Anas A. Galadima
18 December 2006
A United States based company, Lemna International, said it plans to establish a $50million (about N6.3billion) ethanol production plant in Taraba state within the next four months.
The plant will use sugarcane as raw material for the production ethanol which is fast becoming the closest alternative to crude oil, as the price of the commodity continues to rise in the international market.
Speaking before a Memorandum of Understanding (MOU) was signed between the company and the Taraba state government, Viet Ngo, the President and CEO of the company said the company plans to invest between $50million and $57million dollars in the plant, pointing out that the raw material (sugarcane) would be produced by local farmers and that the company would pay more for it than what sugar producers and direct sugarcane consumers are willing to pay. This, he said, will translate into more money for producers of the crop.
He said the company would be the first producer of ethanol in the country, pointing out that all the company requires from the state government is "to provide the land some form of co-ordination so that everything goes well.
The president of the Minnesota, USA based company said "we share something with Taraba. We are an agric state. Minnesota is the biggest producer of agric produce and we are the biggest producers of ethanol in the USA. Taraba state is blessed with abundance of good land. The agric output is great but with the need for more fuel, this is a welcome development."
"With sugarcane as raw material, we plan to build a production plant in the state.The crop will be produced in between 30, 000 to 50, 000 hecters of land and on April 27, 2007, we will want the plant to be commissioned. This plant will provide an alternative source of energy. Nigeria depends too much on oil," he said.
Also speaking before the MOU was signed by the state and the company, Governor of the state; Jolly Nyame said "Today marks an important event in the history of Taraba state. We are happy to associate ourselves with Lemna, a prominent company in the establishment of bio-ethanol plant. It is because of the warm climate in the state that the president has invited people to come and invest in the state."
He said "The Mambila Hydro Power project deal will soon be signed and a lot of good things are coming our way. This is a clear indication that this administration is handing over a good legacy."
He told Mr. Ngo that "with the signing of this MOU, it is a clear indication that you are welcome to Taraba state."
The Nigerian National Petroleum Corporation (NNPC) has in recent times encouraged the pursuit of alternative and renewable source of energy for the country. The renewable energy division of the corporation said it was working hard to actualize the fuel ethanol program for Nigeria. Engr.Funsho Kupol-okun, the Group Managing Director of the NNPC said early this year that upon the conclusion of rehabilitation works at the Atlas cove and Mosimi depots the seeding programme for ethanol will commence.
Be the first to Write a Comment!
Copyright © 2006 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
