The report presents the current and potential features of the cashew by-products in 8 African countries (Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea-Bissau, Kenya, Mozambique, Tanzania).
The assessment includes:
- the environmental adverse effects that cashew processing might potentially cause to the environment,
- the current waste management practices and business approaches of cashew processors in selected countries in East and West Africa, and reveal shortcomings and harmful environmental practices deployed in their daily routines, and the best practices and environmental standards from Africa and Asia that reduce and bring an end to harmful waste management practices
- the unexploited economic, energetic and environmental potential
- the analysis of the stakeholders involved in cashew by-products. As key findings of the study, in the first place it is observed that the cashew processing still faces the issue of weak competitiveness. The main concerns of processors are focused on the RCN supply:
price stability, export bans and regulations, quality and finance. Globally, over the 8 countries visited, the priority given that the value addition of the by-products is not high. Although, the shells accounting for 70% of the RCN biomass, this waste is deposited or removed, but value addition is hardly practiced. Nearly all factories use the shells for thermal energy, most as fuel for the boiler.
The consumption of shells for thermal energy varies from 5-25% of the shells produced. Nevertheless, the overall most-efficient strategy for value addition of by-products is the processing of CNSL and co-generation of the de-oiled cake. The condition is a secured supply of minimum
15,000-20,000 Mt shells per year, allowing co-generation capacity of 1.5 MWe. There is an unexploited potential of cashew by-products. With the total RCN production of nearly 1.4 million Mt RCN and given the average of 10% processed RCN in the countries: out of a total potential quantity of nearly 1 million Mt of shells/yr, currently a quantity of about 100,000 Mt is of shells is produced in these countries: about 25% is is used for value addition (50% of CNSL production and the rest for thermal energy purposes). There is an unexploited potential of US$16m, or US$110 /Mt RCN of turnover that is not exploited in the current situation. The processing of the cashew shells can contribute to a positive energy balance that varies from 211,081 MWh to 1,975 GWh. The processing of the cashew shells can contribute to a positive carbon balance that varies from 58,560 to 548,135 tCO2eq. Moreover, small scale initiatives and solutions (production of charcoal through carbonization of shells, power generation with steam machines) are found here and there, but the viability and sustainability is not really confirmed, as most of these initiatives are in the R&D phase and depend on subsidies. More experience on testing and scaling up of this equipment would be required to confirm the business case. Concerning policies and the institutional setting, we observe a potential leading role in promotion of by-products through these institutional sector organizations.
Environmental legislation frameworks are well established and institutionally embedded. Some countries are more advanced. Work can be done on standardization and professionalization of the environmental standards, procedures and control measures. Policy regulations on electricity
production and supply are not in all countries well established. Particularly in West African countries, this vacuum constitutes a risk for the business case on co-generation. Specific opportunities that were found and confirmed during this study were the local use for CNSL as a substitute for DDO/LFO, seems to be more profitable than for export. The opportunity for energy production from biomass constitutes an increasing opportunity to supply the energy deficit with green energy. Substitution of conventional energy by green energy (either electrical, or thermic) contributes to the reduction of carbon emissions. Most of the countries have included the value addition of biomass and production of green energy in their National Development policies. Value addition of the cashew by-products through green energy contributes to the Intended Nationally Determined Contributions. Currently, there are hardly any incentives for investments on green energy from biomass and specifically applied to the cashew by-products in the African countries, 6 / 113including uses of biomass for thermal purposes. Although the CDM and MCC might be convenient financing mechanisms for green investments and carbon offset.
Recommendations are made towards governments and the para-public sector:
- first, secure supply of shells for viable CNSL production and co-generation.
- enhance applied research on the adaptation of technologies for the cashew by-products and alternative (local) applications of the
derivates. - facilitate spreading the existing knowledge by exchange on by-product practices,
- improve investment climate for waste recycling
- enable the CDM financing instruments for the biomass-to-energy projects
- develop a coherent vision and strategy on cashew by-products on national level and
- link the carbon emission reduction, due to the value addition of the cashew byproducts to the Intended Nationally Determined Contributions.
For the sector organizations on national (and regional) level:
- facilitate exposure to and exchange on the technologies for processors and governmental bodies and stimulate interactions
- provide an assessment of the energy and carbon emission reduction at national and even regional level,
- reform of the national cashew sector agencies so that support to processors becomes a priority, and the focus on by-products is given as means to secure financial stability for them,
- advocate for an extension of these measures to the by-products. For the private sector actors:
- explore the different available solutions for by product development,
- be compliant with the environmental standards,
- conduct further the assessment of the opportunity of energy from by-products
(iv) start collaboration between processors to create scale and a regular supply of shells for operation that require larger quantities:
CSNL extraction and co-generation. Common investments or third-parties can be a next step. Private public partnership seems to be a convenient setting for by-product investments, as the outcomes benefit private and public interest and (v) finally, realize the investments in by-product processing capacity, including the technical competence of staff.
For the African Cashew Alliance: ACA’s position should be that of catalyzing change, by raising awareness and giving echo to all the ongoing by-product initiatives – and seeking for replication and opportunities:
- assist the factories to abide by the national regulations, because lack of observance can become a big issue in the future,
- develop a specific cashew by-product policy with the necessary instruments and facilitation of incentives for the ACA members,
- support the countries’ sector associations/agencies to improve their organizational abilities and strengthening the processors representatives. One idea would be having one ACA representative in each country,
- develop documentation on environmental impact reduction methods, addressed to processors and environmental authorities and
- integrate the assessment of energy from biomass and carbon emission (reduction) into the assessment criteria of the ACA seal. The overall conclusion is that there is a unexploited potential by valorizing of the cashew byproducts, particularly of the shell, for the manufacturing industry and thermal energy, while contributing to the energy production and climate carbon offset.
