In 2006, Ericsson piloted a project to power mobile networks using biofuels. In remote areas in emerging markets, one of the greatest challenges is unavailable or unreliable sources of power. Diesel generators are often used, which have negative environmental consequences, and remote network expansion has high associated costs with fuel transport and related logistics and security.

To bridge these challenges, Ericsson, the GSM Association’s Development Fund, and pan-African operator MTN launched a biofuel pilot project in Nigeria in 2006. The project aims to demonstrate the potential of biofuels in replacing fossil diesel as a power source for mobile coverage in remote areas. Biofuel is being piloted as a way to reduce network costs and increase network reliability through cleaner and more reliable fuel sources. The project will minimize reliance on fossil fuel energy, with an expected 78 percent reduction in CO2 emissions. It is also intended to contribute to making mobile communication more accessible and affordable for end users.

Ericsson’s solution includes the network infrastructure as well as the biodiesel processing equipment. The establishment of a supply chain that sources locally produced raw materials was also part of the pilot project. In Nigeria, soy, jatropha or a combination of both will be used to meet the energy needs of the initial pilot, which will include three rural base station sites. In the long term, the project will seek to use non-edible crops as more supply becomes available, and will also follow the environmental principles established by UN Environment Programme for biofuel production.

The project seeks to directly stimulate local economies by providing jobs both in agriculture and through new revenue streams created via biodiesel bi-products. These include a “cake” for fodder, and glycerine, which can be used to make soap or fertilizer. It is hoped that improved access to communication will lead to additional ripple effects in the economy.

A second biofuel project with Idea Cellular in India was announced in early 2007 for the Pune, Maharashtra area. 72 percent of India’s population resides in approximately 600,000 rural villages, the majority of which do not have access to a mobile network.