The Emergence of Large-Scale Bioethanol Utilities: Accelerating Energy Transitions for Cooking

Abstract

Expansion in access to clean cooking in Sub-Saharan Africa remains well below the UN’s Sustainable Development Goal objectives. In particular, clean and modern forms of cooking have struggled to attract commercial funding at scale. The use of bioethanol in cooking is not new, but until recently, its application has been confined exclusively to small-scale projects. However, a new bioethanol cooking utility in Kenya has now reached mass-market adoption, serving more than 950,000 households with cooking fuel since its launch in late 2019. Its success was made possible by a significant investment in technology to facilitate safe, convenient, and affordable fuel distribution. It is funded by climate finance, which is based on bioethanol fuel replacing the charcoal normally used for cooking; a leading cause of African deforestation. This development is so recent that it has not been widely discussed in the academic literature. More broadly, the health, environmental, and economic impacts of bioethanol for cooking have not been systematically assembled in one place. The main aim of this study is to identify how KOKO Networks has managed to overcome the traditional barriers to scalability, achieving impacts with bioethanol for accelerating energy transitions for cooking. The results show that bioethanol for cooking supports 13 out of 17 SDGs and has significant positive impacts on health, the environment, and the wider economy. The affordability of bioethanol has been made possible because of KOKO Investments in high-tech electronic fuel dispensing machines and through the use of climate financing. KOKO relies both on local and imported fuel to offer reliability and security of supply, as well as to grow commercial bioethanol demand to support the growth of the local bioethanol industry. Bioethanol for cooking also suffers from unfavorable tax regimes. This is because historically, in many countries, ethanol has been imported for use in the beverage industry. In addition, an appropriate commercial supply chain and delivery model which boosts the scalability of business and offers customer convenience is essential. For these conditions to take place, an enabling policy environment is key.