South African Workshop Presentations

 

Two Visibility Workshops have been held on the 28 – 30 January 2010 and 2-4 March 2011 and a Partner & Training Workshop on the 15 – 22 March 2013.

 

2.1 Abstracts of South African Workshop (January 2010)

 

2.1.1 Bioliquid Supply Chain Management

 

 

 

 

 

 

 

Presenter: 
Andrew Barnard
Blue NG Limited

 

Establishing the supply chain

 

Land:

  • Land availability in the region of the plant
  • Soil type/fertility / current vegetation / agronomy / cutivation techniques
  • Environmental impact assessment for forest, wetlands, areas of scientific interest
  • Sufficient Water Supply
  • Sufficient land for both food and fuel
  • Preservation of land rights
  • Farmer interest in new local market (what are their alternative opportunities?)

 

Infrasturcture:

  • Crop conditioning (drying / cleaning facilities at farm of origin or centralized?
  • Crop storage facilities (at farm of origin or centralized?)
  • Primary Processing facilities (Oi Extraction / Refining) close to the farm of origin or at the power plant?

 

Equitable Contracts:

  • Relationsbhip between all partites shoudlbe non adversarial.
  • Long term (10-2 years) contractual commitment requires transparent priing throughout the supply chain. 
  • Equitable pricing should be b ased on publicly available data or commodity exchange
  • Element of risk sharing
  • Element of profit sharing
  • Co-operative venture between farmers / generator

Renewable resources should only be used to meet human needs while preserving the environment.


 

Indirect Land Use Change

Sensitive Areas include:

  • Land with high diversity value
  • Forests of native species
  • Areas with endangered ecosystems
  • Biodiverse grasslands
  • Wetlands and peat lands
  • Expect international standards to develop

 

Land usage expansion occurring on the margins for food, feed, housing and infrastructure.  Should biomass for energy be penalized for indirect carbon effects while fossil fuels and food are not?  How can indirect effects be predicted with any precision?  How can cause and effect be established?  Ignores the need for energy security in developing countries.  A logical long term approach from Government needed to reassure investors in renewable.  Restoration of idle arable land should be considered a priority for
supplies of food, feed and fuels to the benefit of rural economies.

 

Supply Chain – Investor Confidence:

  • Investors require sufficient feedstocks and chain of custody for biomass from farm to power plant.
  • Sound financial models based on prudent assessment of feedstock supply and power market demand.
  • Sustainable Crop Production
  • Long term stability of Government policy
  • and incentives for renewable power
  • Access to local and national grid connections

 

Risk Management:

  • Investors require risk management between feedstock and power markets as not always moving in tandem
  • Agricultural markets affected by plantings, weather, competition between crops, local and global supply and demand
  • Power markets affected by fossil fuel availability and global supply and demand
  • Consider hedging mechanisms such as futures, options or contracts linked to a common index (e.g. electricity markets)
  • Long term price agreements preferable

 

Conclusion:
Renewable power projects requires the involvement of all stakeholder in the chain at the outset.  Assessment of impact on environment, communities and food supplies is required.  Equitable transparent contractual links, profit sharing or full co-operative status will provide long term commitment from stakeholders.