Innovative Solutions Celebrated in Ashden Awards

The world’s population is heading towards 9.6 billion by 2050 (UN). Combined with a growing middle class and rising living standards across the global South, that means ever-greater demand on the world’s finite resources. This raises a crucial question: Where will the energy to power rising living standards come from, and how much damage will be done to the planet’s environment by pollution created generating it (https://www.un.org/en/development/desa/news/population/un-report-world-population-projected-to-reach-9-6-billion-by-2050.html)?

The solution advocated by the world’s scientists is to move to sustainable energy creation, which does not rob from the future to create energy for today.

Such an approach requires fresh thinking and engagement from those who are actually involved in the struggle to raise living standards and improve human development.

One way to do this is to use high-profile awards and prizes to lure out fresh thinking and innovators and help them get the funding they need to realize their plans.

The International Ashden Awards (ashden.org) – considered the “leading green energy awards” – is about championing and promoting “practical, local energy solutions that cut carbon, protect the environment, reduce poverty and improve people’s lives”. It recently announced the finalists and winners for 2014.

The international finalists are 10 sustainable energy enterprises drawn from Africa (Burkina Faso, Tanzania), India and Southeast Asia (Cambodia, Myanmar). A handy, clickable and searchable online map (http://www.ashden.org/winners) further explains the winners and finalists for 2014 and previous years.

“With the stark warnings from the IPCC (Intergovernmental Panel on Climate Change) of the impacts of climate change, especially for the most vulnerable, we need to find solutions before it is too late,” said Ashden founder-director Sarah Butler-Sloss.

“Our role at Ashden is to shine a light on those organizations around the world that are helping reduce carbon emissions and finding ways of adapting to the effects of climate change.”

The mix of non-profit organizations and businesses among 2014’s winners and finalists shows there is no shortage of enthusiasm and fresh thinking out there. Proof the global South is alive with innovators with solutions.

Among the five international winners – who will receive between US $8,566 and US $68,531 each – is India’s Greenway Grameen (greenwaygrameen.com). It is tackling the problem of harmful pollution caused by cooking. Despite rapid economic growth and the spread of consumer goods such as televisions and mobile phones, most Indian women still cook with wood or dung. This is not only time-consuming, it also produces health-damaging smoke. Greenway Grameen was founded by two young MBA graduates in 2010 to make and sell affordable, desirable cookstoves that reduce smoke, cook food more quickly and stay cleaner for longer, dramatically improving the quality of life for many women and girls. As of March 2014 more than 120,000 of Greenway’s made-in-India smart stoves had been sold, benefitting around 610,000 people.

Another Indian winner is Infosys (infosys.com). India’s fast-growing economy is making ever-greater demands on its electrical grid. Global IT giant Infosys is leading the way to more sustainable growth by embracing green building measures, decreasing electricity consumption per staff member across its Indian business campuses. Success lies in seizing every opportunity to cut energy consumption in its existing buildings – from reducing the size of chiller plants for air conditioning to painting roofs white to reflect the heat. Cutting-edge design of new buildings also helps keep offices cooler and maximizes natural light. Taking US $80 million off its electricity bills, Infosys has proven the business case for large companies to invest in energy efficiency – not just in India but around the globe.

Among the other winners:

– Tanzania’s Off Grid Electric (offgrid-electric.com) is a leader in solar energy in East Africa, using mobile money to sell solar power as a daily service at an affordable price. Mobile money – where customers pay with their mobile phones – is increasingly used as a method of payment. Off Grid stands out because it understands the importance of customer service, offering an all-day customer care telephone line and ongoing support from a local agent. More than 10,000 households have taken up the service since April 2012. As fast as systems are manufactured they are off to customers – thanks to a sophisticated mobile phone app-based customer registration and product-tracking system.

– Myanmar’s Proximity Designs (proximitydesigns.org) is introducing treadle pumps (http://en.wikipedia.org/wiki/Treadle_pump) and other sustainable agriculture technologies to the country for the first time. Lifting water from wells and carrying it across fields is back-breaking, time-consuming work for rural farmers. Combined with water-saving drip irrigation technology, foot-operated treadle pumps that draw up water from wells can dramatically increase yields and incomes. Farmers are now seeing their lives transformed with some harvests and incomes more than doubling – and the pumps are helping ease the daily drudgery of farming. With over 90,000 households benefiting so far, Proximity Designs continues to adapt and introduce new products like solar pumps, to meet the needs of this rapidly changing country.

