Last Updated- Mar 24, 2009 10:59 - - 8 Comments


Indian companies also enter biofuel business in Ghana

The Jatropha

Indian alternative energy companies have entered Ghana and have begun processes to cultivate crops for biofuels in the country, reports reaching ghanabusinessnews.com has said.

These Indian companies are following in the heels of Brazilian, Norwegian, Israeli, Chinese, German, Dutch, Italian and Belgian businesses that are investing in Ghana to cultivate jatropha and other crops for biodiesel.

These companies are already securing land to start operations in a sector that has started becoming controversial.

According to media reports from India, these companies are entering the sector in response to efforts by Ghana to get Indian investment for the country’s alternative energy sector.

The reports say India’s biggest investment in the sector so far in Ghana, which is to the tune of US$45 million is by the Ghana subsidiary of the Indian company, Hazel Mercantile. The Mumbai-based company which is a distributor of chemicals and petrochemical products intends to cultivate jatropha to produce biofuel.

The reports quoting an  official of the Ghana Investments Promotion Council (GIPC), Augustine Acheampong Otto, who is Director of Global and Regional Operations revealed that another Indian company has already secured land in the country for the same purpose, but he did not name the company.

He however, said the company has made an investment commitment of US$40 million to cultivate jatropha and process biofuel in Ghana.

According to Mr. Otoo, the Indian company which started talks with the GIPC last year, has already set up office in Ghana at the beginning of this year.

“They are asking for 50,000 hectares. That is not difficult for us, as an Israeli firm had asked for 100,000 hectares and we were able to secure it in four areas close to each other,” he said.

He added, “Netherlands has started with about 100 acres in the northern part of  the country. The Chinese have started a pilot project. Germans and Israelis are also here, along with Belgium and Italy.”

The rising interest of foreign businesses in the alternative energy sector in Ghana, is not without some costs and social challenges to the country which is mainly an agriculture economy.

Agriculture employs about 60 per cent of the population in Ghana and contributes about 35% of GDP. The sector contributes about 40 to 50% of total foreign exchange earnings, but only about 16% of arable land is used for agriculture.

But the country imports almost everything it eats. The country produces only 21% of its rice and about 42% of its maize requirements.

The country is also the second largest producer of cocoa in the world after Cote d’Ivoire.

While proponents of the biofuel sector argue that only land not needed for food crop production would be used for the cultivation of jatropha which grows well on marginal land, studies by some civil society groups like ActionAid and FoodSPAN have found situations to the contrary where poor smallholder farmers, mostly women are losing their lands to multinationals investing in biofuels.

These groups also cite the dangers that destruction of forests for biofuel cultivation could pose to Ghana’s environment.

Meanwhile, Ghana has no clear policy on the biofuel sector.

By Emmanuel K. Dogbevi

Email This Post Email This Post | Print This Story Print This Story

Comments

8 Responses to “Indian companies also enter biofuel business in Ghana”

  1. Richard Mindin on March 26th, 2009 11:14 pm

    Since I have discoverd the importance of this savior species Jaropha Curcas, I have been canvassing to promote this species to be cultivated in Australia, but no body has actually listenend to this as yet, they reckon that it is a type of weeds.
    I have no idea how to convince these thick necks to wake up.
    Cheers,
    Richard

  2. GHANASHYAM BHANJA on March 27th, 2009 3:56 pm

    I have 5 year experience on Jatropha R & D AND PLANTATION. If any opportunity please inform me.

    with reg.
    G. Bhanja

  3. GHANASHYAM BHANJA on March 27th, 2009 3:59 pm

    I await for a positive reply.

    Thanks

  4. andi on April 3rd, 2009 10:22 am

    hi Bhanja, can you invest in jatropha in Ghana?We have land what can you bring to the table?

  5. r. bawuah on April 28th, 2009 5:32 pm

    labor provided by the people in the various lands given out to these companies should be transformed in to share holding capital. after all most companies would be on the stock market .if oxfarm really want to check on world poverty the should adress this issue to the ghana gvt.

  6. Harminder Singh on June 23rd, 2009 6:56 am

    Hi

    Harminder from this side would like to share that my company is also implementing project related to Jatropha plantation in 4 districts of Andhra Pradesh State since 2006 for which I am posted here for overall management of nursery raising, plantation (15,000 acres) and research and development as well as expeller unit handelling. Our team has enough experience in biofuel field, if you feel any opportunity for joint vinture/ consultancy services, please feel free to contact me through given E mail.

    Best Regards,

    Harminder Singh

  7. kwasi kb on August 5th, 2009 5:20 pm

    please if the biofuel companys need land let me know .
    The land is in Assin Fosu district.

  8. Christina on October 18th, 2009 6:32 pm

    None of the comments really touch about the main issue – GHANA IS FOR SALE! plots after plots …without thinking about the sustainable livelihood for THIS country, Ghana. I urge everyone to think further then just selling land for quick money …this is a much bigger issue that has to be discussed thoroughly with the greedy policy makers in order to provide solutions that will not only benefit the elite but also the people of Ghana in the long run!

Got something to say?