NNPC shops for investors for ethanol plant

Biofuel

The Nigerian National Petroleum Corporation (NNPC) is seeking investors for its Renewable Energy Division (RED) to implement Nigeria’s automotive biofuels industry programme through a series of planned Special Purpose Vehicles (SPVs).

The automotive biofuels industry programme, according to NNPC, is aimed at leveraging the vast agricultural potentials with abundant skilled and unskilled labour in the country.

It added that it is also geared towards the synergy of NNPC downstream assets, capabilities, and infrastructural facilities.

NNPC said that the rationale for the automotive biofuels industry programme is to develop low-carbon energy for the transportation sector with significant financial returns, mitigate climate change, create wealth and employment and attain sustainable development across the country.

It stated: “NNPC has secured suitable land portions to develop fuel ethanol and biodiesel project from local and state authorities and has completed site-specific, bankable, detailed feasibility studies using international experts and registration with appropriate public institutions. The corporation is seeking to create special purpose vehicles with strategic core investors having proven operational and managerial expertise in large-scale integrated biofuels plantations and plants envisaged for the programme.

“While NNPC will indicate its negotiation shareholding of 20 to 30 per cent in each of the partnerships, the core investor(s) would be expected to undertake 100 per cent funding of the projects under a carry agreement in the first phase”.

It disclosed that to demonstrate the feasibility, the corporation intends to start with the proposed sugarcane fuel-ethanol project in Agasha-Guma area of Benue State, Nigeria.

NNPC noted that the first phase of the project will cover at least 50,000 hectares of sugarcane Plantations in close proximity, fitted with fuel ethanol processing plant; cane mill and refined sugar plant; bagasse cogeneration plants; carbon dioxide recovery and bottling Plant, and other utilities as appropriate.



6 Comments
  • Maigari

    It all too laudable to speak of renewable energy but really? In Nigeria we simply do not manufacture any motor vehicle machinery as such. How then do we set standards to be mer because these are specialised vehicles configured to run on the ethanol fuels. More over Nigeria still imports simple sugar yet here we are proposing to invest billions in a fancy fuel project when even the current pertroluem fuels are in acute shortage all over the federation. No, if the NNPC has surplus billions to spend improve the current fuel situation first before aiming to land on the moron as it were please.

    • Bodam

      Kindly read through… it’s funded 100% by the majority investor!!!
      If an Investors agrees to it; why not. We can’t only focus on an area… agreed comparative advantage and scale of preference matters, but in cases that u can get ‘external’ funds to contribute in its own little way to the economy, it should be welcomed!
      LNG is not consumed or used in Nigeria, but contributes positively to the Nigerian Economy for example!

      • Maigari

        Yes Bodan but no. The point remains that even the nations that are at he front of the ethanol fuel are now having second thoughts you can check as in Brazil. The opportunity cots is proving too high. It is not every enterprenuer investment that is sound and this is perhaps one case that needs a second thought. It is nit just about funds alone,no, there are environmental and other factors to be considered before even starting the project.

  • henry Oamen Patrick

    This is a step in the rightdirection. If properly considered and sincerely implemented, this can work. There are huge resources to generate biofuel from in Nigeria. The expertise is available as well.

  • my kehinde

    We have all the oil we need in fact we have reserves for thenext 100 years the land should be used to cultivate food to feed the nation and export not for fossil fuels when we already have it free given to us by God

  • emmanuel kalu

    very good plan, however in the current climate, it is very hard for any investor to invest in this. what the government needs to do is invest in it, and then sell it as a publicly traded company. we can use ethanol in various application. it is even used in generating electricity. it can be blended in fuel to fuel vehicle. it is used in so many industries and it would help increase the capacity of our farmer. very good idea, now we need to implement the idea.

Related