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Page 1 Biofuel production with jatropha feedstock in Nigeria Establishment of a network of jatropha refineries NNECEA 2011 Abuja 4 November, 2011 JAVIER.

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Presentation on theme: "Page 1 Biofuel production with jatropha feedstock in Nigeria Establishment of a network of jatropha refineries NNECEA 2011 Abuja 4 November, 2011 JAVIER."— Presentation transcript:

1 Page 1 Biofuel production with jatropha feedstock in Nigeria Establishment of a network of jatropha refineries NNECEA 2011 Abuja 4 November, 2011 JAVIER HERNÁNDEZ PRESIDENT ZEUS ENERGY

2 Page 2 OUTLINE OF THE PRESENTATION 1.PRESENTING ENERGY ZEUS CORPORATION 2.THE PROJECT 3.MARKET POTENTIAL 4.OPERATING FRAMEWORK 5.WHY JATROPHA? 6.CONCLUSION

3 Page 3 1. ZEUS ENERGY CORPORATION 4 November, 2011

4 Page 4 ENERGY ZEUS – INDUSTRIAL DIVISION Energy Zeus Corporation is a Spain based company created to promote non- contaminating industry. It is a leader in renewable technology development, resulting from its more than 18 years of research and development and applied experience with proven reduction in green house gas effect.

5 Page 5 SPECIALIZED IN BIOFUEL ENERGY ZEUS is specialized in the design and construction of biofuel industrial centers. It uses oils that are low cost and are not used for human consumption, such as palm or jatropha oil, and are therefore effective and respectful with the environment. We proactively promote and apply the concept of SUSTAINABLE COMMUNITY, where resources are efficiently used for equitable social and economic development and that have a limited impact on the environment.

6 Page 6 2. THE PROJECT 4 November, 2011

7 Page 7 AIM This investment project, undertaken by ZEUS ENERGY CORPORATION, aims to produce and sell bio-diesel from Jatropha Curcas seeds based on trans-estirification with methanol.

8 Page 8 OBJECTIVES Realize a commercial scale bio-diesel network of refinery plants in Nigeria for domestic and regional market consumption and for international export. Establish a network of Jatropha Curcas plantations throughout the country for a stable sourcing of crude jatropha oil for processing in the refinery. Cultivate plantations with a minimum of 10,000 hectares by means of an organized cluster of growers in each participating state. Between the plantations and the refinery, create around 20,000 jobs, thereby contributing to the reduction of the unemployment rate and regional development in Nigeria. Establish a central distribution and commercial center targeting domestic, regional and international markets. Promote synergies with related economic sectors.

9 Page 9 Geographic phases and project extension

10 Page 10 THE INDUSTRIAL SITE

11 Page 11 MULTIFUNCTIONAL INDUSTRIAL COMPLEX AIM: provide an efficient, integrated and sustainable response Center for storage and treatment of Jatropha Curcas seeds. Oil extraction through production lines. Treatment of oil for use in biofuel production. Sterification with Biological Catalysis. Glycerine production for use in the pharmaceutical industry. Livestock feed production plant, using flour patties from oil extraction, once decontaminated and the DDGS obtained from the Bioethanol plant. Bioethanol plant

12 Page 12 Scope of investment Minimum investment required: 250 million euros –plantations with a min. 10,000 ha. –1 refinery –Social investment included in the investment Expected performance –A 6.000 hectare plantation can generate approximately 8.1 million litres of diesel and 400 tons of glycerine, equivalent to an approximate estimated value of $11,340,000. –1 hectare = 2,000 kg. seeds = 680 litres of jatropha oil per hectare –6,000 Kg. seeds = 1,200 litres of high quality oil Estimated cost of production: $43 per barrel of fuel Subproducts with commercial value: biomass, glycerine, fertilizer, biogas, cooking fuel, soap.

13 Page 13 Project phases Phase 1A 70,000 ha Jatropha plantations Land providedPhase 2 Jatropha oil extraction plant Land provided + Offtake agreement Phase 3Livestock feed plantLand providedPhase 1B 250,000 Tn biofuel plant Land + infrastrcuture provided

14 Page 14 Project phases Phase 4Cogeneration PlantLand providedPhase 5Glycerine PlantLand providedPhase 6Bioethanol PlantLand provided

15 Page 15 BENEFITS Technology transfer Human Capacity Building Rural Development Poverty reduction Employment creation Specialist skills for project development Carbon Credits: Jatropha is commonly respected as a Carbon Credit generating tree as it recycles 100% of the CO2 emmissions produced by burning the biodiesel made from it (the CO2 emmission from jatropha oil is considered to be almost zero). Stops soil erosion: jatropha stabilizes and restores degraded soils.

