Obaseki reforms: Edo govt-backed ethanol refinery projected to rake in $29m per annum

... ‘Plant to meet 5.8% of Nigeria’s annual ethanol need’

The Greenhill Ethanol Plant in Ologbo, Ikpoba Okha Local Government Area of State, has been projected to meet 5.8 percent of Nigeria’s ethanol needs and rake in about $29 million in revenue yearly at full capacity.

The projections were made by investment analyst and Chief Executive Officer of Dairy Hills, Kelvin Emmanuel through his Twitter handle, @realkelvin07, while reacting to a post on the progress update on the plant.

The Edo State Governor, Mr. Godwin Obaseki inspected the plant facility at the weekend, noting that the speed of work is commendable. The ethanol plant is an offshoot of the state government’s drive to grow the state’s manufacturing sector by attracting private actors to invest in the state’s food processing sector.

The plant is projected to process 400 metric tonnes of cassava daily at full capacity and is expected to provide raw materials to the pharmaceuticals and beverage industries in the country, thereby curbing the importation of ethanol products in the country.

According to Emmanuel, “26.4m litres (per annum) at 100 percent capacity utilization or 5.8 percent of Nigeria's total annual consumption, not bad at all.”

On the economic benefits of the project, Emmanuel noted that ethanol is used “in blending conventional fuels to reduce carbon monoxide (to increase fuel to air combustion ratio that reduces sulphur content). It is also used in pharmaceutical manufacturing and in food manufacturing.”

The ethanol plant is being developed on the heels of proactive reforms by the State Government to attract investment in the state’s manufacturing sector, which is being aggressively pursued in transforming Edo State from a civil service state to a manufacturing hub.

The Greenhill plant is the second ethanol plant in Edo State. The other plant is being constructed by De United Foods Limited (Dufil), makers of Indomie noodles, as part of their integrated farm facility in the state, where cassava will be processed to ethanol also.