[size=14pt]Government considers new biofuels development policy[/size]
By Bassey Udo
November 17, 2010 10:55PM
   


The Federal Government is considering a new biofuels development policy for a viable alternative to the continued dependence on imported petroleum products as fuels for energy supplies in the country.

A forum recently facilitated by the Petroleum Products Pricing Regulatory Agency (PPPRA) has already recommended the constitution of a technical committee to undertake a comprehensive review of the 2007 national biofuels policy, to remove all impediments to achieving the bio-fuels development initiative, and replace with a framework that will be more commercially friendly.

The Energy Commission of Nigeria (ECN) is expected to provide the necessary technical input to the deliberations, particularly concerning previous and ongoing biofuels initiatives, as well as the existing relationship between producers and foreign off-take partners from China and Singapore. This will also enable Nigeria gain access to the carbon credit available under the Clean Development Mechanism (CDM).

During a recent meeting in Abuja, attended by the Department of Petroleum Resources (DPR) and other government monitoring and regulatory agencies in the oil and gas industry, members observed that the provisions of the existing policy document were inadequate to help realise the national objective.

Participants were of the opinion that rather than have an agreement entered into solely with the Nigerian National Petroleum Corporation (NNPC), as envisaged under a previous arrangement, the proposed policy should make it an industry-wide pact, to enable depot owners and petroleum products marketers partake, in line with the current reforms in the petroleum industry.


[img]http://234next.com/csp/cms/sites/dt.common.streams.StreamServer.cls?CONTENTTYPE=image/jpeg&STREAMOID=utvYH24R2FCtNj5GjbnVVy6SYeqqxXXqBcOgKOfTXxRJRukF0voblKklZKTjI$h9nW_PgxgftuECOcfJwS6Jtlp$r8Fy$6AAZ9zyPuHJ25T7a9GKDSxsGxtpmxP0VAUyHL6IDcZHtmM2t7xO$FHdJG95dFi6y2Uma3vSsvPpVyo-[/img]
Nigeria’s Oil Minister Diezani Alison-Madueke (L) talks to reporters. Photo: REUTERS



Unhelpful policies for local production

They also pointed out that the current import-based policy on petroleum products supply in existence was a dis-incentive to local production and domestic self sufficiency in fuels production.

The Biofuels Policy and Incentives (2007), which was approved by the Federal Executive Council on June 20, 2007, and gazetted to facilitate the promotion of a national bio-fuels development programme in the country, was, however, found to contain some lapses, including its being dependent on import as well as state-controlled monopoly.

The NNPC was mandated to create an enabling environment for the take-off of a domestic ethanol fuel industry, to gradually reduce the country’s dependence on imported petroleum products, reduce the negative impact of environmental pollution, as well as create a commercially viable industry capable of sustaining the creation of domestic job opportunities.

“The imperative for a policy review is that given the fact that bio-fuels markets worldwide are mandate-driven, Nigeria cannot afford to be an exemption. There need for the biofuels policy document to be reviewed by a sub-committee before presentation to the main committee. There is also the need to incorporate other relevant organisations, such as the financial institutions, farmers association, etc.,” said Abiodun Ibikunle, the PPPRA executive secretary.

The technical committee on biofuels development, which is expected to be inaugurated next week by the minister of petroleum resources, Diezani Alison-Madueke, will include the NNPC, Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA), DPR, PPPRA, and Standard Organisation of Nigeria (SON).

Others are representatives of the ECN, Central Bank of Nigeria (CBN), New Partnership for Africa’s Development (NEPAD), National Association of Road Transport Owners (NARTO), farmers association, federal ministries of finance and petroleum resources.

http://234next.com/csp/cms/sites/Next/Money/5643496-146/story.csp

The natural gas we have is yet to be developed to achieve full potential and we are talking of biofuels. I laugh in kotokiri.

@aloy-emeka
how does bio-fuels tie in with natural gas?

netotse:

@aloy-emeka
how does bio-fuels tie in with natural gas?

I didn't say so, did I?

natural gas is for power generation, bio-fuels is for vehicular consumption etc. . .why cant they be developed side by side?

So natural gas is not also for vehicle consumption?

Or better yet, why don't we just build oil refineries in the country? Or am I missing something here,

appletango:

Or better yet, why don't we just build oil refineries in the country? Or am I missing something here,

You can generate biofuels at home from domestic waste food and human waste. Biofuels can also be generated on farms by any peasant farmer.
Nigeria is also suited to largescale biodiesel projects based on jatropha or coconut oil.

It is not only much less costly than building refineries, but should also put money and control in the hands of the common man.

Aloy+Emeka:

[size=13pt]The Federal Government is considering a new biofuels development policy for a viable alternative to the continued dependence on imported petroleum products as fuels for energy supplies in the country.
[/size]

ROFLMAO!! This is coming from an oil rich country? 

