- Sustainability of the Jatropha cultivation in Zambia Biofuel

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Biofuel

- Sustainability of the Jatropha cultivation in Zambia

Josephine Broberg Royal Institute of Technology

Molly Ericson Bachelor Thesis 2012

Gustav Frid

Supervisors

Nils Brandt, The Royal Institute of Technology, Industrial Ecology Department, Teknikringen 34, 114 28, Stockholm, E-‐mail: nilsb@kth.se

Jhonnah Mundike, Copperbelt University, Environmental Department, PO Box 21692, Kitwe, E-‐mail: jhomu@cbu.ac.zm

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Abstract

This report is a result of the Bachelor thesis made by three students for the department of Industrial Ecology at the Royal Institute of Technology in Stockholm. The main objective is to discuss and analyze the cultivation of Jatropha curcas in Zambia from the Brundtland definition of sustainable development.

The steadily increased demand for biofuel and the ability Jatropha has to produce seeds during harsh climate conditions has contributed to an increased interest among developing countries.

In order to collect information through interviews with Jatropha stakeholders a field study started in Zambia in March 2012. To get a broader view and increase the knowledge within the subject interviews and information retrieval was done before the trip to Zambia. Significant limitations have been made in the report due to the wideness of the term sustainable development and constraints within the execution of the field study.

The field study answered many of the questions and it was found that the Jatropha cultivations were not sustainable in all areas but that it has great potential of becomingso^. Jatropha was introduced during the 90’s as an alternative feedstock to biodiesel production, but sufficient research on the utilizations of the tree, biological characteristics and character was missing.

Jatropha was marketed as a “miracle crop” that would produce seeds without any remarkable maintenance. But unfortunately it turned out that Jatropha needed high maintenance and when the yield did not respond to the expectations some companies vanished and left farmers with an unstable market for the seeds.

The interviews done during the field study gave both a positive and negative impression of Jatropha as a feedstock to biodiesel. The setback in the late 90’s and early 2000’s lead to disappearance of some companies from the industry, while others changed focus to merely research on Jatropha.

Cultivations of Jatropha have low yields and do not give much profit during the first years which is a problem for farmers. Economical support to Jatropha farmers could help and make the cultivations more socially and economically sustainable for the farmers. The company CEC wants to bring farmers together, form cooperatives and then educate and supply with equipment for production of crude oil. Through increased collaboration between farmers in the same area CEC also reduces their costs for transportation of crude oil.

With correct management small-‐scale cultivations of Jatropha are considered environmentally sustainable. Instead of using chemical fertilizers, pesticides and insecticides there are several biological alternatives which can be applied. Large-‐scale cultivations have a larger impact on the environment and especially on the biodiversity. Despite this it has been proven that large-‐scale cultivations can be made with less impact by introducing livestock and various plants.

Many problems were detected within the economic field and one of the most challenging ones is to maintain a stable and consistent market for seeds and crude oil. Jatropha is not covered by any ministry, since it is an inedible crop, and this causes problems. Making Jatropha a priority crop, like maize, could stabilize the Jatropha business. The Ministry of Agriculture has their main focus on food security and can therefore not prioritize Jatropha. Jatropha is not seen as a threat to food security since farmers still get larger incomes from food crops. Talking to farmers also proved that there is no great interest in growing merely Jatropha.

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Sammanfattning

Rapporten är resultatet av ett kandidatarbete utfört av tre studenter på Kungliga Tekniska Högskolan under institutionen Industriell Ekologi i Stockholm. Huvudsyftet är att utifrån Brundtlands definition av hållbar utveckling analysera och diskutera odlingen av Jatropha Curcas i Zambia.

Intresset för Jatropha har ökat i u-‐länder på grund av den ständigt ökande efterfrågan av biobränslen samt Jatrophas förmåga att kunna producera frön under tuffa klimatförhållanden. I mars år 2012 påbörjades en fältstudie i Zambia för att samla in information genom att intervjua de involverade parterna i industrin. För att öka kunskapen inom ämnet och få en bredare uppfattning utfördes intervjuer och informationssökning även innan avresan. Termen hållbar utveckling är komplex och har medfört betydande begränsningar i rapporten, enligt de definierade målen i rapporten. Avgränsningar har även behövt göras på grund av omfattande begränsningar under genomförandet av fältstudien.

