The special guest of honour, His Excellency, the Governor of Ondo State, Dr Olusegun Kokumo Agagu; Honourable Members of The National Assembly; Hon Minister of Tourism, culture and National Orientation; Hon. Speaker of Ondo House of Assembly; the Royal father of the day, His Royal Highness, Oba Akadiri Saliu Momoh IV, JP, CFR, the Olu Ikare of Ikare Land; Honourable members of Ondo State House of Assembly; the Chief Host, Chairman, Akoko North-West Local Government of Ondo State, hon. Felix Olubiyi Ogunmilade; All other Local Government Chairmen here are present; Members of Ondo State Executive Council; Members of the Diplomatic Corps, Captains of industries, Gentlemen of the press, distinguished Ladies and Gentlemen of the press, Distinguished Ladies and Gentlemen, all other protocols observed.

First, let me express my profound appreciation for the honour bestowed upon me to deliver a keynote address on this occasion of the official ground breaking ceremony for the Global Biofuels Limited Integrated ethanol processing facility in Arigidi Akoko, Ondo state.

The Global Biofuels industry is becoming reality. Developed economies such as the U.S.A and Europe are stepping up their target usage of biofuels to significant levels. The U.S.A targets 130 billion litres of ethanol for the U.S.A by 2025 while the European Union has set guidelines that 10%of total motor fuel consumption by 2020 must be biofuels. Developing countries, including oil producing ones, are also introducing the use biofuels. Many countries have active policies to develop their domestic biofuel production.

Nigeria is blessed with much untapped agricultural potential which allows the cultivation of the most advanced crops available in the world. Nigeria is estimated to have more than one million hectares of unused land available for biofuel production.

The Federal Government of Nigeria introduced the biofuels initiative to harness the vast agricultural potentials of the nation for sustainable wealth creation, employment generation and energy security through renewable energy source.

The benefits of biofuels are enormous. A thriving biofuels industry will be a major contributor towards the realization of President Umar Musa Yar’Adua’s 7-point agenda for Nigeria through the following:

1. Power generation: Cogeneration capability of biofuels plants have potential to contribute surplus power generated to the national grid

2. Weaith creation: Direct and indirect employment generation, sustainable development and revenue earning.

3. Energy Security: Cheaper, cleaner and sustainable production of fuels for transportation, domestic and industrial use.

To demonstrate its support for the biofuels programme, the Federal Government has since June 2007 approved and gazetted a National Biofuels Policy and incentives which provides the enabling environment to serious investors. I will like to bring to your attention that NNPC has created a Renewable Energy Division upon the mandate from the Federal Government that he corporation spear-head the development of a bio-fuels industry.

This division has recorded a number of notable achievements since its creation. First workshop have been held with key stakeholders to sensitized them on the opportunities in the biofuels industry. A following national workshop, which will involve a wide range of stakeholders, is being planned. Secondly, feasibility studies have been completed for five bio-ethanol projects at specific locations in three states – two feasibility studies on bio-diessel are currently on-going. Discussions are being held with potential investors to implement these projects. Third, the introduction of E10, which is 10% bio-ethanol blended with 90% PMS (or petrol) into the Nigeria market is at advanced stage.

The Management of NNPC wishes to express its gratitude to your Excellency the Governor and good people of Ondo State for the commitment, continued support and cooperation that the biofuels initiative has enjoyed to date. One of the five feasibilities studies that I mentioned earlier in my speech is actually located in this state – in Okeluse in the Ose Local Government Area. This project plans to produce bio-ethanol from cassava.

The initiative led by Global Biofuels Limited is another practical outcome of the Ondo State Government’s commitment to the national biofuels programme, and which is the reason for our gathering to witness today’s ground breaking ceremony.

NNPC will also like to salute the courage and patriotic zeal of Global Biofuels Limited in this venture to produce bio-ethanol from sweet sorghum. This effort is commendable. The use of sweet sorghum to produce ethanol has a number of advantages. The crop has a short growing period and low water requirement. Sweet sorghum is also suitable for mechanized crop production as well as cultivation through out-growers scheme. Of major significance is the great income generating benefit of sweet sorghum for the local farmer – they can sell stalks to the ethanol distillery and still have the grains to sell for food. We therefore believe that this is a project that has the potentials to change the fortunes of the Akoko community and indeed Ondo State.

NNPC would like to assure Global Biofuels of its commitment to support this project within its statutory roles. At the same time, NNPC would like to commend other investors to emulate Global Biofuels and initiate biofuels projects in various parts of Nigeria.

On behalf of the NNPC, we congratulate the Government and people of Ondo State and Global Biofuels Limited on this enviable project.

Thank you for listening.