D. Tech. Business Administration / The study attempts to identify and quantify socio-economic factors that are influence the production and distribution of biofuels products in Zimbabwe. It also seeks to provide an empirical analysis of the importance of stakeholders in Biofuel production and distribution and how their perceptions and influences tend to affect production and distribution.

Using crops for fuel generates concerns over competition with food uses. As Rajagopal et al (2009) asserts, “In 2008 the world entered a food crisis amid record-high commodity and energy prices that induced hunger and political unrest in developing countries, by export restrictions in top grain-producing countries”. This took place at the same time when biofuel production, reached its pinnacle in developed countries. This paper examines the effect that biofuel prices and or production has had on food prices in Brazil and U.S. by employing the panel cointegration and Dynamic Ordinary Least Squares (DOLS) method of analysis. In regressing food prices as a function of demand and supply factors, such as oil prices, biofuel prices, interest rates and biofuel production, the study found that the increase in biofuels production over the past eighteen years has had a significant impact on food prices. Over the period January 1995- December 2013, the study estimates that a one hundred percent increase in biofuels production across time and between countries results in the increase of food prices by 21,9%. The study therefore rejects the null hypothesis that states, biofuel production does not have a statistically significant negative impact on food prices in U.S. and Brazil. , and accepts the alternative that biofuel production does have a statistically significant negative impact on food prices in U.S. and Brazil. Other predictors of food prices that the study revealed as significant were oil and interest rates. Policy recommendations for other countries like South Africa are therefore, made based on the results obtained.

In recent years, proponents of 'green and clean fuel' have argued that the costs of overreliance on fossil fuels could be reduced through transition to biofuels such as bio-ethanol. Global biofuel discourses suggest that any transition to biofuel invariably results in significant benefits, including energy independence, job creation, development of agro-industrial centres at local level and high revenue generations for the state with minimum negative impacts on the environment. With many risks and costs associated with traditional 'dirty' fuels, it is likely that many countries, particularly African countries, will move towards the 'green and clean fuel' alternative. However, until recently research has arguably paid limited attention to the local livelihood impacts related to land acquisition for biofuel development or the policy frameworks required to maximise biofuel benefits. With regards to biofuel benefits, some recent studies suggest that the much bandied potential for greater tax revenue, lowered fuel costs and wealth distribution from biofuel production have all been perverted with relatively little payoff in wage labour opportunities in return (e.g. Richardson, 2010; Wilkinson and Herrera, 2010). Based on work done in Chisumbanje communal lands of Zimbabwe (Thondhlana, 2015), this policy brief highlights the local livelihood impacts of biofuel development and discusses policy implications of the findings. By highlighting the justifications of biofuel development at any cost by the state, the study sheds some light on the conflicts between state interests and local livelihood needs.

Communities of different sizes in Saskatchewan seeking economic opportunities have shown interest in ethanol production because of the perceived benefits a region can capture from such a project. In spite of this interest and the perceived benefits, no information on the type and magnitude of economic impacts which would accrue to different sized communities existed. This study was undertaken to fill this information gap by establishing facts on the economic impacts various levels of communities could capture from ethanol-cattle production complexes. Since Saskatchewan communities operate in a hierarchical fashion and are classified into seven levels using central place theory, questions concerning economic development should be viewed in a regional hierarchical framework. A seven-region hierarchically-based interregional input-output model for the Saskatchewan economy was constructed using the Supply-Demand Pool (SDP) method in combination with the logical assumptions regarding trade patterns within the central