– Cambodia’s Sustainable Green Fuel Enterprise (http://www.sgfe-cambodia.com/environment) is turning leftover coconut shells and other waste into clean-burning briquettes for use as cooking fuel in the capital Phnom Penh’s homes and restaurants. While most Cambodians cook on wood charcoal, contributing to the country’s rampant deforestation and air pollution, this pioneering Cambodian business – led by Carlo Figà Talamanca – can scarcely keep up with demand.

The finalists are also an innovative lot too. Kéré Architecture (kerearchitecture.com) in Burkina Faso, Africa, has set a new standard for green school buildings. The school it built has a ventilated roof and other clever design features, providing a much cooler environment for children to study in. Not only that, the school was built by local people, and largely with local materials. Germany-based Francis Kéré, originally from Burkina Faso, designed and built the school in his home village. Kéré Architecture has since designed and built more than 20 innovative, naturally cooled public buildings in Africa.

India’s Sakhi Unique Rural Enterprise (sureindia.co.in), or SURE, is a not-for-profit social enterprise in central Maharashtra that has selected, trained and supported more than 600 female micro-entrepreneurs to sell clean energy products such as solar lanterns and cleaner cookstoves to other women. For the women entrepreneurs, selling energy products boosts income and carries a social cachet, while customers also see their lives improved with time-saving products.

Another Indian innovator, Mera Gao Power (http://meragaopower.com/), is demonstrating the business case for meeting the needs of some of the poorest people in India with unsubsidized commercial micro-electric grids, connecting more than 20,000 Uttar Pradesh families to clean, affordable power. Each system is easy to install and provides seven hours of light and mobile phone-charging for up to 32 houses. And with weekly payments of just US $0.42 cents, the electricity is even cheaper than kerosene.

The Rajasthan Horticulture Development Society (http://horticulture.rajasthan.gov.in/) in India has come up with a novel way to boost green agriculture and boost farming incomes. Farmers in the desert state of Rajasthan are seeing their sons return from cities to work on their farms thanks to a new solar-powered agricultural boom. The Rajasthan Horticulture Development Society (RHDS) has provided more than 10,000 farmers with new solar-powered water pumps, enabling year-round cultivation of high-value crops and the kind of high-tech horticulture that’s never been seen in the region before. With farmers’ incomes more than doubling, the programme has given them the “gift of life”.

And finally, Tanzania’s SimGas (simgas.com) is selling biogas plants that help people turn manure into clean gas for cooking instead of using charcoal, helping reduce deforestation. The plants are factory-produced and made of plastic, so they can be installed much more quickly than conventional plants and reach many more thousands of people. SimGas has just installed the largest plastic injection-moulding machine in East Africa, creating the potential to roll out biogas plants across East Africa.

The Ashden Awards were set up in 2001 to champion trailblazing sustainable energy enterprises and programmes that improve people’s lives and tackle climate change. Ashden says its 150 award winners have improved the lives of 37 million people worldwide, and are now saving over 5 million tonnes of carbon emissions every year.

By David South, Development Challenges, South-South Solutions

Published: July 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Indian Business Model Makes Green Energy Affordable

The technology already exists to provide renewable energy and electricity to all the world’s poor. The trick is finding a way to pay for it and to make it sustainable. Many innovators are experimenting with business models to reach the so-called Bottom of the Pyramid (BOP) cohort, and the 1.2 billion poorest people in the world who do not have access to electricity (World Bank) (http://tinyurl.com/n9p3f5x). A further 2.8 billion have to rely on wood or other biomass materials to cook and heat their homes.

The International Energy Agency (iea.org) believes US $48 trillion of investment will be needed between now and 2035 to make sure energy capacity matches rapid population growth.

In the influential book The Fortune at the Bottom of the Pyramid (http://www.amazon.co.uk/Fortune-Bottom-Pyramid-Eradicating-Poverty/dp/8177587765), the late professor C.K. Prahalad (http://en.wikipedia.org/wiki/C._K._Prahalad) advocated seeing the poor as people with needs and assets: consumers who just need the right goods and services designed for them. It was a change from thinking only of the world’s wealthier populations as consumers, and revealed a market worth billions waiting to be tapped.

