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

2. OUTLINE OF THE PRESENTATION
PRESENTING ENERGY ZEUS CORPORATION
THE PROJECT
MARKET POTENTIAL
OPERATING FRAMEWORK
WHY JATROPHA?
CONCLUSION

3. 1. ZEUS ENERGY CORPORATION
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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. 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. 2. THE PROJECT
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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. 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. Geographic phases and project extension1

10. THE INDUSTRIAL SITE

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

14. Project phases Phase 4 Cogeneration Plant Land provided Phase 5
Glycerine Plant
Land provided
Phase 6
Bioethanol Plant
Land provided

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. Good for the environment

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 CO2 emissions by 78%. It has been estimated that 1 hectare of Jatropha curcas could result in CO2 emissions reductions of 10 tons per year. 
Spain is Nigeria’s 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. 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. Project Cycle
+ Crushing
facilities

20. 3. MARKET POTENTIAL
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21. Biofuels life cycle

22. Forecasted Demand for Biofuel
Demand forecasted: billion litres/year
An estimated consumption of 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. 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 million hectares
Over the next 5-7 years between 1.5 and 2 million hectares every year.
For 2015, 3 million hectares.

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. 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. 4. THE OPERATING FRAMEWORK
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27. African Renewable Energy
The NEPAD Energy Infrastructure Initiative and the UN’s Africa 2030 vision
Aimed at enhancing socio-economic development through the better utilisation of the continent’s 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. 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. 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. 5. WHY JATROPHA?
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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. 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. 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. 6. CONCLUSION
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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. 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. 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. Thank you for your attention
ZEUS ENERGY
SPAIN
GUATEMALA
COSTA RICA
COLOMBIA