SUSTAINABLE Biofuels INDUSTRY in Nigeria
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Transcript of SUSTAINABLE Biofuels INDUSTRY in Nigeria
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SUSTAINABLE Biofuels INDUSTRY in Nigeria – SUSTAINABLE Biofuels INDUSTRY in Nigeria – A GATEWAY TO ECONOMIC DEVELOPMENTA GATEWAY TO ECONOMIC DEVELOPMENT
BY BY Group general manager, Group general manager,
renewable energy division of NNPCrenewable energy division of NNPC
AT THE SECOND Nigerian Alternative Energy Expo AT THE SECOND Nigerian Alternative Energy Expo 2012 2012
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OUTLINEOUTLINE
ENERGY SITUATIONENERGY SITUATION
SUSTAINABLE BIOFUELS AND ECONOMIC DEVELOPMENT IN NIGERIASUSTAINABLE BIOFUELS AND ECONOMIC DEVELOPMENT IN NIGERIA
BENEFITS OF BIOFUELS PROGRAMMEBENEFITS OF BIOFUELS PROGRAMME
JOURNEY SO FARJOURNEY SO FAR
CONCLUSIONCONCLUSION
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INTRODUCTIONINTRODUCTION
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INTRODUCTION:INTRODUCTION:
What is Biofuels?What is Biofuels?Biofuels are fuels derived from recently living organisms (biomass).Biofuels are fuels derived from recently living organisms (biomass).
They can be divided into three categories:They can be divided into three categories:
a)a) First-generation BiofuelsFirst-generation Biofuels: produced from energy crops e.g. : produced from energy crops e.g. Sugarcane, Cassava, Corn, Oil Palm, etc Sugarcane, Cassava, Corn, Oil Palm, etc
b)b) Second-generation Biofuels: Second-generation Biofuels: produced from ligno-cellulosic plant produced from ligno-cellulosic plant materials from organic wastes, food crop wastes and specific materials from organic wastes, food crop wastes and specific biomass cropsbiomass crops
c)c) Third-generation Biofuels: Third-generation Biofuels: produced from genetically modified produced from genetically modified energy crops such as algae and microbesenergy crops such as algae and microbes
Examples of Biofuels include:-Examples of Biofuels include:- Liquid: Fuel-Ethanol and Biodiesel;Liquid: Fuel-Ethanol and Biodiesel; Solid: wood, sawdust, grass cuttings, domestic refuse, charcoal, Solid: wood, sawdust, grass cuttings, domestic refuse, charcoal,
agricultural waste, non-food energy crops, dried manure;agricultural waste, non-food energy crops, dried manure; Gaseous: —Biogas from anaerobic digestion or gasification of Gaseous: —Biogas from anaerobic digestion or gasification of
biomassbiomass 33
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Agric sector contribution to GDP has declined over the years
Agric sector contribution to GDP has declined over the years
54.96 54.96 54.96 54.96 54.9654.96
24.83
40.33
31.13 32.97
3.8
18.6613.8
42.9337.82
0
10
20
30
40
50
60
1966 1976 1986 1996 2006
GD
P c
on
trib
uti
on
(%
)
years
Oil Industry and GDP Growth
Agriculture GDP held constant (%) Agriculture Contribution to GDP (%)
Oil sector contribution to GDP(%)
INTRODUCTIONINTRODUCTIONHistorical Sectoral Contributions to GDP Growth:Historical Sectoral Contributions to GDP Growth:INTRODUCTIONINTRODUCTIONHistorical Sectoral Contributions to GDP Growth:Historical Sectoral Contributions to GDP Growth:
• From pre-independence to mid-70s, Agriculture provided the seed capital From pre-independence to mid-70s, Agriculture provided the seed capital for the development of the oil and gas industry in Nigeriafor the development of the oil and gas industry in Nigeria
• By 2006, Oil and Gas contributed about 37% of GDP, while Agriculture By 2006, Oil and Gas contributed about 37% of GDP, while Agriculture contribution to GDP declined from 54.99% in 1966 to 32%contribution to GDP declined from 54.99% in 1966 to 32%
