GLOBAL ECONOMIC MELTDOWN:
Solution For Nigeria In The Grow Your Energy (GYE) Initiative
     
1.0 INTRODUCTION
  Global Biofuels Farm

1.1   GYE has the potential to become Nigeria’s home-grown initiative to mitigate the looming catastrophic effects of the current global economic meltdown. It also provides answers to Nigeria’s efforts to reduce her carbon footprint in the fight against global warming in addition to resolving problems associated with the commercialization of agriculture, food shortage, rural development, restiveness in the Niger Delta, electric power generation, mono-product economy, rapid decline in Foreign Direct Investment, loss of jobs and attendant insecurity.

1.2   The GYE Concept was developed by Nigerian Scientists and Management staff of Global Biofuels Ltd in collaboration with the underlisted parties, namely:

  • The Nigerian National Petroleum Corporation ---- Regulator and Product Off-taker.
  • The Institute of Agriculture Research, ABU Samaru ---Feedstock Research (local).
  • International Crop Research Institute for the Semi Arid Tropics (ICRISAT) India --- Feedstock Research (International).
  • Praj Industries, India --- Feedstock Commercialization and Refinery Technology Support.
  • Nigerian Exim Bank, Abuja --- Strategic Partner & Financial Advisory Services.
  • ECOWAS Bank for Industrial Development, (EBID) Lome Togo --- Loan Portfolio Management (Regional).
  • African Biofuels and Renewable Energy Fund (ABREF) Lome Togo --- CDM Partner and Project Consultant (Continental).
  • US Exim Bank --- Funding of US Project Development Component.
  • Indian Exim Bank --- Funding of Indian Project Development Component.
  • China Exim BANK --- Funding of Chinese Project Development Component.
  • Jain Irrigation, India --- Commercial Irrigation Technology and support.
  • John Deere International, Switzerland --- Farm Machinery Technology and Training Support.
  • Akintola Williams Deloitte --- Reporting Accountant & Auditor
  • First Bank of Nigeria Plc --- Financial Advisory and Fund Arrangement Co-ordination.

GYE pilot scheme has been successfully implemented in two (2) states of Nigeria with very impressive results. It has received global acclaim and won two International awards from: Messrs Frost and Sullivan (Jo’Burg South Africa, December 2008) and ABOFI (Mary Land USA, November 2008). The initiative is now a subject of intensive research by some proactive governments.

2.0   WHY GYE: There are four important reasons why Nigeria is embracing the GYE initiative.

Greenhouse gasseoue effect2.1   Firstly, global warming and climate change has been traced to the harmful effects of Greenhouse gases (GHGs) emitted from mankind’s excessive consumption of fossil fuel. This has prompted world leaders to adopt the Kyoto Protocol which seeks to gradually reduce the consumption of fossil fuel, replacing it with renewable and harmless alternatives such as fuel ethanol. Doing so will save the planet earth from excessive rise in temperature, chronic desertification, draught, melting of the polar regions, rise in sea level, flooding of the coastal areas, landslides, soil erosion and what have you. Nigeria is a signatory to the Kyoto Protocol and ought to be seen to be doing something pragmatic in support of the fight against global warming.

Failed Finanacial Institution2.2    Secondly, the global economic meltdown, failure of the financial institutions, falling oil prices, enforced oil production cuts, credit crunch, loss of employment, national insecurity and the inevitable protectionism that will ensue is forcing every world leader to look inwards and adopt measures that will create new, smart environmentally friendly and sustainable jobs. The President of Nigeria, having accepted the reality that his country is not immune to this global economic meltdown, has put together an impressive team of experienced Technocrats and Economic Managers to proffer a solution to the imminent catastrophic phenomenon. GYE comes highly recommended as Nigerians answer to the economic meltdown.

2.3    Thirdly, the epileptic power supply situation in Nigeria that has crippled industries and left sour taste in the mouth of her leaders is a thing we must all regret as a nation. Any solution that helps to ameliorate the situation is something to be strongly encouraged by all and sundry. GYE with it’s potential to generate electricity from bagasse is a welcome relief.

2.4    Finally, the restiveness in the Niger Delta is a major source of worry across the entire globe. The problem can be successfully tackled once and for all if other areas of the country start to grow their oil and energy in a sustainable manner.

3.0   GYE DEFINED:

3.1   Grow Your Energy is a home-grown initiative for the sustainable production of bio-ethanol, bio-diesel, electric power, edible oil, beef and fish in an integrated, simple and contemporary manner. Unlike similar initiatives, GYE is completely and vehemently opposed to the use of food crops consumed by human beings and animals to produce fuel or generate energy.