Fältstudien gav svar på många frågor och det konstaterades att odlingen av Jatropha i dagsläget inte är hållbar inom alla områden men att potentialen för att uppnå detta finns. Jatropha introducerades som en alternativ gröda för framställning av biodiesel under 90-‐talet men tillräcklig forskning på trädets användningsområden, biologiska egenskaper och karaktär saknades. Jatropha marknadsfördes som en ”mirakelgröda” som kunde producera frön utan anmärkningsvärt skötsel. Dock visade det sig att Jatropha faktiskt behövde omfattande underhåll och då avkastningen inte svarade förväntningarna försvann företag och lämnade bönderna med en ostadig marknad för försäljning av frön.

Fältstudiens intervjuer gav både positiva och negativa bilder av industrin kring Jatropha.

Motgångarna i slutet av 90-‐talet och början på 2000-‐talet har bidragit till att vissa företag försvunnit ur industrin medan andra fortsatt med forskning inom området. Företaget D1 Oils Plant Science och nationella forskningscentret NISIR är två aktörer som fortsatt med forskning för att förstå hur Jatropha skall skötas för att få en optimal produkt för biodieselproduktion.

Under odlingens första år är skördarna små och ger låg avkastning, vilket visat sig problematiskt för bönderna. För att underlätta detta skulle ekonomiskt stöd till bönder kunna göra odlingarna mer ekonomiskt och socialt hållbara. Företaget CEC vill få bönder att starta kooperativ där de sedan ska förse med utbildning och utrustning för produktion av råolja. Genom ökat samarbete mellan bönder inom provinserna minskar CEC även sina kostnader vid transporten av råoljan.

Med rätt skötsel kan de småskaliga odlingarna anses miljömässigt hållbara. Istället för kemiska gödnings-‐, bekämpnings-‐ och insektsmedel kan ett flertal biologiska alternativ användas.

Storskalig odling är miljömässigt mer belastande på naturen och påverkar områdets biologiska mångfald avsevärt. Genom introduktion av boskap och diverse växter kan storskalig odling av Jatropha medföra mindre påverkan på naturen och dess biologiska mångfald.

De största problemen, inom Jatrophaindustrin, har påvisats inom det ekonomiska området och speciellt svårt är att bi behålla en stabil marknad för frön och råolja. Eftersom Jatropha är en oätlig växt täcks den inte av något specifikt departement vilket medför problem. Genom att göra Jatropha till en prioriterad gröda, likt majs, skulle industrin kunna bli stabilare.

Jordbruksdepartementets fokus ligger främst på matsäkerheten och på grund av det kan inte Jatropha prioriteras. Jatropha utgör inget hot mot matsäkerhet eftersom bönder får större inkomst av att odla matgrödor. Även besök hos bönder visar att det inte finns något stort intresse av att enbart odla Jatropha utan att fokus i första hand är att odla matgrödor.

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Acknowledgements

We have many people to thank for their help during this field study and the compiling of the bachelor thesis. We would like to acknowledge the Swedish International Development Agency (SIDA) and Lennart Johansson at the international chancellery at KTH for the opportunity in receiving the MFS-‐scholarship which made it possible for us to perform this field study in Zambia. We believe that our conclusions and gathering of information would not have been as successful in Sweden.

We also want to thank Nils Brandt and Jhonnah Mundike for being our examiner and supervisors. Our cooperation has been invaluable with these contacts and it has facilitated our field study tremendous.

The Kinkese family in Lusaka and relatives in Kitwe and Chipata has also been a huge help during our stay in Zambia. Their contacts and their consideration and willingness to show us around has really facilitated our stay and made it possible for us to focus entirely on our project.

Finally we would like to thank all involved parties who have let us take up their time and perform our interviews. These are governmental people, producers, professors and farmers and without them this thesis would not have been completed.

