THE LIQUID BIOFUELS MARKET

National Market International Market

1

ANNUAL MONTHLYDiesel Petrol Diesel Petrol

Mandatory Blending Ratio (Initially)

2% 5% 2% 5%

Biofuel requirements 10,185,838 9,001,160 848,820 750,097

Fossil fuel requirements 499,106,066 171,022,048 41,592,172 14,251,837

509,291,904 180,023,209 42,440,992 15,001,934

Approximate Volumes Per Day B2 E5

Volume per day (litres) 27,906 24,661

National MarketPre-Draft Blending Ratios

2

Annual production of molasses

CompanyPRESENT(mln litres)

2015 PROJECTION(mln litres)

Zambia Sugar 14.3 26.0

Consolidated Farming Ltd 4.7 6.5

Kalungwishi Estate 0.3 0.4

Total = 19.3 32.9

Potential annual ethanol production from molasses (1 ton molasses = 260 litres ethanol)

CompanyPRESENT

(t)2015 PROJECTION

(t)

Zambia Sugar 55,000 100,000

Consolidated Farming Ltd 18,000 25,000

Kalungwishi Estate 1,100 1,500

Total = 74,100 126,500

EXAMPLE: Available Production Potential for Bioethanol

3

International Market

4

FUEL TYPE PERCENTAGE USEPetroleum fuels 80.2%Biofuels 12.0%Electricity 6.2%Natural gas 1.6%

GLOBAL FUEL MIX IN 2030

Biofuels projected share is 26% by 2050

SOURCE: http://www.worldenergyoutlook.org/docs/weo2009/climate_change_excerpt.pdf

Based on the growth projections and other factors in support of biofuels in the global energy mix,

Zambia is on the right track to develop the biofuels industry.

5

CARRIER AIRCRAFT PARTNERS DATE BIOFUEL BLEND

Virgin Atlantic B747-400 Boeing,GE Aviation

23 Feb 08 Coconut & Babassu 20% one engine

Air New Zealand B747-400 Boeing,Rolls-Royce

30 Dec 08 Jatropha 50% one engine

Continental Airlines

B737-800

Boeing,GE Aviation,CFM,Honeywell

7 Jan 09 Algae with Jatropha 50% one engine

Japan Airlines B747-300 Boeing,Pratt&Whitney,Honeywell

30 Jan 09 Camelina, Jatropha and Algae blend

50% one engine

Qatar Airways A340-600 TBA 12 Oct 2009 Alternative Fuel (Gas to Liquid)

50% all 4 engines

KLM B747 GE, Honeywell 23 Nov 2009 Camelina 50% one engine

Jet Blue A320-200 Airbus,IAE,Honeywell

By spring 2010

Sustainable feedstocks TBA

Interjet A320

CFM, SAFRAN, EADS, Honeywell,Airbus

Early 2010 Salicornia (Halophyte) TBA

SOURCE: http://www.enviro.aero/Biofuels.aspx

Interest in Liquid Biofuels by Aviation Industry

6

Additional Income

7

Skills in making and selling compost manure for Jatropha plantations as well as food crops.

FROM: ABPPM, JatrophaWorld, June 10-11, 2008, Miami, FL

Manual using hoe

Herbicides (industry)

Intercropping(Food industry)

Herbicide applied

Livestock (industry)

Bee attracting flowers and plants (Bee industry)

Poultry (industry)

Food Industry for the Millions of Biofuels Industry Communities

SMEs and villagers with their own fuel and fertilizer from their backyards will have huge business for foods

BIOFUELS INDUSTRY A VERY STRONG CONNERSTONE FOR COUNTRY-WIDE

INDUSTRIALISATION

11

Large investments will result in new cities/towns in biofuels project areas

Plenty of jobs in construction

Business in brick making, crushed stone, and river sand quarrying

Crushed stone industry

Steel industry

Cement industry

Construction industry

Copper industry

Brick industry

Downstream Industries for Housing Materials for Cities

CONCLUSIONS

14

15

Source: NASA (2000), available in <nssdc.gsfc.nasa.gov/planetary/image/earth_night.jpg>.

Without energy, there can be no significant development!

Biofuels is a turn key industry for Zambia.

Zambia must go beyond potential and turn the wheels into action.

We have a conducive agro and investment climate for the industry.

The biofuels market is enormous, and projected demand will not be met for a long time to come.

16

Outcomes of Biofuels Industry

• Self-sufficient in all basic energy forms;• Rural development and jobs since biofuels

feedstocks are to be grown in country-side;• Poverty reduction in both rural and urban areas;• Enhanced food security;• NET reduction in environmental degradation; • Improved rural electrification and infrastructure;

and• Country-wide industrialization

17

Missing Link

18

The Government should announce blending ratios without delay.

The Government should set up a biofuels fund.

Government should put in place incentives to assist the industry gain a footing.

NB: All other countries/regions including USA, Brazil, EU have put massive investment and incentives to establish the industry.

19

The Biofuels Journey has Begun!!

20

Zambia has to catch up !!!!

(SOURCES: Unknown)

21

Thank You for Your Attention(SOURCE: Unknown)

22