Yes Beaf I understand the Green benefits of bio-fuel as well as the potential economic advantages, however what I don't understand is why an oil and gas rich nation like nigeria is looking to bio-fuel to meet its immediate energy demands. If we want to cut down on imported refined products then just build refineries in the country. Surely its that simple. Any other scheme would be convoluted. Bearing in mind that we are the ONLY opec member without large refining capacity. Furthermore, if you want to provide jobs for rural farmers then provide small loans to help them produce food crops for actual bodily consumption - I think you'll find we import a large proportion of our food requirements as well!

Outside of Brazil, all other nation's bio-fuel projects are HEAVILY subsidised and have a negative impact on the environment (do you know how much land is needed to produce a enough cassava to power a ethanol plant) and the economy (large government grants that in nigeria's case could really be better spent elsewhere). In fact, the majority of bio-fuel initiatives are in the developed world are really only interested in paying lip service to the 21st century "green movement" brigade.

Let us sort out our power supply issues, our unemployment concerns and our infrastructure and social welfare problems before we start fannying around with vanity projects.

^
You have some good arguments, but the govt hasn't yet come out with a policy. It can go two ways:
[list]
[li]Govt releases a policy for largescale biofuels[/li]
[li]Govt enables domestic production of biofuels by the man on the street[/li]
[/list]

With the first pathway, we very likely will run into the environmental problems you mentioned. It would also be a longterm project that wouldn't help the situation with our lack of refineries in any way.
The second option, if tackled properly might act as a quick win to very rapidly reduce our fuel importation costs while putting money in the common mans pocket, at little cost to govt. At the same time, govt will be able to put some of the savings into long term projects like refinery construction.

I think it all depends on how govt approaches the issue.

So basically, we want to replace imported fuels with biofuels when we're a major exporter of crude oil. I think this is idiocy of the first order. Why not just build local refineries to make the fuel?

Appletango has the right of this issue.

Seun:

So basically, we want to replace imported fuels with biofuels when we're a major exporter of crude oil.  I think this is idiocy of the first order.  Why not just build local refineries to make the fuel?

Don't mind them. It's like the Nigerian government derives pleasure from copying oyibo but the problem is when they copy, they won't copy them well and it is also appropriate to check how urgent the people you govern needs the factor you are copying. Biofuel is a good thing but the technology is yet to be perfected . The shortest cut to our fuel problem is to refurbish our existing refineries so they can produce at full capacity. I doubt if we need new ones.

this government is funny. biofuels in an oil rich country

on the other side, it would reduce our organic waste and sewage alot, thus, reducing the need for canals, dump sites and dependence on the energy availability of the country. this would as help employment.

jason12345:

[b]this government is funny. biofuels in an oil rich countr[/b]y

on the other side, it would reduce our organic waste and sewage alot, thus, reducing the need for canals, dump sites and dependence on the energy availability of the country. this would as help employment.

UAE is oil rich too but they are investing heavily in biofuels and clean technology.

Aloy+Emeka:

UAE is oil rich too but they are investing heavily in biofuels and clean technology.

thats because the UAE has tapped the FULL potential of its oil but nigeria hasn't.

jason12345:

thats because the [b]UAE has tapped the FULL potential of its oil [/b]but nigeria hasn't.

Says who?. Or do you mean they've maximized the revenue realized from their oil to the fullest potential but Nigeria hasn't?

Aloy+Emeka:

Says who?. Or do you mean they've maximized the revenue realized from their oil to the fullest potential but Nigeria hasn't?

no, what i mean is that they cannot improve the sector more than they have (even if it is improved, it would be insignificant to the grand scheme of things) but Nigeria has not tapped into that potential. once tapped, then we can move on to something else if not, it would be a waste. _{my opinion}

jason12345:

no, what i mean is that they cannot improve the sector more than they have (even if it is improved, it would be insignificant to the grand scheme of things) but Nigeria has not tapped into that potential. once tapped, then we can move on to something else if not, it would be a waste. _{my opinion}

Why not start tapping into your own potential and abandon biofuel technology for now?

jason12345:

this government is funny. biofuels in an oil rich country

on the other side, it would reduce our organic waste and sewage alot, thus, reducing the need for canals, dump sites and dependence on the energy availability of the country. this would as help employment.

I don't mind this. But you won't generate enough energy just from organic waste. To generate large amounts, you have to devote large amounts of land to growing an input crop for the biofuel; used cooking oil or whatever is not enough.

And if it is at the small "used cooking oil" level, then it isn't really going to make an impact on the energy supply, so isn't worth hyping.

what is this biofuel

can someone explain

alj harem:

what is this biofuel

can someone explain

Basically, you dump vegetable oil or animal fat into a conversion system and produce diesel. Nice thing about it is that you can then generate diesel from say soybeans, so if your country doesn't have much oil in it but instead has lots of rich farmland, you can still supplement your fuel supply.

You can also generate biodiesel from waste products, like say chicken/goat/cow fat, used cooking oil, etc. This is more of a small-scale sort of thing though, say if you have a big farm, you can use the fat from slaughtered animals to generate your own diesel.

At least, this is my understanding of things from what I've read online.

Here are a couple articles from Wikipedia:
http://simple.wikipedia.org/wiki/Biodiesel
http://en.wikipedia.org/wiki/Biodiesel