• The major end-product of the Agric re-launch is The major end-product of the Agric re-launch is BiofuelsBiofuels
Source: National Bureau of Statistics
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OUTLINEOUTLINE
INTRODUCTIONINTRODUCTION
SUSTAINABLE BIOFUELS DEVELOPMENT IN NIGERIASUSTAINABLE BIOFUELS DEVELOPMENT IN NIGERIA
BENEFITS OF BIOFUELS PROGRAMMEBENEFITS OF BIOFUELS PROGRAMME
JOURNEY SO FARJOURNEY SO FAR
CONCLUSIONCONCLUSION
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ENERGY SITUATIONENERGY SITUATION
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ENERGY SITUATION: GLOBAL ENERGY SITUATION: GLOBAL Non-Renewable Energy account for about 75% of Non-Renewable Energy account for about 75% of Energy Supplies (Oil, Gas & Coal) in the worldEnergy Supplies (Oil, Gas & Coal) in the world
Coal22%
Oil32%
Gas21%
Nuclear6% Large Hydro
6%
Traditional Biomass
11%
Other Renewables
2%
Coal
Oil
Gas
Nuclear
Large Hydro
Traditional Biomass
Other Renewables
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ENERGY SITUATION: NIGERIAENERGY SITUATION: NIGERIA
The Energy Resources in Nigeria include: The Energy Resources in Nigeria include: Crude OilCrude Oil, , Natural GasNatural Gas, , Coal,Coal, Tar SandTar Sand and and RenewablesRenewables ( (Biomass, Hydro, Solar, Wind, etcBiomass, Hydro, Solar, Wind, etc.).)
Current Estimated Oil Reserve in Nigeria is 35.9 billion barrels with Current Estimated Oil Reserve in Nigeria is 35.9 billion barrels with dailydaily production capacity of production capacity of 2.7 million barrels of Crude Oil2.7 million barrels of Crude Oil
Natural Gas is estimated at Natural Gas is estimated at 185 trillion cubic feet185 trillion cubic feet of proven reserve as at ( of proven reserve as at (- - OGJOGJ).).
Coal and LigniteCoal and Lignite Reserves are estimated at Reserves are estimated at 2.75 billion tons2.75 billion tons..
The 35.9 billion barrels of oil in reserve will be depleted by 30 – 36 years period.
Renewable Energy (Biofuels) will increase fuel pool and address the adverse environmental impact of fossil fuels
Source: Oil and Gas Journal 77
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ENERGY SITUATION: Non-Renewable Energy sources are depleting at a Non-Renewable Energy sources are depleting at a fast ratefast rate
0.01
0.1
1
10
100
1000
1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100YEAR
FL
UID
FO
SS
IL F
UE
L P
RO
DU
CT
ION
/ D
EM
AN
D IN
EJ/
yr
LEGEND A : World Fluid Fossil Fuel Production B : Nigerian Fluid Fossil Fuel Production C : World Fluid Fossil Fuel Demand Projection D : World Fluid Fossil Fuel Production Projection E : Nigerian Fluid Fossil Fuel Demand Projection F : Nigeria Fluid Fossil Fuel Production ProjectionNote: 1E = One Exa-juole = 1018 J
1 EJ = 10 18 J
A
B
C
D
E
F
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ENERGY SITUATION: Non-Renewables cause Global Warming due to CONon-Renewables cause Global Warming due to CO22
EmissionsEmissions
99
Years
Years
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OUTLINEOUTLINE
INTRODUCTIONINTRODUCTION
ENERGY SITUATIONENERGY SITUATION
BENEFITS OF BIOFUELS PROGRAMMEBENEFITS OF BIOFUELS PROGRAMME
JOURNEY SO FARJOURNEY SO FAR
CONCLUSIONCONCLUSION
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SUSTAINABLE BIOFUELS DEVELOPMENT IN NIGERIA
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Sustainable Biofuels and Economic DevelopmentSustainable Biofuels and Economic Development
Biofuels provide a new opportunity to enhance economic Biofuels provide a new opportunity to enhance economic development in Nigeria. development in Nigeria.
