Lagos As Nigerians' daily consumption of Premium Motors Spirit (PMS) otherwise called fuel, is on the increase and capacities

s of the country's refineries falling short of the demand, attention is now shifted to Compressed Natural Gas. Over 80 percent of fuel is being imported outside the shores of the country with severe economic implications to Nigeria. Last year, the country spent trillions of naira on importation of fuel for the consumption of the citizens. Compressed Natural Gas is a fossil fuel substitute for gasoline (petrol), diesel fuel or propane/LPG. Its combustion does produce greenhouse gases. It is a more environmentally clean alternative to petrol and diesel fuel, and much safer than other fuels in the event of a spill. It is said that Compressed Natural Gas can earn the federal government over N200 billion from every one million cars converted into CNG from petrol engine. Pakistan, whose population is not half of Nigeria's had 50,000 natural gas vehicles but grew to 2.2million last year. Argentina which introduced CNG vehicle programme in 1984, now controls six percent of the country's total gas demand. Compressed Natural Gas for vehicles was launched in Nigeria in 1989 with two small compressors and dispensers installed in Warri and Lagos. Twenty-five vehicles were converted to run on natural gas. But this was not enough to meet the demand. In 2007, the Nigerian Independent Company Plc got licence to operate Compressed Natural Gas business in the country. Thus the company diversified into Compressed Natural Gas refilling facilities in partnership with Nigeria Gas Company for the deployment of CNG in the country, which resulted in the establishment of Green Gas Limited. Today, eight CNG stations and three conversion workshops in the city of Benin, Edo State have been inaugurated under the scheme. The company said over 1,500 vehicles are currently running on CNG in Benin. The company said tricycles popularly referred to as Keke Napep and mass transit buses in the fleet of the Edo State Government popularly known as Comrade Bus are being converted into CNG. More funds, high hopes The company said more outlets are currently under construction in other parts of the country while it has injected well over N17billion in the provision of CNG infrastructure in a joint venture scheme with the Nigeria Gas Company (NGC), a subsidiary of Nigerian National Petroleum Corporation (NNPC).

Sagas, a division of Borkir Energy Company Limited, a subsidiary of Dangote Group has invested $100 million (about N15 billion) in compressed natural gas (CNG) as alternative fuel for use by automotive and industries in the country. CNG is a fossil fuel substitute for gasoline (petrol), diesel fuel or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to petrol and diesel fuel, and it is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released. Chairman of Borkir, Alhaji Sani Dangote, disclosed this in Lagos when he signed a 20 year sales and purchase agreement with the Nigeria Gas Company Limited (NGC) to supply and distribute the CNG to all its filling stations nationwide. We are investing over a $100 million dollars in the next two years to ensure that gas CNG is available at every major highway in the country and some of the major cities. It is going to take a while for this project to go around everywhere but at least we are starting from somewhere and we believe when Nigeria starts seeing the benefits it would encourage everyone that is mindful of economic aspect of energy to convert their petrol vehicles to CNG gas, he said. He explained that the pact was the beginning of a new era in gas utilisation in the country stressing that his company has kick started the necessary process to provide gas as alternative to automobile and industrial fuel. He said vehicles would be converted to be able to use the gas and that conversion centers would be established at various points across the federation even as he disclosed that such center had been opened at Ikeja already in joint partnership with a foreign firm. Dangote further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Groups 5, 000 trucks which are being converted for dual fuel usage (Gas and Diesel), with the hope of converting 20, 000 vehicles within the next one year of take-off. Stressing on the gains to the economy, he noted With this kind of partnershi p, many transport owners and vehicle owners that are into transport business will experience a new look in terms of the cost of fuel and also we expect that they would save up to at least 25 to 30 percent in their fuel cost.