Energy is key to development and improvements to living standards. Yet energy poverty plagues much of the global South, especially in Africa and particularly in rural areas.

The World Bank has identified 20 countries in developing Asia and sub-Saharan Africa which will require a massive effort to expand access to electricity and safe cooking methods for poor households.

Around 80 per cent of the people without modern energy live in rural areas. While progress has been made since 1990 in expanding access to energy, it has failed to keep pace with population growth. According to the World Bank, the pace of expansion will have to double to meet the 100 percent access target set for 2030.

To avoid increasing global carbon emissions while achieving this goal, many are looking to renewable energy sources and technologies to reach these last groups of people.

As pointed out by the Institute of Development Studies (http://www.ids.ac.uk/news/can-renewable-electricity-reduce-poverty), “The global threat posed by climate change means that we also face the pressing need to use less carbon in existing energy systems. Making progress on both energy poverty and decarbonization requires a sharp increase in renewable electricity production, both on and off-grid.”

The institute identified four necessary factors for access to renewable energy to benefit poor people.

1.         Once electricity is generated, it needs to be reliably fed into the system.
2.         This additional supply must be made accessible, and affordable, for poor people.
3.         Increased electricity consumption then needs to translate into poverty reduction.
4.         Increased electricity supply can indirectly reduce poverty by boosting economic growth.

India’s Simpa Networks (simpanetworks.com), started in 2011, has a business model it believes will do the trick. Simpa has developed a clever way to increase access to home solar power systems for the poor, by allowing customers to purchase the system in gradual “rental” payments over time. The customers eventually come to own the power system outright, and from then on to generate electricity for free. Since the payments are small and incremental, it suddenly becomes within the realm of poor households to afford modern solar energy systems.

This is called the “Progressive Purchase Pricing Model” – similar to “prepaid”, “pay as you go” and “installment plan” models. Under this model, customers make a 10 percent down payment and receive the home solar system. The customer then buys a time-specific amount of energy for between US $1 and US $10 with their mobile phone. The orange lock box on the power system has a keypad on the front. When a code is punched in, it releases electricity (http://simpanetworks.com/our-solution/).

In increments, while the customer purchases energy for home use they also eat away at the cost of the system, until eventually it is paid off, usually at a total of US $300. Systems have an expected life span of 10 years.

With few cash resources, poor households usually are not capable of saving enough cash to purchase a full energy system for their home. Instead, they rely on buying kerosene for lamps or using battery-powered torches and lamps when they can afford it.

In 2012, Simpa teamed up with SELCO India (http://www.selco-india.com/) – a social enterprise providing sustainable energy solutions and services to households – to sell 1,000 home solar power systems, expanding to 5,000 systems in 2013, according to a case study from not-for-profit Synergie pour l’Echange et la Valorisation des Entrepreneurs d’Avenir (SEVEA) (sevea-asso.org). The goal is to reach 25,000 units sold by the end of 2014, proving this business model can scale. Ultimately, Simpa wishes to mega-scale its approach and reach 1 million households over the next five years.

Simpa believes take-up will be quick because this model reduces risk, both for the seller and for the bank that may loan the cash for the 10 per cent down payment. Simpa acts as a go-between for the system sellers such as SELCO and the banks. Simpa believe this business model reduces the risk of non-payment or loan default and has the right incentives in place to encourage the customer to hang in and keep making payments until they own the system outright. Customers enjoy the benefits of clean energy 24/7 from day one and can see clearly the connection between the energy they receive and the small payments they make. For those who default from paying, the system is taken from their home.

When the system was piloted in Karnataka, India, all loans were successfully repaid.

Simpa Networks is a venture capital-backed technology company. It hopes its approach will attract investors, particularly social investors, seeking a low-risk investment in helping expand energy access.

By David South, Development Challenges, South-South Solutions

Published: June 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Baker Cookstoves – Designing for the African Customer

An innovative social enterprise is using design to create an energy-efficient cookstove for Kenya. By turning to an experienced Swedish architecture and design firm, the people behind the Baker cookstove wanted to make sure the stove’s design was as efficient as possible and relevant to the customers’ needs, while also making sure it is visually appealing and something a person would proudly want in their home.