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1. Introduction

This report is a result of a field study made in Zambia about Jatropha and the sustainability in the cultivation. The project is a part of the Bachelor exam at The Royal Institute of Technology (KTH) in the year of 2012 and is made by Josephine Broberg, Molly Ericson and Gustav Frid. A received scholarship, the Minor Field Study (MFS) Scholarship from the Swedish International Development Agency (SIDA), made it possible for the project group to travel and perform the actual field study in Zambia.

1.1 Study background

In the initial stage of this project the main subject was quite consistent among the participants. An environmental study was the most interesting area and a will to perform this study abroad, in the actual field, was significant. When seeking optional subjects and countries Jatropha curcas and Zambia seemed to be a very suitable area because of existing expertise and supervisors connected to KTH. The receiving of the MFS-‐scholarship made the field study possible.

1.2 Aim

The main task for this bachelor thesis report is to find out if the cultivations of Jatropha are sustainable or not. The concept of Sustainability will be defined according to the guidelines within the Brundtland Commission in terms of ecologic, economic and social issues (Brundtland, 1987).

1.3 Objective

In order to achieve the above aim, the following were the specific objectives:

a) Environmental:

• Investigate if fertilizers, pesticides and insecticides are used within the cultivation of Jatropha.

• Investigate if the Jatropha cultivations need irrigation.

• Investigate if the Jatropha cultivations have an impact when it comes to changes in the biodiversity in already existing ecological systems.

• Investigate if the emission of greenhouse gases concerning Jatropha cultivations is higher or lower if compared to the natural growth.

• Investigate if Jatropha is invasive.

b) Economical:

• Investigate if it is better to cultivate Jatropha on small-‐scale or large-‐scale basis.

• Investigate if there is a market for Jatropha in Zambia.

• Investigate if there is a driving force in the society concerning Jatropha.

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• Investigate if the farmers get any encouragement from the government and bigger companies when it comes to education, equipment and aid. Aid includes financial support or material.

• Investigate if the cultivation of Jatropha has contributed to an increased income for the farmers.

• Investigate if Jatropha as an energy crop is a threat to food security, i.e. if farmers rather cultivate Jatropha instead of food crops.

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2. Methodology

Preparations for the project started in the early fall when a description of the project was written and handed in to the international chancellery at KTH. This had to be done when applying for the MFS-‐scholarship. After a month the project was approved by the board and the scholarship was given to the three participants. Since the project now was approved it went into a new phase. Information was gathered, contacts were made by the contact person in Zambia, interviews were carried through and the topic was discussed in the group. Roughly a month before the departure to Zambia all three students where in Uppsala and participated in a preparatory course given by SIDA. Before the travel a draft of the report was written to ease the work during the first time in Zambia.

On the 19th of March the airplane left Stockholm and on the 20th the group arrived to Lusaka, Zambia. When in Zambia people were contacted and meetings scheduled. In the meantime the project was structured and interview questionnaires were written. During the field study several interviews were made with different stakeholders. The stakeholders include professors, farmers, producers and people within the government with knowledge of biofuel and more specific of Jatropha. The work where also divided into fields of responsibility which are presented in Appendix IV.

2.1 System Boundary

The study was focused within Zambia because of the country’s significant difficulties with the Jatropha cultivation. Zambia’s geographical position is also an important obstacle since its lack of coasts complicates import and export and being self-‐sufficient would therefore be preferable. Being a developing country also complicates the implementation and establishment of a future biodiesel market.

Zambia was also chosen because a supervisor, with great competence within the area, was available within the country. He had also collaborated with the supervisor in Sweden, which facilitated the preparations of the field study.

Due to time and logistic constraints of the interviews took place in and in the surroundings of Lusaka, Kitwe and Chipata. During the stay in Zambia it was obvious that the difficulties with logistics were extensive and therefore a limitation had to be done within the nearby area of the three cities. The difficulties with logistics and complications with contacting farmers also limited the project work.

Since sustainability is a wide term the participants have chosen not to immerse but focus on the stated objectives. Therefore limitations had to be made and several issues concerning for example land grabbing and biological characteristics had to be extradited.

2.2 Limitations of the study

Several limitations have been made in order to perform this study. The most significant were time, logistics and the extent of the thesis being a Bachelor thesis with predetermined boundaries.

