Are Biofuels Economically Competitive with Their Petroleum Counterparts? Production Cost Analysis for Zambia

Sinkala, Thomson ; Timilsina, Govinda R. ; Ekanayake, Indira J.

World Bank, Washington, DC

关键词: Biofuels;    production costs;   

DOI  :  10.1596/1813-9450-6499
RP-ID  :  WPS6499

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

With increased global interest in biofuels, Zambia, a Sub-Saharan African country that entirely depends on importsfor its petroleum supply, is planning to implementblending mandates for biofuels. But, a large numberof issues—including production costs of biofuels, landrequirements to meet the mandates, and environmentalbenefits—have not yet been explored. This study aims tocontribute in filling this gap. It finds that depending onfeedstock type, costs of ethanol production range fromUS$0.360 a liter to US$0.680 a liter while the costsfor biodiesel production range from US$0.612 a literto US$0.952 a liter. Even if lower energy contents ofbiofuels are taken into account, the analysis shows thatbiofuels are cheaper than their petroleum counterparts.Considering the cost advantage of these biofuels overpetroleum products and the availability of surplusagricultural land, Zambia is likely to benefit from thedevelopment of a biofuel industry. Biofuels is expected toreduce Zambia’s petroleum import bill, which currentlystands at more than US$700 million, enhance foodsecurity by providing incentives to increase yields, andincrease affordability and accessibility to modern energyin the country where 77 percent of the population stilllacks access to modern energy. It could also stimulaterural employment and development.