The Baker cookstove (bakerproduct.com) has been designed to be a high-quality and desirable product that also accomplishes the goal of saving money for the user. This unique product is being developed and made at the company’s factory in Nairobi, Kenya.

Baker’s owner is Top Third Ventures Global (topthirdventures.com), a social-impact company registered in Kenya and founded in 2011 by American Lucas Belenky and Björn Hammar, a Swedish/Finnish entrepreneur. Their goal is to make sure that everyone in the developing world has access to an affordable, high-quality efficient cookstove.

While cooking is a daily necessity for billions of people, it is also costly and polluting. By switching to energy-efficient cookstoves, families can reduce the cost of cooking daily meals and, if the stove is designed right, cut the amount of pollution generated. One of the great obstacles to the take-up of energy-efficient cookstoves to date has been the absence of sustainable business models to sell and distribute them.

The Baker cookstove, designed as an aspirational product and backed up with a seven-year guarantee, hopes to change this dynamic. If things go to plan, the company hopes to significantly scale up its production based on customers wanting to have a Baker cookstove proudly on display in their home.

The Baker cookstove is the product of a deliberate attempt to use design and a well-thought-out production life cycle to create an item that is eye-catching, effective, and manufactured consistently to a high standard.

Designed by Claesson Koivisto Rune (http://www.ckr.se/), a Swedish architecture and design firm, the Baker cookstove is a sleek, round, modern stove and comes in eye-catching colors such as orange. It could easily fit in with other kitchen products in a high-end design shop. And that is the point: they want people to want the Baker cookstove.

Quality is key, and engineering and design teams constantly monitor the product and make adjustments to the cookstove as they receive feedback from customers.

The Baker cookstove is benefiting from new financing being made available through carbon credits, which its founders believe will bring big changes to the energy-efficient cookstove market over the next 10 years.

Baker’s chief executive, Lucas Belenky, told Southern Innovator magazine – this newsletter’s sister publication – about the thinking behind the Baker cookstove.

SI: What role does design play in the Baker cookstove social enterprise? At what stage did Top Third Ventures start to think through the production life cycle for the Baker cookstove? What did you feel was missing in the other cookstove models currently available on the market?

The Baker cookstove is the cornerstone of the social enterprise. Top Third Ventures is at its core a product company. There are different aspects to the business model to make it work (i.e. carbon credits and big data) but everything depends on the success of the Baker product. We started thinking through the production life cycle from the day the company was founded in late 2011. The Baker is designed for usability, aspirational value, and performance, prioritized in that order. The most important thing is that the Baker is easy to use and does not require its users to change their daily routines or cooking habits. Cooking cultures vary greatly across the developing world so it is important to understand exactly who your customer is and focus on meeting their requirements. When you have a product that is easy to use it needs to be desirable as well. Beyond the service provided, the product should make the customer feel good about themselves. Finally, the Baker cooks the same food with half the fuel and much less smoke.

The priorities seem reversed for other cookstove models on the market. Efficiency comes first, then the aesthetic design, and cultural conformity is last. Hyper-efficient cookstoves are great for health and the environment on paper but the benefits are not realized because widespread adoption isn’t achieved. Most products are imposed through a top-down approach instead of starting with the customer and designing the stove around them.

SI: Why did you choose to have the Baker cookstove designed by Claesson Koivisto Rune, a Swedish architecture and design firm? What were some of the challenges encountered when designing the product and the production life cycle? What advice do you have for other social enterprises looking to offer an appealing product to low-income households?

We wanted the Baker cookstove to be an aspirational product that you use as much because of the performance (less fuel and less smoke) as because it is beautiful. Claesson Koivisto Rune believed in our vision at a very early stage and I doubt we could have gotten where we are today without them. Challenges around the design mainly involve keeping the costs down. Our customers do not have a lot of disposable income so balancing affordability with performance and world-class design is tough.

For other entrepreneurs selling to low-income households my advice is identify your customer, listen to them, and never stop listening. This is obvious to most businesses but for social enterprises sometimes the grant organizations or other dispersers of donor funding become the customer without you noticing.

Finally, often just because the consumer is in a developing country, enterprises neglect aesthetic appeal and branding. Do not do this. Your consumer behaves for the most part like their counterpart in the developed world. They want products that look nice and make them feel good.