Because of applying for the scholarship from SIDA the project was initiated as early as in August 2011. The work has been continuously ongoing during the fall, but has not been the main focus until being in Zambia. Therefore, and because of the extent, the time has been quite scarce.

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Logistics when being in Zambia has also been a significant limitation which has affected the results of the project. The geographical distance between farmers and companies has complicated the study and it has not been possible to perform all potential interviews.

During the stay in Kitwe the lack of access to a car restricted travel to field visits and the absence of official collaboration between KTH and the Copperbelt University (CBU) limited access to CBU’s cars and drivers. Another obstacle was our limited schedule which was not always consistent with the interviewees’.

The industry of Jatropha has been very controversial in Zambia and mistrust and suspiciousness therefore exist within this area. This has complicated the study since it has been problematical to set up interviews because of suspiciousness towards the study’s intention and utilization.

Despite these constraints all important areas of the study was covered, but some in larger extent than others. Contacting and meeting Jatropha farmers was most complicated and is therefore the area which is least discussed in this study.

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3. Background

In order to analyze the sustainability of the Jatropha cultivations in Zambia some background information was essential to take notice of. For this study it was most important to determine the term sustainability and also to receive comprehensive understanding about biodiesel, Jatropha and Zambia.

3.1 Sustainability

Sustainability is a complex term which can be interpreted in various ways. According to Gröndahl and Svanström (2011) there are various models describing sustainable development, but simplified it can be divided into three categories; the environmental, social and economic aspects. The environmental, or ecological, aspect consists of natural resources, functioning of the ecosystems and biodiversity. Social aspects are defined as human capital and social expectations driven by inter alia culture and politics. The economic aspects are defined as the values represented in the economic system including properties and constructions. It could be difficult finding solutions which simultaneously fulfill goals within all three areas and the importance of compromises is therefore significant.

The Brundtland commission was a result from a conference in 1972 where awareness was raised of the need for sustainable development. According to the Brundtland definition of sustainable development it is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

(Brundtland, 1987).

Sustainability, and its development is a changeable process since there will never be a fixed terminal state. The development is continuous and the sustainability is therefore important. Adjustment to existing systems’ conditions, the population in need of support and the wanted standard of living will always be of great importance when analyzing sustainability (Gröndahl and Svanström, 2011).

Energy is today necessary for the functioning of societies and the need is today in a large scale met by use of fossil fuels. The created dependency of fossil fuels is not sustainable and it is therefore very important to find an alternative and replace this source of energy.

3.2 Biodiesel

Instead of using fossil fuel biofuel can be used, an alternative which is becoming more common. Biofuel origins from organic material, named biomass, which is decomposed once-‐living organisms like plants and animals. A renewable resource, like biomass, has less impact on the environment since the CO2 that is released through the combustion initially origins from the atmosphere (Biobränsle, 2011).

Biofuel is divided into different subcategories depending on its organic origin and the production process. The most common ones are presented in table 1.

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Biofuel Origin Production process

Ethanol Starch crops Fermentation

Biogas Biomass Anaerobic process of the biomass

Biodiesel Crops (e.g. Jatropha or soybeans) Using the oil from the crushed seeds Table 1. The different divisions of biofuel depending on its origin and production process.

In Zambia most of the biodiesel is used mainly within the transport sector but also in the production of electric power and for household use instead of charcoal. The productions of vehicles running by pure biodiesel are implemented but it is more common to blend it using 5-‐7% biodiesel and rest fossil diesel (Krimmel, 2012). Engines running by diesel have much higher efficiency comparing to petroleum-‐based engines which makes biofuel an even more interesting topic (Flood, 2009).

The process when making biodiesel out of biomass is called transesterification. The process needs biomass in form of oil that together with an alcohol and a catalyser, sodium-‐ or potassium hydroxide, reacts and becomes an ester and glycerol, see figure 1.

The ester in the reaction below is the biodiesel and by correct transesterification the heavier glycerol sinks while the biodiesel stays on the top. When doing it correctly the biodiesel can be used at once. The glycerol can be sold as a bi-‐product for cosmetics or pharmaceutical use (Biofuel Express, 2003). The only waste residue from the transesterification process is wastewater (Mundike, 2009).