place region. It was assumed that higher-level regions are surplus regions in goods produced by non-primary sectors, and hence ship excess supply to producers and final users in the dominated lower-level regions and outside of the province. On the other hand, it was assumed that the hinterland region dominates trade in goods in the primary sectors. The hinterland earned income by producing and supplying goods and services in the primary sectors to the higher-level regions and outside the province. The model consisted of 14 aggregated sectors seven household sectors, and allowed for net flows of labour income through commuting patterns of workers who resided in the seven regions. At the same time the consumption expenditures of residents in a particular region were adjusted for outshopping purchases. The estimated model was used to assess the economic impacts from both the construction and operation phase of an integrated ethanol-cattle production complex across six hierarchical regions. The major findings of this study were that, under both phases of the project, intraregional output and labor income impacts occurring in the high level regions were larger than those in the lower-level regions. Also, the higher-level regions experienced larger interregional impacts and had spillover coefficients of smaller magnitude compared to lower-level regions. The intraregional output and labor income impacts tended to decrease as one moves down the hierarchy from top to bottom regions. On the other hand, the spillovers or leakages were increasing as one moves down the hierarchy from higher-level regions to lower-level regions. The higher-level regions have more diversified economies and smaller leakages of income and spending than lower-level regions. On the other hand, lower-level regions experienced large income leakages through input purchases and consumer spending in neighbouring higher-level regions. The results indicate that lower-level regions will not benefit more than higher-level regions from the development of an integrated ethanol-cattle production complex. Thus, if the goal of public funding of ethanol projects is to maximize impacts in the project-region, then higher-level regions would be preferred to lower-level regions. This raises a concern that the opportunity of pursuing regional development through ethanol processing may not reach all those communities who need it the most, especially the smaller communities. On the other hand, if the objective of rural development is to solve the problems of rural communities, the policy-makers, could target lower-level regions specially those experiencing economic decline. It is important to mention that integrated ethanol-cattle production continues to enjoy subsidies from the governments. (Abstract shortened by UMI.)

Thesis (MScEng (Industrial Engineering))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The world is facing an energy crisis with worldwide energy consumption rising at an alarming rate. The effects that fossil fuels have on the environment are also causing concern. For these two reasons the world is determined to find ‘cleaner’, renewable and sustainable energy sources. The Cape Winelands District Munisipality (CWDM) area has been identified as the study area for a bioenergy project. The CWDM project aims to determine the possibility of producing bioenergy from lignocellulosic biomass, and transporting it as economically as possible to a number of electricity plants within the study area. From the CWDM project a number of research topics were identified. The aim of this thesis is to determine the best location for one or more processing plants that will maximise the potential profit through the entire system. This is achieved by minimising the overall life cycle cost of the project. It takes into account costs from establishing and maintaining the crops, harvesting, transportation, conversion and generation; with a strong focus on the transport costs. In conjunction with a Geographical Information Systems (GIS) specialist and taking into account various factors such as electricity demand, heat sales and substation locations, 14 possible plant locations were identified. The possible supply points for each of the 14 plant locations were then analysed by GIS again to yield data in terms of elevation, road distances and slope. The transport costs were calculated using the Vehicle Cost Schedule (VCS) from the Road Freight Association (RFA) and fuel consumption calculations. It takes into account slope, laden and unladen transport and considers different transport commodities. These calculations together with the other associated costs