Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

34
Boma Simeon Anga Chairman, NEPAD PAN AFRICAN CASSAVA INITIATIVE.

Transcript of Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Page 1: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Boma Simeon AngaChairman,

NEPAD PAN AFRICAN CASSAVA INITIATIVE.

Page 2: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Why the use of ethanol for Cooking? The rationale: The costs of fossil fuels are rising and so are the

budgets of most African Countries who spend an average of 55-60% of national budget on importation and subsidization of liquid petroleum fuels for their domestic economies.

African countries cannot cope with this rising cost. Most African economies may experience stagnation & worsen the poverty trap except alternative bio fuels are produced to substitute the unsustainable imports of petroleum.

This project when successfully implemented will put the tools in the hands of African investors & Governments for establishing efficient low cost fuel ethanol projects targeting the replacement of paraffin and gasoline.

Page 3: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Long lines await delivery of kerosene in a fuel station.

Replacing kerosene with ethanol is financially more rewarding than replacing gasoline, since Nigeria pays more for kerosene.

The retail fuel market in Nigeria has been plagued by high prices, scarcities, and quality problems. Purchasing fuels from abroad creates a FOREX problem.

Page 4: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Products (per litre)

Component currency PMS AGO HHK LPFO ATK

C + F (NGN

PORT)

$ 0.58 0.60 0.61 0.48 0.62

N 88.63 90.75 93.04 72.16 93.53

Other Charges (N) 5.71 4.26 6.43 4.15 4.27

Landing Cost (N) 94.34 95.01 99.48 76.31 97.80

Margins (N) 13.20 13.20 13.20 11.71 9.50

Expected Price (N) 107.54 108.21 112.68 88.02 107.30

Retail Price 65.00 50.00

PPMC Ex-Depot Price 55.90 40.90 48.00 Exchange Rate: 151.60(Naira

to Dollar)

Daily Spot Markets Data The data below reflects Market Fundamentals as at

Tuesday 26th January, 2010

Page 5: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

The Main Sources of cooking Fuel in NigeriaSource National Bayelsa Delta Rivers

Firewood 69.98 65.3 70.2 67.6

Charcoal 0.84 – 0.6 0.4

Kerosene 26.55 33.1 26.4 28.1

LPG 1.11 0.3 1.4 1.8

Electricity 0.52 0.3 1.4 1.8

Crop

residue

0.9 – – –

Animal

waste

0.07 – 0.3 0.4

Others 0.84 1.11 0.3 1.4

Total 100 100 100 100

Source: FOS: Nigeria Poverty Profile 2004

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Traditional fuels for sale in Nigeria. The city’s cash economy pulls in these biofuels, but they are no longer cheap.

Page 7: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Two examples of dirty, smoky fuels in common use:

Animal dung

Tif tif for sale.

This fuel is a blend of charcoal dust and clay.

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0

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Dung Crop Wood Kerosene Gas Alcohol Electricity

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Emissions Along the Energy Ladder

CO (g/meal)

PM10

Our tests show that alcohol fuels used in the CleanCook stove are

the cleanest and safest alternative for the 80%+ of homes in the developing world that do not have adequate or reliable access to electricity.

PM10 are small soot particles 10 μ in size or less. PM10

indicates that even smaller, more dangerous particles are present.

Page 9: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Sub Sahara Africa homes suffer from extreme energy

poverty.

Page 10: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Mother and child in a smoky Kitchen cooking in Nigeria

Extremely high particulate matter and CO. kills

360,000 women and children every year in Sub

Saharan Africa (WHO 2006)

Page 11: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

This region of Africa also suffers from high

levels of indoor air pollution.

Smoke in the Home

Page 12: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

WHY USE ETHANOL FOR COOKING? Blackened pots, walls and ceiling

Health: eye irritation, coughing

Long distances for gathering 6-8 hours or more

Rape, beatings, intimidation, threat of murder, theft

Falls and injuries, dehydration, injuries to back, legs and kidneys

Lack of wood

Lack of time for education, income generation, or access to services

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What is the potential for ethanol to be an

economical household fuel?

The household market is different from the vehicle fuel market

and needs to be treated somewhat differently.

The vehicle fuel market is inherently inflationary for alcohol

fuels, because they are much cheaper to manufacture than

petroleum fuels yet can be sold at or near the price of

petroleum fuels when used as an additive or substitute.

The alcohol fuels do not need to be subsidized for the

household fuel market, but they do need to be “sheltered” from

the vehicle fuel market by supportive government policy. It

should be reiterated that because alcohols are cheap to

manufacture, no subsidies are needed.

