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Movers & Shakers Interview with Global Biofuels Limited
Dr. Felix Babatunde Obada [Date Published: 1 Dec 2008]
MD/CEO

Dr Obada is the Group Managing Director and Chief Executive Officer of NeGSt Global Integrated Company Limited. He holds a Doctor of Philosophy Degree (PhD) in Materials Management from Pacific Western University, Los Angeles, USA.

He started his professional engineering career at the Nigerian National Petroleum Corporation (NNPC) in 1977 and retired in 1995 as a Chief Engineer and Visiting Consultant in the Corporate Planning Department of the company.

He later became the pioneer Director-General of the Materials Management Institute of Nigeria between 1996 and 1998 and served as a Consultant to the University of Surrey Space Centre, United Kingdom, between 2000 and 2003. Among his accomplishments,

Dr. Obada successfully engineered the entrance of Nigeria into the space age by facilitating the design and launch of Nigeria's first Satellite (NigeriaSat-1) working with the University of Surrey and the Federal Ministry of Science & Technology.

In September 2003, Dr. Obada again pioneered the creation of the National eGovernment initiative as a Public-Private Partnership (PPP) between the Federal Government and the Organized Private Sector (OPS) mandated by the Federal Government of Nigeria to implement the eGovernment project to cover all Federal, State and Local Government Areas of Nigeria. He was appointed the Managing Director of NeGSt in March 2004.

A consummate strategist, Dr. Obada aggressively grew the eGovernment initiative and created several Strategic Business Units (SBUs) under NeGSt Global after acquiring the Trademark of 'NeGSt' together with its products from the Federal Ministry of Commerce under the Trade Mark Act of 1956.

He was also listed in the 2002/2003 Contemporary Who is Who. Owing to his significant career achievement and contribution to society, he became an honorary member of the American Biographical Institute of Research Board of Advisors, Raleigh, NC, and USA in 2002/2003.

He was given the 21st Century award for Achievement in the field of eGovernment implementation in Nigeria-2004 by the International Biographical centre Cambridge. He is presently deploying eTourism solutions and infrastructure to cover all parts of Nigeria.

What does the Frost & Sullivan Award mean to Global Biofuels Limited?

This Award strengthens our resolve to work assiduously towards contributing to global efforts to stem the harmful effects of climate change and create employment for the rural poor while at same time returning handsome rewards to our investors and other stakeholders.

How did Global Biofuels Limited have the vision to produce Sweet Sorghum based Ethanol?

Global Biofuels has been concerned about the use of food consumed by people to produce fuels for cars. We could not be part of any program that feeds cars instead of human beings. We have watched in utter amazement how the price of corn and wheat sky-rocketed the moment those foodstuffs started being converted to fuel.

We therefore resolved to avoid the food versus fuel debate by promoting the Sweet Sorghum alternative that will not compete with the food chain and our ideas appear to be paying off.

How is the infrastructure shaping up?

The design and layout of all infrastructural supports have been approved and awarded to the following companies:

  • Dynamic Corporation, USA: Refinery Civil Works; Farm Road Network, and Life Camp (containing Accommodation, Schools, Medical Facilities, Recreation, and Training facilities).
  • John Deere, USA: Clearing/Debushing and Farming Equipment
  • Jain Irrigation, India: Irrigation Solutions.

Orders have been placed for the clearing and farming equipment, Civil construction work will commence in February 2009.

What is the project status of the first refinery?

  • Design concept and parameters finalized.
  • Project scoping and Critical Paths Analysis determined.
  • Soil structure and load-bearing capacity at various depths concluded.
  • Order already placed for the refinery equipment and machinery by way of an Irrevocable Letter of Credit and the 1st milestone payment made. Under the terms of the LC, the second milestone payment is due for remittance in January 2009.
  • Shipping and delivery is expected to commence in February 2009.
  • Environmental Impact Assessment covering the Wet Season already concluded and the Dry Season component in progress.
  • Certification is expected in February 2009 after Public Hearings (already fixed for early February 2009) have been conducted at both Abuja and Akure

    What is the progress made on Sweet Sorghum production?

    • Test production of Sweet Sorghum commenced in April 2008 with land clearing and planting of 25Ha at two (2) locations; Arigidi (20Ha) and Ilemeso (5Ha).
    • Both locations were harvested in August 2008 yielding 2,200MT/annum of Biomass (88MT/Ha) and 10MT/annum of seeds.
    • Both varieties surpassed projected Sugar and Biomass yield as follows:

      Test Parameter Projected Actual Remarks

    1

    Sugar (Brix)
    11.5 Brix
    19.7 Brix
    Excellent

    2

    Biomass
    35MT/Ha
    88MT/Ha
    Excellent

    • Further land clearing and debushing in progress to scale up the Farm as follows:
      • 1,000Ha in February 2009;
      • 3,000Ha in July 2009; and
      • 10,000Ha in January 2010.
    • Irrigation systems planning, including Hydrology and Rain Water Harvesting underway.
    • Project Manager for Commercial Feedstock production recruited while recruitment of other Principal Officers in process.

    Who are your key Strategic Partners and Alliancies?

    • The Nigerian National Petroleum Corporation: Equity participant by statute and holds the Federal Government's mandate to develop and grow the Renewable Energy Sector in Nigeria.
    • Praj Industries, India: Plant Designer, Constructions Supervisor, Feedstock Sustainability Researcher and Agricultural Feedstock Production Strategist.
    • John Deere, USA: Clearing, Farming solution (end –to - end) and Agricultural Equipment Suppliers. Responsibilities also include training and maintenance.
    • Jain Irrigation, India: Irrigation services provider.
    • Dynamic Corporation, USA: Civil engineering and road construction.
    • ICRISAT, India: Sweet Sorghum research.
    • IAR, Samaru, Nigeria: Sweet Sorghum research.

    What is the structure of your Government and Private Sector Partnership in Nigeria?

    Present Shareholding Structure:

    • Nigerians 75%
    • Non-Nigerians 25%

    Nigerian Shareholders:

    • Private/Institutional Investors 55%
    • NNPC 10% (Statutory)
    • State/Local Government 10% (Statutory)

    What is the future of the Ethanol Industry in Nigeria?

    The future of the industry in Nigeria is very bright. As a signatory to the Kyoto Agreement, the Country needs to produce 1.095billion litres of Fuel Ethanol per annum to meet its E10 mandate in view of the Country's current annual consumption of 10.95billion litres of gasoline. This is apart from the derived demand of the surrounding West African Countries.

    The entire West African Sub - Region will therefore be looking up to Nigeria to serve as leader and hub for the development of the Renewable Energy Sector, thanks to the abundant supply of rainfall and suitable arable land.

    Government is also giving support and encouragement to participants in the sector. The Federal Government's Gazette on the Biofuels Industry contains several incentives such as Import Duty Waiver, Tax Holidays, Exemptions from Income Tax on Investment Incomes by Investors, etc.

    In view of available demand and the government support already in place, the environment is conducive for the growth of the Industry.

    Will Global Biofuels Limited venture into any new areas in future?

    On the completion of the Company's proposed ten (10) Biofuels Refineries in Nigeria, we plan to expand the Company's activities into other countries in West Africa as a means of stimulating the development and growth of the Renewable Energy Industry within the Region. This will not only help the Region to reduce its carbon footprint, it will also help each partner country to create employment opportunities, reduce rural poverty and urban migration.