Target Market

---

More than half the global population is reliant on solid fuels such as wood, coal, crop residues and animal dung for their domestic energy requirements. In rural China, crop wastes and wood had been the main household fuels. The use of these fuels burdens rural residents and ecosystems.

China has undertaken programs to improve the welfare of rural residents, and has several programs that have been aimed at household stoves. The Ministry of Agriculture claimed that, by 1998, 185 million of China’s 236 million rural households had “improved” biomass or coal stoves. While it is generally believed that the government programs were successful in putting stoves in the home, the impact on air quality and the health of the people were not assessed.

An independent review of China’s “improved” rural household stoves program found that:

• China implemented broadly successful programs that delivered better stoves to many households in targeted counties.
• It appears that claims made about market penetration of improved stoves were somewhat overstated, and the benefits are further obscured by the unclear definitions for improved stoves.
• Although most stoves now in use have flues, grates and other “improved” aspects, many coal stoves, even those using improved briquettes, lack flues. Few can be considered improved from the standpoint of health and environmental concerns.
• The “improved” stoves are not reaching the 20% to 30% efficiency levels targeted by government programs.
• Efficiency of these stoves may continue to deteriorate over time due to materials and construction techniques.

In support of the China Ministry of Health-led programs to resolve persistent problems in areas related to coal use, it has been recommended that outside resources could be crucial in:

• Developing new stove systems that can address health and environmental concerns more effectively and can serve a variety of household needs.
• Creating a business model that enables a local manufacturer to supply the more healthful, efficient stoves to the local people.

Enviro Fuels intends to fill that niche.

Beyond China

Besides the millions in China, there are more than 1.6 billion people in the world without electricity in their homes. With 579 million people without access to electricity, India is by far the largest potential market, followed by Bangladesh with 104 million and by Indonesia with 98 million.

Country	People without access to electricity (in millions)
India	579.10
Bangladesh	104.40
Indonesia	98.00
Nigeria	76.15
Pakistan	65.00
Ethiopia	61.28
Myanmar	45.30
Tanzania	30.16
Kenya	27.71
Nepal	19.50
DPR of Korea	17.80
Mozambique	16.42
World Total excl. China	1,634.20

Enviro Fuels plans to market its High-Efficiency Stove and its Clean-Burning Fuel  Coal Pellets worldwide to address the needs.