Biofuel – Ethanol
Ethanol, a type of biofuel, represents a cleaner and more affordable alternative to traditional fossil fuels. Produced from renewable resources such as corn, sugarcane, cassava, and other crops, ethanol helps reduce greenhouse gas emissions and dependence on oil. Ethanol can be blended with petrol in various proportions, such as E10 (10% ethanol, 90% petrol) and E85 (85% ethanol, 15% petrol), to create cleaner-burning fuels that reduce emissions and enhance engine performance.
Nigeria, with its vast agricultural landscape, has significant leverage in the ethanol industry. The country’s diverse climate and fertile soil allow for the cultivation of various crops suitable for ethanol production, including cassava, which is abundant in Nigeria. By investing in biofuel infrastructure and leveraging its agricultural strengths, Nigeria can position itself as a key player in the global ethanol market. This approach not only drives economic growth but also promotes environmental sustainability by reducing reliance on fossil fuels and lowering carbon emissions.
Nigeria’s E10 Status
- A biofuel policy was introduced in 2007 which included two phases:
- Seeding the market, focused on imports to supply market; and,
- Biofuel production programme focused on achieving 100% domestic biofuels production by 2020.
- However, the import-seeding program was suspended shortly after due to monitoring issues, and the focus was geared towards developing local capacity.
- The NNPC’s Renewable Energy Department also ran joint ventures with states and private sector entities to cultivate crops, including cassava, for ethanol production. However, the projects have been deprioritised.
- The Standards Organisation of Nigeria (SON) has also developed standards for fuel-grade ethanol in Nigeria.
- Preliminary findings show that the downstream infrastructure is compatible with an E10 blend, with the Dangote Refinery already having the requisite infrastructure for blending.
At MEMAN,
We are committed to advancing sustainable energy solutions in Nigeria. The push for ethanol, particularly ethanol-blended fuels like E10, aligns with our mission to promote sustainable energy practices.
Through the Competency Centre, we are leading advocacy efforts to integrate ethanol into Nigeria’s fuel mix, leveraging our strategic partnerships and collaborations.
Objectives
Nigeria is the leading global producer of cassava
Economic benefits of E10
- Lower ethanol pricing: On average, over the last decade, ethanol has been cheaper than gasoline. Translating to savings of about NGN 3.40/litre upon adoption of an E10 policy.
- Higher ethanol octane reduces the required petrol subgrade octane: The potential “octane benefit” from blending ethanol with a cheaper lower-octane subgrade translates into NGN 64.75/litre.
- Dilution by ethanol improves petrol blend quality. The potential benefits here are estimated at NGN 2.30/litre.
Key benefits of ethanol fuel adoption
It holds the potential to reduce costs, reduce imports, and create jobs Provide better quality fuel with high-octane at a lower per-unit cost.
Domestic Policy Alignment: ECOWAS Fuel Standards, Petroleum Industry Bill
Leads to increased investments in the agricultural value chain, boosting local production and stimulating rural economic growth.
Domestic Policy Alignment: State Of Emergency Declaration On Food Security
Fewer greenhouse gases and reduced toxic emissions.
Domestic Policy Alignment: National Climate Change Policy, National Determined Contributions under the Paris Agreement, SDG13, Kyoto Protocol
Our strategic partnerships strengthen our advocacy for ethanol. We are proud to collaborate with the U.S. Grains Council, which brings international expertise and resources to our initiatives.
Additionally, we work closely with Africa Practice, a consulting firm specializing in strategic communications and advocacy, to ensure our efforts are impactful and aligned with broader energy policies.
U.S. Grains Council
Outlook Ahead
The future of ethanol in Nigeria is promising, with increasing support from both the public and private sectors. As we continue our advocacy, we anticipate significant growth in the use of ethanol-blended fuels, contributing to Nigeria’s energy security and environmental sustainability. Our ongoing work through the Competency Centre will be pivotal in shaping the biofuel landscape, ensuring that Nigeria remains at the forefront of the global energy transition.
Competency Centre Series on Ethanol
