Also available
Alternative Energy
Biofuels, solar and wind climb up the agenda
Nigeria has continued with its ambitious blueprint to develop a thriving energy industry based on non-fossil fuels throughout 2009 and 2010. The Nigerian economy remains dependent on the country’s petroleum resources, but as the world moves towards cutting carbon emissions and away from fossil fuels, Nigeria is leveraging its other resources to ready itself for the new era in energy. Biofuels, solar and wind energy are all being developed to help grow the non-oil economy and create a sustainable future for Nigeria’s energy sector.
The Nigerian National Petroleum Commission (NNPC) launched a Renewable Energy Division in 2005, as a result of which the organisation developed a biofuels programme which should see the country saving between USD100 million and USD130 million on energy every year. The Renewable Energy Division is also in charge of coordinating Nigeria’s activities under the Clean Development Mechanism of the Kyoto Protocol. In early 2010, NNPC announced its intention to review its renewable energy business model in order to maximise the efficiency and profit of the Renewable Energy Division, in line with the ongoing reforms in Nigeria’s oil and gas sector. Nigeria’s focus on increasing its sustainable energy profile is aided by external partners: in June 2010, the World Bank agreed to allocate USD200 million to the development of renewable energy projects in Nigeria. The US Trade and Development Agency (USTDA) gave Nigeria USD323’000 in June 2010 to help draw up a framework for using renewable energy in electricity generation.
Growing the Biofuels Sector
With vast areas of arable land and an excellent climate for the cultivation of various crops, Nigeria’s potential for biofuels production is virtually unparalleled on the continent. A number of incentives are in place to establish a thriving fuel ethanol industry using agricultural products. They include pioneer status and a host of tax breaks for developers including a waiver on import and customs duties, Value Added Tax, long-term preferential loans and other benefits.
Download the complete chapter as PDF