OVERVIEW OF RENEWABLE ENERGY

Renewable energy is energy generated from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished). Renewable energy is derived from natural processes that are replenished constantly. Renewable energy projects in many developing countries have demonstrated that renewable energy can directly contribute to poverty alleviation by providing the energy needed for creating businesses and employment. Renewable energy technologies can also make indirect contributions to alleviating poverty by providing energy for cooking, space heating, and lighting. Renewable energy can also contribute to education, by providing electricity to schools. MAIN GOAL OF THE PROJECT Reduced projected energy use by 20% by 2020 and meet 20% of the nations electricity needs with Class 1 renewable energy sources by 2020. The combination of energy efficiency, conservation, and renewable energy resources, should allow Nigeria to meet any future increase in demand without increasing its reliance on non-renewable resources.

GOAL 1: Secure, safe, and reasonably priced energy supplies and services GOAL 2: Economic Growth and Development. GOAL 3: Environmental Protection

BENEFITS:

Reduction in green house gases Elimination of agricultural and household wastes that will be used for biofuel production Provision of clean smoke-free cooking fuel as alternative to firewood in rural Nigeria. Rural electrification and Fossil fuel alternatives Addresses the associated problems of environmental degradation resulting from pollution, deforestation and vegetation loss Carbon Credits from green energy sources Leading Africa in implementation of the Climate Change commitments Develop a programme to produce sufficient biofuels to allow Nigeria to meet the sustainability targets set by the export markets. For example, diesel and gasoline sold in Europe will have to meet green house gas (GHG) reduction targets. Assess the potential sources of supply. These will include waste to fuels and agriculturally sourced products.

WHY NIGERIA MUST SHIFT TO RENEWABLES

The alternative to investing in a green energy revolution is the much higher cost of climate change. Instead of spending billions and trillions on decadent industries in need of restructuring, it is time we massively invest in renewable energies as well as supplying broad information and running demand activation campaigns that can spur enthusiasm and trigger green investment.

Today, the industrialized world holds the key to triggering this boom, not only because it possesses the financial means and skills to do so, but also because it created most of the problems and thus has an obligation to act for improvement. And Nigeria MUST capitalize on this.

PROJECT APPROACH

Renewable energy (RE) for productive end uses Technology-neutral, demand-driven intervention Location-specific institutional design Market development through local entrepreneurs

STRATEGY

Scaling up access to modern Services in order to achieve the Millennium Development Goals and Poverty Reduction. Develop a comprehensive energy conservation and efficiency plan. Develop a renewable Energy Masterplan that will feed into the National Energy Masterplan. Promotion of Development of Modern Biomass, Wind and Biogas. Entrepreneur incubation. Institutional and human capacity building. Sustainable financial mechanisms. RE business resource centres. Pilot demonstration of business plans.

DURATION OF PROJECT WORK The project will run for a minimum of five years as a five- Year- Development- Plan. SOURCE OF FUNDING/FINANCIAL APPROPRIATION/ RELEASES Federal Government, National and International Donors ACTIVITIES OF THE RENEWABLE ENERGY PROGRAMME OFFICE The programme office has been involved in the following: THE INTER-MINISTERIAL COMMITTEE ON POWER. An Inter-ministerial Committee on Power was established at the instance of the Honourable Minister of Power to identify challenges hindering effective power supply, advice in related matters and put in place effective strategies that will ensure power stability and sustainability in the country

The Committees membership comprises, The Federal Ministries of Power, Environment, Water Resources, Nigerian National Petroleum Cooperation (NNPC), Nigerian Electricity Regulatory Commission (NERC), Energy Commission of Nigeria (ECN), Nigerian Investment Promotion Commission (NIPC) and Power Holding Company of Nigeria (PHCN). The Federal Ministry of Environment was chosen as a member in recognition of her activities to improve the Power sector of the nation through her renewable energy programme. The Committee has been meeting and noted the following on the nations power sector:

Energy generated in Nigeria is grossly inadequate, hence the need to improve structures on ground, and also introduce alternative energy technologies (i.e. renewables) to complement current government efforts to provide sustainable. The Nigerian government has committed significant sums of money for power generating systems that, while appreciated and useful, do not provide expected benefits for the whole community The Nations power sector will continue to deteriorate unless steps are taken to ensure their stability, sustainability and also introduce alternative technologies to complement efforts on ground. Availability of small hydros that can be upgraded to hydropower stations. Need for Nigeria to partner with developed countries with improved technologies to invest and assist in enhancing the potentials of the Nigerian power sector. Some Countries have indicated interest in assisting Nigeria to develop the power sector and partnerships have already commenced with different degrees of engagements.