Figure 1. Reaction formula of the transesterification. The fatty acid, triglyceride is equivalent with Jatropha oil and the methyl ester is biodiesel. (Picture drawn by author, 2012-‐05-‐20)

3.3 Jatropha

Jatropha curcas is a tree crop, see Picture 1, with origins mainly from Central America and has become naturalized in India, Africa and North America. The crop came to Africa and Zambia with Portuguese traders about 400 years ago (Heller, 1996). By then it was mainly used as lamp oil and live fence. The crop has also had a medicating purpose by treating for example poisonous snake bites. Later on the oil from the seeds was used when making soap at a small-‐scale level and also for domestic lighting (Sinkala, 2012).

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Picture 1. Professor Sinkala’s Jatropha plantation. (Picture taken by author at Thomro Biofuels’ plantation, Lusaka 2012-‐04-‐06)

Jatropha starts bearing fruits after 1-‐3 years and continues throughout its entire life-‐span, which is about 40 years. When the fruits get ripe they turn from the color green to black and will fall to the ground if they are not picked, see Picture 2. Normally the fruits ripen between January and March.

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Picture 2. Ripe fruits on a Jatropha tree. (Picture taken by author at Mount Mukulu, Lusaka 2012-‐03-‐30)

After getting ripe the shells of the fruit crack open and the seeds can be picked, see Picture 3. Each fruit normally contains three seeds, but this can vary up to five seeds depending on the variety of Jatropha. The seeds averagely contain 34% oil (FACT Foundation, 2010).

Jatropha is also climate-‐sensitive and its yield depends on the climate. Wet climate results in the tree having more seeds, but with less amount of oil per seed. A drier climate gives less seeds but a higher amount of oil (de Klerk, 2012). Depending on the Jatropha being cultivated from seedlings, seeds or cuttings the life-‐span also varies. Seedlings and seeds generate the best result and are therefore preferred when establishing plantations (CJP, 2012). However cuttings give yield more quickly but generates crop with shorter life-‐span (Bulaya, 2012).

Picture 3. The ripe Jatropha fruit which has cracked open and displays the seeds. (Picture taken by author at Mount Mukulu, Lusaka 2012-‐03-‐30)

The possible usage of the oil from the Jatropha seeds as raw material for biodiesel was discovered in the late 1990’s. Due to the world’s rapidly increasing need of fuel and human’s devastating growing impacts on the environment the demand for environmentally friendly alternatives has increased enormously. Therefore, the discovery of Jatropha as raw material for biodiesel created great excitement among all parties within the business of energy crops. According to Professor Thomson Sinkala (2012) Jatropha oil has about 1600 areas of utilization but not nearly as many are commercial uses. It was presented as a “wonder crop” and was said to give yield without specific maintenance and when growing on non-‐arable land (Musunya, 2012).

The Jatropha hype unfortunately led to a neglect of the normal process when introducing new crops. The crop was directly introduced into the business and private investors and farmers began the cultivation. Usually in Zambia tests are done and cultivations plans set up before implementing the crop because of identifying obstacles and advantageous units (Musunya 2012).

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The process of producing biofuel from Jatropha initially starts with crushing the seeds in a specific press to receive the oil. Most common are manual presses, see Picture 4, but also mechanical presses exist which give better results. The residue from the press is a seedcake which can be used as fertilizer. One positive factor is that the crude oil, from the Jatropha seeds, can be used directly in engines without practicing the transesterification (Chansa, 2012).

Picture 4. A manual Jatropha press being operated by Professor Sinkala. (Picture taken by author at Thomro Biofuels’ plantation, Lusaka, 2012-‐04-‐06)

Jatropha is a good crop to intercrop with because it gives shade to shade loving plants, like for example tomatoes, and also provides a base for climber crops (CJP, 2012).

Intercropping is also the preferable approach when cultivating small-‐scale Jatropha since it should be used as a complementary crop in addition to other crops with different harvesting months. As with most other crops, Jatropha require fertilizers in order to get high yields (Sinkala, 2012).

