The Biodiesel Value Chain as a Development Tool for Smallholder Farmers in Rural Mozambique

Abstract: As one of the poorest countries in the world Mozambique has a great need of development, especially among smallholder farmers within the agriculture sector which constitutes 80% of the population. Previous research, as well as the government of Mozambique, has identified a great potential for biodiesel production in Mozambique. This study investigated if it is possible to carry out a socially, environmentally and financially sustainable biodiesel production chain as a development tool for smallholder farmers in rural Mozambique. The study also investigated if the biodiesel value chain can be used for poverty reduction, how it best can be designed, and what structures need to be changed.The study was carried out by a study of previous literature, a field study in Mozambique, and by developing a scalable model for scenario simulations of the biodiesel production chain. In the model the biodiesel value chain was defined by a number of modules, and for each module different scenarios were defined for further tests and analysis. The model simulated the total production of biodiesel from one hectare of land over a ten year period from both jatropha and coconut trees, and for each defined scenario the cost, energy use, and CO2 emission both for the total value chain and for each activity was calculated. The energy ratio was also calculated for each analyzed scenario. The most suitable design of the biodiesel value chain was found to be the use of smallholder farmers with advanced farming technique for growing the biodiesel crops, in combination with an advanced extraction facility with high extraction rate. As end market the local market for vegetable oil was found completing the whole value chain as the best design to full fill the requirements of sustainability. Whether the biodiesel should be sold at the southern African market or at the EU market was found to depend on the market prices and possible tax exemptions at the point of sales. The results showed that the total cost of producing one liter of vegetable oil from jatropha is 0.43 USD/liter, and 0.60 USD/liter for coconuts. The energy use for producing one liter of vegetable oil from jatropha is 0.00544 GJ/liter, and 0.00868 GJ/liter for coconuts. The CO2 emission from production of one liter of vegetable oil from jatropha is 0.741 kgCO2/liter, and 1.190 kgGJ/liter from coconuts. The energy ratio for producing one liter of vegetable oil to the local market is 6.51for jatropha excluding utilization of byproducts, and 13.14 including utilization of byproducts. For producing one liter of vegetable oil to the local market is 4.16 for coconuts excluding utilization of byproducts, and 5.02 including utilization of byproducts. By an analysis of the results taking the social, environmental and financial aspects in consideration it was found that it is be possible to use the biodiesel value chain to reduce poverty in Mozambique in a sustainable way. The systems that were found in need of changes were the systems for education and information sharing, the systems for collecting the feedstock, the systems for use of byproducts, and the systems for regulation and taxes.