NORDIC COUNTRIES ENERGY VISIT TO NIGERIA 18-22 October 2010 A Nordic Countries energy team comprising of experts on various aspect of energy sources visited the country last year and are also proposing another visit. The visit has been scheduled for 18-22 October 2010. The aim of the visit is to provide a forum for the interchange of information among stakeholders and the Nordic team on energy issues, with a view to establishing partnerships, investment, proffers technical advice and formulate an action plan for a successful implementation of proposed programme. The proposed approach is to establish a successful Energy Program that will address challenges within the nations power sector and respond to particular problems and issues with specific tailor-made solutions. The visit which will commence on 18th - 22nd October 2010 proposes the following activities among other:

Courtesy Visits to Presidency and Relevant Honourable Ministers Stakeholders Meeting on Power Field Visits to Power Project sites and sites capable of generating power. Match-making events and sign ups.

Relevant Follow up Actions

A brief on the Nordic Countries Energy Team Visit has been presented to the President by the Ministry of Power on Monday 12 July 2010 Expected outcome of the Nordic energy teams visit to Nigeria include:

Interactive segments on status of Renewable energy and development of the sector into an organized and sustainable economy. Technical Knowledge support and advice on Renewable Energy is Provided to the nation. Investment opportunities in Renewable Energy identified, including expression of interests and signups for mutually beneficial economic partnerships. A sustainable Renewable Energy program of interest to the Nordic Countries already identified and streamlined for investors in place. Cooperation and bilateral relationship on Renewable energy is established.

STAKEHOLDERS MEETING ON POWER WITH THE NORDIC ENERGY TEAM In further recognition of the Federal Ministry of Environments work on Renewable Energy, the Ministry was chosen to host the Stakeholders Meeting on Power (to be graced by Mr. President) for the Visiting Team and has also been requested to identify a project site that the team could visit. NIGERIAN GERMAN ENERGY PARTNERSHIP Nigeria currently has established a strong partnership with Germany to promote bilateral economic relations, from which both countries are expected to enjoy very substantial political, economic and security benefits. The Nigerian-German Energy Partnership aims to By economic diplomacy, we mean the use of our political influence and relationships to:

Promote international trade and investments in the energy sector and other related sectors; Improve the functioning of markets between the two countries; Reduce the cost and risks of cross-border transactions; Develop international energy networks; Consolidate the right political climate to facilitate and institute all of agreed set partnership objectives.

The 5th annual Conference of the partnership was held on 12-13 July 2010 at Transcorp Hilton. The Federal Ministry of Environment was represented by the Coordinator Renewable Energy Progtramme. The Forum agreed on the following:

The reform of the energy sector is crucial to attracting needed investment and in order to promote sustainable development.

The Government of the Federal Republic of Nigeria welcomes the commitment of Germany to provide assistance to the energy sector and reaffirms her commitment to improving her energy sector by implementing appropriate policies and regulations. Both countries recognizes the importance of advancing renewable energy opportunities in Nigeria. Required assistance on ongoing /proposed projects on renewables and power is important. Need for German investors to explore renewable energy and energy efficiency opportunities in the country.

THE NIGERIAN RENEWABLE ENERGY DAY The Nigerian Renewable Energy Day (NREDAY) is being proposed to bridge identified gaps and also address related issues, to bring Nigeria to a recognizable status globally.The aim of the renewable energy day is to:

Create adequate awareness among the populace, stakeholders in Business, Government and the Society on Renewable Energy , its benefits and related issues, to make renewable energy in Nigeria more effective, developed and business oriented. Promote rapid deployment of renewable energy and energy efficient strategies through demonstration, presentation, performance film and dialogue.