16 Page 16 Good for the environment

17 Page 17 CARBON CREDITS The project generates a distinct financial opportunity for processing carbon credits. Farmers can earn from by selling the carbon credits they are able to produce by embarking on this green project. Over a lifecycle, biodiesel reduces net CO 2 emissions by 78%. It has been estimated that 1 hectare of Jatropha curcas could result in CO 2 emissions reductions of 10 tons per year. Spain is Nigerias first direct potential client for Green House Gas Offsets. Because Spain produces more Carbon Dioxide (CO2) than it can absorb, it is required to purchase absorption ability from another using Carbon Credits as the currency.

18 Page 18 PIONEERING ROLE There have been many awareness campaigns, including Public Hearings on Jatropha, in Nigeria but no one has yet actualized the potentials. Like many emerging clean technologies, biofuel production is a challenging, knowledge-intensive enterprise in an emerging industry. Having a strong and qualified investment and technological partner is key to realizing any biofuel generating project. No project has yet been realized in Africa for establishing commercial scale plantations and a refinery. This project will place Nigeria as First. Indeed the refinery will be the first of its kind in West Africa and perhaps in sub-Saharan Africa, if al the parties involved are capable of moving forward quickly and on target.

19 Page 19 Project Cycle + Crushing facilities

20 Page 20 3. MARKET POTENTIAL 4 November, 2011

21 Page 21 Biofuels life cycle

22 Page 22 Forecasted Demand for Biofuel Demand forecasted: +12.5 billion litres/year An estimated consumption of 14.9 billion litres of biofuel for 2012 in the EU and 5.2 billion in USA. If there were a 10% obligatory global gasoline-bio mix, production and consumption of biofuel would reach 136,000 million litres yearly, which would require a total of 76 million hectares of plantations. It is estimated that if the UE and USA expand their biofuel sectors with the objective of reducing their energy dependency, the value of biofuel trade could reach $200,000 million in 2020. If the objective of the EU and USA is to expand the biofuel sector in order to fight against climate change, the value of biofuel imports from emerging and developing countries could reach $520,000 million in 2020.

23 Page 23 Forecasted Evolution of Jatropha Plantations There are approximately 900,000 hectares of cultivated jatropha today –+85% in Asia –120,000 hectares in Africa –20,000 hectares in Latin America Enormous growth is forecasted in terms of the number and size of jatropha plantation projects –In 2010 5 million hectares –Over the next 5-7 years between 1.5 and 2 million hectares every year. –For 2015, 3 million hectares.

24 Page 24 Forecasted Global Investment in Jatropha Although until now jatropha projects have been mainly government initiatives, we are witnessing a drastic changeover to private investment, motivated by the price of oil and the search for alternative energy sources. A total global annual investment of up to $1,000 million is expected. If we assume an average investment of $300-$500 per hectare, forecasted growth for the industry would result in a total global investment of between $500 million and $1,000 million every year for the next 5-7 years.

25 Page 25 Main Buyers of Jatropha Biofuel Initial phase of resulting production and commercialization –National Nigerian market NNPC Central Government for domestic consumption of fuel for generators, agricultural machinery and military vehicles State governments for consumer consumption Consolidated phase of production and commercialization –Regional market –International market: biofuel, jatropha as raw material, biomass

26 Page 26 4. THE OPERATING FRAMEWORK 4 November, 2011

27 Page 27 African Renewable Energy The NEPAD Energy Infrastructure Initiative and the UNs Africa 2030 vision –Aimed at enhancing socio-economic development through the better utilisation of the continents resources to produce affordable and renewable energies -while contributing to poverty reduction, addressing inequality, and reducing environmental degradation. -The Environmental Action Plan calls for the development and implementation of production and consumption projects and investments aimed at harmonization of the growing human consumption of energy resources with the need for sound environmental management. -Renewable energy technologies are given priority.