SI: What role is information technology playing in the Baker cookstove’s development? How do mobile phones help with reaching customers in Africa? How does offering software products such as Top3Tracker help Baker cookstoves?

Information technology has a huge impact in decentralized areas because it enables cheap flow of information. For Top Third Ventures it allows us to track our sales in real-time, communicate with current and future customers instantly, and gain valuable insights about how to improve the sales pitch and marketing strategy. The Baker cookstoves also depends on carbon finance, which requires a dialogue with current customers to ensure the usage of the cookstove is accurately measured. Information technology such as our Top3 Tracker significantly reduces the cost of accessing carbon finance.

SI: It is said an innovator is somebody who disrupts existing products and ways of doing things. How is Top Third Ventures innovating and disrupting the current approach to energy-efficient cookstove distribution?

We hope to change the way products for low-income households are designed, marketed, and sold. Top Third Ventures’ Baker cookstove embodies our conviction that these products should be customer-centric, have aspirational value, and conform to local cultures. The success of our product will show that consumers in the developing world want the same thing as their counterparts in developed countries.

Top Third is a partner of the Global Alliance for Clean Cookstoves (cleancookstoves.org).

Lucas Belenky from Top Third Ventures Global.

The Baker cookstove by Claeson Koivisto Rune.

By David South, Development Challenges, South-South Solutions

Published: December 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Egyptian Youth Turns Plastic Waste into Fuel

The challenge of finding alternate fuel sources is capturing the imagination of innovators across the global South. As the world’s population increases – it recently reached 7 billion (UN) – and the number of people seeking a better life grows in turn, the energy demands on the planet are pushing up competition for existing conventional fuel sources.

The modern lifestyle that many aspire to requires energy, whether it’s using electronic products which consume large quantities of electricity, driving personal vehicles or living in homes that are artificially heated and cooled.

This energy hunger has opened up a whole new market demand that needs to be met. The scale of this market is enormous, but the solutions are ultimately limited only by people’s imaginations. An award-winning Egyptian teenage scientist is capturing attention for the imaginative solution of turning waste plastic into biofuel, sparking interest in the creation of a whole new source of wealth for her country.

Sixteen-year-old Azza Abdel Hamid Faiad (http://tinyurl.com/dysemjg) has found a new way to take waste plastic and break it down into fuel. She has discovered aluminosilicate minerals (http://en.wikipedia.org/wiki/Aluminosilicate) – which contain aluminium, silicon and oxygen and are found in clays – can break down the polymers that make up plastic (http://en.wikipedia.org/wiki/Polymer) to produce the gases methane, propane and ethane, all of which can be turned into ethanol (http://en.wikipedia.org/wiki/Ethanol), which is useful as a biofuel.

According to Inhabitat (inhabitat.com), a website dedicated to “green design, innovation, and the future of clean technology,” her solution could turn the country’s annual consumption of 1 million tonnes of plastic into a year’s supply of biofuel worth US $78 million.

Clever innovators are sitting on a goldmine if they can come up with renewable energy solutions. The U.S. Army alone is looking to spend US $7 billion on renewable energy sources and is accepting bids from the private sector to meet its needs (http://www.forbes.com/sites/toddwoody/2012/08/08/u-s-army-opens-bids-to-buy-7-billionin-renewable-energy/). The army is looking to sign contracts stretching up to 30 years for buying electricity generated by solar, wind, geothermal and biomass projects.

The options are numerous for renewable energy – from solar power to wind power to algae as a source of biofuels (http://en.wikipedia.org/wiki/Biofuel). The challenge is to find a fuel source that is plentiful, renewable, and crucially, doesn’t harm other needs.

Using biofuel as a replacement for conventional petroleum-based fuels like gasoline and diesel appears to be an attractive solution, but it can lead to other problems. Some people are using used cooking oils to convert into biodiesels, but sometimes there is not enough used cooking oil to meet demand. In short, a constant supply source is required to meet ever-increasing energy demand.

A famous example of where the use of renewable plant-based fuel sources can go wrong is the case of corn. The widespread use of corn as a source for biofuels – rather than for animal feed or human food – has led to accusations this is contributing to the global food crisis. The current drought in the United States is damaging corn crops and only making this problem more acute. The U.S. is the world’s largest producer of corn (US Department of Agriculture) and much of it is used as livestock feed around the world.