Proposed date for the Renewable Energy Day is 22nd October, 2010 Strategies to be employed include:

Bringing Stakeholders together to promote rapid deployment of renewable energy and energy efficient strategies through demonstration, presentation, performance film and dialogue. Involvement of Renewable Energy Companies, Technology Innovators, investors and entrepreneurs to set up booths that will attract guest worldwide Involvement of international speakers on renewable energy setting Summit highlights that are creative, technical and attractive to investors Creating Forum for stakeholders to make input on, and buy-in into the Renewable Energy approach. Presenting of categories of award to deserving individual, companies. Partnering with interested organisations in organizing the day.

INTERFACE WITH STATE GOVERNORS The objective of the Renewable Energy Programme of the Ministry is to develop and implement strategies that will achieve a clean reliable energy supply and establish mechanism to develop the sector based on International best practices to showcase viability for private sector participation. The programmes main goal is to meet 20% of the nations electricity needs with Class 1 renewable energy sources by 2020.

Currently, Some State Governors have entered into partnership with the Ministry and Private sectors on Renewable Energy. Based on the above, an interface with state governors has been scheduled to enlighten them on the need to introduce alternative sources of energy to their systems. INTERFACE WITH FOREIGN MISSIONS The Ministrys Programme on Renewable Energy and its progressive efforts is being recognized amongst Stakeholders in the Power sector and Foreign missions. This has led to most seeking for detailed information on the programme and its ongoing projects. An interface with Foreign Missions on the Ministrys Renewable Energy Programme has been scheduled. SMALL AND MEDIUM HYDROS There are numerous small and medium hydros across the nation that will be useful for the Ministrys Renewable Energy Programme. The Federal Ministry of Power has signed a MOU with Ministry of Water Resources to allow them have access to the hydros for improvement of the nations power sector. The Federal Ministry of Environment is partnering with the Federal of Power to enable access to some of these hydros for its programme and related investment purpose. RENEWABLE ENERGY POLICY AND GUIDELINES It has been recognized by all stakeholders that the major barrier to renewable energy and energy efficiency development in Nigeria is Lack of Policy and Legislation. Lack of policy and legislation on renewable energy technologies and also to address the inefficient use of energy is a very key barrier to the development of the sector. Developing an effective Policy and legislation will help to develop this sector. The Renewable Energy Programme of the Ministry plans to put in place effective legislative structure. This activity has been included for implementation in this years budget.
In Nigeria today, petrol is sold for N97 in the west, between N120 and N150 in the East, and in the North it is sold for as much as N180. To make things even worse, the people there have to endure long queues to buy a few liters of fuel. The state of the electricity supply in the country has made power generators a necessity. So that even if you did not have a car you still ended up in the queue at the fuel station for hours on end. Tolu Ogunlesi, a Nigerian creative writer, stated in one of his write-ups that, we are Africa's biggest producer of crude oil, and one of the top 10 in the world, and at the

