NNPC to name core investor for Benue biofuel project

Image result for Group Managing Director of the NNPC, Dr. Maikanti BaruThe Nigerian National Petroleum Corporation said on Sunday that it would soon name a core investor for the proposed biofuel plant in the Agasha Guma area of Benue State.

The Group Managing Director, NNPC, Maikanti Baru, said arrangements had been finalised to unveil the prospective investor after due diligence.

Baru spoke in Abuja through the Chief Operating Officer, Ventures Directorate, NNPC, Babatunde Adeniran, at the end of a follow-up meeting with a delegation from Benue State led by the Deputy Governor, Benson Abounu.

According to him, the core investor will provide 70 per cent of the required funding for the project, while the Benue State Government and the NNPC will take up the balance as equity contributions.

The NNPC boss stated that upon completion, the plant was projected to generate about one million direct and indirect jobs, adding that the project would help link the energy sector with the agricultural industry through the commercial production of biofuels from selected energy crops.

The national oil firm stated that other components of the project were a sugarcane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually; and a fuel-ethanol processing plant with production capacity of 84 million litres annually.

According to the corporation, the biofuel project will also help to establish the biogas cogeneration power plant, which will generate 64 megawatts of electricity; 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 tonnes annually.