If Jatropha is intercropped it the problem of pests and diseases is minimized and can be overcome easily. But if the cultivation is implemented in large-‐scale monocultures, the significance of pest and disease control is enhanced. The most important pest in Zambia that attacks Jatropha is the Golden Flea Beetle and the most significant disease is Powdery Mildew (Ross, 2012).

3.4 Zambia

Zambia, a part of the former Rhodesian Republic, is a landlocked country in the South of Africa, see Picture 5. Zambia got independent from the UK in 1964 and the new government inherited a country with a huge source of copper. The copper was supposed to generate high, stable and guaranteed revenue. Zambia was dependent of the copper and when the copper price decreased it was an unexpected outcome. The country had by

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then established enough schools and hospitals but is still today a developing country.

Extensive corruption also exists in Zambia today which affects the development (Ntungo, 2009). Today Zambia is still one of the leading copper producing nations with 6% of the world amount within the borders (Zambia Tourism, 2012).

Picture 5. Map of Africa with Zambia marked. (Picture drawn by author, 2012-‐05-‐25) Because of the lacking coastline the imports become more expensive and at the moment there are no findings of fossil fuel within Zambia (Zulu, 2012). According to the Ministry of Energy and Water Development (2012) the import of diesel is six shipments annually, each of a quantity of 90 million tonnes. Most of the imported petroleum and the diesel in Zambia are transported via a pipeline from Dar-‐Es-‐Salaam which ends up in Ndola fuel storage terminal. This makes the import of petroleum and diesel cheaper than it was before. But the oil industry is a changing business which is affected by the global market.

For instance the oil crisis during the 70’s and consequences from the Iraq war has had a significant impact on the industry. Decreasing oil findings will result in an increased price and increased amounts of oil will decrease the price. This makes it even more important to find a new reliable energy resource within the borders that is compatible with fossil fuel.

Not just because of the changing prices but also because of the environment and to make Zambia become an independent country.

Agriculture is very important for the Zambians and provides incomes for around 50% of the population. By the farmers the small-‐scale farmers stands for 91% and have a land area up to 5 hectare each (Lubozhya, n.d.). Agriculture is essential as it offers employment and food for the population.

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Zambia has a land area of around 75.2 million hectares, where almost 40 million hectares is arable land. According to Harriet Zulu (2012) 14% of the arable land is used for agriculture. Large parts of Zambia are sparsely populated and there is a lot of area per person, around 5.79 hectares. The extent is obvious when comparing this value to other countries like South Africa that has around 2.48 hectares per person (BAZ, 2011).

Therefore it is reasonable to increase the cultivation without affecting the people living in Zambia significantly. The amount of unused arable land gives great potential for Zambia to cultivate feedstock for biodiesel and ethanol production. The economic issues due to the variable fossil fuel market could be minimized if the production of biodiesel within the country would increase to meet the national demand.

Zambia is divided into three different regions depending on the climate, see table 2 and picture 6 below.

Region I Dry land including the southern part of Zambia.

Region II Wet lower mid altitude including the western and eastern part and along the border to Congo-‐Kinshasa.

Region III Wet upper mid-‐altitude including the north western and northern part.

Table 2. The three climate regions in Zambia.

Picture 6. Map of the three climate regions in Zambia. (Picture drawn by author, 2012-‐05-‐

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These three regions with different climates can be an issue for the farmers in Zambia. It is rare to find a crop that will be able to survive in dry as well as in land with much water and also give good profit. On the other hand this also gives opportunities to grow a wider range of different crops within the country. Extensive research on maize has been made to make it possible to grow different varieties depending on the climate region.

According to Thomson Sinkala (2012) Zambia has a high fresh water amount, nearly 35-‐

40% of the total amount of groundwater assessments in the southern parts of Africa.

Having high quantities of fresh water means that continuous irrigation is not essential in

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comparison with cultivations in dry soil. This also gives Zambia great potential in cultivating crops and is one of the reasons why farming is one of the country’s main working sectors (Sinkala, 2012).

