Nigeria will earn the sum of $150 million annually when the bio fuel project being embarked on by the federal government comes on stream, Funso Kupolokun, the group managing director of the Nigerian National Petroleum Corporation [NNPC] has said.

Kupolokun who disclosed this recently at a lecture In Lagos said the project is part of the nation's alternative energy development strategy which is aimed at utilizing potentials in cassava and sugar cane to produce ethanol. He explained that under the initiative, two types of automotive fuel would be developed namely, ethanol fuel and palm oil diesel which will provide good alternative to petrol. To this end, Kupolokun said special research initiatives would be sponsored by the NNPC to boost cassava and palm oil output in the country as part of the implementation process of the project. The venture, according to him, would bring about the establishment of several ethanol production plants at an average cost of S160 million each.

Kupolokun further said his company has secured a grant of 70,000 Euros from the Renewable Energy Efficiency Partnership [REEP] from Germany to provide support to the detailed feasibility studies at target locations. While saying that the implementation of a renewable energy project is one major priority of his company in the year, Kupolokun explained that work for the modification of its import reception facilities in Port Harcourt and Mosimi had commenced in preparation for the distribution of biofuel products.

Cooperative agreement he added, were being considered with institutions such as the University of Agriculture Makurdi, the International Institute for Tropical Agriculture, Ibadan and the Nigerian Cereal Research Institute [NCRD]to execute the research aspect of the bio fuel project.