of the life cycle are then combined with the results of the GIS into an EXCEL file. From this a transportation optimisation model is developed and the equivalent yearly life cycle cost of each of the 14 demand points are minimised by means of LINGO software. Initially runs were done for 2.5 MW capacity plants. From the high profit areas identified here, a single area was chosen and further runs were done on it. These runs were performed to determine the effect of different plant capacities on the life cycle costs, as well as how it affects the farm gate price that can be paid to the farmer. It also determined the effect of farmer participation at different plant capacities. The results indicate that it is currently possible to pay a farmer between R 300.00 and R 358.00 for a ton of biomass. It also revealed that with higher participation from farmers in the CWDM project, lower costs and higher farm gate prices will result, since the transport costs will be lower. Although all the costs within the life cycle are variable over time, the transport cost is the only cost that varies spatially and this will have a major effect on the overall system cost. The thesis found that generating electricity from woody biomass is feasible for all areas that were considered as well as for all variations considered during the sensitivity analysis. For the recommended plant size of 5 MW the transport of logs will be optimum. / AFRIKAANSE OPSOMMING: Die tempo waarteen energieverbruik wêreldwyd styg is ʼn rede tot kommer. Die nadelige effek wat fossiel brandstowwe op die omgewing het, is ook ʼn probleem. Hierdie twee redes is hoofsaaklik wat die wêreld dryf om ‘skoner’ hernieubare en volhoubare energie bronne te vind. Die Kaapse Wynland Distrik Munisipaliteit (KWDM) area is identifiseer as ʼn studie area vir ʼn bio-energie projek. Die doel van die KWDM projek is om die vervaardiging van bio-energie vanaf plantasies, die vervoer van hierdie bome sowel as die prosessering koste by die fabriek te bepaal en te evalueer. Vanuit die KWDM projek het `n aantal tesisse ontwikkel waarvan hierdie een is. Die doel van hierdie tesis is om die beste posisie vir een of meer prosesserings fabrieke te bepaal wat die potensiële wins van die KWDM projek sal maksimeer. Dit is ook gemik daarop om die ekwivalente jaarlikse oorhoofse lewenssiklus koste van die projek te minimeer. Dit neem die vestiging en onderhoud van gewasse, oeskostes, vervoerkostes en proseskostes in ag, met ʼn spesifiek fokus op die vervoerkoste. In samewerking met `ʼn “Geographical Information Systems” (GIS) spesialis en deur verskeie faktore, soos elektrisiteitsverbruik, inkomste vanaf hitte verkope en substasie posisies, in ag te neem is 14 moontlike fabriek posisies identifiseer. Verder is die moontlike voorsienings areas van elk van die 14 fabriek posisies weer deur GIS analiseer om resultate in terme van hoogte bo seespieël, padafstand en helling te verkry. Die vervoerkostes is verkry vanaf die “Vehicle Cost Schedule” (VCS) van die “Road Freight Association” (RFA), asook berekeninge wat die brandstof verbruik in ag neem. Hierdie kostes sluit in die effek van gradiënt, gelaaide en ongelaaide vervoer sowel as verskillende vervoer produkte. Hierdie berekeninge sowel as die ander kostes in die siklus en die resultate van GIS is kombineer in ʼn EXCEL leer. Hierdie data word dan gebruik om ʼn LINGO model te ontwikkel en die oorhoofse lewenssiklus koste van elk van die 14 fabriek posisies te minimeer. Optimering is gedoen vir 2.5 MW kapasiteit fabrieke. Uit die beste areas is een area identifiseer en verdere lopies is daarop gedoen. Die doel van hierdie lopies is om die effek van verskillende fabriekskapasiteit op die lewensiklus koste te bepaal, asook die effek daarvan op die prys wat aan die boer betaal word vir hout. Hierdie lopies is ook gebruik om die effek van boer deelname te bepaal. Die resultaat dui aan dat dit tans moontlik is om ʼn boer tussen R 300.00 en R 358.00 te betaal vir ʼn ton biomassa. Dit het ook gewys dat hoe meer boere deelneem aan hierdie projek hoe laer is die oorhoofse lewensiklus koste en hoe hoër is die prys wat betaal kan word vir hout aangesien die vervoerkoste laer sal wees. Alhoewel al die lewensiklus kostes veranderlik is oor tyd, is dit net die vervoerkoste wat ʼn ruimtelike komponent ook het en dit sal ʼn groot effek op die oorhoofse lewenssiklus koste hê. Die tesis bevind dat dit lewensvatbaar is vir alle areas in die studie om elektrisiteit op te wek vanaf hout biomassa, selfs al word die uiterse variasie in die sensitiwiteitsanalise gebruik. Vir die aanbeveling van ʼn 5 MW fabriek sal die goedkoopste vervoer opsie boomstompe wees.

