Page 6 - DMEA Week 10 2023

DMEA ENERGY TRANSITION DMEA

Investors assume control

over biofuel refinery project

NIGERIA NIGERIA’S Kebbi state has handed over control The project coordinator, Professor Abubakar
of a recently completed ethanol-based biofuel Ka’oje, said the contract between Kebbi and the
refinery to a group of companies following the core investors had been ongoing for 30 years.
recent completion of construction. At the time, Ka’oje said: “In less than one year
Control was passed to private firm 3D Hitech of the commencement of the project, Governor
Systems, the Kebbi State Investment Co. (KSIC) Bagudu was able to fulfil all obligations on the
and Nigerian Petroleum Corp. Ltd. (NNPCL). part of the state government. We finished our
The move was announced during a conference own part of the bargain four years ago”.
held in the state capital, Birnin. Deputy Colo- NNPC signed an MoU in November 2017
nel Sama’la Yombe Dabai and state governor covering biofuel production from ethanol in
Abubakar Atiku Bagudu were present at the Kebbi. At that point, Ka’oje said that the state gov-
meeting, with Dabai saying: “Kebbi State Invest- ernment had cultivated a total of 47,000 hectares
ment Company is the host investor with 5% (470 square km) of cassava to provide a source of
shares, NNPCL has 5% shares with 3D core and raw material for the ethanol biofuel production.
majority shareholding of 70%.” “About 15,000 hectares [150 square km]
Bagudu noted that the deal was signed have been earmarked for biofuel project; while
between Dabai and the new operators at a small 32,000 hectares [320 square km] will be used by
ceremony in the capital, Abuja. The governor out-growers to produce cassava,” he said.
added that Gwazawa village in Danko-Wa- Ka’oje added: “Nigeria has the potentials to
sagu had been selected for the construction of commence production of ethanol in large quan-
the refinery, owing to the suitability of soil in tity for export especially from the northern part
the area. Construction of the facility has been of the country,” he added, noting that biofuels
reported as costing $85-100mn and local media could provide an income of $1bn per year.
outlets have suggested that it will have a bio- While margins for advanced biofuels are
chemical production capacity of 84mn litres per highly attractive, such a level is fanciful, even if
year of biodiesel. the plant was able to leverage double counting
A deal for the transfer was signed in February. sales opportunities in Western Europe.™

P6 www. NEWSBASE .com Week 10 09•March•2023