Biofuels in Ivory Coast: U.S. company plans to invest US$ 130mn

Until recently, the former French colony of Côte d'Ivoire was West-Africa's pride. For an African country Ivory Coast was politically stable, had a strong economy based on a robust agricultural sector, and an excellent infrastructure. Its capital, Abidjan, was seen as the 'Paris of the tropics' and, being West-Africa's largest port, reached levels of prosperity seen nowhere else on the continent. But then, in 2002, a civil war broke out and split the country in two, with rebel groups taking the North, and the government of Laurent Gbagbo controlling the capital and the South. The conflict is complex: ethnic strife mixed with a resource war in which local, regional and multinational interests are at stake. Despite French and UN interference, the situation in the 17 million strong nation remains tense today.

The civil war has had an immediate effect on agriculture - which employs 70% of the population - and the economy in general. Ivory Coast is the world's largest cacao exporter, the third largest coffee exporter, and a major palm oil and cotton producer. These sectors are mainly managed by small to medium enterprises that employ millions. But many of these companies were in the hands of French expatriates, who left the country en masse as the conflict broke out. Only large multinationals - who can absorb shocks and risks far more easily - remained.

Ivorian farmers do have a strong tradition of organising highly effective social movements, unions and civil society organisations. This capacity has led them to root out some of the most exploitative practises - such as child labor and plantation slavery - , even though much remains to be done. It has also allowed them to survive the conflict surprisingly well.

In theory, the country's agricultural sector could be revived fairly rapidly, as the excellent Ivorian infrastructure (road, rail and deep-water port) and the agricultural service sector has remained intact. The country has a large biofuels production potential, and some have seen this new global market as an opportunity to replicate Ivory Coast's successes with cacao, coffee and cotton. Given strong dependence on these agricultural products, diversifying into biofuels is seen an important way to mitigate the risks inherent in producing basic commodities for a volatile world market.

According to local newspapers, a newly established U.S. company, 21st Century Energy, specialised in converting underutilized agricultural resources into valuable products, now wants to invest up to €99/US$130 million over five years into the bioenergy sector. It plans to establish a 10,000 MT/day ethanol production facility that will use sugarcane, maize and sweet sorghum as primary feedstocks. Possibly a biodiesel production initiative will follow, that would rely on abundant but underutilized cotton seed and noix de cajou (cashew) residues. The ethanol plant would be the first industrial scale facility, and the largest in West-Africa.

The project is expected to bring 10,000 jobs, increased farmers incomes, and a series of 'social works' (a school, a hospital and a market), as well as an educational initiative and an extension service to reach local farmers:
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21st Century Energy's CEO, M. David Meyers, headed a delegation to Ivory Coast to meet with Sangafowa Coulibaly, chief of the cabinet of the Ministry of Agriculture, with the commercial attaché to the Ivorian embassy in Washington and with a representative of the Ministry of Foreign Affairs.

For Meyers, the visit was aimed at evaluating the investment climate and the interest of the Ivorian authorities in the project, to check the land planned to be used for the establishment of plantations and the greenfield for the ethanl plant. Meyers also visited the deep water port of Abidjan and received a tour of logistical infrastructures.

The Ivorian government assured that it is "fully backing the development of renewables in the country. On the one hand to cut Ivory Coast's dependence on volatile oil, and on the other hand to reduce its greenhouse gas emissions. For this reason, the Ministry of Energy, in co-operation with the Ministry of Agriculture, gas created a national strategic policy framework for biofuels."

According to the Minister of Planning and Development, Paul Antoine Bohoun Bouabré, Ivory Coast has a large and skilled workforce able to make the project work, without the need to rely on foreign workers.

Ivory Coast's sugarcane sector is currently dominated by large companies working on an estate level, whereas its maize sector is dominated by smallholders who produce mainly for the local market.

21st Century Energy is expected to commence its activities in the country before the end of the year.

More information:
Fraternité Matin (Abidjan), via AllAfrica: Côte d'Ivoire: Biocarburant, une société veut en produire en Côte d'Ivoire - Feb. 20, 2007

Le Patriote (Abidjan), via AllAfrica: Côte d'Ivoire: Bio-énergie - Production de l'éthanol, des investisseurs américains à l'assaut de la Côte d'Ivoire - Feb. 16 2007