Maximizing the poverty-reducing effects of a Biofuels Maximizing the poverty-reducing effects of a Biofuels industry in Nigeria requires engaging and improving the industry in Nigeria requires engaging and improving the productivity of small-holder farmers. productivity of small-holder farmers.
Our Feasibility Study shows that Sugarcane/Cassava/Oil Our Feasibility Study shows that Sugarcane/Cassava/Oil Palm-based Biofuels production is more profitable than Palm-based Biofuels production is more profitable than other feedstock options. other feedstock options.
Our findings also indicate that a combination of Out-grower Our findings also indicate that a combination of Out-grower Scheme approach and yield improvements rather than Scheme approach and yield improvements rather than expanded cultivation will address both poverty alleviation expanded cultivation will address both poverty alleviation and land-use issuesand land-use issues
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Sustainable Biofuels and Economic DevelopmentSustainable Biofuels and Economic Development
Incorporation of the Biofuels industry into National Incorporation of the Biofuels industry into National Development Plans, will contribute to achieving the Development Plans, will contribute to achieving the Country’s overall development objectives.Country’s overall development objectives.
Biofuels industry allows Community participations, including Biofuels industry allows Community participations, including local farmer local farmer
Biofuels offer Sustainable development option that is full of Biofuels offer Sustainable development option that is full of promise and are developed in ways that protect our planetpromise and are developed in ways that protect our planet
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SUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENTSUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENT
To ensure sustainability the Biofuels programme will employTo ensure sustainability the Biofuels programme will employ
the use of:the use of:
Suitable and more productive crops as feedstockSuitable and more productive crops as feedstock
Local/Indigenous varieties of selected feedstockLocal/Indigenous varieties of selected feedstock
Suitable feedstock for different ecological zonesSuitable feedstock for different ecological zones
Modern and efficient conversion technologyModern and efficient conversion technology
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Typical Yields of Raw Materials Used in Biofuels ProductionTypical Yields of Raw Materials Used in Biofuels Production
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SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.
Use of suitable and more productive feedstock:Use of suitable and more productive feedstock:
Crop Yield(ton/ha/yr)
Ethanol/Biodiesel yield
(litres/ton)
Ethanol/Biodiesel yield
(litres/ha/yr)Sugarcane 50-90 70-90 3,500-8,000Sweet sorghum 45-80 60-80 1,750-5,300Sugar beet 15-50 90 1,350-5,500Wheat 1.5-2.1 340 510-714Rice 2.5-5.0 430 1,075-2,150Maize 1.7-5.4 360 600-1,944Sorghum 1.0-3.7 350 350-1,295Cassava 10-65 170 1,700-11,050Sweet potatoes 8-50 167 1,336-8,350Oil Palm 16 – 35 136 4760Jatropha 6 – 10 151.36 1513.6Castor bean 0.75 – 1.5 753.6 1130.4
Suitable feedstock Alternative feedstock Low yield feedstock
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SUSTAINABLE BIOFUELS INDUSRTY DEVT. CONT.SUSTAINABLE BIOFUELS INDUSRTY DEVT. CONT.
