OPEC Fund Clean Cooking Report 2024

39

tion and which can impact biodiversity. Bioethanol is, howev- er, considered a viable option in countries with a strong ag- ricultural sector, when accompanied by supportive national policies and market conditions. In Africa today several private sector entities are working in partnership with governments and farmers to develop pro- duction chains to deliver bioethanol for cooking. 83 In Kenya alone, over a million bioethanol cookstoves have been distrib- uted to households (see Box 5). However, in many contexts progress is held back by limited government support, a lack of transport and logistical infrastructure and lack of investment. The primary challenge to scaling bioethanol lies in underde- veloped local supply chains. This forces many countries to rely on imported bioethanol, which is vulnerable to price and currency fluctuations. There is also some risk of bioethanol competing with the food industry for scarce inputs, which partly explains why E85 ethanol-based cars failed to catch

on in the US in the 2000s. Some bioethanol companies are engaging with farmers to address this problem through ver- tically integrated agricultural supply chains to boost both food and bioethanol supplies. Others have opted to utilize second generation feedstock such as agricultural waste prod- ucts. For example, Econexus Ventures, a Ghana-based social enterprise commercializing sustainable bioethanol fuel as an alternative clean cooking solution, uses pineapple crowns as feedstock.

Kenyan government target for bioethanol as share of clean cooking:

22 %

BOX 5: KOKO IN KENYA

In 2021, Kenya’s government adopted an Ethanol for Cooking Masterplan, which set a target of 22 percent of clean cooking to be provided through bioethanol by 2028 (bioethanol is a by-product of the sugar industry, which is produced in Kenya by CIST Africa and Giraffe Bioenergy). The government has actively supported the entry of new private sec- tor players into the bioethanol market. For example, KOKO Networks, since its launch in 2019 has distrib- uted over 800,000 bioethanol cookstoves to urban households. Through their network of over 600 fuel distribution points, known as “KOKO points”, which are installed inside local shops, customers can buy

clean bioethanol fuel in small quantities. The system is managed through KOKO’s cloud software, which monitors the distribution points. KOKO’s growth is linked to its success in accessing carbon finance (which is based on bioethanol fuel replacing the charcoal normally used for cooking), enabling it to keep prices affordable. There are several other case studies that illustrate instances where governments initiated or stimulated substantial demand for a product through a policy action, which then result- ed in a transformation or the emergence of a new market (such as Brazil and its bioethanol blending mandate. 84

83 IRENA (2023) Advancing renewables-based clean cooking solutions: key messages and outcomes, https://www.irena.org/Publications/2024/Mar/ Advancing-renewables-based-clean-cooking-solutions-Key-messages-and- outcomes

84 Mingo, S., & Khanna, T. (2014). Industrial policy and the creation of new industries: Evidence from Brazil’s bioethanol industry. Industrial and Corporate Change, 23(5), 1229-1260, https://doi.org/10.1093/icc/dtt039

3. CLEAN COOKING SOLUTIONS

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