FG, Firm Seal N414bn Deal on Biomass Plant

Minister of Trade and Investment, Olusegun Aganga

The Federal Government yesterday signed a Memorandum of Understanding (MoU) with an indigenous bio-fuel producer, Global Biofuels Limited, for the construction of 15 integrated bio-fuel plants estimated to gulp about N414 billion to boost industrial development in the country.

Speaking during the signing ceremony, Minister of Trade and Investment, Mr. Olusegun Aganga, said the project had been subjected to stringent feasibility and market studies, adding that the ministry would partner other focal ministries and parastatals of the federal and state governments to ensure the successful execution of the project.

He said the project is expected to create 120,000 direct and 750,000 indirect jobs across the 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.

Aganga signed on behalf of the Federal Government, while the Managing Director/Chief Executive Officer (CEO), Global Biofuels Limited, Dr. Felix Obada, signed on behalf of his company.

He noted that the project was the culmination of several years of hard work and intensive research between the company and its collaborators in research institutes in Nigeria, China, Brazil and India, adding that when completed, the project would positively impact the nation’s economy and attract more Foreign Direct Investments (FDIs) into the country.



He said: “The company will commence 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 presently established at Ilemeso, Ekiti State.

“Plant construction is scheduled to commence in the first quarter of 2012, while mechanical completion, test run and commissioning have been fixed for the last quarter of 2012. Following its successful execution, the same project will be replicated in 14 states of the federation, applying similar technology, raw materials and financing structure.”

According to him, “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. The work of rejuvenating the real sector of the economy with a strong focus on employment creation, food security, biomass electricity, power generation,
import substitution and economic diversification can thus be said to have become a reality in Nigeria.”

Construction work on the pilot plant, which will be established in Ekiti State, will commence in the first quarter of 2012 and 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, and Nasarawa.

from Crusoe Osagie and Yemi Akinsuyi (THIS DAY LIVE)