Unlocking Ghana’s Biofuel Potential – The Case for Corn and Cassava Ethanol Production

February 24, 2025

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by Iddrisu Awudu Kasoa, David King Boison and Sylvester Vuvor (MyJoyOnline) Ghana’s energy sector has long been heavily dependent on imported fossil fuels, a reliance that exposes the nation to the vagaries of global oil markets. More than 80% of Ghana’s transportation fuel is derived from imported petroleum products, a statistic that reflects a significant vulnerability in the country’s energy security framework (Ghana Energy Commission, 2023). In 2022, for instance, Ghana’s expenditure on fuel imports reached approximately $2.7 billion, accounting for nearly 25% of its total import expenditure, thereby underscoring not only the magnitude of the financial burden but also the inherent risks associated with fluctuating international oil prices (Bank of Ghana, 2023).

Such an unsustainable dependency has made it imperative for Ghana to explore alternative energy sources that can provide both stability and long-term economic benefits. In parallel with these challenges, the domestic electricity sector in Ghana—primarily reliant on hydropower and thermal energy—faces its own set of obstacles. Recurring droughts have led to significant power shortages, while the escalating costs of natural gas have further strained the thermal energy supply, creating a dual challenge of supply instability and rising operational costs.

As national energy demand is projected to grow at an annual rate of 5% (International Energy Agency [IEA], 2023), the urgency to diversify the energy mix becomes even more pronounced. Against this backdrop, the potential for biofuels, particularly ethanol produced from locally abundant feedstocks such as corn and cassava, emerges as a promising solution to reduce reliance on imported fuels while simultaneously addressing economic and environmental imperatives.

Ethanol, when blended with gasoline, offers a multifaceted set of benefits that extend well beyond simply lowering fuel costs. Globally, ethanol has demonstrated its capacity to improve energy security and foster economic resilience. For example, Brazil—recognized as one of the world’s foremost ethanol producers—has leveraged its extensive ethanol industry to achieve significant fuel import savings, reportedly saving over $50 billion over several decades (International Energy Agency [IEA], 2023). In the United States, the annual production of over 58 billion litres of ethanol, primarily derived from corn, has contributed to reduced fuel prices and bolstered domestic energy production (U.S. Department of Energy, 2023).

Thailand’s model, which utilizes cassava as the primary feedstock for ethanol production, further reinforces the viability of biofuels by achieving a notable reduction in oil imports through strategic ethanol blending mandates (ASEAN Centre for Energy, 2023). These international experiences illustrate that ethanol is not merely a substitute for fossil fuels but a strategic tool for economic transformation and environmental sustainability. Ghana’s own agricultural landscape provides a robust foundation for the development of a competitive ethanol industry. With over 3.2 million hectares of arable land deemed suitable for the cultivation of biofuel crops, the country has significant untapped potential in agricultural production (Food and Agriculture Organization [FAO], 2023).

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Cassava, in particular, plays a central role in Ghana’s agricultural economy. As the second-largest cassava producer in Africa, Ghana yields approximately 22 million metric tons annually (FAO, 2023); however, due to limitations in storage and processing infrastructure, a significant proportion of this yield is underutilised (Ghana Ministry of Agriculture, 2023). Similarly, corn production in Ghana reaches about 3.5 million metric tons per year (Ghana Statistical Service, 2023), yet much of this resource is primarily allocated for food consumption and livestock feed. Redirecting surplus corn and cassava into ethanol production could not only reduce post-harvest losses but also contribute to a more efficient and integrated agricultural economy. The conversion of these feedstocks into ethanol represents an innovative approach to leveraging domestic resources, enhancing energy security, and stimulating rural development.

The economic benefits of investing in ethanol production extend far beyond the immediate reduction of the fuel import bill. In establishing a robust ethanol industry, Ghana stands to generate extensive employment opportunities across multiple sectors, ranging from agricultural production and harvesting to the operation of processing facilities and the management of distribution networks. Projections indicate that the ethanol industry could create over 500,000 direct and indirect jobs, thereby significantly bolstering the rural economy and providing a reliable income source for thousands of smallholder farmers (African Development Bank [AfDB], 2023).

This job creation would also spur the growth of ancillary industries, such as machinery manufacturing and biofertilizer production, thereby further integrating the ethanol value chain into the broader economic fabric of the country. Moreover, the co-products of ethanol production, such as distillers’ grains, can serve as high-protein animal feed, creating additional revenue streams and supporting the livestock sector. This integration of energy production and agricultural efficiency presents a holistic opportunity for economic revitalization, particularly in rural areas where such interventions are most needed.