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4. Results

When discussing Jatropha and its sustainability it is important to get inputs from all the involved stakeholders within the business. Governmental people, companies, farmers, professors and other involved actors were interviewed based on the questionnaires presented in appendices I, II and III. The results from these interviews and also results from the information retrieval are presented in this chapter. Dates and location of the interviews with stakeholders are précised in Appendix V.

4.1 Governmental work within the business of Jatropha

In order to apply Jatropha as an alternative into the Zambian energy industry it is important that the government is actively working within the sector. If biofuels are seen as a potential energy resource the cultivation of energy crops might need encouragement and incentives from the government to get the business going. The Ministry of Energy and Water Development and also The Ministry of Agriculture were visited in order to get a better understanding on the governmental work considering Jatropha in Zambia.

4.1.1 Ministry of Energy and Water Development

According to Harriet Zulu, Senior Energy Officer Biomass, The Ministry of Energy and Water Development (2012) does not consider themselves to be the best actor within biofuel. They do not participate in the initial stage and does not promote the use of specific crops, including Jatropha. They neither invest money in the production of biodiesel nor give any financial support to the farmers. Instead the Ministry of Energy and Water Development provides and creates an environment that makes it possible for companies and the private sector to invest. Here they provide with electric power, formulate policies and makes sure these are implemented. The government also creates a market for biofuels by acting as one of the biggest buyers which facilitates for companies and people to sell the products made from Jatropha oil. They also encourage farmers to process the seeds and sell the crude oil instead of seeds since that generates more money. In 2008 a new National Energy Policy was created in which biofuel was added. Before 2008 biofuels had not been a part of the policy (Zulu, 2012).

The government also tries to create incentives in order to facilitate for the farmers to start cultivating Jatropha. This is very important since it takes up to three years before the Jatropha cultivation provides any income, so the farmers need support during these initial years. At the moment it is very difficult for the farmers to receive bank loans, which contributes to the significance of governmental incentives. The Ministry of Energy and Water Development will also work with subsidizing of biofuel in the same way as the Government is now for diesel and petrol. This is done in order to make the price affordable and for it to compete with fossil fuel (Zulu, 2012).

Today there is no legislation about the blending of biodiesel in Zambia. However, according to Thomas Krimmel at Southern Biopower a clear legislation is desirable and advantageous for the market. This is implemented worldwide and it would facilitate if Zambia would follow in the same direction (Krimmel, 2012).

4.1.2 Ministry of Agriculture

The Ministry of Agriculture’s main focus is food security and food crops. Therefore they do not work with Jatropha, since it is inedible. This is the reason why Jatropha has not been

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selected as a priority crop by the Ministry of Agriculture. According to Phillip Siamuyoba, Principal Tree Crop Officer at the Ministry of Agriculture (2012), Jatropha should fall under the Ministry of Energy and Water Development just because it is a feedstock to biofuel and not food. The responsibility of prioritizing Jatropha should be on the Ministry of Energy and Water Development rather than on the Ministry of Agriculture. The Ministry of Agriculture does not encourage farmers to start cultivating Jatropha, but they welcome farmers who want to start cultivations. Instead of Jatropha the Ministry of Agriculture rather recommends the farmers to cultivate palm oil as a feedstock to biodiesel, because it can be sold as food if the biofuel market is unstable.

4.2 The private sector within the business of Jatropha

The private sector within the business of Jatropha represents some of the most significant stakeholders. The companies working with Jatropha were the initiators of the Jatropha hype a couple of years ago (Musunya, 2012). Jatropha, and its potential as a biofuel feedstock, also enticed many foreign investors during the hype and many saw it as a potential profitmaking crop. But when the hype was not fulfilled and Jatropha did not turn out to be a wonder crop, many investors and private companies lost their investments and made huge losses. Some of the biggest companies even vanished, leaving many contracted farmers with nearly useless plantations (Musunya, 2012).

4.2.1 Southern Biopower

Southern Biopower was established in 2007 with the intention to build a biofuel company that focused on Jatropha as a feedstock. They started in the southern part of Zambia and then expanded to the north-‐western parts. Their main focus was to support farmers with seedlings and then buy the Jatropha seeds. “In the beginning we provided farmers with 1000 seedlings with the believe that Jatropha was a “wonder crop”, that it would not need as much care as other crops and would give the farmers and the company high yields.