Global Biofuels Farm

3.2   Through years of painstaking research work is collaboration with the aforementioned Institutions; the landraces of a sorghum variety produced in abundance in the dry savannah ecological zones, mostly in the northern parts of Nigeria has been isolated, developed and cultivated in commercial quantity to produce biofuels and also to generate electricity. Juice from the stem (or stalk) of this wonder crop, which hitherto had no known economic value is extracted, fermented and distilled into biofuels. The biomass or bagasse leftover is burnt in a co-generation ancillary to produce electricity. The farmer continues to use his grain for food but can also now generate additional revenue by selling the stalk. GYE is therefore a “waste-to-wealth” initiative that does not compete with the food chain. Intercropping with Safflower, Soya beans or groundnut or cultivation on pre -determined rotational basis replenish soil fertility, in addition to production of rich edible oils. Rain water is harvested routinely in large retention ponds containing fish nourished with wastes composed from edible oil extraction. The shredded leaves and other wastes from the feedstock are also composed into animal feed for cattle and beef production. It is a very simple and straightforward activity which must occur in tandem to satisfy each element of food chain.

3.3   The protocols of biomass conversion to electricity has been approved by Nigeria’s DNA and its CDM earning potential is estimated at €12.00 (Twelve Euros) per unit. The protocol for methane credit, which fetches 23 times more money than carbon, is presently being developed, thus making GYE a veritable tool for economic emancipation.

3.4   Climatological surveys conducted by our Scientists show that all areas lying between latitudes 7° and 14° North of the Equator is suitable for the sustainable cultivation of the crop. This means that nearly all the states in Nigeria north of the river Niger is good for the implementation of one or two GYE project(s). Similarly, the northern parts of Ondo, Oyo, Osun, Ekiti and Enugu states and all countries in the West African sub-region qualify for GYE projects on account of their suitable soil structure, rainfall, wind, temperature and vegetation cover.

4.0 OTHER COMPELLING REASON FOR GYE.

Electricity4.1   Each GYE project (Farm and refinery) will generated approximately 8000 direct and 50,000 indirect employment. It will also generate approximately 18 MegaWatts (MW) of electricity as well as earn substantial carbon and methane credits for rural developments and wealth creation. It will at once give a rare incentive to scientists and entrepreneurs to apply their expertise in new ways, making it possible to earn good returns while serving the majority of people who have been left behind in civilized living to catch up with the rest of the world. It is thus a divine compensation for those areas of Nigeria without fossil deposits.

4.2   It is also planned to extend the initiative to other parts of Africa, Europe, America and the far East to create a Nigerian-led solution to the global meltdown.

4.3    The GYE process technology has been fully developed, tested and made ready for commercialization. It will be put at the disposal of interested Governments and Commercial Outgrowers and Entrepreneurs in a Public Private Partnership arrangement. Unlike other agricultural initiatives, this one lends itself to proper co-ordination and management at all levels. The results are instantaneous and measurable.

5.0 POTENTIAL FOR SUCCESSFUL IMPLEMENTATION:

5.1    More than any other country on the planet earth, Nigeria is blessed with abundant supply of arable farmland and adequate rainfall required to support the sustainable development of GYE. Approximately 60% of available farmland currently lies fallow, unutilized and nearly every drop of rainfall is wasted.

5.2   Labour and trainable manpower exist in every part of Nigeria just as the technology to develop her local capacity is in plentiful supply worldwide. GYE project will maximise the use of these resources for the benefit of mankind.

5.3   The agriculture portion of GYE may be funded through already established channels under the direct supervision of the Department of Agriculture and the Central Bank of Nigeria. Additional funding may be provided as the need arises, in a manner to aggressively stimulate this sector of our economy while the legislative framework is speedily finalised. External funding is also available for this type of project globally, as Nigeria is always ready to leverage her enormous goodwill with the Exim Banks of other countries as well as other International Development Partners.

CONCLUSION:

GYE is a breakthrough initiative. The government of President Yar’Adua has for the first time in the history of Nigeria taken the commendable step to reduce the salary of political appointees. His name will be inscribed in gold and he will go down in history as the president who successfully took his country out of the scourge of poverty, diseases and squalor. The Organised Private Sector working alone is quite capable of implementing GYE, but the process will be slow and tortuous. With the Federal Government involvement however, the speed, depth and reach of execution is guaranteed to be instant and dramatic.

Author
Felix B. Obada, PhD.
GMD/CEO, Global Biofuels Nigeria
email:fbobada@globalbiofuelsltd.com
Tel: 00234-1-2706428/79.