Nigeria, China sign agreement on ethanol production
China is moving extremely swifly on the African continent, taking risks that European or North American investors no longer dare to take. As we reported earlier, it is investing heavily in the continent's base sectors: energy, mining, agriculture and infrastructure. In an extensive technology and knowledge transfer program, aimed at strengthening its ties with Africa, China is even sending an army of agricultural experts to help the poorest countries on the continent to increase their food security. And even though China has just launched an ambitious biofuels program of its own, it is also beginning to recognize Africa's large potential for the production of biofuels, in which it clearly wants to invest. China's quest for energy resources has become a global one, and Africa's potential is becoming one of strategic importance.
In this context, Nigeria's central state of Niger and the Chinese government signed a memorandum of understanding (MOU) for the establishment of a first ethanol plant in the state, with cassava as a feedstock. At the signing ceremony held in the state capital Minna, Secretary to the Niger State Government Adams Erena said the project "will gulp 11.6 billion naira" (about €60 million/US$ 90 million). He said a Chinese company would serve as a consultant to the project, adding that the company was expected to source 85 percent of the project investment through a soft loan from the Chinese government on 3 percent interest rate.
He explained that the balance of 15 percent would be sourced by the state government from local banks. The state government, he added, had already released 30 million naira (€160,000/US$232,600) to local cassava farmers to facilitate mass production of the commodity in the state. When completed, he said, the project would have the capacity of converting 150,000 tons of cassava into fuel energy.
Importantly, he added that the biofuel would be sold at cheaper rate for both local consumption and exports as ethanol would be cheaper than petroleum products. Wang Qingxin, managing director of the Chinese company, assured his Nigerian partner that the project would be completed within two years. He said the signing of the agreement "marked the beginning of more economic relationship between the Chinese and Nigerian governments, noting that the project would benefit the peoples of both China and Nigeria."
The bilateral agreement is part of Nigeria's announcement that it would be partnering with experts from abroad to kickstart its biofuels program, in which cassava and sugar cane feature as the crops with the highest potential. The news of the investment in Niger State comes on top of the large biofuels project in Jigawa State, which is projected to bring 1 million jobs to local farmers (see earlier post).
[Entry ends here].
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Africa :: China
Article continues
In this context, Nigeria's central state of Niger and the Chinese government signed a memorandum of understanding (MOU) for the establishment of a first ethanol plant in the state, with cassava as a feedstock. At the signing ceremony held in the state capital Minna, Secretary to the Niger State Government Adams Erena said the project "will gulp 11.6 billion naira" (about €60 million/US$ 90 million). He said a Chinese company would serve as a consultant to the project, adding that the company was expected to source 85 percent of the project investment through a soft loan from the Chinese government on 3 percent interest rate.
He explained that the balance of 15 percent would be sourced by the state government from local banks. The state government, he added, had already released 30 million naira (€160,000/US$232,600) to local cassava farmers to facilitate mass production of the commodity in the state. When completed, he said, the project would have the capacity of converting 150,000 tons of cassava into fuel energy.
Importantly, he added that the biofuel would be sold at cheaper rate for both local consumption and exports as ethanol would be cheaper than petroleum products. Wang Qingxin, managing director of the Chinese company, assured his Nigerian partner that the project would be completed within two years. He said the signing of the agreement "marked the beginning of more economic relationship between the Chinese and Nigerian governments, noting that the project would benefit the peoples of both China and Nigeria."
The bilateral agreement is part of Nigeria's announcement that it would be partnering with experts from abroad to kickstart its biofuels program, in which cassava and sugar cane feature as the crops with the highest potential. The news of the investment in Niger State comes on top of the large biofuels project in Jigawa State, which is projected to bring 1 million jobs to local farmers (see earlier post).
[Entry ends here].
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Africa :: China
Article continues
Monday, August 14, 2006
Indian Ocean island states form biofuel alliance with China and Malaysia
Now a group of island states in the Indian Ocean are allying with China and Malaysia to create a regional biofuel production network. The developing island states of Mauritius (which already has a biofuel program in place), Madagascar (where multinationals are investing in jatropha plantations) and Réunion - all former french colonies - are partnering up in what they call a 'win-win' agreement, to produce biofuels with which to share the burden of high oil prices that have such a strong impact on island states. Mauritius, Malaysia and China deliver the know-how and technical expertise, whereas Madagascar and Réunion offer land for plantations.
The Malgachi minister of agriculture, Randriarimanana Edmond Harison and Charles Li, president of the Chinese Chamber of Commerce in Mauritius (CCCM), stated that the regional biofuels network "is the only viable way to tackle high oil prices".
The idea was launched during a business forum organised by the CCCM, and revolved around a two-axe strategy: Malaysia, with its expertise in palm oil production, would be the central node in the 'biodiesel axis', whereas China would focus on technology transfers concerning the 'ethanol axis':
ethanol :: biodiesel :: biobutanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Africa ::
Madagascar, the largest of the islands, is currently undergoing a phase of transforming its economic climate which was long closed off to foreign investments, much to the dismay of its neighboring islands. The new Malagachi strategy now aims at regional cooperation in the agricultural sector, opening up its vast natural resource base, with biofuels as the prime sector. Minister Randriarimanana Edmond Harison told the business forum that the large island is currently making the finishing touches to new land laws and investment protection laws. "The effort is focused on making foreign investments sustainable and attractive." The Malagachi government wants to become "the green and the grain belt" for the Indian ocean, and its regional biofuels supplier.
At the same time, Madagascar knows that it hosts one of the world's most unique and biodiverse eco-systems, which it wants to protect at all costs. It will be an interesting exercise to see how the island state will play out the demand for conservation against the demand for biofuels.
So after Africa's "Green OPEC", another region is starting to forge a regional biofuel production alliance. This network involves island states, who suffer heavily under high oil prices, which gives the exercise an interesting perspective. This story is certainly to be continued.
More information:
L'Express de Madagascar: Du biocarburant produit avec Maurice - 14/08/2006
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