Commercialisation of biofuel industry in Africa: A review

Diversification of energy sources, agricultural activities and a higher percentage of locally produced energy are goals that can be satisfied by biofuels. Biofuels such as biogas, biodiesel, and bioethanol may be easier to commercialise than other alternative fuels, considering performance, infrastructure and other factors. Lack of a good understanding and application of key concepts of cost estimation—a key to successful project which impacts both the project profitability and influences the technical solutions—is a foremost barrier to its commercialisation in Africa, despite the availability of biomass resources. A plethora of other generic technological and non-technological constrictions has been identified to also hinder biofuels adoption and development. Understanding the economics of biofuel industry is, therefore, crucial in realising eventual commercialisation. This article provides knowledge-based review for expansion (commercialisation) of biomass-derived fuel (biofuel) through improved understanding of its economics in Africa. In addition, recommendations to overcome the technological and non-technological hurdles to market penetration of biofuels are discussed.