Thesis (MScEng)-- Stellenbosch University, 2013. / ENGLISH ABSTRACT: Climate change that results from greenhouse gases (GHG’s) released from the burning of fossil fuels, together with the rising price of oil, have sparked interest in renewable biofuels. The production of biofuels also presents potential socio-economic benefits. There are two types of technologies for bioethanol production: · First generation bioethanol is produced from food feedstocks such as juice of sugarcane. · Second generation bioethanol is produced from non-food feedstocks (lignocellulosic materials). This project is concerned with 1st and 2nd generation bioethanol production from sugarcane juice and bagasse and the integration of these technologies. This project comprises a combination of experimental and process modelling work to assess energy efficiencies and the economic viability of integrated and stand-alone processes in the sub-Saharan African context. First generation fermentation experiments were conducted and high ethanol concentrations of up to 113.7 g/L were obtained. It was concluded that a recombinant yeast strain may be able to replace a natural hexose fermenting yeast for 1st generation fermentations to reduce costs. 2nd generation fermentation experiments were performed and ethanol concentrations of close to 40 g/L were obtained. Combinations of 1st and 2nd generation fermentation experiments were performed to improve the 2nd generation fermentation. In one of the experiments it was concluded that the combination of 1st and 2nd generation fermentations significantly improved the 2nd generation fermentation with an overall ethanol concentration of 57.6 g/L in a shorter time than for the pure 2nd generation experiments. It was determined from washing and pressing experiments that pressing the pre-hydrolysate liquor out of the pre-treated bagasse will sufficiently lower the levels of inhibitors in a 2nd generation fermentation when using a hardened yeast. Some of the data from the 1st generation experiments were used along with literature data to model a first generation process in Aspen Plus® which processes 493 tons of cane per hour (tc/hr). Pinch heat integration was used to reduce the utility requirements. The process used the bagasse that was generated to co-produce steam and electricity. The excess electricity was sold for additional revenue. In one scenario the excess bagasse was determined at 57.5%. This bagasse was sold to a stand-alone 2nd generation plant. The first generation process produced 85.5 litres of ethanol per ton of cane (L/tc), the integrated process produced 128 L/tc while the stand-alone 2nd generation process produced 185 litres of ethanol per ton of bagasse (50% moisture) or 25.5 L/tc. The amount of excess electricity that was produced ranged from 14.3 to 70.2 kWh/tc. Economic analyses were performed using South African economic parameters to resemble the sub- Saharan African context. Data from the 1st generation process model and literature data for integrated 1st and 2nd generation and stand-alone 2nd generation processes were used for the analyses. It was found that the integrated plant is the most economically viable (IRR = 11.66%) while the 1st generation process basically broke even (IRR = 1.62%) and the 2nd generation process is unviable. This was as a result of high sugarcane prices and too few incentives for 2nd generation ethanol. / AFRIKAANSE OPSOMMING: Klimaatsverandering wat veroorsaak word deur kweekhuisgasse wat vrygestel word deur die verbranding van fossielbrandstowwe en die stygenede olieprys het belangstelling in hernubare biobrandstowwe laat opvlam. Die produksie van biobrandstowwe hou ook potensiële sosioekonomiese voordele in. Daar is twee tegnologieë vir bioetanol produksie: · Eerste generasie bioetanol word vanaf voedsel bronne soos suikersap geproduseer. · Tweede generasie bioetanol word van nie-voedsel bronne (lignosellulose materiaal) geproduseer. Hierdie projek handel oor 1ste en 2de generasie bioetanol produksie van suikersap en suikerriet bagasse en die integrasie van hierdie tegnologieë. Hierdie projek bestaan uit ‘n kombinasie van eksperimentele- en prosesmodellering werk om die energiedoeltreffendheid en ekonomise vatbaarheid van geïntegreerde en alleenstaande prosesse in die sub-Sahara konteks te ondersoek. Eerste generasie fermentasie eksperimente is uitgevoer en hoë etanol konsentrasies van tot 113.7 g/L is gekry. Dit was bepaal dat ‘n rekombinante gisras ‘n natuurilke heksose fermenterende gisras kan vervang vir 1ste generasie fermentasies om kostes te bespaar. 2de generasie fermentasie eksperimente is gedoen en etanol konsentrasies van amper 40 g/L is behaal. Kombinasies van 1ste en 2de generasie fermentasie-eksperimente was uitgevoer om die 2de generasie fermentasie te verbeter. In een van die eksperimente is dit bepaal dat die kombinasie van 1ste en 2de generasie fermentasie die 2de generasie fermentasie beduidend verbeter het met ‘n etanol konsentrasie van 57.6 g/L en dít in ‘n korter tyd as vir die suiwer 2de generasie eksperimente. Dit was bepaal vanuit pers- en was eksperimente dat om die pre-hidrolisaat vloeistof uit die stoombehandelde bagasse te pers, die vlak van inhibitore in ‘n 2de generasie fermentasie voldoende verlaag vir die gebruik van ‘n verharde gis. Van die data van die 1ste generasie eksperimente was saam met literatuurdata gebruik om ‘n 1ste generasie proses in Aspen Plus® te modelleer wat 493 ton suikerriet per uur prosesseer (tc/hr). Pinch hitte integrasie was gebruik om die dienste vereistes te verminder. In die proses word die bagasse gebruik om