This article is one of 112 cases in the blue economy.

This article is part of a list of 112 innovations shaping the blue economy. It is part of a broader effort by Gunter Pauli to stimulate entrepreneurship, competitiveness, and employment in free software. For more information on the origins of ZERI.

These articles were researched and written by Gunter Pauli and updated and translated by the blue economy teams and the community.

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Case 45: Charcoal to preserve wood

Mar 3, 2013 | 100 Innovations , Energy

The market

The global charcoal market was valued at $6.8 billion in 2010. Its value could have reached over $15 billion, according to estimates, if informal sales are included. Some development economists claim that 70% of charcoal production goes unrecorded in national statistics. The Food and Agriculture Organization of the United Nations (FAO) estimates that 2.4 billion people still rely on wood and charcoal for their daily fuel. Charcoal production is considered the world's largest industry (unrelated to the world's oldest profession). Demand for charcoal continues to rise in Latin America and Africa, while declining in Asia and remaining stable in the industrialized world, where recreational use is concentrated during the summer months. While consumption has decreased over the years across Europe, demand has stabilized at around one million tons per year. The United Kingdom imports 60,000 tonnes, over 90% of which comes from Africa, primarily Nigeria. Unlike Western Europe, the United States remains a significant charcoal producer, producing just under one million tonnes annually, ranking among the top ten charcoal-producing countries in the world. The world's largest charcoal producer is Brazil, with over 13 million tonnes, well ahead of Nigeria and Ethiopia, which vie for leadership in Africa with approximately 3.5 million tonnes per year each. Since only 4% of the world's electricity is generated in Africa, and only 8% of rural communities in the Sahara subregion have access to electricity, over 70% of the population's income is spent on fuel. This reality ensures stable demand and a strong return on investment. Africa clears approximately 4 million hectares of forest for charcoal production each year, twice the average of any other region, including Brazil. A city like Abidjan, the capital of Ivory Coast, consumes 300,000 tons of charcoal annually, while Kenyan employment experts say charcoal production accounts for 200,000 jobs nationwide. Every day, 20,000 four- to five-kilogram bags enter Dar es Salaam, the capital of Tanzania, with an estimated annual value of $40 million, fueling the local economy and livelihoods while simultaneously polluting the air and destroying local forests.

Innovation

Deforestation has garnered global attention. However, charcoal is an improvement because, in most cases, it replaces the even more destructive practice of burning wood. Yet, charcoal production has been recognized as a major cause of environmental degradation, including the loss of primate habitats. Brazil has responded by planting eucalyptus trees, which, thanks to their higher productivity, could potentially reduce the demand for hardwood from the rainforest. It is estimated that every 100,000 hectares of eucalyptus forest in Minas Gerais, Brazil, harvested every seven years, could save one million hectares of rainforest over a century. Other innovations include the use of coconut shells, sawdust, pulp and paper scraps as raw materials for charcoal. Alternative fuels like bamboo have also been encouraged, but the pressure on deforestation remains. Antonio Giraldo studied bamboo in his native Quindío, in the heart of Colombia, and learned how the Chinese and Japanese have slowly preserved the wood for 60 years by using charcoal smoke to create a natural biochemical protection against termites and fungi. The oldest buildings in Kyoto use structural bamboo that has existed for five centuries. He then designed simplified versions of these open kilns that allow for charcoal production in a lower chamber, while the environmentally harmful fumes are trapped in the upper chamber where running water along the walls forces a continuous cycle of condensation and evaporation that slowly but surely saturates the enormous Colombian bamboo stalks. Bamboo has regained popularity as a building material, particularly after its approval as such in Germany in 2000. Thanks to this development and the innovative engineering of Antonio Giraldo, bamboo processing has taken on new dimensions: the structural part is preserved, while the fumes generated by charcoal production utilize only the non-structural parts of 25-meter-long Guadua angustifolia stalks. This complete utilization of the bamboo stalks, including its sap as a substitute for chemicals, resembles the basic principles of the blue economy—that is, the cascading use of materials and energy to generate multiple benefits and revenues.

The first cash flow

Antonio Giraldo built the first unit in 1999 and quickly became interested in his technique for fully utilizing giant bamboo. He pushed the production system even further, reclaiming larger pieces of bamboo for household goods and converting only the scraps into charcoal. His bamboo charcoal briquettes rival any other in calorific value, while his preserved bamboo gained widespread popularity thanks to the sweet aroma of burnt wood. The initial $25,000 investment became a benchmark for innovative resource management, reducing stress on forests, eliminating the use of toxic chemicals, and popularizing bamboo through its guaranteed extended lifespan.

The opportunity

The business grew stronger, as did interest in Antonio's technical prowess. As the United States suffered increasingly from wildfires from Colorado to California, the state of New Mexico decided to remove small-diameter timber from high-risk forests. While the removed wood would initially be left to rot, or at best incinerated under controlled conditions, Antonio's double-chamber kiln was chosen as the next step in the value chain. Picuris Pueblo in New Mexico was the first to experiment with converting discarded shipping containers, filled with wood debris to be turned into charcoal, while a second container, filled with thin wood—also removed from the forest with a maximum diameter of 7 inches—would be preserved by the captured gases. This technique proved commercially viable in the United States, and the use of obsolete containers ensured double the income and a higher-quality (and healthier) product. On the one hand, the demand for charcoal is high, but there are enormous resources available to supply the efficient fuel charcoal it represents. Bamboo produces 12 times more high-quality charcoal per hectare per year over a 70-year period than the most productive eucalyptus, saving 12 million hectares of rainforest over its lifespan. In fact, under these conditions, it is not even worth destroying rainforest as a source of income—if the goal is access to charcoal. Since most countries with high charcoal demand also have native bamboo, it makes sense to opt for planting this highly prolific grass (bamboo is not a plant) as a source of charcoal. At the same time, bamboo serves as an exceptional building material, a tool for managing water cycles, and now also as a conservation agent. At the same time, the Pueblo Native Americans of New Mexico have demonstrated that even in a temperate climate, Antonio's charcoal production technique, designed for bamboo but adapted for wood, could benefit our approach to fighting the wildfires that are ravaging not only the Americas but also Southern Europe, Africa, and increasingly Latin America. This means that thousands of entrepreneurs could engage in this innovative business model in most parts of the world, providing a much-needed product while regenerating the original bamboo forest cover that once graced our Earth.

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