Page 14: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Ethanol as fuel for stoves, generators cars, buses and lamps will be available everywhere (as telephone handsets now are, yet much cheaper…

Imagine a soon coming Africa where…

Our cars will run on GASOHOL: A cleaner fuel made from a blend of Ethanol & Gasoline:

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The Cassakero VISION

“To provide Nigeria with a locally made agro-based bio-fuel for household use that will be available, affordable and accessible, creating sustainable new jobs and reducing poverty while enhancing food and energy security in the nation. “

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PROJECT MISSION

“To establish a dedicated national bio-ethanol output of 4 million liters per day produced from integrated small scale-bio ethanol refineries to provide the household fuel requirement of 4 million families in four years (2010-2014).”

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Page 18: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

S/No

.

Ethanol markets in Nigeria Market Demand per

Year

1 Gasoline (E10 Blend) 1.30 Billion Liters

2

Paraffin (Replacement With

Ethanol Based cooking

Fuel)

3.75 Billion Litres

3

Raw Material for Portable

Ethanol(Re-distillation

market)

0.12 Billion Litters

Total Market Size 5.22 Billion Liters

Market Value:3.08 Billion dollars Annual Projected growth rate: 5%

Page 19: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD
Page 20: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

The Cassakero Cooking fuelCassakero is safe and easy to handle and user friendly. it is less volatile and as a bio-fuel, it is easily absorbed into the environment with no known health hazard. The ethanol will be denatured with Bitrex, a bitter substance to render it undrinkable, and a colorant to give it a distinguishing color.

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In 2002, kerosene, which was subsidized, cost 32¢ per liter. Kerosene is priced in the “official” market today at about 80¢ and in the black market at well over $1.00 per liter. It is often adulterated with gasoline since gasoline is now cheaper.

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Mrs. Ejime Nwanze of Umunze Quaters in Ogwashi-Uku, Delta State. To her

right is a cylindrical Chinese kerosene stove, which she purchased at the price

of N3,800 (US$ 32.00) in June 2006. Note the thick layer of soot all around the

kettle placed on the kerosene stove. She said the kerosene stove started

developing fault just 7 months after its first use. She said she abandoned the

kerosene stove for the CleanCook stove when she received it for the pilot study.

Page 23: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Surprised by how quickly the

CleanCook stove warmed her kettle of

water, Mrs. Agnes Gilala of Warri study

location exclaims with regard to the

speed it took the water to boil.

Mrs. Lucy Obiamah lights the

CleanCook after receiving the Surveyor

Helen in Ibusa, a sub-location under

Asaba pilot location.

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The other Applications of Ethanol as a household fuel

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Ethanol opens a world of new Possibilities

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Ethanol powered Shower with heater

The shower head

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Rural/Agro-Industrial Employment

“Energy Poverty” Reduction

Safe Usage for Women & Children(Non-Spill & Non-Explosive)

Clean Cooking Environment(No Smoke, Fumes or Smell)

Adaptable to Existing Wood fuel &Kerosene Stoves/Cooking Practices

Social Impacts & Benefits

Page 30: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

% of Firewood and Charcoal ReplacementCountry Firewood

Charcoal

Replacement

Country Firewood

Charcoal

Replacement

Country Firewood Charcoal

Replacement

Central Africa Eastern Africa Western

Africa

Angola 19.07% Burundi 6.28% Benin 111.48%

Cameroon 29.82% Ethiopia 25.14% Burkina

Faso

17.25%

Chad 25.42% Kenya 3.76% Gambia 2.83%

Congo, Dem 15.06% Madagascar 8.49% Ghana 87.30%

Congo, Rep. 14.28% Malawi 21.03% Guinea 1.52%

Mozambique 24.74% Guinea-

Bissau

1.72%

Tanzania 7.18% Mali 28.47%

Uganda 6.59% Nigeria 53.56%

Zambia 0.11% Togo 13.54%

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Bio-fuels Initiative in Africa Key Stakeholders

1. Energy security & diversification

2. Higher convertible currency exports

3. New revenue stream for agro-industries & farmers

4. Carbon finance

5. Jobs

6. Local rural energy needs

Private sector

Commercial Banks

NGOs Civil

Society

Gov Development

Banks Development

Partners Sub-regional, Regional. &

International Institutions

Research

Page 32: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

Better prices and greater incomes are

achieved through cassava development

Empowered!!!

A better

future

secured

The positive investment decisions we

make Today will contribute to their

laughter and smiles tommorrow?

Page 33: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

WE CAN’T SPELL “SCCESS”

WITHOUT “U”

Please Join Us Make This Dream A Reality!

Page 34: Session 5.2 Using Ethanol for domestic energy supply in Nigeria by Anga from NEPAD

For Further Details Contact: THE PROJECT CONSULTANTS:

:Mr. Boma Simeon Anga

Executive Chairman

Cassava Agro industries Services

Limited

House 32, 351 Road, off 3rd Avenue,

Gwarinpa Estate,

Abuja.

Tel: +234-(0)803-303-1097,

(9)290-7366

Fax: +234-(9)222-4046

WEBSITE:

www.cassavaagroindustries.com

e-mail: [email protected],

[email protected]