Session 5.2 Using Ethanol for Domestic Energy Supply in Nigeria by Anga, NEPAD

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Session 5.2 Using Ethanol for Domestic Energy Supply in Nigeria by Anga, NEPAD

  1. 1. Boma Simeon Anga Chairman, NEPAD PAN AFRICAN CASSAVA INITIATIVE.
  2. 2. Why the use of ethanol for Cooking? The rationale:  The costs of fossil fuels are rising and so are the budgets of most African Countries who spend an average of 55-60% of national budget on importation and subsidization of liquid petroleum fuels for their domestic economies.  African countries cannot cope with this rising cost. Most African economies may experience stagnation & worsen the poverty trap except alternative bio fuels are produced to substitute the unsustainable imports of petroleum.  This project when successfully implemented will put the tools in the hands of African investors & Governments for establishing efficient low cost fuel ethanol projects targeting the replacement of paraffin and gasoline.
  3. 3. Long lines await delivery of kerosene in a fuel station. Replacing kerosene with ethanol is financially more rewarding than replacing gasoline, since Nigeria pays more for kerosene. The retail fuel market in Nigeria has been plagued by high prices, scarcities, and quality problems. Purchasing fuels from abroad creates a FOREX problem.
  4. 4. Products (per litre) Component currency PMS AGO HHK LPFO ATK C + F (NGN PORT) $ 0.58 0.60 0.61 0.48 0.62 N 88.63 90.75 93.04 72.16 93.53 Other Charges (N) 5.71 4.26 6.43 4.15 4.27 Landing Cost (N) 94.34 95.01 99.48 76.31 97.80 Margins (N) 13.20 13.20 13.20 11.71 9.50 Expected Price (N) 107.54 108.21 112.68 88.02 107.30 Retail Price 65.00 50.00 PPMC Ex-Depot Price 55.90 40.90 48.00 Exchange Rate: 151.60(Naira to Dollar) Daily Spot Markets Data The data below reflects Market Fundamentals as at Tuesday 26th January, 2010
  5. 5. The Main Sources of cooking Fuel in Nigeria Source National Bayelsa Delta Rivers Firewood 69.98 65.3 70.2 67.6 Charcoal 0.84 – 0.6 0.4 Kerosene 26.55 33.1 26.4 28.1 LPG 1.11 0.3 1.4 1.8 Electricity 0.52 0.3 1.4 1.8 Crop residue 0.9 – – – Animal waste 0.07 – 0.3 0.4 Others 0.84 1.11 0.3 1.4 Total 100 100 100 100 Source: FOS: Nigeria Poverty Profile 2004
  6. 6. Traditional fuels for sale in Nigeria. The city’s cash economy pulls in these biofuels, but they are no longer cheap.
  7. 7. Two examples of dirty, smoky fuels in common use: Animal dung Tif tif for sale. This fuel is a blend of charcoal dust and clay.
  8. 8. 0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 Dung Crop Wood Kerosene Gas Alcohol Electricity PM10(g/meal) CO(g/meal) Emissions Along the Energy Ladder CO (g/meal) PM10 Our tests show that alcohol fuels used in the CleanCook stove are the cleanest and safest alternative for the 80%+ of homes in the developing world that do not have adequate or reliable access to electricity. PM10 are small soot particles 10 μ in size or less. PM10 indicates that even smaller, more dangerous particles are present.
  9. 9. Sub Sahara Africa homes suffer from extreme energy poverty.
  10. 10. Mother and child in a smoky Kitchen cooking in Nigeria Extremely high particulate matter and CO. kills 360,000 women and children every year in Sub Saharan Africa (WHO 2006)
  11. 11. This region of Africa also suffers from high levels of indoor air pollution. Smoke in the Home
  12. 12. WHY USE ETHANOL FOR COOKING?  Blackened pots, walls and ceiling  Health: eye irritation, coughing  Long distances for gathering 6-8 hours or more  Rape, beatings, intimidation, threat of murder, theft  Falls and injuries, dehydration, injuries to back, legs and kidneys  Lack of wood  Lack of time for education, income generation, or access to services
  13. 13. What is the potential for ethanol to be an economical household fuel?  The household market is different from the vehicle fuel market and needs to be treated somewhat differently.  The vehicle fuel market is inherently inflationary for alcohol fuels, because they are much cheaper to manufacture than petroleum fuels yet can be sold at or near the price of petroleum fuels when used as an additive or substitute.  The alcohol fuels do not need to be subsidized for the household fuel market, but they do need to be “sheltered” from the vehicle fuel market by supportive government policy. It should be reiterated that because alcohols are cheap to manufacture, no subsidies are needed.