same time one of the world's biggest importers of refined petroleum. The major reason why we import is that our refineries are not working. Fuel is so vital to the economic development of any country that it could be simply described as the blood in the veins of its economic existence as well as countrys assurance of a progressing economic status. Nigeria has a policy on bio-fuels entitled Nigerian Bio-fuel Policy and Incentives (2007) through a Policy Document that was approved by the Federal Executive Council on June 20th, 2007, but the country still relies on petroleum for energy generation and is thus vulnerable whenever there is a crises. For many years now, Nigeria has been facing an extreme electricity shortage. This deficiency is multi-faceted, with causes that are financial, structural, and sociopolitical, none of which are mutually exclusive. Peter Kayode Oniemola, McArthur Foundation researcher into the use of Alternative fuel in Nigeria, said, The Nigeria National Petroleum Corporation (NNPC) was in 2007 given the mandate to create an environment for the take-off of a domestic ethanol fuel industry. The aim is to gradually reduce the nations dependence on imported gasoline, reduce environmental pollution while at the same time creating a commercially viable industry that can precipitate sustainable domestic jobs. In its search for an alternative, the Olusegun Obasanjo led administration had approved the use of biofuels which are fuel produced from organic components. Bioethanol and biodiesel are two of the most common forms of biofuels. Others include biomethanol, biodimethylether and biogas. Bioethanol is produced from crops such as sugarcane, maize, beet, wheat and sorghum. A new generation of lignocellulosic bioethanol also includes a range of forestry products such as short rotation coppices and energy grasses. Biodiesel is made from seeds such as rapeseed, sunflower, soy, palm, coconut or Jatropha. It is considered as a renewable energy source. Although renewable energy is used mostly to generate electricity, it is often assumed that some form of renewable could be used to create alternative fuels. Media reports quoted the Minister of Petroleum Resources, Mrs. Diezani Allison Madueke thus: The nations actual crude oil (+condensate) production rose to an average of 2.39 million barrels per day, consistently maintained above the budgeted production level of 2.30 million barrels per day. She also said: Gas sales rose by more than 70% to an average 4 billion standard cubic feet per day in 2011 and for the first time, industry supplied more domestic gas than was consumed by the power and industrial sector. The Nigerian Liquefied Natural Gas company (NLNG) had one of its most successful years, with production peaking at 21.2 Million metric tons in 2011 alone.

It all sounds good but the electricity supply is still epileptic and the fuel price is still volatile. The only conclusion is that petroleum supply at its peak is still not enough. Nigerias power generating capacity is stated as below 5000KV, which extremely low. The truth is that whatever the disadvantages of alternative fuel, any country that relies on one source of fuel is exposed to pressure whenever there is an external crises. Daniel Eze, a human right activist and leader of Ijaw youths of the Niger Delta, said, Whatever the disadvantages of this alternative fuel, any country that rely so much on a single means like Nigeria is bound to be subjected to unnecessary pressure whenever there is an external crises. That is why the price of crude oil has also remained the drive of our economy; all these should not be. Environmental Impacts Apart from the challenges of the reliance on crude oil, the environmental damage (including air and water pollution and deforestation) also boost the argument for the use of alternative fuels which is sourced mostly from farm produce and refuse. The government had pledged to end gas flares on December 31, 2008, but that did not happen. Reports say it is simply cheaper for the oil companies to flare the gas than to collect it for use. Other countries have made successful attempts at producing alternative fuel; cornderived ethanol in the United States, sugar-derived ethanol in Brazil, synthetic crude from oil sands in Canada, coal-to-liquids production in South Africa, natural gas-toliquids production in Qatar and Malaysia, and small amounts of biodiesel production in the United States and Europe. The advantages of expanding the production of alternative fuels go beyond economic and national security benefits. It would also reduce the demand for crude oil, and thus lower world oil prices and cause greater supply diversity. Increase Food Prices The food prices increase with the fuel price for these major reasons: Transportation prices: These rise with the fuel prices and farm produce since food stuff (fresh or processed) require transportation. Power generation: Power is required for preservation of food, for food processing, and packaging. With alternatives like biofuels, the food prices would stay low. Biofuels on the other hand can be derived from biomass, including organic matters like plants or their metabolic byproducts like cow manure which offer environmental benefits over conventional