Use local/indigenous varieties as feedstock:Use local/indigenous varieties as feedstock:
To ensure the use of the best local crop varieties of theTo ensure the use of the best local crop varieties of the
Preferred feedstocks, National Research Institutes havePreferred feedstocks, National Research Institutes have
been engaged for selection and breeding of local varietiesbeen engaged for selection and breeding of local varieties
that are:that are: High yielding;High yielding; Disease resistant, andDisease resistant, and Pest resistantPest resistant
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SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.Use of suitable feedstock for different ecological zone:Use of suitable feedstock for different ecological zone:
NATIONAL BIOFUELS FEEDSTOCK MAP
ImoAbia
i
BornoYobe
Bauchi
Kebbi
Kogi
Kaduna
Zamfara
Edo
Kano
Sokoto
Delta
PlateauNasarawa
Ogun
Cross River
Rivers
Osun
Enugu
Ekiti
Balyesa
EbonyiLagos
Akwa Ibom
FCT
Katsina
OyoKwara
Taraba
Adamawa
Benue
Jigawa
Potential Sugarcane
Potential Cassava
Potential Oil Palm
• Some States have potentials for more than one cropSome States have potentials for more than one crop• By 2020, the projected peak of Biofuels production would require about By 2020, the projected peak of Biofuels production would require about
500,000ha ~ 2% of the arable land (33million ha) in Nigeria. 500,000ha ~ 2% of the arable land (33million ha) in Nigeria.
• Some States have potentials for more than one cropSome States have potentials for more than one crop• By 2020, the projected peak of Biofuels production would require about By 2020, the projected peak of Biofuels production would require about
500,000ha ~ 2% of the arable land (33million ha) in Nigeria. 500,000ha ~ 2% of the arable land (33million ha) in Nigeria.
Potential Jathropha
NigerGombe
Ondo
Anambra
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Creatio
n o
f C
reation
of
Su
stainab
le Job
s
Su
stainab
le Job
s
with
Hig
h
with
Hig
h
GD
P Im
pact
GD
P Im
pact
Increased Production of
Increased Production of
Sugar, Starch, Crude Palm
Sugar, Starch, Crude Palm
Oil, Agro-Chemicals & Animal
Oil, Agro-Chemicals & Animal
Feed Feed
Increased Power
Increased Power
Generation using
Generation using
Renewable Resources
Renewable Resources
Lar
ge-
scal
e
Lar
ge-
scal
e M
ech
aniz
ed F
arm
ing
,
Mec
han
ized
Far
min
g,
usi
ng
imp
rove
d &
usi
ng
imp
rove
d &
h
igh
-yie
ldin
g
hig
h-y
ield
ing
S
eed
ling
sS
eed
ling
s
Cost–effective
Cost–effective
Transportation
Transportation
using Environment-
using Environment-
friendly Fuels/Blends
friendly Fuels/Blends
Cooperative Transfer of Cooperative Transfer of Technology & Access to Technology & Access to
Research FindingsResearch FindingsD
iver
sific
atio
n of
the
Div
ersi
ficat
ion
of th
e
Econ
omy
to c
urb
Econ
omy
to c
urb
Res
tiven
ess
acro
ss th
e
Res
tiven
ess
acro
ss th
e
Cou
ntry
Cou
ntry
TRANSFORMATIONTRANSFORMATIONAGENDAAGENDA
Power &
Power &
EnergyEnergy
Food Food Security
SecurityW
ealth
Wealth
Creatio
nC
reation
EducationEducation
Ag
ricu
ltu
reA
gri
cult
ure
Tran
spor
tatio
n
Tran
spor
tatio
n Security
Security
SUSTAINABLE BIOFUELS IN TRANSFORMATION AGENDA SUSTAINABLE BIOFUELS IN TRANSFORMATION AGENDA
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SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT. SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.