Faiad’s solution is appealing because the fuel does not come from biomass – derived from plant matter – but turns waste plastic into the raw material for biofuel.

Plastic waste is a common byproduct of modern life. Plastic is used extensively in packaging, bottles, bags and electronic products. It fills up landfill sites and is a blight on the landscape in many countries. It is also a product made from petrochemicals (http://en.wikipedia.org/wiki/Plastic), the very source of conventional fuel used by most of the world’s vehicles.

Breaking down waste plastic from bottles, packaging and other products into what is called ‘biofuel feedstock’ – the substance necessary to start the creation of biofuel – requires a means to turn the plastic into fuel.

According to Green Prophet (greenprophet.com), Faiad believes her technological breakthrough “can provide an economically efficient method for production of hydrocarbon fuel namely: cracked naphtha (http://en.wikipedia.org/wiki/Petroleum_naphtha) of about 40,000 tons per year and hydrocarbon gases of about 138,000 tons per year equivalent to US $78 million.”

This could be a big economic boost to Egypt’s economy, simultaneously reducing dependence on petroleum-based fuels and creating a new source of income. Egypt’s economy has been hit hard since the start of the Arab Spring (http://en.wikipedia.org/wiki/Arab_Spring). The number of tourists fell 33 per cent in 2011 and revenue dropped by US $3.7 billion from 2010 (Egyptian Tourism Minister). In 2009 about 12.5 million tourists visited Egypt, bringing revenue of US $10.8 billion. The tourism sector is one of the country’s top sources of foreign revenue, accounting for more than 11 per cent of GDP, and offers jobs in a country beset by high unemployment – for Egypt, tourism makes up 11 per cent of its GDP (gross domestic product) (Reuters).

Faiad’s innovation has not gone unnoticed. She received the European Fusion Development Agreement award (http://www.efda.org/) at the 2011 23rd European Union Contest for Young Scientists (http://ec.europa.eu/research/youngscientists/index_en.cfm). She is also receiving interest from the Egyptian Petroleum Research Institute (http://www.epri.sci.eg/), according to Inhabitat.

Ambitious Faiad is also seeking to take ownership of her innovation by getting a patent from the Egyptian Patent Office (http://www.egypo.gov.eg/english/default.htm).

By David South, Development Challenges, South-South Solutions

Published: August 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Google Books: https://books.google.co.uk/books?id=CQHG3jRMm4UC&dq=development+challenges+august+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsaugust2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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African Fuel Pioneer Uses Crisis to Innovate

Crisis, as the old saying goes, is also a window of opportunity. And there is one African entrepreneur who knows this better than most. Daniel Mugenga has been on a journey of innovation that has led him to become a pioneer in the emerging new field of algae technologies. The story of how he got there is a testament to the power of using business to both solve problems and make profits.

Kenyan entrepreneur Daniel Mugenga has found a solution to the problem of high fuel costs for the transport sector in his country. He has been making money from turning waste cooking oil and inedible vegetable oil into biodiesel (http://en.wikipedia.org/wiki/Biodiesel). He then discovered that he could boost his production of biodiesel by using marine algae as a source for oil.

According to the body that represents the algae fuel industry, Oilgae (oilgae.com), algae are “plant-like organisms that are usually photosynthetic and aquatic, but do not have true roots, stems, leaves, vascular tissue and have simple reproductive structures. They are distributed worldwide in the sea, in freshwater and in wastewater. Most are microscopic, but some are quite large, e.g. some marine seaweeds that can exceed 50 m in length.”

The U.S. Department of Energy has been investigating algae as a fuel source since 1978, and it is being investigated as a potentially transformative fuel source around the world. His business, Pure Fuels Ltd. (http://www.purefuels.co.ke/), is currently seeking venture capital funding for expansion and innovation. Pure Fuels is “a commercial producer of biodiesel and also manufactures biodiesel processors, which we sell to budding entrepreneurs,” says Mugenga.

The Pure Fuels website educates readers on biodiesel as well as offering opportunities for investors and news updates. Pure Fuels was registered as a business in Kenya in 2010.

The business was born out of crisis: in 2008 there were frequent fuel shortages in Kenya and prices were volatile. That was bad news for Daniel Mugenga’s job, working for a transport company with a fleet of trucks. Rising or volatile fuel prices can destroy businesses in areas like trucking, where the biggest expense is fuel.