fossils fuels. The production and use of biofuels derived from palm oil, soy, corn, rapeseed, and sugar cane would drive up the demand and supply of local farm produce, increase employment as well as bring down the cost of fuel and food (especially as more youths go back to the farms). The amnesty arrangement for the Niger Delta militants has improved the situation in the Niger Delta but temptation obviously remains. Reports say that about 150, 000 barrels of oil, valued at N2.6 billion, were stolen daily in Nigeria, according to oil giant, Shell, which accounts for half of national oil output. Ian Craig, Shells Director for Sub-Saharan Africa, was recently speaking at the Nigeria Oil and Gas Forum in Abuja, where he attributed the development to the failure of the NNPC to meet its funding commitments. The greatest challenge, however, is the massive organized oil theft business and the criminality and corruption which it fosters. This drives away talent, increases costs, reduces revenues both for investors and the government and results in major environmental impacts. He said. However to salvage the energy crisis, there will be need for additional physical infrastructure despite political and social resistance. In the energy policy of 2003, NEPA (now PHCN) outlines a plan to diversify its energy sector and pursue renewable energy. In particular, NEPA endorses an increase in the utilization of oil, natural gas, tar sands, coal, nuclear, hydropower, solar, biomass, hydrogen, wind and other renewable. Today, Nigeria as a nation is more conscious of the advantages of having alternatives to crude oil especially with the success other countries have recorded with similar projects as well as the devastating weather changes in the country. It is time we stopped talking and started walking.

Nigeria begins work on fuel ethanol

In order to take advantage of the abundant material resource available in the country, the federal government has inaugurated the Inter-ministerial Steering Committee that would work towards the establishment of the fuel ethanol industry in Nigeria. Inaugurating the committee in Abuja recently, the Honourable Minister of State for Petroleum Resources, Dr Edmund Daukoru, who represented the President, Chief Olusegun Obasanjo, noted that Nigeria was blessed with abundant material resources with convenient alternatives to support the fuel ethanol industry. He cited Brazil as a country that started the experiment in fuel ethanol as a result of the energy crises that it found itself enmeshed in, adding however that, that country grew to take a leading position in the production of fuel ethanol.

The Minister of State remarked that it was because the entire world was getting deeply concerned with the contribution of fossil fuel to environmental pollution, that global initiatives sought for durable and environmentally friendly alternatives from biomass. He therefore called on members of the inter-ministerial committee to streamline their priorities within the context of the various alternative routes for ethanol production. The Group General Manager, Renewable Energy Division of the NNPC, Engr. O. A. Anyaoku who spoke at the occasion, outlined the mission and vision of the programme, explaining that a three-step approach would be applied to ensure the successful take-off of the industry. These included planning, building the foundation, and growing _ all of which had builtin and articulated sub-plans of action. While maintaining that the NNPC has the vision to create a thriving domestic ethanol industry within the next five years, the GGM identified the following as the key elements of the vision: Maximisation of carbon credit opportunities, producing alternative fuel that is environmentally friendly; creation of rural wealth and jobs; and the establishment of a thriving home grown industry. Other key elements of the vision are: integrating the oil and gas sector with the agriculture sector; creating sustainable development and bringing about energy selfsufficiency. The vision, when achieved, he said, would bring about reduction in the dependence on oil while creating a viable commercial venture at a lower cost of production. Also speaking at the occasion, the Minister of Science and Technology, Professor Turner Isoun stated that alcohols in general and ethanol in particular made excellent fuels, adding that over dependence on gasoline has delayed investment in ethanol. The committee, which has ten terms of reference is to among other things, ensure that appropriate incentives were created to attract private sector participation as well as ensure the development and enforcement of appropriate regulations to sustain the implementation of the fuel ethanol programme. The committee is to also ensure that state and local governments including other stakeholders are encouraged to focus on the necessary infrastructural development needed to drive the industry, just as it will be expected to constantly keep in focus, the strategic intent and corporate objectives of the programme as well as ensure access to critical project resources. The committee is to also provide active management and sponsorship of fuel ethanol

programe through strategic planning, plan monitoring and allocation of needed resources.

Engr. Saidu Mohammed, the Managing Director of NGC, described the agreement as part of the gas revolution agenda of the government saying the nation has enough gas and that it was a good thing that the gas is being domesticated for commercial use.