Agricultural biomass has yet to fulfil its global potential, as many countries and companies see it as one of several alternative routes to achieving a circular economy and minimising waste. It can be used to produce heat or biofuels, and can contribute to decarbonisation endeavours. Danish industrial waste recycling company Saathvika was the first company to deliver cashew nut shells (CNS) — a type of agri-biomass — from Africa to Denmark. It aims to increase CNS flows in the near future, from the current 80,000 t/yr. The global raw cashew nut market, which produces CNS as residue, may triple in size by 2030, with China potentially becoming the largest consumer, Saathvika chief operating officer Victor Lisberg tells Argus.
Let us start with the basics — how are CNS sourced and produced, and what is their calorific value?
We source CNS directly from cashew processing plants, which do the following treatments on raw cashew nuts — steaming, roasting, splitting, peeling and grading.
CNS have a net calorific value (NCV) of above 20 GJ/t when we look at the average over a year. The bigger the shell the higher the NCV.
What are the key CNS consuming countries?
Since we were the first company to export CNS from west Africa for any purpose, the key importing country for CNS is Denmark, if we do not take into account CNS imports for the purpose of producing oil CNS liquid (CNSL).
We deliver more than four cargoes a year to Denmark, with a combined volume of around 72,000-80,000t. These are used in the process of heat generation. We aim to increase these volumes in the next 6-10 months.
What is the current level of CNS production in Africa? And what is your market share in this sector?
Total production of raw cashew nuts (RCN) is increasing, and countries are starting to look into export bans, as processed nuts have a higher value. Benin is the only country with an active law, which forbids RCN exports from April 2024.
Ivory Coast produces around 130,000 t/yr of CNS. Togo, Nigeria and Benin combined produce roughly 50,000 t/yr, and the rest of Africa — mostly east Africa, such as Mozambique and Tanzania — produces around 30,000-40,000t. In terms of market share, in all west Africa we sit on 60-70pc of total CNS volumes.
How about CNS elsewhere in the world?
Vietnam has locally grown RCN and imports more than 1mn t/yr of RCN. It uses 85-90pc of shells to produce CNSL, which feeds into the production of varnish and similar products.
India also has local production of RCN, but volumes are a bit trickier to estimate as it has a few actual factories and a lot of stand-alone people that process a few kilos a day.
These numbers are as close to reality as we have — they have been collected through governmental reports, actual figures provided from our counterparties and from our teams in west and east Africa and southeast Asia.
What are the other uses of CNS, apart from as a fuel to produce energy?
In Vietnam, CNSL is the main purpose of CNS, and it's a very established marked. Ivory Coast is also seeing an increase of CNSL production. It is hard to put exact numbers on it, but 1.2mn t/yr of CNS to CNSL would not be inaccurate.
Which CNS-producing countries export and how much? Does CNS produced in countries other than Vietnam and India mostly feed into the energy sector?
The map (see below) might give you a better understanding of the situation. CNSL is the main purpose for CNS in India and Vietnam. In west and east Africa, before we invested in the sector, CNS was either burned in nature or, to a limited extent, used to produce CNSL and heat.
What is the growth potential for CNS?
The cashew industry is an important source of income to so many people and government programmes in many places in the world are investing in RCN production, mainly for export to southeast Asia. In time, processing will follow.
My best guess is that in 2030 we will see 2.5-3 times as much RCN grown globally as we see today, with the Chinese market driving the biggest request for cashew nuts.
Do you trade other types of biomass?
We trade in many kinds of niche biomass and use a lot of resources to source new potential.
Saathvika's motto is "one company's waste, another company's resource". What changes have you brought about by investing in CNS in Ivory Coast?
It all started when we were looking for biomass that was not yet utilised to a large extent. We had previously seen cashew nut shells and knew that they were a problem and a waste in west Africa. So we started looking for a team, got samples sent to Denmark, and then found a client that was able to utilise them. CNS was mainly driven to the bush and torched, since local companies had to remove the CNS to keep their certifications. A very limited amount was used at sugar factories.
The changes we have made can be viewed from two distinct perspectives, both driven by our deep commitment to assisting the local communities we serve. With each shipment, our primary objective is to make a positive impact. We have already accomplished the construction of a water well at Ayabo-Abouokro.
Our strategic partnerships with factories involve providing financial support for local CSR projects. However, our dedication doesn't stop there. We strongly believe in building lasting connections with the local community and our invaluable employees. By actively engaging with them, we create an environment where their voices are heard, their dreams are acknowledged and their concerns are addressed — creating a sense of shared purpose and shared success.