The Biofuels Programme Modality is The Biofuels Programme Modality is Food & Fuel Food & Fuel NOTNOT Food Vs Fuel Food Vs Fuel
The National Biofuels Programme excludes staple crops such as: The National Biofuels Programme excludes staple crops such as:
millet, corn, rice, yam and grain sorghum, but plans to use Sugarcane, Cassava, millet, corn, rice, yam and grain sorghum, but plans to use Sugarcane, Cassava, Sweet Sorghum, Palm Oil and Jatropha as feedstock for Biofuels production Sweet Sorghum, Palm Oil and Jatropha as feedstock for Biofuels production
Proposed Biofuels Projects are all integrated (Plant & Plantation) and as such will Proposed Biofuels Projects are all integrated (Plant & Plantation) and as such will not distort current food supplynot distort current food supply
Currently no commercial scale Biofuels production in Nigeria, hence the rising costs Currently no commercial scale Biofuels production in Nigeria, hence the rising costs of food in Nigeria is due to causes other than Biofuels productionof food in Nigeria is due to causes other than Biofuels production
The Programme is intended to boost Agriculture and add to food production through The Programme is intended to boost Agriculture and add to food production through improved farming techniques and high-yielding varietiesimproved farming techniques and high-yielding varieties
By 2020, the projected peak of Biofuels production would require about 500,000 ha By 2020, the projected peak of Biofuels production would require about 500,000 ha – using less than 2% of the arable land (33million ha) in Nigeria for JV Plantations – using less than 2% of the arable land (33million ha) in Nigeria for JV Plantations and Out-growers schemeand Out-growers scheme
The Programme is modelled to integrate the Agric sector with the Oil and Gas The Programme is modelled to integrate the Agric sector with the Oil and Gas Industry Industry
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Sustainable Biofuels and Economic DevelopmentSustainable Biofuels and Economic Development
The proposed Biofuels Projects are integrated and The proposed Biofuels Projects are integrated and meet three design principles:meet three design principles:
Integrated Business Model Design Principles:
Sustainability of the industry dictates large-scale mechanized Plantation operations integrated with processing Plants
Out-grower schemes are planned around the core Plantation, using a Service Company Model managed by the Plantation governance structure
Plantation and Plant operations must meet international sustainability standards:
Profitable Environment-friendly Socially responsible
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SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT. SUSTAINABLE BIOFUELS INDUSTRY DEVT. CONT.
Modern and efficient conversion technology:Modern and efficient conversion technology:
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BIODIESEL PRODUCTION PROCESS FLOW DIAGRAMBIODIESEL PRODUCTION PROCESS FLOW DIAGRAM
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SUSTAINABLE BIOFUELS AND ECONOMIC DEVELOPMENTSUSTAINABLE BIOFUELS AND ECONOMIC DEVELOPMENT
Resource AvailabilityResource Availability:: Nigeria has about 33 million Hectares of arable land and only Nigeria has about 33 million Hectares of arable land and only
about 10% is under cultivationabout 10% is under cultivation
Favourable agro-climatic and ecological conditions across the Favourable agro-climatic and ecological conditions across the countrycountry
Strong capital base: Financial institutions are willing to Strong capital base: Financial institutions are willing to participateparticipate
Enormous skilled and unskilled labourEnormous skilled and unskilled labour
NNPC infrastructural facilities nationwide NNPC infrastructural facilities nationwide
Research institutions: NCRI, IITA, NRCRI, NIFOR, Universities, Research institutions: NCRI, IITA, NRCRI, NIFOR, Universities, etcetc
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2323Source: National Energy Master plan
Biofuels Type Time Frame
Short Medium Long
Fuel-Ethanol (demand in billion liters/yr)
1.3 (at 10% blend)
3.4 (at 15% blend)
52.5(at 50% blend)
Biodiesel (demand in billion liters/yr)
0.233 (at 10% blend)
1.951 (at 20% blend)
12.7 (at 50% blend)
SUSTAINABLE BIOFUELS AND ECONOMIC DEVELOPMENT
Nigeria’s Biofuels DemandNigeria’s Biofuels Demand
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OUTLINEOUTLINE
INTRODUCTIONINTRODUCTION
ENERGY SITUATION IN NIGERIAENERGY SITUATION IN NIGERIA
NIGERIA’S BIOFUELS DEMAND POTENTIALSNIGERIA’S BIOFUELS DEMAND POTENTIALS
RESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELSRESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELS
BIOFUELS AND ECONOMIC DEVELOPMENTBIOFUELS AND ECONOMIC DEVELOPMENT
JOURNEY SO FARJOURNEY SO FAR
CONCLUSIONCONCLUSION 2424
BENEFITS OF BIOFUEL PROGRAMMEBENEFITS OF BIOFUEL PROGRAMME
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The Biofuels industry presents vast social, economic and environmental benefits for Nigeria.