stoom en elektrisiteit te genereer. In een geval was die oortillge bagasse bepaal as 57.5%. Hierdie bagasse was verkoop aan ‘n alleenstaande 2de generasie aanleg. Die eerste generasie proses het 85.5 liter etanol per ton suikerriet geproduseer (L/tc), die geïntegreerde proses het 128 L/tc geproduseer terwyl die 2de generasie proses 185 liter etanol etanol per ton bagasse (50% vog) of 25.5 L/tc geproduseer het. Die hoeveelhede oortillige elektrisiteit wat geproduseer is wissel van 14.3 tot 70.2 kWh/tc. Ekonomiese analieses is gedoen met Suid-Afrikaanse ekonomiese parameters om die sub-Sahara Afrika-konteks uit te beeld. Data van die 1ste generasie prosesmodel en literatuurdata van geïntegreerde 1ste en 2de generasie en alleenstaande 2de generasie prosesse was vir die analieses gebruik. Dit is bepaal dat die geïntegreerde model die mees ekonomies vatbare model is (IRR = 11.66%) terwyl die 1ste generasie proses basies gelyk gebreek het (IRR = 1.62%) en die 2de generasie proses is ekonomies onvatbaar. Hierdie bevindinge is as gevolg van hoë suikerrietpryse en te min aansporings vir 2de generasie etanol.

M.A. / Although South Africa is a country endowed with abundant energy resources (fuels such as coal, uranium and gas), biomass is the prime source of energy for cooking and heating in the rural domestic sector. Fuelwood is the common biomass used, followed by crop residues and animal dung. This research examines the environmental and socio-economic impacts of biomass energy consumption in the Mbhokota village in the Northern Province. The research was conducted by means of a field survey. Data collection methods included administering questionnaires to those who are involved in fuelwood collection (mostly women), interviews with various interested groups and personal observation of the affected sites, and a review of literature relevant to this study. The use of biomass as a source of fuel has much wider implications for the social and biophysical environments. The excessive cutting of trees for fuel leads to a reduction in the diversity of plant species and destruction of habitat for wildlife. Loss of soil cover through the use of crop residues increases soil erosion and thus reduces the agricultural production. The use of biomass fuels gives rise to high levels of indoor air pollution which affects the health of people. As fuelwood supplies diminish, people must travel further and hence spend more time collecting wood. Greater time spent collecting wood means that less time is spent on food production and other household activities (farming, childcare, housekeeping, socialising and educating themselves). Other issues of concern include the high cost of purchasing wood from vendors and personal security in places where wood is collected. The above factors do not only entrench poverty, but also have dire implications for the rural economy. This study has shown that the present patterns of fuelwood collection inflict permanent damage on the environment, reducing its ability to provide further fuel in the future. The implication is that the supply of fuelwood can no longer be guaranteed in some parts of the study area, leading to the use of crop residues and animal dung. This report also highlights the recommendations and management measures (based on the results of the study) that can be used in mitigating the impacts of biomass energy use. These include the introduction of improved stoves, use of solar energy as an alternative energy source, empowerment of women, establishment of community based projects and integrating energy with rural development

The objective of this study is to develop a model to evaluate the economic feasibility of biofuels production, and in particular to isolate the variables crucial to feasibility. The model constructed to define these variables is unique in its ability to accommodate a variety of plants and to integrate all portions of the production process; it was tested on a case study of a Euphorbia lathyris industry. The model minimizes costs of production to determine the best configuration for the industry. Total cost equals the sum of costs incurred in each segment of the process: growth, harvest, transport, and extraction. The solution is determined through a non-linear transportation- transshipment algorithm which describes production as a series of nodes and links. Specific application of the model was analysis of E. lathyris biofuel production in Arizona. Simulations were run examining the sensitivity of biocrude cost to changes in input parameters. Conclusions are summarized as follows. * No change in any single element can reduce final cost sufficiently to enable competitive production in the near future. * The major factor necessary to bring cost into range is improvement in biological yield. Two components of equal importance are tonnage produced per acre and percentage extractables recovered in processing. * Lowering cropping costs provided the most effective improvements of economic inputs. Perennial crops significantly reduced farm costs. * Transportation costs outweighed economies of scale in extraction; extractor location close to crops is more efficient than centralized. The cost minimization model was successfully used to isolate the critical factors for an E. lathyris industry in an arid region. Results determine that this industry would not be competitive in Arizona without dramatic improvements in yields and moderate changes in a combination of input costs. Viability is critically dependent on improvements in tonnage yield produced per acre and percent extractables recovered.

