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Fed Govt signs N424b plant deal with Global Biofuels

By on January 3, 2012

THE Federal Government  and Global Biofuels Limited, an indigenous bio-fuel producer,  have signed a Memorandum of Understanding (MoU) for the construction of 15 integrated bio-fuel plants in Nigeria worth N424billion.

The project is expected to generate 450megawatts of electricity as well as create 120,000 direct and 750,000 indirect jobs.

The Minister of Trade and Investment, Mr Olusegun Aganga, signed for the Federal Government, while the Managing Director/CEO, Global Biofuels Limited, Dr. Felix Obada, signed for his firm.

Aganga said: “This will create value chain,  in addition to linking 15 states of the federation  to cheap bio-fuel generated electricity at the rate of 30 megawatts per state.

“Construction on the pilot plant, which  will be established in Ekiti State, will commence in the first quarter of 2012 and shall be  completed  within 12 months, while  14  additional plants will be  established  in 14  other states  after the completion of the pilot project. The states include: Ondo, Osun, Kwara, Kogi, Benue, Gombe,Bauchi, Zamfara, Kano, Kaduna, Nasarawa and  Plateau.

“The project had been subjected to stringent feasibility and market studies, the Ministry of Trade and Investment would partner other focal ministries and parastatals of the Federal and state governments to ensure the successful execution of the project.”

The minster said the project is the culmination of several years of hard work and intensive research between Global Biofuels and its collaborators in Research Institutes in Nigeria, China, Brazil and India. When completed, he said the project would positively impact the nation’s economy and attract more Foreign Direct Investments into the country.

The company, he said, will start the implementation of an agro-based industrial activity for the production of ethanol, biomass electric power and food, all from a single industrial complex, using sweet sorghum as raw materials. The pilot project is at Ilemeso, Ekiti State.

Aganga said plant construction is scheduled to start in the first quarter of 2012 while mechanical completion, test run and inauguration have been fixed for the last quarter of 2012.

“The project is expected to create 120,000 direct jobs and 750,000 indirect jobs across the project’s value chain while a minimum of 15 states of the federation shall be linked to cheap biomass electric power supply at the rate of 30 megawatts per state,” he added.

Obada said 70 per cent of the project would be funded by the Chinese government while the remaining 30 per cent would be sourced from other financial institutions including NEXIM Bank, ECOWAS Bank for Investment and Development,Africa Finance Corporation, Fond Gari of Togo and FirstBank of Nigeria Plc.

One Comment

  1. Mfon C. Essien

    December 30, 2013 at 1:12 pm

    I have an msc in energy and have keen interest in renewable energy development. I did my thesis in biodiesel from jatropha for rural electrification in nigeria. I’d love to be involved in this project.