• Good returns on invested capital (high IRRs ~30%)
• Revitalization of the agricultural sector
• Increased local production of sugar and power complement efforts at filling existing supply gaps in Nigeria (for sugarcane to ethanol)
• Diversification of the country’s energy usage and hence increased ability to hedge supply risk
• Carbon credit earnings
• Reduction of gasoline imports and foreign currency use
Economic Benefits
• Rural wealth and job creation
• Sustainable developmentSocial Benefits
• Environmentally friendly fuels / less pollution
• CO2 emission reduction
Environmental Benefits
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FINANCEFINANCE
COMMERCECOMMERCE & INDUSTRY& INDUSTRY
EDUCATION, EDUCATION, SCIENCE & SCIENCE &
TECHNOLOGYTECHNOLOGY
DEFENCE & DEFENCE & SECURITYSECURITY
ENERGYENERGY
THE NIGERIAN ECONOMYTHE NIGERIAN ECONOMY
THE ENERGY – ECONOMY RELATIONSHIPTHE ENERGY – ECONOMY RELATIONSHIP: : Energy touches various aspects of our economyEnergy touches various aspects of our economy
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AGRICULTUREAGRICULTURE
INFORMATION & INFORMATION & COMMUNICATIONCOMMUNICATION
TRANSPORTATIONTRANSPORTATION
HOUSE HOLDHOUSE HOLD& HEALTH& HEALTH
MINES & POWERMINES & POWER
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BENEFITS OF BIOFUELS PROGRAMME CONT.BENEFITS OF BIOFUELS PROGRAMME CONT.
EnvironmentFriendly
Rural Economicempowerment
DiversificationOf EnergyMatrix
Petroleum & Agric industry integration
Efficient supplier Chain Road/Transport
Maximize carbon creditOpportunities
Home grown industry
Sustainable DevelopmentLower cost of production
Research & Learning
Energy sufficiency & Potential for export
Rural wealth creation
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OUTLINEOUTLINE
INTRODUCTIONINTRODUCTION
ENERGY SITUATION IN NIGERIAENERGY SITUATION IN NIGERIA
NIGERIA’S BIOFUELS DEMAND POTENTIALSNIGERIA’S BIOFUELS DEMAND POTENTIALS
RESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELSRESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELS
SUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENTSUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENT
ECONOMIC BENEFITS OF BIOFUEL PROGRAMMEECONOMIC BENEFITS OF BIOFUEL PROGRAMME
CONCLUSIONCONCLUSION
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JOURNEY SO FARJOURNEY SO FAR
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NNPC has invested significant resources in the promotion NNPC has invested significant resources in the promotion of the Biofuels programme with positive results:of the Biofuels programme with positive results:
Domestic Biofuel Programme
ETHANOL• Developed 5 bankable feasibility studies for sugarcane & cassava ethanol
BIODIESEL• Completed 2 feasibility studies for oil palm to biodiesel projects
IJV FORMATION• Credible potential investor groups have shown interest to partner with
NNPC for joint development projects (IJV formation)
Policy & Incentives Development
POLICY• Biofuels Policy approved by the Federal Executive Council and gazetted
(Gazette No. 72, June 20th 2007) but is presently being reviewed by Energy Commission of Nigeria
OFFTAKE AGREEMENTThe off-take agreement contract design concluded to provides guaranteed
market to local producers of Biofuels.
JOURNEY SO FAR CONT.
JOURNEY SO FAR CONT.
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Seven bankable feasibility studies have been completed Seven bankable feasibility studies have been completed in five different states, while engaging various State in five different states, while engaging various State Governments in discussion for Land Sites. Governments in discussion for Land Sites.