Mugenga began to do research into fuel alternatives in the crisis and came upon biodiesel. He then set about training in how to produce biodiesel. A period of testing, trials and research ensued between 2008 and 2010, which enabled Pure Fuels to build confidence they had something that was high  quality. The company started producing 120,000 litres of biodiesel in 2010 and increased production to 360,000 litres in 2011 and 700,000 so far in 2012. In 2011, Pure Fuels had revenue of US $230,000 from selling biodiesel.

“We started off using jatropha oil, but when its price went up it was no longer profitable,” Mugenga told the VC4Africa website blog. “Having invested in the machinery, we switched to the next quickest alternative which is used cooking oil. We source it from several of the tourist hotels along the Kenyan coast.”

Turning to cooking oil for biodiesel at first was a good idea. The company was able to get enough waste cooking oil from Kenya hotels and tourist resorts to meet demand. But as demand rose, the thorny problem of Kenya’s tourism business being seasonal arose.

“For about five months of the year, many hotels in Mombasa temporarily shut down or operate at lower capacity. Of course this is affecting the amount of waste cooking oil,” Mugenga said. This is where algae (http://en.wikipedia.org/wiki/Algae) comes in.

Pure Fuels found a biotechnologist in Kenya to help develop a solution using algae as a source for fuel. While the company is keeping details of its innovation secret, it is currently hunting for investors to help increase the quantity of biodiesel it can make – and in turn, revenues.

Investor funds would be used to import non-edible vegetable oil and also to continue the company’s work on extracting oil from marine algae.

Pure Fuels make a bold statement on algae fuel development: it “may actually be Kenya’s next cash crop.”

Pure Fuels sells several products: there is the biodiesel itself, as well as a processing machine called the GXP-200, which can turn customers into biodiesel manufacturers themselves. The company also builds large, industrial-scale processors that can produce between 1,000 litres and 5,000 litres a day.

Pure Fuels currently sells fuel to truck, bus and tuk-tuk companies, and also operates biofuel stations.

The firm has patented its biodiesel and makes all its fuel go through seven quality checks for purity. An in-house laboratory ensures adherence to international standards, and the company is certified by the Kenya Bureau of Standards (http://www.kebs.org/).

Mugenga is a passionate advocate of biodiesel’s advantages: he believes it is cheaper, and better for engines and for the environment. He admits it does have a disadvantage: it gels below 13 degrees Celsius and must be mixed 50-50 with conventional diesel to stay fluid.

Pure Fuels encourages others to use biofuels for business, throwing in a home training kit with the biodiesel processors it manufactures and sells, complete with DVDs, manuals and a business plan. The GXP-200 biodiesel processor was developed after years of experience, and Pure Fuels hopes it will be bought by people who then set up businesses – especially youth, women and the disabled. As a further incentive, Pure Fuels promises to buy the biodiesel produced. The GXP-200 was recently awarded “Most Innovative Product 2012″ at a small and medium business entrepreneurs event in Nairobi.

In Israel, there are a number of pioneers working on further developing algae as a biofuel source too. Isaac Berzin of Seambiotic (seambiotic.com) sees algae as a good source for biofuel because it does not compete with food crops like other biofuel sources (sugar, potatoes, corn etc.). Algae is among a group of so-called second-generation biofuels that includes jatropha, wood and castor plants.

The disadvantage of plant-based fuel sources is they need arable land and water. This seriously holds back their ability to meet the world’s demand for fuel since they would just take up too much land and water. Algae takes up less space and produces a higher yield per acre than conventional crops.

Seambiotic makes marine microalgae using the CO2 from electric power plant flue gas. It pioneered making large quantities of fuel algae in the United States, creating the first gallons of bio-diesel and bio-ethanol from marine microalgae.

Seambiotic is also working on a US $10 million commercial microalgae farm in China, partnering with China Guodian (http://www.cgdc.com.cn/), one of the country’s largest power companies. Another Israeli company in this field is UniVerve (http://www.univervebiofuel.com/). Its CEO, Ohad Zuckerman, runs the10-person company in Tel Aviv, Israel. It is developing a new biofuel from a special strain of algae that can grow quickly in a wider range of temperatures.

By David South, Development Challenges, South-South Solutions

Published: July 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.