The Nigeria National Petroleum Company (NNPC), has endorsed the first Biofuels refinery in Nigeria, saying that the project would create employment for about 58,000 Nigerians in each participating states of the federation, 8,000 direct and 50.000 indirect employment.

The Group Managing Director, NNPC Abubakar Yar’Adua, made this declaration through the Group General Manager, Engineer Sulaiman Achimagu, at the occasion of the official ground breaking ceremony for the Global bio-fuel limited integrated Ethanol processing facility in Arigidi, Akoko, Ondo state saying that the Biofuels industry is becoming a reality. Developed economist such as USA and Europe are stepping up their target usage of Biofuels to significant and Nigeria must not be left out.

The USA target 130bn litres of ethanol for the USA by 2025, while the European Union has set guidelines that 10% of total motor fuel consumption by 2020 must be Biofuels.

Many countries have active policies to develop their domestic Biofuels production, he said. He said 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 resource. Federal Government in June 2007 approved and gazetted a national Biofuels policy and incentives which proved the enabling ambience to sensitize them on opportunities in the Biofuels industry.

A follow up national workshop that would involve a wider range of stakeholders is being planned. Second, feasibility studies have been completed for 5 Bio-Ethanol projects at specific location in the 3 states. 2 feasibility studies on Biodiesel are currently ongoing. Discussions are being held with potential investors to implement this project. Third, the introduction of E10 which is 10% Bio-ethanol with 90% fossil fuel into Nigeria market is at advance state.

NNPC would like to commend other investors to emulate Global Biofuels Limited and initiate projects in various part of Nigeria. The benefits of ethanol are enormous. A thriving Biofuels industry would be a major contributor towards the realization of Yar'dua 7 point agenda for Nigeria through power generation, wealth creation and energy security.

He said NNPC has created a Renewable Energy Division upon the mandate from Federal Government that the corporation spearhead the development of Biofuels industry in Nigeria. This division has recorded a number of notable achievements since its creation. First workshop has been held with key stakeholders.

Speaking at the occasion, the GMD/CEO, Global Biofuels Limited, Dr. Felix Babatunde Obada disclosed that 30,000 hectares of land have been acquired to actualize the present phase of the project in Ondo State. He said that work will commence with initial cultivation of 50Hectares of land which will be upscale to 300 hectares and increase over a short possible time while construction and installation of Ethanol Refinery and Life Camp will follow simultaneously.

The Refinery will be established in a total of 7 states of the Federation. We already are discussing other states governments for the project to be developed in their state.

Our target is to produce approximately 1.5million litres of fuel ethanol per day, he maintained.

He explained that the project is the first sweet sorghum Biofuels refinery in Nigeria and is expected to produce fuel grade ethanol which would be utilized to blend fossil fuel for the purpose of reducing carbon emission into the atmosphere. It would also reduce depletion of ozone as well as stem global warming.

He maintained that the company is working with Bank PHB to source for funds both within and from international agencies that hah shown readiness to support the project. The project will enhance the living standard of Nigerins through wealth creation and poverty reduction. It would assist the country to achive its E10 requirement of United Nation Kyoto agreement by 2010.