NNPC to Select Core Investor for Benue Bio-fuel Project

By: 
Daily Post Staff
Date: 
27 Nov 2017

The Nigerian National Petroleum Corporation (NNPC) says it has almost concluded discussion on the choice of a core investor for the proposed bio-fuel plant in Benue.

The Group Managing Director of the corporation, Dr Maikanti Baru, said this in a statement issued by Mr Ndu Ughamadu, NNPC Group General Manager Public Affairs Division in Abuja on Sunday.

Baru, after a follow-up meeting with a Benue State delegation led by Dep. Gov. Benson Abounu, said arrangements had been finalised to name the prospective investor in the weeks ahead.

Represented at the meeting by the Chief Operating Officer, Ventures Directorate, Dr Babatunde Adeniran, Baru explained that the core investor would provide 70 per cent of the required funding for the project.

According to Baru, the Benue State government and the NNPC will take up the balance equity contribution.

He said upon completion, the plant was projected to generate about one million direct and indirect jobs for the populace, noting that the project would help link the energy sector with the agricultural sector through the commercial production of bio-fuels from selected energy crops.

The NNPC boss listed other components of the project to include a sugar cane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually.

According to him, it also includes a fuel-ethanol processing plant with production capacity of 84 million litres annually.

“The bio-fuels projects will also help to establish the bio-gas cogeneration power plant which will generate 64 MW; a carbon dioxide recovery and bottling plant that will produce 2, 000 tonnes annually as well as an animal feed plant that will produce 63, 000 tons annually.’’

The statement also quoted Abonu, Benue deputy governor as saying “Benue State is offering the 20, 000 hectares of irrigable land space along the bank of the river Benue as its equity contribution to the project’’.

“In addition to a yet to be specified tranche of funds to shore up its stake to the level of directorship in the yet to be constituted board.’’

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