Over $3b invested in biofuels globally, but how much got to Ghana?
There appears to be a stampede by some companies in the search for renewable energy sources across the world. Billions of dollars are being invested into these companies as they proclaiming one or the other food crop or non-food crop as a discovery.
According to Biofuels Digest, an online information source on biofuels $3.45 billion has been invested in biofuels projects in the last 12 months through August 2010, but it is not clear how much of the investment came to Ghana. Indeed, no African country was mentioned.
The report indicated that biofuels, bioenergy and renewable chemicals companies and institutional projects received $3.375 billion in grants and investments in the past 12 months through August 2010, as tracked in Biofuels Digest.
It said in its annual review there are 108 organizations (in some cases, consortia of several groups and companies) that received funding through government grants, private investment, IPOs, or mergers & acquisition activity.
Overall, 82 private companies received investment, with the remaining organizations representing universities, consortia, research institutes, and NGOs.
The report listed investment by countries and 12 countries were named. These are; the US- $1392 million; Brazil – $728 million; India – $331 million; Portugal – $265 million; China – $250 million; Canada – $207 million; France – $133 million; Peru – $28 million; Australia – $16 million; Germany – $10 million; Spain – $9 million; Norway – $6 million.
The $3.45 billion total excluded M&A transactions, such as the Shell-Cosan merger that transferred control rather than injecting new financing. The overall figure also excluded several transactions, including a new Shell investment in Iogen, for which amounts were not disclosed, and does not include the value of loan guarantees. Transactions that were not reported to, or in, the Digest, were also untracked, it added.
It is on record that there are companies from Brazil, Norway, Israel, China, Germany, The Netherlands, Italy, Belgium and India investing in Ghana to cultivate jatropha and other crops for biodiesel, but it is not known yet how much has been invested.
The search for renewable energy sources are necessary, especially looking at the fact that fossil fuels are finite, but care must be taken not to offset gains made in other sectors, especially the agric sector that has been identified to be at risk.
By Emmanuel K. Dogbevi