Caltech Ventures to produce ethanol from cassava in Ghana

Caltech Ventures Ghana Limited, a biofuel company in part founded by members of the Ghanese diaspora, will begin the production of ethanol from cassava at Hodzo, near the city of Ho, next year when its $6.5 million production plant would be ready. The company's total investment in the venture is $10 million, managing director Chris Quarshie told African media.

Cassava is a starch rich energy crop that thrives on relatively poor soils and requires a limited amount of inputs. A major food crop in Western Africa, countries there have however tried to kickstart an industrial cassava sector, which would be highly lucrative. Growing demand for ethanol and record oil prices may at last make the plans more viable. As an energy crop, cassava yields biofuels with an excellent energy balance (earlier post). With current best technologies, some experts estimate that cassava ethanol is commercially viable when oil is above $38 per barrel.

According to the International Center for Tropical Agriculture (CIAT), one of the Green Revolution institutions and member of the CGIAR, small farmers and the rural poor across the developing world stand to benefit from cassava ethanol (previous post).

Caltech Ventures Ghana Limited has established a 162 hectare cassava seed plantation with plans to expand it to 486 hectares next year. It says 60 percent of the six million litres of ethanol to be produced yearly would be exported. It has also organised a corps of cassava out-growers to provide the needed raw material for take-off. The project has the potential to provide 600 jobs, up from the current 140, when its ethanol plant comes to full production:Mr Mawutor Goh, Ho Municipal Chief Executive commended the people for placing their collective interest and that of the country above their individual interests thus paving the way for the company to be established there.

He assured communities in the area that the sustenance of the company would be a catalyst to the rapid development of infrastructure such as good road network towards developing the potentials of the area for the rapid improvement in their standard of living.

Mr Goh urged chiefs in the Ho Municipality to support the company and encourage their compatriots who had the means to invest at home.

Togbe Akpasu VIII, Fiaga of Hodzo, thanked the company for its demonstration of goodwill towards the people and gave an assurance of his people's fullest co-operation towards the smooth operations of the venture.