Augustine Osayande
9 October 2008
Jalingo — Taraba State government has signed an agreement with a Chinese firm, A-Dinota Ventures Ltd, to establish a $115 million ethanol factory in the state.
Addressing government officials during the signing of the agreement at the executive chamber of Government House, Jalingo, a representative of the Cassava Agro Industries Service, Mr Boma Anga, said the factory is an integrated ethanol plant that could produce 200,000 litres of fuel ethanol, 100 tons of cassava flour, 50 tons of liquid Co2 and 600,000 litres of bio fertilizers daily.
Through its policy of Public Private Partnership (PPP), the state government is expected to provide land and $70 million sovereign guarantee required by the company for importation of the processing equipment from China.
The state shall be a beneficial part owner of the company and will receive 15 per cent holding of the paid up share capital, which will be distributed between the host community, local and state government equally.
When completed, the factory is expected to produce 54 million litres of fuel ethanol, 30,000 metric tons of cassava flour, 15,000 metric tons of Co2, 60,000 metric tons of bio fertilizer, 120,000 metric tons of animal feed ingredients, 1606 mega watts of electricity and 300,000 tons of fresh cassava roots annually.
The company also intended to sell a minimum of 10 per cent of its output to the host communities as a cleaner and cheaper household fuel, to replace Kerosene for cooking and is expected to create employment for about 30,000 people.
Responding, the Consulting Adviser to the state government, Engineer Aniaoglu Kizito, charged the firm to ensure that the project is successfully implemented.
Secretary to the state government, Barrister Ibrahim El-Sudi, thanked the company for choosen the state for the establishment of the factory, which is first of its kind in West Africa.
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It does not make any sense for an oil producing country to be in the business of making a competitive product (ethanol)that will make our comparative advantage extinct. Our govt official don’t even seem to know what our priorities are - building more oil refineries so we export finished products (gasoline) to the world instead of exporting raw materials (crude oil) that we end up importing the finished product (gasoline) at exorbitant price after our importers-turned-exporters have added value to our raw materials & added their profit including transportation cost (part of exporters' gain). The ignorance of our governors… [Read Full Text]
Building the Ethanol plant is getting a foot into a growing industry (ethanol) and stepping dependant feet a little more out of a dying one (oil). Its not hindering Oil sales, and when Ethanol beings to over take Oil if it ever happens we're preparing ourself to still be able to compete in that new state of the market.
Though your right, more refinaries need to be build, it's embarassingly foolish how little of those Nigeria has cause in the end of the day it's just spending all it's profit on it's own product. confusion.
But oil refinaries and Ethanol… [Read Full Text]
Govt. Partners Chinese Firm for $115 Million Ethanol Factory requires more information for the public to establish its' effectiveness properly. For instance, $70 million importation cost is ambigious, does this amount include the cost of machines or not? Again, the 15% holding of the share capital is also not clear enough as a good deal. Importantly,the source and preparation of raw materials was not even touched. In short, it seems our Nigerian representatives are not most of the time throrough in their analysis before rushing into a deal and this is why we always fail. Thank you.
I am,