  14. 14.  Ethanol as fuel for stoves, generators cars, buses and lamps will be available everywhere (as telephone handsets now are, yet much cheaper… Imagine a soon coming Africa where… Our cars will run on GASOHOL: A cleaner fuel made from a blend of Ethanol & Gasoline:
  15. 15. The Cassakero VISION “To provide Nigeria with a locally made agro-based bio-fuel for household use that will be available, affordable and accessible, creating sustainable new jobs and reducing poverty while enhancing food and energy security in the nation. “
  16. 16. PROJECT MISSION “To establish a dedicated national bio-ethanol output of 4 million liters per day produced from integrated small scale-bio ethanol refineries to provide the household fuel requirement of 4 million families in four years (2010-2014).”
  17. 17. S/No . Ethanol markets in Nigeria Market Demand per Year 1 Gasoline (E10 Blend) 1.30 Billion Liters 2 Paraffin (Replacement With Ethanol Based cooking Fuel) 3.75 Billion Litres 3 Raw Material for Portable Ethanol(Re-distillation market) 0.12 Billion Litters Total Market Size 5.22 Billion Liters Market Value:3.08 Billion dollars Annual Projected growth rate: 5%
  18. 18. The Cassakero Cooking fuelCassakero is safe and easy to handle and user friendly. it is less volatile and as a bio-fuel, it is easily absorbed into the environment with no known health hazard. The ethanol will be denatured with Bitrex, a bitter substance to render it undrinkable, and a colorant to give it a distinguishing color.
  19. 19. In 2002, kerosene, which was subsidized, cost 32¢ per liter. Kerosene is priced in the “official” market today at about 80¢ and in the black market at well over $1.00 per liter. It is often adulterated with gasoline since gasoline is now cheaper.
  20. 20. Mrs. Ejime Nwanze of Umunze Quaters in Ogwashi-Uku, Delta State. To her right is a cylindrical Chinese kerosene stove, which she purchased at the price of N3,800 (US$ 32.00) in June 2006. Note the thick layer of soot all around the kettle placed on the kerosene stove. She said the kerosene stove started developing fault just 7 months after its first use. She said she abandoned the kerosene stove for the CleanCook stove when she received it for the pilot study.
  21. 21. Surprised by how quickly the CleanCook stove warmed her kettle of water, Mrs. Agnes Gilala of Warri study location exclaims with regard to the speed it took the water to boil. Mrs. Lucy Obiamah lights the CleanCook after receiving the Surveyor Helen in Ibusa, a sub-location under Asaba pilot location.
  22. 22. The other Applications of Ethanol as a household fuel
  23. 23. Ethanol opens a world of new Possibilities
  24. 24. Ethanol powered Shower with heater The shower head
  25. 25.  Rural/Agro-Industrial Employment  “Energy Poverty” Reduction  Safe Usage for Women & Children (Non-Spill & Non-Explosive)  Clean Cooking Environment (No Smoke, Fumes or Smell)  Adaptable to Existing Wood fuel & Kerosene Stoves/Cooking Practices Social Impacts & Benefits
  26. 26. % of Firewood and Charcoal Replacement Country Firewood Charcoal Replacement Country Firewood Charcoal Replacement Country Firewood Charcoal Replacement Central Africa Eastern Africa Western Africa Angola 19.07% Burundi 6.28% Benin 111.48% Cameroon 29.82% Ethiopia 25.14% Burkina Faso 17.25% Chad 25.42% Kenya 3.76% Gambia 2.83% Congo, Dem 15.06% Madagascar 8.49% Ghana 87.30% Congo, Rep. 14.28% Malawi 21.03% Guinea 1.52% Mozambique 24.74% Guinea- Bissau 1.72% Tanzania 7.18% Mali 28.47% Uganda 6.59% Nigeria 53.56% Zambia 0.11% Togo 13.54%
  27. 27. Bio-fuels Initiative in Africa Key Stakeholders 1. Energy security & diversification 2. Higher convertible currency exports 3. New revenue stream for agro- industries & farmers 4. Carbon finance 5. Jobs 6. Local rural energy needs Private sector Commercial Banks NGOs Civil Society Gov Development Banks Development Partners Sub-regional, Regional. & International Institutions Research
  28. 28. Better prices and greater incomes are achieved through cassava development Empowered!!! A better future secured The positive investment decisions we make Today will contribute to their laughter and smiles tommorrow?
  29. 29. WE CAN’T SPELL “SCCESS” WITHOUT “U” Please Join Us Make This Dream A Reality!
  30. 30. 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

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