Environmentally, ethanol offers significant advantages over conventional fossil fuels. The combustion of ethanol produces far fewer pollutants, resulting in substantially lower emissions of carbon monoxide, sulfur oxides, and particulate matter. Research has demonstrated that ethanol-based fuels can reduce greenhouse gas emissions by up to 70% compared to gasoline, making them an essential tool in the global fight against climate change (United Nations Environment Programme [UNEP], 2023). In Ghana, where transportation accounts for a substantial portion of carbon emissions—estimated to exceed 40% of total emissions (Ghana Environmental Protection Agency, 2023)—the introduction of ethanol blends could yield a dramatic reduction in overall greenhouse gas output.

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A critical first step involves the establishment of a comprehensive regulatory framework that mandates the blending of ethanol with gasoline.

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The dual demand for corn—as a staple food and a biofuel feedstock—raises significant food security concerns, particularly in rural communities that rely heavily on maize for sustenance. Furthermore, corn cultivation is input-intensive, requiring large amounts of fertilizers, water, and pesticides to achieve high yields, which makes it vulnerable to fluctuations in input costs and raises environmental concerns such as soil degradation. The seasonal nature of corn farming also necessitates a robust supply chain and efficient storage infrastructure to maintain a year-round production cycle for ethanol, a challenge that must be addressed through targeted investments and policy interventions.

In contrast, cassava offers a compelling alternative that is particularly well-suited to Ghana’s agricultural landscape.

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Cassava cultivation is generally less input-intensive; it requires fewer fertilizers and pesticides, and its adaptability to various soil and climatic conditions makes it a cost-effective and sustainable option for biofuel production.

Although the ethanol yield from cassava is lower than that of corn—with one metric ton of cassava producing between 150 and 180 liters of ethanol (International Institute of Tropical Agriculture, 2023)—its advantages lie in the abundant supply, lower production costs, and reduced environmental impact. One of the critical challenges associated with cassava, however, is its high moisture content and the rapid deterioration of cassava tubers, which begin to decay within 48 hours of harvest. This characteristic necessitates immediate processing and requires the development of modern ethanol processing facilities along with efficient logistics to transport cassava from farms to processing units. Recent advancements in cassava drying and storage technologies, including the conversion of fresh cassava into storable forms such as cassava chips or flour, offer promising solutions to these challenges and help ensure a steady year-round supply of feedstock.

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As regional demand for cleaner fuels grows, particularly among ECOWAS member states seeking to reduce their dependency on imported fossil fuels, Ghana could emerge as a critical supplier in the West African biofuel market. In aligning national policies with regional energy strategies, Ghana can tap into this expanding market while simultaneously reducing its own fuel import expenditures.

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Such a holistic strategy would not only address current energy security concerns but also generate a range of economic benefits, including job creation, rural development, and enhanced agricultural productivity.

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This employment boost would not only help alleviate poverty in rural regions but also stimulate ancillary industries such as machinery manufacturing and biofertilizer production, thus contributing to a broader industrial resurgence.

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Currently, a significant proportion of Ghana’s agricultural output—nearly 40% of cassava and 30% of corn—is lost due to inadequate storage and processing infrastructure.

In channelling these surplus crops into ethanol production, the country can convert what is otherwise wasted into a valuable energy resource. The process not only minimizes losses but also generates valuable co-products, such as distillers’ grains, which can be repurposed as high-protein animal feed. This conversion of feedstocks creates a more resilient agricultural value chain that supports both food production and energy generation, thereby stabilizing rural incomes and improving the overall efficiency of the agricultural sector.

The fiscal implications of a thriving ethanol industry are equally significant. Ghana’s current annual expenditure on petroleum imports exceeds $2.7 billion, a figure that places a heavy strain on the nation’s economy and contributes to persistent trade deficits. In adopting an ethanol blending mandate—such as an E10 policy—Ghana could replace a substantial portion of imported gasoline, potentially saving the country around $400 million per year. These savings would free up crucial foreign exchange reserves that could be redirected toward other developmental priorities. Furthermore, the potential for revenue generation through ethanol exports is considerable. As global demand for biofuels continues to rise, particularly in markets that are increasingly stringent about carbon emissions, Ghana could position itself as a key supplier within the West African region and beyond, leveraging its competitive production costs and favourable agricultural conditions to secure lucrative export contracts.