Unfortunately it did not grow as fast as it was said” says Thomas Krimmel (2012) on Southern Biopower.

After several bushfires where 150 hectares of Jatropha cultivations decreased into just 50 hectares and due to the falling diesel and petroleum prices the company lost a lot of money. This made it difficult for the company to continue their previous providing services. Nowadays Southern Biopower works as a buyer of seeds which is done just to keep the market going. The company has difficulties in the Jatropha business right now and the small amounts of collected seeds will not contribute to a profitable business.

Instead of just focusing on Jatropha as a crop for biofuel, Southern Biopower has simultaneously bought sunflower seeds for processing sunflower oil. This made it easier for them to survive when the expectations of Jatropha failed, something other companies only focusing on Jatropha did not manage.

“For a winning business the Ministry of Agriculture need to make Jatropha prioritized as a crop, something that is not done at the moment. Even though there is a market for biofuel in Zambia it is hard to reach it without governmental incentives. Right now it is impossible to reach the amount of seeds and oil for a profitable business, it has to become a mass industry” says Thomas Krimmel (2012).

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Today Southern Biopower’s business has extended with small-‐scale production of sunflower oil for the food market and also with producing bio gas. These give higher yield comparing to the Jatropha oil and therefore generate an additional source of income to the company.

4.2.2 D1 Oils Plant Science Zambia

Originally D1 Oils started in UK within the refining business. The interest in Jatropha was later on raised since they realized the importance to secure feedstock for the refineries.

They needed to be involved into the production of the feedstock to access a secure feedstock at the necessary cost and therefore an interest in Jatropha arose. The refining part of the company was sold due to subsidised imports from USA, which contributed to an unviable business in the UK. The resisting company started to work more with biodiesel and with Jatropha as a feedstock (Ross, 2012). D1 Oils has farms not only in Zambia, but also in Malawi, Indonesia and India where they, according to a statement in the Biodiesel magazine want to plant nearly 540 000 hectares of Jatropha in the future (Retka Schill, 2009).

The collaboration between D1 Oils and the farmers was based on D1 Oils providing the farmers with seedlings, training, pesticides and a market. In the beginning neither the farmers nor D1 Oils themselves understood the extensive maintenance the crop actually needed. A few years ago when the fossil fuel market got unstable they had to go back to basics and find a solution to why the cultivations failed. “This was a critical step in moving forward so as not to continue repeating the same mistakes” says Sally Ross. In year 2008 D1 Oils Plant Science Zambia was established with the main focus to carry out extensive agronomy and breeding research regarding Jatropha. This expanded to incorporate an

“out-‐grower proof of concept” programme aimed at proving to all stakeholders (government, farmers, NGOs and private sector) that when planted according to best agronomy practices and as an addition to the farming system, Jatropha is a viable crop. In 2010 the company discontinued most of its research activities in Zambia due to the loss of key trials and breeding materials planted on the University farm, land which was reallocated to an agricultural development centre.

Nowadays they try to find farmers that are genuinely interested in working with Jatropha and ensure they are aware of the essential maintenance. They educate farmers in order to provide them with the knowledge which is required to maintain a successful cultivation of Jatropha. Then the company buys and collects seeds which they process into oil. According to Matthew de Klerk (2012) the main task for D1 Oils Plant Science is to provide up to date knowledge and expertise to farmers and maintain an existing market for them.

Following the completion of its "proof of concept" and withdrawal of funding from D1 Oils UK at the end of 2011, D1 Oils Plant Science Zambia is completing discussions with a new investor who, based on the positive results obtained, intends to fund the up scaling of the Jatropha out-‐grower proof of concept in the Eastern Province of Zambia. D1 Oils UK will continue investing in Jatropha related business in India.

4.2.3 Copperbelt Energy Cooperation

Copperbelt Energy Cooperation (CEC) is a company, which produces energy to supply the mining industry in the Copperbelt in the northwestern parts of Zambia. In the year of 2011

- Sustainability of the Jatropha cultivation in Zambia Biofuel

Biofuel