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Monday, December 6, 2021

FG, Global Biofuels sign N414bn industrial biomass plants deal

Federal Government has signed a Memorandum of Understanding with Global Biofuels Limited, an indigenous bio-fuel producer, for the construction of 15 integrated bio-fuel plants in Nigeria estimated to gulp N414 billion.

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

The project is expected to create a total of 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 mega watts per state.

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, Nasarawa and  Plateau.

Speaking during the MOU signing ceremony, the Minister of Trade and Investment, Mr. Olusegun Aganga, stated that the project had been subjected to stringent feasibility and market studies adding that the Ministry of Trade and Investment would partner other local ministries and parastatals of the Federal and State Governments to ensure the successful execution of the project.

He noted that the project was 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, adding that when completed, the project would positively  impact  the nation’s economy and attract more Foreign Direct Investments (FDI)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.

“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.”

Speaking during the event, the Managing Director/ CEO , Global  Biofuels Limited, Dr. Felix Obada, said that 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 First Bank of Nigeria Plc , respectively.

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FG, Global Biofuels sign N414bn industrial biomass plants deal

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