Why waste-to-fuel is gaining ground across Africa

From the newsletter

Kenya-based urban sanitation company Sanivation has secured $3.8 million from the UK-based Private Infrastructure Development Group (PIDG) to expand its waste-to-fuel project, converting human waste and organic residues into solid fuel briquettes. Waste-to-fuel is gaining ground across Africa as cities grow and industries seek reliable, affordable fuel alternatives.

• Waste-to-fuel converts various types of waste, such as municipal solid waste, agricultural residues, plastics, and even human waste, into usable fuels in solid, liquid or gaseous form.

• Unlike grid-dependent and heavily regulated conventional waste-to-energy, waste-to-fuel generates tradable fuels that industries can use directly, allowing adoption and scaling across the continent.

More details

• Of the total funding, $3.3 million is structured as an equity investment, with an additional $500,000 provided as a technical assistance grant. The capital will finance the Naivasha Treatment Plant expansion (NTPx), scaling up a pilot waste-to-fuel project launched in 2018 in partnership with Nakuru County. Once full-scale operations on the expanded facility commence in 2027, the plant is expected to significantly increase Sanivation’s capacity to treat human waste and organic residues, converting them into solid fuel briquettes. The briquettes are already being used by tea factories in the region.

• The Kenyan project forms part of a growing continental trend in which countries are adopting waste-to-fuel approaches that convert unavoidable waste into usable fuels. Besides the Sanivation project, NAWASSCOAL, a subsidiary of Nakuru Water and Sanitation Services Company, dries and carbonises faecal sludge before blending it with sawdust to produce fuel briquettes, which are used locally to replace charcoal and firewood. Also in Kenya, Adarsh Polymers is applying a similar approach to waste plastics, producing industrial fuels and charcoal-style briquettes for commercial users.

• Similar models are emerging across the region. In eastern Uganda, a youth-led project in the Sebei region uses solar-assisted systems to transform human and livestock waste into briquetted cooking fuel. In Ghana, JVL-YKMA Recycling Plant produces compost and fuel-efficient briquettes, while F&B Bio Recyclage Ltd is developing municipal waste-to-sustainable aviation fuel initiatives. Further south, South African firm Waste to Fuel Technologies applies chemical recycling to convert plastic, food and mixed waste into advanced biofuels and industrial solvents, targeting landfill reduction while supplying locally produced fuels.

• This momentum is shaped by Africa’s structural realities. Rapid urbanisation, fuelled by population growth, is generating concentrated and increasingly predictable waste streams, from sanitation systems to agricultural residues, providing reliable feedstock for industrial fuel production. At the same time, many African industries, particularly cement, agro-processing and manufacturing, remain heavily dependent on imported coal, heavy fuel oil and charcoal, leaving them exposed to volatile global prices and supply risks and creating a clear need for alternatives. Although conventional waste-to-energy has often been promoted as a solution, its expansion has been constrained by weak and unreliable power grids, complex regulatory requirements and high capital costs. These limitations have narrowed its reach just as pressure is mounting on African industries to decarbonise without raising operating costs or undermining competitiveness.

• Against this backdrop, waste-to-fuel provides a cost-effective and scalable alternative. By supplying lower-cost, locally sourced fuel that does not rely on grid connectivity, power purchase agreements or complex tariff structures, it simplifies industrial adoption. Industrial offtake agreements are easier to secure, which improves project bankability and reduces reliance on subsidies. These advantages are attracting financiers such as PIDG to more complex sanitation and municipal waste streams with strong commercial fundamentals. The combination of reliable feedstock and direct fuel sales also creates clearer revenue streams than power tariffs, further reinforcing the appeal of waste-to-fuel compared with conventional waste-to-energy projects.

• However, scaling remains challenging. Waste-to-fuel projects are constrained by weak waste segregation and collection systems, which continue to limit effective waste management across much of Africa. Policy uncertainty around waste ownership adds another layer of complexity, as municipal authorities control most sanitation and municipal waste, making it difficult for private investors to redirect these streams to their facilities. As the Sanivation project demonstrates, partnerships with local governments are often essential, but they can introduce bureaucratic delays. Anchor industrial customers are also critical to project viability, yet community acceptance is not automatic. Converting human waste into fuel challenges cultural norms, particularly when the material is perceived as unclean. In the case of NAWASSCOAL, initial uptake was reportedly slow, with many potential users expressing concern about the origin of the briquettes.

Our take

• Waste-to-fuel fits Africa’s realities by tackling three intertwined challenges of mounting waste, rising energy demand, and the need for competitive, cost-effective industrial fuel solutions

• The Sanivation project signals a shift in climate finance, which has historically been cautious about unconventional waste-to-fuel initiatives. It shows that investors are now willing to back less mainstream but commercially viable solutions.

• Though currently modest in scale, waste-to-fuel could become a viable source of sustainable energy for Africa if supported by the right business and regulatory environment.