Ogun-Osun river basin, NNPC biofuels sign MoU for €256m bioethanol plant
The Ogun-Osun River Basin Development Authority and 3D NNPC Biofuels Limited have signed a Memorandum of Understanding for the establishment of a €256m bioethanol plant in the Itokin area of Lagos State and the cultivation of cassava on 15,000 hectares of arable land across Lagos, Ogun, Osun and Oyo states.
The agreement, signed on Tuesday in Abeokuta, Ogun State, will see the Ogun-Osun River Basin Development Authority provide 200 hectares of land at its Itokin project site for the construction of the plant.
The authority will also make available 15,000 hectares of arable land from its land bank for large-scale cassava cultivation to provide feedstock for the facility.
Speaking at the signing ceremony, the Managing Director and Chief Executive Officer of the Ogun-Osun River Basin Development Authority, Adedeji Ashiru, described the agreement as a major step towards strengthening Nigeria’s energy and food security.
Ashiru said the project would also support industrialisation, create jobs and unlock the economic potential of underutilised government assets.
He said, “It is with great joy and a profound sense of history that I welcome you all to this epoch-making occasion: the signing of the Memorandum of Understanding between the Ogun-Osun River Basin Development Authority and 3D NNPC Biofuels Limited for the establishment of a bioethanol fuel plant.
“Today is not just an MOU signing; today, we are planting the seed for Nigeria’s energy future, food security and industrial revolution.”
According to him, the partnership would involve ORBDA providing land, water resources, community support and an enabling environment, while 3D NNPC Biofuels Limited would provide technical expertise, funding, technology and off-taker assurance.
He said the project aligned with the Federal Government’s drive to promote food security, alternative energy sources and wealth creation through the commercialisation of public assets.
The ORBDA boss said the bioethanol plant would produce renewable bioethanol for blending with Premium Motor Spirit, adding that the project would help reduce the country’s carbon footprint and conserve foreign exchange spent on fuel imports.
He said the project would also establish a large-scale outgrower scheme for cassava farmers.
“Second, food security and industrialisation. The cultivation of 15,000 hectares of cassava will not only feed the plant, but will create a massive outgrower scheme that will empower thousands of farmers, women, and youth in our host communities.
“From land preparation to planting, harvesting, transportation, processing, and plant operation, this project is projected to create over 100,000 direct and indirect jobs for Nigerians.
“It will interest the public that this project is valued at 256 million euros. It is huge; I must say at this point that Mr President, President Bola Ahmed Tinubu, is a visionary leader. He saw this ahead, and today, it is becoming a reality.
“On behalf of the board and management of ORBDA, I want to assure our partners that we are fully committed to this project. We will provide the land, we will provide the community support, we will provide the water resources and the enabling environment to ensure this project succeeds on time and at scale,” Ashiru said.
On his part, the Managing Director and Chief Executive Officer of 3D NNPC Biofuels Limited, Patrick Azi, said the company chose to partner with ORBDA after assessing the readiness of the 12 River Basin Development Authorities in the country to implement the Federal Government’s renewable energy and agricultural development agenda.
Azi said the authority was selected because of its coverage of four states in the South-West, availability of arable land and irrigation facilities, as well as the region’s strong cassava production base.
He said, “When we look at it, we now find out that we have a friend who is visionary, who has passion in renewable energy and who has been in the renewable energy space over a period of time. We then decided to approach the Ogun-Osun River Basin Development Authority.”
The MD disclosed that the proposed processing plant would be located in Lagos State, while the project would draw on cassava production from farmers across the region.
He said the authority had the land, irrigation facilities, dams, extension workers and farmers required to support the project, adding that the partnership would bring the resources together into an integrated agricultural and industrial value chain.
Azi said the company would work with ORBDA to improve agricultural productivity by preparing the land, supporting farmers and improving their yields per hectare.
He explained that a reliable supply of cassava would be critical to the success of the bioethanol plant.
Azi also disclosed that NNPC holds a 25 per cent equity stake in the joint venture, describing the partnership as an opportunity to bring the national oil company’s presence closer to communities in the region.
He added that the partners would work towards developing the framework agreement and commencing the project within weeks, with a target of flagging off the project before the end of the year.
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