Inexcusable Absence

$OK, we know, it’s been about five months since we’ve last updated the blog. An inexcusable absence by any reasonable measure. The good news is that our silence has not been the result of a lack of activity, but rather, a bit of laziness. Fortunately, our blog-writing lassitude has not carried over to other aspects of our lives. So here’s an update on what I’ve (Dave) been up to. I’ll work on Stephanie to do the same and the two of us will try to get back on track with regular postings. In May I launched a biofuels consulting and development company called Endelevu Energy (as you can see, I really like the word Endelevu, which means “sustainable development” in Kiswahili). Since then, I’ve been networking, reading, writing, and scrambling my ass off to get some projects going. Here are some of the results:  Kenya uses about 10 million liters (2.6 million gallons) of petrol & diesel per day, all of which is imported. Not only is it expensive at about $4.45 per gallon, but it’s also some of the dirtiest fuel in the world due to the fact the Mombasa refinery where it’s processed is still using original 1963 technology. Ethanol and biodiesel are cleaner burning alternatives that, if produced correctly, could provide cheaper homegrown fuel that clears the air and promotes sustainable development of some of Kenya’s poorest rural areas. So, I’ve teamed up with a leading biofuels consultant named Stephen Mutimba, who heads a firm called Energy for Sustainable Development Africa, to launch a 5-year biodiesel development project. We’re working with expert agronomists at the World Agroforestry Centre (a U.N. offshoot) and field workers with the Aga Khan Foundation to help poor smallholder farmers in Kilifi and Malindi (coastal Kenya) to grow oilseed crops for cash. The project will start with a 10-acre test plantation to develop best agronomic practices in growing experimental, but potentially high value, crops like Jatropha curcas (see photos to the right and below). We will use this test plot to sensitize and train local farmers in this new plant and then provide the inputs and extension services needed for them to start growing it. What’s really exciting, and somewhat unique, about the project is that we’ll be implementing a community cooperative that will initially be financed by donor money, but eventually turned over to the community. The co-op will sell seedlings and inputs to farmers on credit, buying back seeds minus the cost of the credited inputs. The participating farmers will own fractional shares of the co-op, which will then crush the seeds for oil and process the oil into biodiesel. This way, the community will actually retain all of the added value of processing and production, rather than just benefitting from the sale of a cash crop on the farm. It’s a comprehensive project that will take a lot of time and money, but if it’s successful, we’ll be able to replicate it in other regions and really start making a big impact on people’s lives. As for the money, as I’m sure you’re thinking, we have several large donors very interested and we expect to be able to raise the approximately $1 million that we’ll need. Time will tell, but we’re finalizing the budget and proposal and starting to shop it around. I’m also pursuing other consulting projects at the moment. One is a National Biofuels Study being commissioned by Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), which is a German Government development organization. The Study would take a comprehensive look at all potentially viable biofuels and feedstocks (the crop used to make the fuel, like corn for ethanol in the U.S., or canola for biodiesel in the E.U.) in Kenya, assess the economic feasibility of each, analyze the current fiscal and regulatory landscape, and lay down a roadmap for the future. They put out the request for proposal in June - and two proposals and a presentation later - we’re still waiting to hear. The good news is we have a kick ass team that includes two agricultural economists working on turning sweet sorghum into ethanol, a forester with over 10 years of practical biofuels experience, one of the leading energy policy experts in Kenya, the head of the Kenya Environmental Court, and me. The other good news is that we’re on the short, short list. Another project that’s starting to get some traction is a Coconut-Biodiesel Feasibility Study for the Danish aid agency called DANIDA. They’ve recently conducted a coconut census (yes, coconuts are really important here) and found over 7 million trees and tens of millions of nuts being produced, but a nearly disappeared coconut oil industry. Ten of the 11 coconut mills in Kenya have shut down, while the country imports coconut oil and milk from abroad. Makes no sense, especially as poor farmers are looking for income and coconuts are falling from their trees. So, we’re trying to get DANIDA to fund a study as to why the market has collapsed and what can be done to revive it, including by using some of the oil for biodiesel. They seem to really like our concept, so we’re now talking about getting them to fork over some cash. One of my goals is to start producing commercial quantities of biodiesel in Kenya within the next year or two. With that in mind, I’m putting together a business plan for a 1-2 million liter per year plant that could be shipped here in a container and up and running within a year. That is, if we can source about 4-5 tons of oilseed per year at a reasonable price. We’re looking at canola, sunflower, and cottonseed in the short-term and jatropha, croton, and coconuts potentially down the line. I have a number of great contacts with local farmers, equipment manufacturers (see Greenfuels Biodiesel Processor to the right), and others, so we’ll see what’s possible. Getting Endelevu Energy off the ground has been one of the most exciting things I’ve done, and one of the most bureaucratic. After about five months, I’ve got my work permit, company registration, a small office, and a growing list of projects with great potential. Now it’s time to realize some of that potential. I’ll keep you updated.$ Wednesday, October 3, 2007