Recent years have seen an unprecedented global increase in the production and use of biofuels. This has been driven primarily by government support for biofuel industries. Soybeans are the only field crop produced in sufficient quantities in the province of KwaZulu- Natal (KZN) that the South African (SA) industrial biofuel strategy identifies as a potential biodiesel feedstock. Thus, this study is an evaluation of the economic feasibility of producing biodiesel on farms from soybeans in the main soybean-producing regions of KZN, using batch processing biodiesel plants. A mixed integer linear programming model was developed to simulate observed agricultural land rental rates (estimated at 4.48% of the market value of land) and cropping behaviour of commercial crop farms in the study regions. The model incorporates various alternative crops, crop rotations, tillage techniques, arable land categories and variance-covariance matrices to account for risk in production. All data are on a real 2009/10 basis. The model is used to predict possible farmer investment behaviour and determine the minimum biodiesel subsidy required to stimulate soybean-based biodiesel production in the study areas. Results suggest that biodiesel production is currently not an economically viable alternative to fossil fuel, and that the incentives and commitments outlined by the current industrial biofuel strategy are inadequate to both establish and sustain a domestic biodiesel industry. Under baseline assumptions, a realistic minimum implicit subsidy of R4.37 per litre of biodiesel is required to draw soybean-based biodiesel production into the optimum solution for commercial farms. The economic feasibility of on-farm biodiesel production is highly dependent on the soybean price (i.e., the feedstock input cost) and the soybean oilcake price (i.e., the highest valued byproduct). Thus, future promotion of biodiesel ventures could primarily target a reduction of feedstock costs through the development of new technologies which increase yields of available feedstocks and/or permit the use of lower cost alternatives. Higher subsidy levels are anticipated for: (i) small-scale initiatives (particularly in the absence of a rental market for cropland); (ii) soybean-based biodiesel production in areas with less suitable growing conditions for cultivating soybeans; and (iii) using sunflower and/or canola as biodiesel feedstock. To the author’s knowledge no other previous studies have attempted to quantify the minimum level of support needed to stimulate biodiesel production in South Africa. The SA industrial biofuels strategy promotes a development-oriented strategy with feedstock produced by smallholders and processed by traditional producer-owned cooperatives. However, traditional cooperatives suffer from a myriad of institutional problems that are associated with ill-defined property rights. As such, it is argued that these initiatives will fail to attract the capital and expertise needed to process biodiesel. This research, therefore, highlights the need for South Africa’s current Cooperatives Act to be amended. Accordingly, this also infers a need to revise the proposed SA industrial biofuels strategy. It is concluded that smallholder participation in biodiesel ventures would require a rental market for cropland, co-ownership of the processing plant in a non-traditional cooperative or investor-owned firm, information and training, and a high level of government subsidy. This research advocates that government consider promoting soybean oil extrusion ventures as a means of stimulating rural development for small-scale farming initiatives rather than soybean-based biodiesel production, as they will likely require less government assistance, whilst potentially combating the food versus fuel debate against biofuels. This is compounded by the fact that South Africa has historically been a net importer of both soybean oilcake and soybean oil. Importantly, however, the proliferation of such initiatives should not be based on the current notion of traditional cooperatives. The need for government to play a proactive role in such ventures through facilitating the development of appropriate business models which stimulate private investment in feedstock and processing facilities is clearly evident. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2010.