Industrial growth in Ghana is likely to receive a robust boost from the development of a comprehensive ethanol production infrastructure. The establishment of modern ethanol processing hubs would drive technological advancements and encourage the adoption of mechanized farming practices. This, in turn, would lead to increased agricultural productivity and improved supply chain management, ensuring that surplus crops are efficiently converted into ethanol. Investments in specialized infrastructure—such as storage facilities, transportation networks, and fuel blending terminals—would lower overall production costs and enhance market access for ethanol producers, thereby fostering a more integrated and sustainable industrial ecosystem.

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In aligning national policies with international best practices, Ghana can effectively transform its energy landscape, reduce its vulnerability to volatile global oil prices, and chart a course toward a more self-reliant and prosperous future.

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Cassava’s inherent high moisture content and rapid post-harvest deterioration, which previously hampered its commercial use, can now be mitigated by converting fresh cassava into storable intermediates such as chips or flour. This transformation not only extends the shelf life of the cassava but also simplifies its transportation to processing plants, thereby reducing post-harvest losses. In parallel, breakthroughs in enzyme technology—bolstered by research from institutions like the International Institute of Tropical Agriculture—have enhanced the conversion efficiency of cassava starch into fermentable sugars, achieving yields that are increasingly competitive with those of corn-based processes (International Institute of Tropical Agriculture, 2023).

Such technological progress is crucial for Ghana, as it allows for the optimization of processing techniques and the effective utilisation of local feedstocks, ensuring that production costs remain low while output quality remains high.

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The captured CO₂ can be repurposed for various industrial applications, such as beverage carbonation or even enhanced oil recovery, further reducing the environmental footprint of ethanol production (United Nations Industrial Development Organization [UNIDO], 2023). This holistic approach to production not only reinforces the environmental credentials of ethanol as a renewable fuel but also creates additional revenue streams, thereby contributing to the economic sustainability of the entire biofuel industry.

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This phased strategy, underpinned by robust public-private partnerships and international collaboration, is essential for transitioning Ghana from a fossil fuel-dependent economy to one where renewable biofuel play a central role (African Development Bank [AfDB], 2023; International Energy Agency [IEA], 2023).

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Over the past decade, Ghana has initiated several renewable energy policies—most notably the Renewable Energy Act (Act 832, 2011) and the Renewable Energy Master Plan (REMP) launched in 2019—which underscore the need to reduce the country’s reliance on fossil fuels and promote indigenous renewable energy sources (Ghana Ministry of Energy, 2023). However, despite these legislative efforts, the current policy environment remains largely aspirational.

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Beyond its potential to lower carbon emissions, the transition to ethanol-based fuels can also alleviate urban air pollution—a pressing concern in densely populated cities such as Accra and Kumasi. Ethanol burns more cleanly than conventional petroleum fuels, resulting in significantly lower emissions of pollutants like carbon monoxide, nitrogen oxides, and particulate matter. This improvement in fuel quality not only supports public health by reducing respiratory and cardiovascular problems associated with poor air quality but also helps Ghana meet its environmental targets as outlined in global frameworks like the Paris Agreement (United Nations Environment Programme [UNEP], 2023).

However, realizing the environmental promise of biofuels requires that ethanol production in Ghana be managed sustainably.

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In prioritizing non-food cassava varieties for ethanol production and implementing safeguards to prevent competition with staple food crops, Ghana can ensure that its biofuel policies do not inadvertently compromise domestic food supplies.

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Ghana is estimated to have over 1.5 million hectares of marginal lands that are not optimal for high-yield food production but can be effectively utilized for biofuel crops, thereby ensuring that food security is not compromised (Food and Agriculture Organization [FAO], 2023).

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For example, the fibrous residues and cassava peels that remain after starch extraction can be processed into high-protein animal feed, while fermentation byproducts can be converted into biogas through anaerobic digestion. This biogas, in turn, can provide renewable energy to power processing facilities or even local communities, thereby creating additional revenue streams and further reducing the environmental footprint of ethanol production.

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For instance, access to funds from entities such as the Green Climate Fund (GCF) and the Climate Investment Funds (CIF) could provide the necessary financial impetus to establish state-of-the-art ethanol processing facilities and implement integrated waste-to-energy systems. In addition, partnerships with regional institutions such as the African Development Bank (AfDB) and initiatives under the Sustainable Energy Fund for Africa (SEFA) can help mobilize resources specifically targeted at renewable energy projects, thereby ensuring that Ghana’s ethanol strategy is both economically and environmentally sustainable (African Development Bank [AfDB], 2023). READ MORE

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