Menu

The Nigerian National Petroleum Corporation (NNPC) is seeking for investors to drive its renewable energy initiatives. Through its Renewable Energy Division (RED), the NNPC initiated the biofuel programme, which aims to have Nigeria become a producer of ethanol fuel and biodiesel from agricultural products.

The NNPC said it plans to create special purpose vehicles (SPVs) in partnership with investors who have proven operational and managerial expertise in large scale integrated biofuel plantations.

“NNPC has secured suitable land portions to develop fuel ethanol and biodiesel project from local and state authorities and has completed site-specific, bankable, detailed feasibility studies using international experts and registration with appropriate public institutions,” Nigeria’s state-owned company said in a statement published by the Guardian Nigeria on Wednesday.

“While NNPC will indicate its negotiation shareholding of 20 to 30 per cent in each of the partnerships, the core investor(s) would be expected to undertake 100 per cent funding of the projects under a carry agreement in the first phase,” the NNPC reportedly said.  

The National Oil Company said the first phase of the project will begin with the proposed sugarcane fuel-ethanol project in Agasha-Guma area of Benue State. The project will cover at least 50,000 hectares of sugarcane plantations in close proximity, fitted with fuel-ethanol plant, cane mill and refined sugar plant, bagasse cogeneration plants, carbon dioxide recovery and bottling plant, and other appropriate utilities.

The Nigerian National Biofuels Programme was launched in August 2005 to spearhead the federal government’s biofuel initiatives in Nigeria. The programme seeks to develop low-carbon energy for transportation, climate change mitigation, wealth and employment creation, and to attain sustainable development across the country.