28 Page 28 The results of the National Workshop on Jatropha for Sustainable Energy Development, held in Kano in May 2008 –recommended the review of the existing biofuel policies, in line with the existing national energy policy on biomass –linking the agriculture sector to the energy sector of the economy with the view –to diversifying the energy supply mix of the country and the establishment of national, state and LG Committees –to promote the production of Jatropha and bio-diesel from jatropha.

29 Page 29 Regional Integration Potential ECOWAS provides a conduit for the marketing of bio- diesel products in countries adjoining Nigeria, providing reduced-tariff advantages to small and medium Nigerian exporters. The strong unmet demand in Niger, Chad, Cameroon, Burkina Faso and Benin for petroleum distillates, in particular diesel. Possible future expansion of Nigerian producers/marketers into new joint-ventures in surrounding ECOWAS states. Contributing to pan-African and regional clean-energy and renewable initiatives.

30 Page 30 5. WHY JATROPHA? 4 November, 2011

31 Page 31 Jatropha, the Wonder Plant A drought-resistant, inedible oilseed-bearing shrub which thrives in high temperatures, that does not compete with food crops or good agricultural land and that contributes to detaining envrionmental degradation of soils. It is a perennial plant with a productive cycle of between 45 and 50 years, rapid growth and less fertilizer required. It contributes to Clean Development Mechanism projects. An opportunity for foreign exchange earnings from carbon credits.

32 Page 32 Main Benefits of Jatropha Usage of marginal and sub-standard lands; not currently used for food or cash-crop production. Important boost for the provision of jobs to unemployed (particularly youth and women) in disadvantaged rural areas. The most prominent impact will be on families, given the vital role played by women in agricultural production. Integrated farm-to-consumer value chain within a small geographical area, cutting down on transport and storage costs for diesel. Potential to unlock small investor participation in the national economy, via the promotion of production and marketing cooperatives. Introduction of new – and simple – technologies to marginalised areas. Stimulation of direct Foreign Direct Investment in areas and sectors of Nigeria not previously foreshadowed; both in the production & marketing of diesel. Reduction of the dependency on refined oil-product imports; a plus for the balance of payments. Contribution to environmental protection.

33 Page 33 Poverty reduction Local development through development of Jatropha farmland and incidental infrastructure such as roads, etc. Contribution to the reduction of poverty, via the creation of local job opportunities for both women and men farmers through the development and running of Jatropha farms and the construction and operation of a bio-diesel plant. Increase in cash income opportunities for regional farmers arising from securing service work opportunities for local workers on the construction & operation phases. Acquisition and dissemination of know-how and skills. Acquisition of new technology and through dissemination of Jatropha cultivation know-how and technology. Reduction of greenhouse gas emissions and reduction of diesel oil consumption and import of diesel oil products. Potential for new foreign currency revenue from export of bio-diesel and from emission trading arising from incorporation into the Clean Development Mechanism.

34 Page 34 6. CONCLUSION 4 November, 2011

35 Page 35 Biofuels A fundamental transition in global fuel production is now happening. The global markets for biodiesel are entering a period of transitional growth Biofuel offers considerable challenges and growth opportunities for Sub Saharan African countries for developers, feedstock producers and entrepreneurs.

36 Page 36 Biofuels are going to have a massive socio- economic impact on African economies. It is important to focus on the smartest biofuels. Biofuel from sugarcane, palm oil and soybeans are generally bad for the environment and compete with food crops in times of food crisis. Jatropha is an oil-brearing, drought resistant tree for marginal lands that does not compete with food crops and contributes to detaining desertification.

37 Page 37 ZEUS ENERGY INVESTMENT IN NIGERIA One of the greates challenges facing business, government and society today around the world is energy supply that is respectful with the environment. Some of the principal measures being taken to maintain a balance between offer and demand of energy include the international commerce of energy, diversification of energy sources and greater energy efficiency. The cost and availability of energy are what will define economic development and attract new investment to facilitate the transition to energy sustainability. ZEUS ENERGY proposes to make Nigeria the platform for biofuel production in Africa with a 250 million euros investment that will open the door to future investment in the clean and renewable energies sector.

38 Page 38 Thank you for your attention ZEUS ENERGY SPAIN GUATEMALA COSTA RICA COLOMBIA


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