AADL targets 25% production of Nigeria’s ethanol requirement by 2022

cassava ethanol factory

cassava ethanol factory

Allied Atlantic Distilleries Limited (AADL), an ethanol producing company, has reaffirmed its commitment towards the satisfaction of consumers needs through quality products as it unveils plan to expand capacity utilisation.

For effect, AADL said it is targeting 25 per cent of Nigeria’s ethanol requirement by 2022.
AADL is the first cassava-based plant in Africa to commence the production of extra neutral alcohol (ENA). The plant, which supports the backward integration of the present government, seeks to supply raw materials not only to distillers but pharmaceutical and other related industries.

Speaking during a facility tour of its Igbesa plant, Ogun State, Managing Director, AADL, Anurag Dhiman, said the company has been successful within the last two and half year of its operation in Nigeria. We are successful in getting quality and quantity right.

He stressed that the importation of ethanol is higher than what Nigeria is producing locally. According to him, the importers of ethanol are not its users, but the traders.

“For them, quality is not the criteria for bringing the product, their main aim is the price. The imported ethanol is of low quality, as part of our competitive edge, our product is best in quality, he said.

“We have been able to achieve capacity utilisation of 60 per cent since operation and we are going to achieve 80 per cent this year, he added.

Speaking on the expansion of project, he said, the firm is going to multiply the plant location, all over the country with the aim at meeting 25 per cent of Nigeria’s requirement by 2022.

According to him, ENA production is a major Forex earner in Thailand and Brazil, just like crude oil, he stressed that ENA can become a major earner for Nigeria.
“We have approached three state governments including; Ogun, Oyo and Osun respectively. These states have allocated hectares of land for us, he stressed.

He commended the efforts of the Federal Government on backward integration while seeking for encouragement in terms of tax relief, long gestation of repayment of loans.

Dhiman stressed that the industry needs a lot of government encouragement because companies find it difficult to get loans from Federal government. “All our projects are being funded by commercial funds.

“If government can support capacity like ours providing 50 per cent of the total requirement to fund, this would reduce the forex by 50 per cent and grow the economy.

“We have approached the Ministry of Agriculture and are trying to let the government understand that funding local producers on backward integration is key to drive industrialisation in the country”, he said.

According to him, “One of the things we have built that is giving us edge over others is innovation and efficiency. Most companies try to build what other people cannot replicate, that is what gives an edge over competition. This technology of cassava to ENA is solely ours, which is specific to us.

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