Proceedings World Bioenergy 2010

distributors in Pakistan, and the reputation of Biofuel
businesses to increase food prices, it was not attempted.
Another problem was the continuous power shortages
in the city of Lahore, where the plant was to be based. At
the time of planning, 12-14 hours of power outages were
common, while the system being employed needed to be
in continuous operation, as it did not start well.
Employing a generator using ethanol itself, was not found
to be feasible either.
This brings us to the issue of financial feasibility.
Although cost savings were identified when used with
petrol (an E-10 to E-20 mixture was envisioned), the
margin was not large, and slight changes in petrol, power
or feedstock prices could have offset any price advantage
of the fuel. If a generator was to be used, it was
impossible to sell the product on a ‘price’ basis, due to
higher costs. Ethanol based fuels were never going to
sell the fact that they were ‘eco friendly’ and ‘renewable’
in a price conscious market like Pakistan in any case.
Overall the system was too expensive (fixed and running
costs) for it to be a viable business, unless subsidies were
available, but there were none.
4.2.1.2 Macro level hindrances
Government support had been promised since
General Musharraf was in power, however even though a
policy was drafted, it was never implemented. Therefore
government delay in taking action can be noted as a
major hindrance to the promotion and adoption of
Biomass.
A major, and perhaps the biggest hindrance to the
development of Bio-ethanol is the market price of crops.
Sugarcane and Maize, are still the best contenders for
making Biofuels as they are grown on a massive scale
that can be used as feedstock. However even slight
shortages in supply can cause the prices to rise
exuberantly. This is due to the illegal cartels who control
food distribution and supply and regularly exploit
rumours of slight shortages. This could have a
devastating impact on inflation and the quality of life for
the common man.
A major hindrance is also the issue of creating a
network. No business can expand on ethanol based fuels
by themselves and therefore a distribution agreements
with powerful ‘Oil Marketing Companies’ (OMC) is
necessary. Approaching a massive OMC is not an easy
task and creating a market through direct marketing will
be a slow process that can never reach the masses. This
issue was was to be resolved in the government draft,
which was planned years ago but is still at the
preliminary stage of its implementation [6; 24]. However
the energy crisis itself also feeds into the problem of
large scale manufacturing (which includes producing
ethanol), which has been declining since a couple of
years, due to ever increasing costs of production [7].
A major hindrance, to the adoption of Biogas and Bioethanol
that was identified was the unwillingness or the
half hearted support of the government to such efforts in
terms of passing legislation, enforcing laws and
providing subsidies [5]. Another problem is the fact that
the political system is highly corrupt and non transparent,
which means usually funds are not acounted for. Another
issue is that usually, official policies change successive
governments [33] and unless there is deep involvement of
foreigners and the private for and nonprofit sectors, such
policies are unlikely to sustain over a longer period.
5 Recommendations
It is apparent that there are no quick solutions to the
problem of energy in Pakistan, however many
possibilities exist to create a successful future.
For the mass promotion and acceptance of biomass, it
is imperative that the private and public sector work
together. Neither the public, nor the private sector alone
has the will and the resources to create a sustainable
biomass industry on their own. This includes federal and
local governments and agencies, businesses and industry
associations, universities, supra national agencies such as
Asian Development or World Bank as well as not for
profit organizations.
Universities could train personnel, undertake
research, disseminate information and overall develop the
necessary human resource, banks can help fund projects,
and of course entrepreneurs could organize all these
resources and networks to make it happen. The public
sector on the other hand would need to promote the
industry by controlling market prices and overall supply
of feedstock, especially food items and manure. It would
also play a major role by disseminating information
among rural areas where the private sector does not have
sufficient networks, and also provide help in providing
funds and subsidies to these projects. Other stake holders
and international agencies such as USAID and the World
Bank can also be involved for providing funding and
expertise. However the major role will still be of the
government which would have to bring all stake holders
together. Red tape would have to be reduced, the transfer
of funds would have to be made transparent and fair, and
ensure that there is total commitment resolving the issue
of energy shortage, for the long term.
5.1 Possible Biogas Public-private partnership for
households
A possible business model for a private-public
partnership could be based on Community Biogas plants,
which at one point was to be attempted on a large scale
by the government [20]. The federal government could
help acquire and direct funds from local governments to
subsidize community plants, which will help involve the
whole community rather than a household and therefore
reduce resistance to change and lower costs. Knowledge
and expertise would be brought in by the private sector,
which will also monitor progress, conduct R&D and
improve the design. The private sector will also be
responsible for establishing a constant supply of raw
material by providing sufficient quantities of manure
when not available. They can also provide after sales
service for which they can charge a minimal price and
also help install standardized kitchen utensils. An area
could be identified by the government, which can then
work on it together with private vendors, or, it can be the
other way around as well. The government can identify
what vendors to work with based on experience, expertise
and finance. This approach is similar to the partnership
between the private plastics firm ‘Sintex’ and the Indian
government, which have been working together for the
development of rural biogas [15].
The biggest role would be played by the government
however, which will have to pass laws that would make
Biogas compulsory and eventually ban the use of
traditional manure incineration. This will require strict
policing of the new local laws. It is possible that the
government’s Gas distribution company, the Sui
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