Woodfuel briquettes (‘Bushblok’) .1 Description

The third bio-to-energy value chain and business model analysed in this study is a donor-funded pilot programme carried out by the CCF near Otjiwarongo in central Namibia. CCF was founded in 1990 and is the sole owner of CCF Bush Pty Ltd, an implementing agency that harvests, manufactures and markets wood briquettes for fuel under the ‘Bushblok’

label. The CCF’s primary objective is not producing Bushblok, but rather ensuring the cheetah’s long-term survival in Namibia: the CCF designed a habitat improvement programme with donor funding. Worldwide, wild cheetahs are seriously threatened; Namibia is one of the few places where a large population lives outside of natural parks. However, cheetahs in Namibia suffer from bush encroachment that reduces their prey and hinders their hunting, while bush thorns injure their eyes. The CCF is seeking to create a market for high value, emotionally priced biomass products as a way of making habitat-rehabilitation projects economically viable, thus helping to restore the cheetahs’ bush-encroached habitat (Cheetah Conservation Fund [CCF], 2009).

The CCF business model (see Leinonen, 2007; CCF, 2009) involves leasing a fairly large (40,000-ha) farm that is heavily encroached by bush, thus of low productivity for cattle rearing. The briquettes production process generally relies on manual labour. A contractor permanently or temporarily employs workers who do not necessarily live on the farm (a bus service is provided). Their work is like harvesting charcoal wood, except that they target smaller trees, while larger trees are exempted. After the bush has dried, five to 12 people go through the strip roads with a tractor hauling a drum wood chipper. The shrubs are manually fed into the chipper and the woodchips are blown into a trailer attached to the chipper. The CCF currently employs about 20 local workers either directly or through a sub-contractor (Int. CCF). The chipper crew is sub-contracted so CCF Bush Pty Ltd buys the bush from them.

In contrast to other business models, the CCF does not convert harvested biomass into the end product on the spot but transports it to a processing factory, located about 45 km from the farm, that produces the briquettes.

Contrary to electricity and charcoal, no weigh reduction is realised, the Bushbloks are simply compressed chips. A heavily promoted, special

“Cheetah friendly” label makes the transport costs and relatively high price acceptable. FSC certification is integral to the business model. However, the CCF does not want any bush to re-grow (Int. CCF) and poisons most cut bushes because labour-intensive manual uprooting is costly. How the poison affects soil fertility is not yet clear. Up-rooting and use of poison conflict with FSC standards, revealing that global and local concepts of ecological sustainability can be in (partial) contradiction. It is difficult to adjust a global standard like FSC to exceptional local conditions.

The CCF factory produces about 25 containers per year and theoretically has a daily production capacity of 30 tonnes. Thus far, CCF has been producing 6,000 tonnes of FSC-certified wood fuel briquettes annually (Int. CCF). The farm is estimated to have 410,000 tonnes of woody biomass.

Most of the briquettes are destined for the international market, with retailers and organic niche markets the targeted buyers. Bushblok’s most promising output markets are considered to be Europe (UK and Germany) and South Africa. These markets are believed to have high potential for products that follow sound environmental and socioeconomic standards and trigger an emotional response at purchase. In Namibia, the CCF sells Bushblok, raw chips for high efficiency chip-burning stoves and logs for braais. It sees great potential in the Namibian market because of the extensive use of wood for cooking and heating in rural areas (CCF, 2009). In the short run, however, low market demand for Bushblok (due to its high price and yet low publicity) makes the economic viability of this business model uncertain (Int. CCF).

Running the chipper and transporting both woodchips and workers make up the biggest chunk of overall production costs. Manual harvesting, on the other hand, is comparatively cheap. The general manager estimates an average market price of NAD 850 to 1100 per tonne.

4.3.3.2 Major factors in viability

Low market demand is currently the biggest problem for CCF Bush Pty Ltd.

FSC certification was expected to open up a larger (European) market but that has not yet happened. The CCF manager opines that once the right buyer is found, Bushblok will become viable without donor support. Furthermore, plans are being made to move the processing plant to the CCF farm in light of the high costs of transport and rent. That, however, would make some workers redundant and could create negative social effects. Lastly, the CCF cannot deliver industrial level quantities (more than 1,000 containers per year) (Int. CCF), which is what power plants, for instance, would require if they could afford to buy the product. This industrial scenario would require production costs to shrink (possibly viable due to economies of scale) and the positive environmental effects to be marketable for the industry.

The CCF business model manages to attract customers for environmental services related to the final objective of cheetah conservation, which is a global public good. Were the CCF model to become viable, it nevertheless has limited reproducibility. Consumers probably only feel justified paying top prices for briquettes because of the project’s exotic conservation targets, the supervising agency’s excellent reputation, conscientious production methods and superior standards – FSC certification alone is not enough.

This does not call into question the value of the initiative, but puts it into perspective in terms of its potential contribution to rural development and food security on a wider scale.

4.3.3.3 Developmental effects

The economic, sociopolitical and ecological effects of briquettes and its effects on food security resemble those of the charcoal business model, but are generally more positive:

• This value-driven business model is more likely to avoid negative effects and foster positive ones. For instance, an ‘eco-friendly’ Bushblok package that is burnable, biodegradable, recyclable or has a secondary use is very appealing (CCF, 2009). The management is also very concerned about employment effects.

• If production were to be scaled up for bigger buyers, the CCF would need raw material that would require leasing additional farms or establishing supply chains with other debushers. Functioning input and

retail markets, clear land-tenure arrangements and a good transport infrastructure are vital.

• The risk of environmentally negative tree cutting is very low since not only does the technical process (chipping) not accept large wood pieces, but the company also demands high ecological standards that the NGO is likely to observe. Furthermore, burning Bushbloks is better for the environment than burning wood or charcoal.

• Recalling the CCF’s initial aim of supporting the long-term survival of the cheetah and its ecosystem in Namibia, the local community may become more accepting of predators, thus improving human–wildlife relations.

As for negative sociopolitical effects, it can be argued that human–wildlife conflicts might increase assuming that more habitat for the cheetah leads to a larger cheetah population, and more cheetahs lead to more cattle – or even people – being hunted and killed. From a European perspective the situation seems theoretical: environmental activists do not pay even attention to this tragic African reality.

Perhaps the CCF’s most important contribution to overall developmental goals is showing that debushing is good for the environment. A general limitation is that the model is not easily reproducible and depends on the support of a competent and reputable sponsoring organization such as the CCF. This dependence creates higher risks of failure – for example through the loss of reputation or withdrawal of the NGO. However, if the business manages to open up the domestic market, helping Bushblok replace firewood (as unlikely as that seems), it could reduce the depletion rate of forest resources.

4.4 Comparison of effects and institutions of