CHAMWE KAIRA
The Namibian biomass industry has a value chain potential of about N$21 billion, CEO of the Namibia Biomass Industry Group, Progress Kashandula said in an interview.
He was speaking on the sidelines of a signing ceremony for the N$2,3 billion, 40 MW Otjikoto Biomass Power Project. Four local biomass companies will supply 180 000 tons per annum of wood chips in total for a combined annual contract value of N$188 million.
Kashandula said the issue of wood harvesting is based on bush encroachment as a degrading factor to the agriculture sector, especially in terms that it being a land degrader.
“The biggest problem is that bush encroachment hampers our carrying capacities of livestock, if you have too much encroachment on the farm then you are not able to stock more, which is a big impact on your beef production. There is direct impact on your employment on the farm, and you cannot diversify your financial resources, that is where the link between bush encroachment and livestock come in.”
He said wood harvesting increases carrying capacities on farms for livestock leading to more employment opportunities, which creates more social economic benefits.
Kashandula explained that charcoal is the most matured value chain but said wood chips are becoming an important source of bio energy feed stock
“The difference is that coal goes through a carbonising system, you need to burn the wood, in order to get charcoal. For wood chips, it’s a normal raw wood, which is then put into a chipper to get a specified size of a wood chip, which is than used for your energy sources.”
On the issue of wood harvesting leading to possible deforestation in Namibia, Kashandula said various ministries have frameworks that guide companies on wood harvesting.
“We are not speaking about clearing the bush but we are speaking about thinning the bush. It’s about approaching the bush in a sustainable manner.”
Kashandula believes that the Otjikoto Biomass Power Project will provide an opportunity, for learning lessons, which will allow other people to participate in similar projects.
NamPower has stated that bush encroachment has severe negative impacts on farmers and believes that controlled bush thinning (rangeland restoration) will result in significant biodiversity and socio-economic benefits.
The company calculations show that net present value of the microeconomic benefits of the biomass industry total, N$4,9 billion, while the net present value of the macroeconomic benefits total, N$16,4 billion.
