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Session 7.2 Policy Issues in the promotion of Cassava as a bioenergy crop: experience in Nigeria by Anga from NEPAD
1. Policy issues in the promotion of cassava as abio-energy crop, the experience in Nigeria Boma Simeon Anga, Chairman, NEPAD Pan African CassavaInitiative
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3. Africa has 13% of global population yet uses 3% of electricity used globally.
4. Only 1 in 4 people in Africa has access to electricity.
5. Under exploitation of available resources : 6% of hydroelectricity and 0.6% of geothermal potential exploited.
6. Abundance and decentralized availability of biomass resources especially cassava
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8. In addition the price of crude oil is escalating at incredible rate creating an urgency for development of alternatives sources of energy: Currently there is war in Northern Iraq. Iran (Nuclear issue) – USD 100/bbl Lebanon War Militancy in Nigerian Niger Delta Invasion of Iraq Iranian Revolution Invasion of Kuwait Yom Kippur War 4
11. Creation of The NNPC Renewable Energy Division in 2005 Vision To create a thriving, domestic bio-fuels industry within the next five (5) years Mission Statement RED (Renewable Energy Division) is established to introduce and sustain the production of fuel ethanol and Bio-diesel from biomass (cassava, sugarcane, soybean oil, palm oil, etc) and thereby integrating the agricultural sector with the downstream petroleum industry Quality Policy RED shall provide consistent, steady supply of alternative fuel to the utmost satisfaction of customers and continuously seek to improve its quality management system
15. Creation of mechanisms designed to promote integrated agro-industrial operations, out-grower schemes and research, e.g. through subsidized loans, issuance of licenses, private-public partnership, etc.
16. Creation of a Bio-fuels Research Agency to coordinate and promote the long term development of improved varieties, techniques and processes across existing Agencies
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18. Investment Incentives Guaranteed 10yrs. Off-take Contract from NNPC 10 years income tax holiday with a possibly for five years additional extension for all businesses registered for bio-ethanol and its feedstock production Exemption from all import & customs Duty in respect to importation of all equipments. inputs, chemicals for use in Bio-ethanol production Withholding & capital gains Tax exemption on dividends, foreign loans and for services rendered by foreigners to the Bio fuel company.
19. Investment Incentives Waivers for value added tax payment in respect of all services and products consumed by Bio-fuels producing industry Duty free importation of Bio-fuels for ten years Duty exemption for the importations of farm machineries, tractors, implements, fertilizers, chemicals and all inputs that will be used in the farm for bio-fuel feedstock production. CBN administered Preferential loan arrangement for large scale nucleus farm development and establishment of integrated fuel ethanol factories.
20. FLOW CHART OF CASSAVA BASED GASOHOL PRODUCTION PROCESS
34. 2 cassava Significant progress in securing investors for 1st set of projects Note: * Jobs created indirectly should range between 4 to 8 times direct jobs
35. We are implementing three sub-programmes to deliver the vision: Domestic, Import and Policy. Today August 2005 2009 24-36 months to operating stage 4 months Continuous Planning Building Foundation Growing Secure land Domestic Bio-fuel Programme Design & build projects Operate projects Define best crop route / develop economic rationale Expand best practice models Detailed feasibility Define growth models Define Operating Strategy Define strategic partners Create venture Monitor program effectiveness Develop implementation plan Secure financing Third-Party Programme Support Run test program Identify technical & quality capabilities required / Check infrastructure Ethanol Import Programme Ramp-up to rest of network Design Supply, Pricing & Marketing Strategy Contract Ethanol imports Develop implementation plan Monitor customers and quality control effectiveness Policy Define policy changes required to support E10, Bio-diesel & long term strategy Implement Policy Changes
36. The Layout of the Crownek Green Energy Integrated Ethanol Factory Complex
37. Nigeria has the potential to create a sustainable bio-fuel industry capable of generating between 500,000 and one million jobs. Comments Nigeria’s land is ideally suited for sugarcane, cassava and palm oil production Estimated land availability for large scale bio-fuel operations is above 2 million hectares Per million hectares of sugarcane, cassava and palm oil: Direct Jobs: 100, 000 Indirect Jobs: 400,000 to 900,00 50 to 80 bio-fuel large scale operations (10,000 to 20,000 ha) 1/3 of current gasoline consumption
40. Availability of improved cassava planting materials adapted to All Agro ecologies Commercial production of cassava planting materials is big business & big money.
47. Current Policy Review to be completed in November 2010. Liberalized the Bio-fuel market NNPC no longer the exclusive off-taker Make the incentives more robust and investors friendly Lower the entry barriers and reduce to the barest minimum bureaucratic bottlenecks Eliminate importation of Bio fuels to seed the market
48. “Embrace the New Reality Cassava Is Africa’s Food, Energy & Cash Crop of The 21ST Century.”
49. There is a Bright Prospect of Cassava Development in Africa, please be part of it. THANK YOU
50. For Further Details Contact: THE PROJECT CONSULTANTS: : Mr. Boma Simeon Anga Executive Chairman Cassava Agro industries Services Limited House 32, 351 Road, off 3rd Avenue, Gwarinpa Estate, Abuja. Tel: +234-(0)803-303-1097, (9)290-7366 Fax: +234-(9)222-4046 WEBSITE: www.cassavaagroindustries.com e-mail: bomaanga@yahoo.com, boma@cassavaagroindustries.com