Eco-Fuel Africa

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Overview

Eco-Fuel Africa eliminates energy poverty, creates local jobs, and saves forests in Africa by converting waste into clean cooking fuel and fertilizer.

Overview

Headquarters Lugazi Town Council, Buikwe District, Uganda
Established 2010
Impact Areas Uganda
Type Hybrid
Energy Sectors
Business Model Types
Staff Size 35
Annual Budget $450,000
Major Funders National Geographic Society, USAID, GACC Spark Fund, Halloran Philanthropies
Awards 2012: Unreasonable Institute Fellowship2012: TED Fellowship2012: Tech Awards Laureate

2013: Community Solutions Fellowship

2014: National Geographic Emerging Explorer

 

ABOUT

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Eco-Fuel Africa empowers communities in Africa to use technology to convert locally sources farm and municipal waste into clean cooking fuel (green charcoal) and organic fertilizers (biochar). This hampers deforestation, reduces indoor air pollution, improves educational opportunities among girls and women by eliminating the need to search for wood, and provides farmers with organic fertilizers.

 

 

Energy Products/Services

  • Low cost char kilns made of recycled oil drums
  • Tailor-made briquette machines
  • Green charcoal briquettes

Target Market

  • Eco-fuel Africa targets poor Ugandan households in urban and rural areas, which primarily use wood-based fuels for cooking. The enterprise provides cleaner and safer cooking fuel in the form of green briquettes produced from bio-waste.

 

Eco-Fuel Africa

Revenue Streams

  • Despite having a starting budget of $500 in 2010, Eco-Fuel Africa began to cover its costs and generate a profit in 2012.
  • Most of the enterprise’s revenue comes from the sale of its green charcoal briquettes. A smaller portion comes from the sale of the kilns.

Value Proposition

  • Eco-fuel Africa empowers local communites in Africa to convert farm and municipal waster into clean cooking fuel and organic fertilizers using affordable, proprietary kilns and eco-fuel press machines.
  • This creates jobs for people at the base of the pyramid, reduces indoor air pollution, and deforestation.
  • Unlike fuelwood, Eco-fuel Africa’s green briquettes burn cleaner, burn longer, and are 65% cheaper.
  • Ecofuel Africa’s technology also does not require electricity to operate and can be used by a variety of people, even those who are illiterate and don’t posses any skills.

Problem Addressed

  • Over 500 million people in Africa are dependent on fuel wood.
  • Africa is losing its forests at twice the global average.
  • 500,000 people die annually from exposure to indoor air pollution that is typically 100 times the healthy level established by the WHO.
  • Up to 40% of household incomes are spent on fuel.
  • Women and children spend up to 5 hours a day collecting fuel wood.

Where They Are Now

Impact to Date

  • 10,000+ households in Uganda use Eco-Fuel Africa’s clean cooking fuel
  • 4,000+ jobs created
  • 150,000 trees planted in Uganda

Growth Plan

  • 2014: Reach 20,000 new households
  • 2015: Expand into two new regions in Uganda and reach 60,000 households
  • 2020: Expand to East and Central Africa

Milestones

  • 2010: Launched in June with only $500 in capital
  • 2012: Broke even
  • 2013: 2,500 farmers had joined the network
  • 2014: 460 women have become micro-entrepreneurs
  • 2014: $330,000 raised in funding

How They Deliver

Product Sourcing

  • The carbonization kilns are purchased at $75 a piece by Eco-Fuel Africa. These are made from recycled oil drums and are given to farmers on a lease-to-own basis.
  • Farmers use the kilns to turn their agricultural waste into char. The fine powder is sold to Eco-Fuel Africa.

Distribution

  • Eco-Fuel Africa focuses on a decentralized distribution model.
  • It is far easier to transport char than it is to transport agricultural waste.
  • Char is taken to Eco-Fuel Africa’s production centers either by the farmers themselves or by collection agents in the villages. Farmers are paid cash.
  • Once the briquettes are made, Eco-Fuel Africa sells them through a network of exclusively female micro-franchisees who are typically marginalized (e.g. widows, single mothers, teenage mothers).
  • These women sell the briquettes out of a kiosk in villages where Eco-Fuel Africa is not originally operating.

Affordability

  • The carbonization kilns are made affordable to farmers through a lease-to-own model whereby they make small, affordable payments to Eco-Fuel Africa until the full price of the kiln has been paid off.
  • The monthly payments are affordable because the farmers are generating income by selling the char.
  • The carbonization kilns are made from recycled oil drums that are locally sourced and cheap.

Financing

  • In its early years, Eco-Fuel Africa has relied primarily on grants and donations from organizations such as USAID and National Geographic. The enterprise will continue to seek grants to help expand operations and improve their technologies.
  • Eco-Fuel Africa is able to cover its costs and generate a profit through the sale of its carbonization kilns and green charcoal briquettes.
  • Beginning in 2015, Eco-Fuel Africa will seek mainly debt and equity.

Scaling

  • Eco-Fuel Africa is looking to expand primarily to new locations
  • The enterprise will focus exclusively on reaching people in Uganda until 2015.
  • Between 2016 and 2020, the enterprise intends to scale to East and Central Africa.
  • Between 2020 and 2030, Eco-Fuel Africa hopes to expand to all of Africa.

SOCIAL IMPACT

  • Despite having an ambitious scaling plan, Eco-Fuel Africa produces a deep, holistic impact for each of its customers.
  • Farmers who use the carbonization kilns make money from selling the char dust to Eco-Fuel Africa but also benefit from putting the larger pieces of biochar into their fields. Biochar can augment soils and make farms far more productive.
  • Not only do the farmers benefit, but impoverished and/or marginalized women are empowered as owners of their own briquette selling microfranchises.

PRODUCT

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Carbonization Kiln
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Small Briquette Production Facility

 Online Resources

Contact

Lugazi Town Council,Buikwe DistrictUgandahttp://ecofuelafrica.co.ug/contact/