In Ghana, about 80% of fresh fruit bunches are processed by over 1,000 artisanal centres scattered across palm oil production areas. Palm oil processing in Ghana is dominated by small-scale operations using outdated technologies and techniques, like inefficient screw presses and delayed fruit processing, leading to unsustainable energy use and methane emissions from poor waste management. Research indicates that methane emissions from palm oil mill effluent exceed 1.2 Mt per Mt of crude palm oil produced.

Currently, firewood and used tires are burned for energy under inadequate combustion conditions, generating excessive smoke and significant health and environmental issues. The process produces sludge (Palm Oil Effluent) with high biological and chemical oxygen demand, releasing methane into the atmosphere.

The mitigation activity will modernize 85 artisanal palm oil processing centres in Ghana to:

• Reduce methane emissions from artisanal oil palm processing centres by integrating biogas systems to treat Palm Oil Mill Effluent and capture methane produced for processing

• Replace the use of fuelwood and lorry tyres by utilizing oil palm biomass to generate steam using a biomass boiler to improve energy generation

• Improve working conditions for the processors to enhance health and safety

The technology includes a biogas system for treating palm oil mill effluent by extracting methane gas, which is then used in further processing of the oil. The remaining substrate which meets the Environmental Protection Authority’s standards can be used as fertilizer.

Additionally, the technology features a biomass dryer, equipped with a cyclone and rotary airlock unit for drying biomass, and a biomass boiler that uses oil palm biomass—such as fibre, empty fruit bunches, and palm kernel shells—to generate energy through closed combustion. The system also includes an upgraded, efficient press (capable of processing up to 3 tons per hour), a 3-ton-per-hour nutcracker with winnowing sieves, and a fibre and nut separator to manage biomass.

The technology includes an upgraded efficient press (up to a 3 t/hour single press) and 3 t/hour nutcracker with winnowing sieves, as well as a fibre and nut separator (to separate biomass).

Access to affordable and long-term financing for artisanal processors, who typically operate in rural areas, is unavailable. Available financing comes with very high interest rates and is for short tenures. The high upfront costs of modernizing processing centres and adopting climate-friendly technologies are beyond the reach of most small processors.

The KliK Foundation’s support provides the necessary funding and technical assistance to overcome these barriers, enabling the processing centres to upgrade and contribute to emission reduction. Its contribution plays a critical role in removing financial and technical barriers to the activity. By providing investment support and helping monetize carbon credits generated through emission reductions, the foundation offers a financing mechanism that makes the modernization feasible. The funds allow for the implementation of the mitigation activity that would otherwise be inaccessible to small-scale processors.

Additionally, the Foundation’s involvement ensures that the activity is scalable and aligns with international carbon market frameworks.

Ghana has a mitigation commitment outlined in the 2016 Nationally Determined Contribution (NDC). The target is to lower GHG emission by 45% compared to the business-as-usual emissions of 74 million tonnes by 2030. Of this, 15% is an unconditional commitment the Government will unilaterally achieve by implementing mitigation measures in low carbon electricity supply and forest plantation. The additional 30% target would be attained if international support is made available.

Ghana intends to achieve the conditional mitigation goals by implementing eighteen mitigation actions in industry, energy, and forestry. The twenty measures are aligned with the current medium-term development policy framework (2018-2021) as well as strategies on sustainable energy and lowering deforestation.

The energy efficiency improvement and methane avoidance in the oil palm processing sector is not explicitly addressed in the Nationally Determined Contributions and the proposed programme aligns with the climate change policy context of Ghana.

The financing requirements are structured as result-based payments for ITMO delivery, which will be used to repay the loan and the interest from the partnering bank/investor.

With the bank's loan facility, the activity can be initiated by deploying the necessary funds to modernize the processing centres. The Sustainable Artisanal Palm Oil Processing Programme (SAPP) ensures that this modernization is both feasible and appealing for the processing centres and the bank or investor providing the loan.

The Sustainable Artisanal Palm Oil Processing Programme (SAPP) provides several co-benefits beyond reducing greenhouse gas emissions.

The technology used for the modernization significantly reduces the cooking time.

The use of the technology also results in the production of biomass and methane gas used for processing. Treated palm oil mill effluent (POME) produces organic fertilizer, which can be used to boost agricultural productivity.

The technology also enhances the health and safety of workers by replacing the use of harmful fuel sources like spent tires and firewood with clean biogas, reducing air pollution and associated respiratory issues.

The technology improves oil extraction rates of over 18%, resulting in increased income for the processors (mainly women).