureau of Standards certificate as well as FSC (Forest Stewardship Council) certification for our firewood alternative. Currently the process for gaining credits for individual users presents a prohibitive administrative burden. This will hopefully change after 2012.
How can the development and investment community help you grow your business?
Investment at this stage would greatly increase our scale-up effort and would have a direct impact on communities, their health and the number of trees left standing upright. It is really as simple as building more factories in as many places as possible.
Tanzania figures prominently when you google the terms “Africa, charcoal, poverty, and environment.”
The facts and figures I came across gave me pause. Tanzania burns one million tons of charcoal each year, which amounts to clearing more than 300 hectares (about 750 acres) of forest every day to produce charcoal. For context, that’s about 1,000 sq miles each year or the equivalent of about two New York Cities, including its five boroughs. Unfortunately, the rate of deforestation outstrips the replacement rate by about 3 to 1. That means that, for every acre planted, three are lost.
What’s more, the number of people who are dying, particularly women and children, from inhaling the smoke is also increasing, says the World Health Organization, who claims that more than 75 people die daily in Tanzania from inhaling smoke from inefficient wood burning technologies.
As I continued to research Tanzania’s energy poverty, woodfuel, and charcoal consumption, I was led to an important research paper provocatively titled, Has the woodfuel crisis returned? Urban charcoal consumption in Tanzania and its implications to present and future forest availability.
Published in 2007, the paper asked thought-provoking questions, like, “how much does charcoal production contribute to forest loss? And, “can urban populations be compelled to switch from charcoal consumption in favor of more sustainable fuels, like natural gas and electricity?”
Perhaps the greatest take-away from the paper was the realization that, when it comes to forest and environmental degradation, wood and charcoal are two very different fuels with very different impacts.
There were so many questions raised and assertions made in the paper that I was compelled to track down its author.
I found Tuyeni H. Mwampamba, Ph.D., in Morelia, Mexico, where the Tanzania native and U.C. Davis graduate is currently doing her post-doc research.
Following is a transcript of our conversation.
Think wood and charcoal are interchangeable? Guess again.
Q: In your paper you wrote that it was important to make a distinction between charcoal and firewood, and that past studies have greatly underestimated the individual impact of charcoal. What did you mean by that?
There are drastic differences between charcoal and firewood that are blurred when you lump the two together.
The first big difference is that in most cases firewood does not require chopping down an entire tree: branches are chopped, dead logs are collected. Charcoal production almost always requires cutting down trees to stump level. So, the impact on forests is much larger for charcoal. This is not to say that firewood collection cannot degrade a forest. There are cases, even in Tanzania, where forest degradation is attributed to firewood rather than charcoal.
Secondly, most of the potential energy contained in firewood is used up to heat the end product, while only a fraction of the energy contained in wood that is converted to charcoal is ever utilized in the final end-use. This is because firewood is used directly as is, while charcoal must first be processed from wood before it is applied as a source of heat. Firewood is not a perfect source of heat, of course: there are lots of impurities, smoke, and inefficient firewood stoves allow a lot of that heat to escape.
Furthermore, the caloric energy per unit (kilogram) of firewood is lower than that of charcoal. The conversion of wood to charcoal is done under high heat and low oxygen conditions. The heat generated during the production process does not contribute to any cooking or heating; it is, for all means and purposes, wasted. The heat in charcoal that contributes to making meals and heating water in households is thus only a fraction of the total heat originally available in the wood. Depending on kiln efficiencies, 100 kg of wood produces 8 – 23 kg of charcoal.
Hence, when someone switches from firewood use to charcoal, their impact on forests increases exponentially. Yet, we still refer to this as “moving up the energy ladder” because the impact on their health and quality of life is drastically improved. If you lump all woodfuel use together and fail to distinguish between charcoal and firewood use, you run the risk of grossly underestimating or overestimating the impact on forests.
Another important difference between charcoal and firewood is the source (and thus size) of the demand. Firewood is largely used in rural areas while charcoal demand is driven by urban population growth. Urban population trajectories for cities in most African nations indicate that by 2050 or so, more than 60 percent of populations will be living in cities and towns. So, if one were to project future woodfuel needs, you might see an increase in charcoal consumption in urban areas and a drop in rural areas.
Tanzania’s charcoal crisis: best and worst case scenarios
Q: What do you mean by charcoal crisis and do you think Tanzania might face this down the road?
What I mean is that, in the worst-case scenario, charcoal in the marketplace would become scarce, it would be overly expensive, and urban households would return to using firewood and other poor quality biomass to cook.
That could lead to the chopping down of urban shade trees and landscaped trees in cities for firewood. I saw images of this in the winter of 2007 and 2008 in Tajikistan when there was an energy crises accompanied by a very cold winter. The roadside trees were cut, trees were uprooted such that even the roots were used for firewood.
