Nigeria to earn US $150m from Bio-fuel Initiative

Nigeria would be richer by $150m (about W 21bn) annually when the bio-fuel initiative comes into being.

This was contained in a lecture entitled "Energizing Agriculture through Gross Sectoral Linkages with the oil and Gas industry" delivered by the Group Managing Director of NNPC, Engr. Funsho Kopolokun at the convocation ceremony of the Federal University of Agriculture, Makurdi, recently. He stated that the bio-fuel project, which is part of the country's alternative energy development strategy, is geared towards utilizing our agricultural potential in cassava and sugar cane to produce ethanol that can serve as a good alternative to petrol currently in use.

The GMD explained that under the initiative, two types of automotive fuel are to be developed, namely ethanol fuel and palm oil diesel. The ethanol, he said, was derivable from processed cassava or sugarcane while the palm-oil diesel is produced by chemical processes which remove glycerin and can be used in any concentration with petroleum- based diesel fuel with little or no modification.

Kupolokun said as part of the implementation of the project, special research initiatives would be sponsored by NNPC to boost cassava and palm oil out put within the country and that the venture would lead to the settling up of several ethanol production plants at an average cost of $60m each. Engr. Kupolokun said the ethanol programme was expected to improve automotive exhaust emissions in the Country, reduce domestic use of petrol, free up more crude for export and position Nigeria for development of green field.

NNPC, he said, had gotten a grant of 70,000 Euros from Renewable Energy, Energy Efficiency Partnership (REEEP) form Germany to support detailed feasibility study at the target locations. An analysis showed that the current national average Cassava yield of 15tons per hectare will be marginal while the current sugarcane yield of 60 tons per hectare are sufficient. To this end, improving Cassava yields becomes an imperative.

He said the implementation of a renewable energy project was one of major roles of the Organisation this year, adding that work had commenced on the modification of its import reception facilities located at Port Harcourt and Mosimi area in readiness to distribute the bio-fuel product. He said cooperative agreements were being considered with a number of institutions among which are the University of Agriculture, Makurdi, International Institute for Tropical Agriculture, Ibadan and the Nigerian Cereals Research Institute (NCRI) to execute the research component of the project. NNPC Group Managing Director, Funsho Kupolokun said the corporation would sponsor research in universities and other research institutions that will lead to high yield of sugarcane and cassava. This will undoubtedly add immense value to the corperation's ethanol fuel production programme.

According to him, the corporation is inviting research proposals to be submitted for immediate review. He said, as the global energy demand was on the increase, the Nigerian oil and Gas Industry is well positioned to meet the demand call. However, he said over 67 million dollars was required as investment outlay for oil and gas project with creative linkages with the agricultural sector between now and 2008.

The GMD disclosed that the corporation's renewable energy project would contribute significantly towards meeting some of Nigeria's energy needs. "It will also be a major plank on which the cross sectoral linkages between oil, gas and agricultural sector will be laid" In order to sustain the envisaged linkage of the oil industry with the agricultural sector, a robust fiscal legislative work needs to be put in place. "I believe this will stem the high rate of rural to urban drift, as well as contribute significantly to the socio-economic development of the country", the GMD added.

He also said that as part of efforts to strengthen the linkage between the oil and agriculture, the NNPC has set up six agricultural resource centers, while plans have reached advanced stage to establish seven gas- fed fertilizer plants in the country. The plants will have a combined capacity to produce over 10 million tones of fertilizer per annum. He said that the plants would meet current and future domestic fertilizer demand which was expected to reach 2.4 tonnes in 2010 and up to 3.2 tonnes by 2015 while the excess will be exported."

The petroleum industry is poised to exploit the oil linkage between the sector and the agricultural sector", Kupolokun explained.

The GMD, who also met with the Benue State Governor, George Akume to discuss the modalities for the partnership, said a Memorandum of Understanding to secure land for large scale sugarcane and cassava production were being finalized with governments of Benue and Jigawa states.

While welcoming the synergy, Akume said the project crystallized development efforts and would provide employment opportunities to the people of the state, adding that such a programme was capable of stemming the scourge of petroleum product pipeline vandalization in the area.

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