Ethiopia Agricultural Residue Briquetting Pilot Projects Review
Project Background
The Agricultural Residue Briquetting Project was initiated to address Ethiopia's energy crisis, where household biomass fuel consumption accounted for 90% of overall energy use, causing massive deforestation (30,000-80,000 ha/year near Addis Ababa alone). The project aimed to:
- Develop substitute fuels like briquetted agricultural residues
- Reduce deforestation and soil degradation
- Provide immediate household fuel solutions
Initial Assessment (1983-1984): Identified potential to process 750,000 tonnes of agricultural residues annually from state farms and agro-industries, requiring ~Birr 70 million investment.
Project Implementation
Five pilot plants were established at different sites with various residues:
| Site | Residue | Status (as of 1996) |
|---|---|---|
| Diksis | Wheat straw | Operational 1991-1992 (1,500 tons produced) |
| Amibara | Cotton stalks | Operational 1995 (60 tons produced) |
| Shoa | Bagasse | Technical issues with dryer |
| Kaffa | Coffee parchment | Quality problems with briquettes |
| Dilla | Coffee husks | Equipment not yet installed |
Key Findings
Technical Aspects
- Piston presses generally produced reasonable quality briquettes (except at Kaffa)
- Screw presses at Kaffa had mechanical failures (broken screws, burnt heating elements)
- Bagasse dryer at Shoa malfunctioned, causing uneven drying and fire risks
- Briquetting coffee parchment proved problematic despite successful initial tests
Raw Material Availability
Changed since project design (1980s):
- Materials no longer "freely available" - increased alternative uses (animal feed, fencing, etc.)
- Collection and transport challenges, especially for cotton stalks
- Estimated opportunity costs:
- Wheat straw: Br.1/qt
- Coffee husk: Br.4-5/qt
- Bagasse: Cost of factory modification
Marketing Challenges
The most frustrating aspect was marketing and pricing. Instead of market-determined prices, cost-plus formulas led to impossibly high prices and plant closures.
- Briquettes sold below cost (Diksis: Br.24/qt; Amibara: Br.30/qt)
- Private sector plants (Ethio-Fuel) more successful with institutional customers
- Recommended sales price should not exceed Br.30/qt in Addis Ababa
Institutional Issues
- Complex structure with Project Management Unit and multiple ministries
- State-owned enterprises lacked flexibility in operations and pricing
- Equipment often diverted to other uses
- No mechanism for project reviews/evaluation in original design
Options and Recommendations
Options
- Project termination by March 1997: Focus on completing Shoa plant and liquidating others
- Continue promising trials: Extend to mid-1998, focus on Shoa, Amibara and Dilla
- Complete original schedule: Not recommended due to poor prospects
Recommendations
Main recommendation: Initiate liquidation and focus on pilot activities with reasonable chance of success.
- Close Diksis and Kaffa sites
- Dispose of surplus piston presses (5 of 9)
- Focus testing at Shoa site (bagasse)
- Relocate screw presses to saw mills if tests positive
- Priority for completing Dilla plant (coffee husks)
- Lease Amibara plant to independent entrepreneur
Overall Conclusions
While results were disappointing, the project provided valuable pilot experience in agricultural residue briquetting. Key lessons:
- Technical feasibility was demonstrated but with limitations
- Raw material assumptions from 1980s no longer valid
- Marketing and pricing strategy critical for success
- Institutional flexibility needed for such pilot projects
- Private sector/NGO involvement may be more effective than state enterprises