ImoAbia
BornoYobe
Bauchi
Kebbi
Kogi
Kaduna
Zamfara
Edo
Kano
Sokoto
Delta
PlateauNasarawa
Ogun Ondo
Gombe
Cross River
Rivers
Osun
Enugu
Ekiti
Balyesa
AnambraEbonyi
Lagos
Akwa Ibom
FCT
Katsina
OyoKwara
Taraba
Adamawa
Benue
Jigawa
Niger
Sugar cane
Cassava
Oil Palm
There is potential for many more projects in other states.There is potential for many more projects in other states.
• Sugarcane 16,000 ha• 3 projects• EtOH: 75 million liters/yr• Sugar:116,000 tonnes / year• Electricity: 64 MW• Investment: $322 million
• Oil Palm 14,000 ha & 8,500 ha • 2 projects• Palm Oil: 60,000 / 32,000 t/yr• Biodiesel: 38 / 21 million liters/ year• Investment: $75 / 44.5 million
• Cassava:13,500 ha• 2 projects• EtOH: 38 million liters/yr• Starch:36,000 tonnes / year• Investment: $115 million
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Roadmap for a 500,000 ha Integrated Food,Roadmap for a 500,000 ha Integrated Food, Biofuels and Energy Industry Biofuels and Energy Industry
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COMMENCEMENT • Implement policy
(off-takes, etc.)_• Launch E10• Develop shared
ownership with relevant MDAs
• kick-off bill
• Create first JVs• Obtain bill
approval• Upgrade
distribution infrastructure
• Sanction 2 or more private projects
• Expand financing facilities
• >33,000 ha developed
• > 100,000 t cassava harvested
• >3,500 jobs created
• Launch B5 seeding programme
• >65,000 ha developed (incl. cassava, sugarcane and palm oil)
• 10+ million liters ethanol/ year
• Begin production of sugarcane
• 250,000 ha developed (70,000 ha in biofuel production*)
• 360 million liters ethanol/ year)
• 120+ MW co-generation
• Begin production of palm biodiesel (15 million liters/year)
Sustain Growth• Seek increasing
use of biofuels beyond E10 and B5
• 500,000 ha developed (285,000+ ha in biofuel production*)
• 1.2 billion liters of biofuels / year
• 600+ MW co-generation
• $6+ billion invested
Note:1. There is a lag of 3 to 6 years between land development and Biofuels production depending on the crop used as feedstock
2.Project commencement will be determined by provision of equity by the government for IJV formation.
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OUTLINEOUTLINE
INTRODUCTIONINTRODUCTION
ENERGY SITUATION IN NIGERIAENERGY SITUATION IN NIGERIA
NIGERIA’S BIOFUELS DEMAND POTENTIALSNIGERIA’S BIOFUELS DEMAND POTENTIALS
RESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELSRESOURCE AVAILABILITY IN NIGERIA FOR BIOFUELS
SUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENTSUSTAINABLE BIOFUELS INDUSTRY DEVELOPMENT
ECONOMIC BENEFITS OF BIOFUEL PROGRAMMEECONOMIC BENEFITS OF BIOFUEL PROGRAMME
JOURNEY SO FARJOURNEY SO FAR
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CONCLUSIONCONCLUSION
The Biofuels industry has potential to make a significant impact on The Biofuels industry has potential to make a significant impact on the Nigerian economythe Nigerian economy
Growing oil/energy demand and limited oil resources calls for a Growing oil/energy demand and limited oil resources calls for a complementary sustainable energy source –complementary sustainable energy source –BIOFUELS
Awareness creation on the benefits of Biofuels industry and Awareness creation on the benefits of Biofuels industry and advocacy for the implementation of Biofuels Projects is paramount advocacy for the implementation of Biofuels Projects is paramount to the success of the industryto the success of the industry
Standardization of policies and incentives will facilitate the Standardization of policies and incentives will facilitate the realization of a thriving domestic Biofuels industryrealization of a thriving domestic Biofuels industry
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