Urban energy poverty spurred the aggressive pruning of trees in Tajikistan in 2007/2008 ©Mathias Kempf
You see this too in places like Zanzibar, where palm trees, cashew trees and mango trees get chopped down for charcoal and/or firewood. I see it happening in Tanzania too, in rural areas surrounded by forests, where you would not expect there to be a shortage of trees. In my study area in Tanzania, recent wealth among the rice growers enabled households to upgrade to mud-brick homes. This improvement required firewood to cure the bricks. Access to forests is restricted by new community rules so old mango trees and palm trees are now being harvested to provide the firewood.
In a place like Dar es Salaam, it may be just back to firewood from whatever tree one can find, or scrambling for wood from building sites.
Some may also try to move another step up the energy ladder to kerosene stoves. The expense of that, however, may send other people back to the countryside because life in the cities would be unaffordable.
If, for instance there were policy changes implemented that suddenly saw every household in Dar es Salaam and Arusha owning and using a gas stove, then one could predict a lot of horrible scenarios each of which may never come to happen.
It would not be the first time that Tanzania experiences a step down the energy ladder. For example, there are fewer Tanzanians today using electricity to cook than in the 1980s. Those who abandoned their electric stoves moved to kerosene and charcoal stoves.
Will Tanzania face a charcoal crisis down the road? It is difficult to say. Maybe not. I say this not because I think that demand for charcoal will decrease in the future, but rather because I think there will be more options for alternative sources of charcoal, specifically charcoal briquettes.
What I think is likely to happen is that alternative charcoal options such as charcoal briquettes will play an increasingly larger role in the woodfuel market because traditional charcoal producers will find it harder and harder to produce charcoal in public forests.
Decentralization of forest governance in Tanzania is putting many such forests into the hands of communities, who, with the onset of REDD, carbon markets and payment for ecosystem services, will exclude charcoal production from their forests to receive payments for sustainable forest management. Traditional charcoal production will become more clandestine, risks will go up, and charcoal prices will eventually reflect this and may inspire users to shift to briquettes.
If you combine charcoal briquettes with more efficient stoves, and increased use of gas by some of the better off urban households, you start believing that a crisis can be averted. But if you look at how difficult it has been to convince households to switch to efficient charcoal stoves, however, the possibility of a crisis creeps up again.
Searching for Solutions
Q: Past attempts to ban charcoal production by the government of Tanzania have failed. And efforts to promote the consumption of other fuels like LPG, kerosene, and electricity in urban areas have not proven to be financially viable. What’s the solution?
Indeed, there have been numerous attempts by the Tanzanian government to ban charcoal, some of them in recent years. The longest ban may have lasted 2 weeks. You cannot ban what is essentially the only available cooking energy in urban areas without providing feasible alternatives. I think these bans have not been good for environmentalists because it has been as if the government has cried ‘wolf’ too many times.
Other efforts have not registered much success, either. The import tax on LPG home equipment has recently been eliminated, however, and there is talk that LPG distribution sites are springing up in more corners in Dar es Salaam. I’m not sure how well Moto Poa (an ethanol-based gel that was launched a couple of years ago) is doing in terms of enticing folks away from charcoal to cleaner fuels. It is clearly time to reassess the cooking energy market in Tanzania. The real danger, however, is that the Tanzanian government abandons all efforts to promote sustainable charcoal production because it believes that the alternatives will replace charcoal. I, for one, don’t believe that they will, not for a long time.
I also think that one of the reasons that efforts to promote alternative fuels have mostly failed is because we are missing out on something important, unrelated to market forces perhaps. People have to believe that gas and other sources of energy are equivalent or better than charcoal to do a switch. They have to believe that it will improve their lives substantially. The urban poor in Tanzania can afford a cell phone, which costs 30 – 80,000 shillings (about $23 to $60 US, E16 to E42 Euro. An improved charcoal stove costs 4000 shillings ($3 US, 2 Euro). There are clearly tangible or non-tangible benefits to having a phone that are much beyond those of owning an improved charcoal stove. Something is going on, and until we find out, switches to other fuel sources will be slow.
So you see this as a social marketing issue?
Indeed. I think that, to a large extent, people have voted: yes to charcoal, no to firewood, no to electricity and no to kerosene. I don´t think that gas has done a good enough campaigning job, which is why it is underutilized. Given the choices, it may just be that people are very content with charcoal. Commercials on TV and radio about how bad charcoal is for Tanzanian forests are not the way to go about it, in my opinion. So yes, I think more research is needed in the social marketing arena in Tanzania. I´d concentrate all those research efforts in Dar es Salaam, because if Dar es Salaam shifts to gas or non-forest based charcoal, at least 50% of the charcoal problem will disappear.
Other solutions could include non-forest based charcoal, such as charcoal briquettes produced from agricultural waste products. It requires minimal shifts from the current status quo and is actually renewable.
Capturing gas from landfills is also a possibility. It’s a perfect CDM project but probably can’t generate sufficient volume.
Using bi-products from petroleum refinery could also be considered. I would say anything that does not involve digging up and burning carbon reserves.
I am not a strong fan of coal briquettes or digging around our coastline to find gas reserves to meet our cooking energy needs.
