Namibia’s biomass boom

Namibia’s charcoal industry is thriving, but experts say this is only the beginning. Beyond charcoal, the country’s vast biomass resources could transform energy, agriculture and the economy itself.

Biomass refers to renewable organic material that comes from plants and animals. 

Namibia is one of a handful of countries that are already net carbon negative, thanks to its large encroacher bush biomass resource as well as its low level of industrialisation and subsequently low emissions per capita.

Carbon Capital MD Colin Lindeque says what makes the country unique is that it has a biomass resource of 1.6-billion tons, whereas local utilisation is less than 2Mt per year. “Few countries are in such a situation.”

The charcoal industry has shown consistent growth over the past few years. Production figures doubled from 112,000t in 2017 to 224,000t in 2024. This has significantly boosted the sector’s economic contribution, with the industry’s production value reaching nearly N$600m in 2024.

Charcoal Association of Namibia GM Eckhard Volkmann says, however, that within the next decade, charcoal will no longer dominate the biomass landscape. “Instead, the country is expected to increasingly use woody biomass for a variety of industrial and climate-related applications.”

Evert Strydom, a scientist and the founding CEO of Rangeland Consulting & Services, says: “[The use of biomass] is directly connected to restoring rangelands. By harvesting bush responsibly, farmers regain grazing capacity and biodiversity, while industries acquire a renewable raw material. Put simply, the biomass industry involves clearing the overgrowth and turning it into opportunity, an approach that benefits both people and the environment.”

Lindeque says charcoal itself is the basis for several other value chains, including biochar (a type of charcoal made by heating biomass to very high temperatures without oxygen), wood vinegar, activated carbon and biocarbon for industrial applications. “Further, biomass can be used as a biofuel, in wood chip, pellet, wood log or briquette formats for domestic, industrial or utility applications.”

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Wood chips have been used in the manufacturing of cement and beer in Namibia for over a decade.

“Firewood is still the main energy source for Namibians without electricity, playing an important role in their daily lives,” says Lindeque. “Beyond that, biomass can be used to produce both animal and human foods. Bush-based animal fodder has served the livestock farming communities in times of drought, providing life-saving emergency fodder for animals.”

Strydom says trials in Namibia have shown livestock weight gains of more than 1kg per day when bush feed is properly supplemented, making it a valuable drought-resilience strategy.

Biomass-based electricity and heat are taking centre stage in the strategy to diversify income streams and find local energy solutions.

Lindeque says: “NamPower has recently broken ground on the country’s first bush-to-electricity power plant, which will stimulate the harvesting and supply of up to 245,000t of bush to generate 40MW of dispatchable power. This power station will supply about 6% of the annual national electricity needs.”

Most future revenues from the power plant, about N$500m annually, will be spent locally. It will be used to buy power, local goods and services, and to employ local people throughout the supply chain. Lindeque adds that while “small-scale biomass electricity generation is technically possible, it is often not economical due to the decreasing costs of solar and battery tech”.

By harvesting bush responsibly, farmers regain grazing capacity and biodiversity, while industries acquire a renewable raw material

—  Evert Strydom

One of the main factors driving the biomass market globally is the increasing emphasis on cutting greenhouse gas emissions and reducing reliance on fossil fuels. As a result, Namibia has been able to leverage significant donor funding for projects like the biomass power station.

Strydom points to developments in biochar for soil restoration and carbon credits as equally promising.

Biochar must meet certain chemical standards to be called biochar. Lindeque says producing and using biochar can help projects generate carbon credits as a means of accessing climate finance.

“Right now, biochar carbon removal credits are mainly traded in voluntary markets, but in the future, regulated markets might also trade these credits. For now, the value of these credits makes biochar production worthwhile. However, as markets grow and credit prices drop, producers may need other income sources. 

“Biochar can help dry, sandy soils to retain moisture, making crops more resilient to variable rainfall. It also reduces fertiliser leaching, thus improving plant nutrition. Additionally, biochar can remove heavy metals, improve soil structure and balance pH levels,” Strydom says.

He points out that bush encroachment in Namibia has a different cause than in South Africa, where invasive species are to blame. In Namibia it’s mainly caused by native bush that has overgrown. This can be the result of overgrazing, which reduces grass and allows shrubs to proliferate.

While there is no doubt that global opportunities in renewable energy and carbon markets beckon, Lindeque says Namibian biomass value chains must embrace key international standards to maximise their access to the highest-paying markets.

“Meeting standards such as those of the Forest Stewardship Council [FSC] is becoming increasingly important,” he says.

FSC Southern Africa co-ordinator Richard Fergusson says Namibia has adopted FSC certification to tackle bush encroachment.

Data shows that about 1.87-million hectares of Namibia’s more than 40-million hectares of bush thickening cover are FSC-certified. The country recognised the value of FSC certification in its fifth national report to the Convention on Biological Diversity in 2014, citing its role in promoting biodiversity-based products and sustainable production.

“South Africa has a more mature FSC certification landscape,” says Fergusson, “particularly in its commercial forestry sector, which is over 80% FSC-certified. The country’s large-scale timber and pulp producers have widely adopted FSC standards, giving South Africa a competitive edge in sustainable forest product exports.”

European consumers are becoming more discerning about the environmental and ethical footprint of the biomass products and charcoal they purchase, he says. In response to growing concerns about deforestation and climate change, the EU has introduced the EU Deforestation Regulation (EUDR), which sets a new benchmark for sustainability.

Under this regulation, all timber and forest-based products entering or leaving the EU market must be deforestation-free and legally produced. This means that products or their inputs must not originate from land that was deforested or degraded after December 31 2020.

 The regulation is expected to reshape global trade practices, influencing sustainability standards beyond the EU and encouraging other regions to adopt similar measures.

The EUDR is due to come into effect December 30. From this date, businesses will be required to prove that their forest-based products are legally sourced, do not contribute to deforestation and are not linked to forest degradation.

Meanwhile, Namibia faces multiple other challenges. Experts warn that if the country fails to seize biomass opportunities and tackle bush encroachment, the cost of inaction will be huge. “More than half the country’s land surface — 46-million hectares — is already affected, and the problem will grow each year if left unmanaged. For farmers, this means steadily declining grazing capacity,” Strydom says.

He says research has shown that carrying capacity can drop by up to 80% in severely encroached areas. Without intervention, this translates into billions of dollars in lost agricultural productivity, higher feed costs and reduced national food security.

The ecological costs are equally serious. Bush thickets reduce grass diversity, displace savanna species such as wildebeest and cheetah and cut groundwater recharge to one-third of that in open savannas.

“With climate change bringing hotter and drier conditions, unthinned bush will intensify the effects of drought by using more water and leaving less available for both people and ecosystems,” says Strydom.

“Economically, national studies have warned of losses exceeding N$1bn per year if no action is taken. By contrast, sustainable bush utilisation can generate net benefits of tens of billions of dollars over 25 years if scaled.”