ETHANOL is a colourless volatile flammable liquid that is so versatile because of its use as raw material in the production of many things. Ethanol is produced by fermentation of sugar. In the fermentation process, sugar and starch molecules are broken down by yeast to produce ethanol. Water evaporates in the distillation process, thereby increasing concentration of the ethanol. Apart from food and pharmaceutical use, ethanol is used as bio-fuel in developed countries.
To produce ethanol from cassava in Nigeria the following equipment are required.
- Peeler
- Grater
- Jet cooker
- Fermenter
- Distiller
- Steam boiler
- Generator
- Efficient treatment plant
The actual amount of cassava needed is dependent upon the starch content of the cassava. At 30 percent starch content a ton of cassava will produce 280 liters of ethanol and at 20 percent starch content a ton will give you 180 liters of ethanol.
VIABILITY OF USING CASSAVA TO PRODUCE ETHANOL IN NIGERIA
Nigeria imports close to 600million litres of ethanol annually to meet its industrial consumption. This amounts to close to US$750 Million. Out of this total, only 9 million liters is produced in Nigeria which is not even up-to 2 percent of the annual demand of ethanol by the country. As at 2018 only one ethanol producing factory is in Nigeria. This is a very viable investment area where return on investment is assured. Nigeria is the biggest producer of cassava in the world and accessing it locally is much easy. All the investor needs to do is to site his factory close to where cassava is mainly grown so that logistics cost will not be much.
The feasibility and other guide will be provided to any serious investor and all the necessary guide and support he needs will also be provided. Market for ethanol in Nigeria as at 2018 is not competitive as the cost of producing in Nigeria will be far cheaper compared to the imported ones so the investor has price advantage and will sell first before the imported ones are sold because his price will be cheaper.
INCENTIVES
- Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years
- 100 percent repatriation of profit net of taxes
- Capital allowance not restricted. Granted in full -100%
- Investment Promotion and Protection Agreement: The IPPA helps to guarantee the safety of investment of the contracting parties in the event of war, revolution, expropriation or nationalization.
- 60% repayment of interest paid by those who borrow from banks under ACGS for the purpose of cassava production and processing
The major inputs for large scale manufacturing are; LAND, EQUIPMENT, TRAINING, FINANCE AND MARKET.
LAND
Procuring Land for such large scale manufacturing has to be done by professionals who have eagle eye and knowledge of what is required for the successful take off such industry with minimal hindrance. BUSINESS ADVISORY NETWORK is a guru in this regard and will help you arrange choice land at the best rate, all you have to do is to talk to us.
EQUIPMENT PROCURING
BAN has a relationship with a network of equipment manufacturers and suppliers. BAN has the expertise to advice on the best way to go about the setting up of the factory and the equipment to buy for effectiveness. It has to be a mix of both cost effectiveness and durability.
TRAINING
BAN will help you to train and retrain your staff on how to run a cost effective manufacturing concern.
FINANCE
Finance is key to any successful manufacturing and the government is will to support an investor who has shown capacity and to provide enabling environment for the success of such concern. There is 200 billion manufacturing intervention fund put in place by the central bank of Nigeria. BAN will help an investor who has met the criteria for accessing the fund to access the fund to support his manufacturing.
MARKET
The market for ethanol in Nigeria is huge and an early investor will also be entitled to the pioneer status incentives. This will help crash his cost and boost sales for such investor. It must be noted that the estimated market potential of ethanol in Nigeria is US$750 MILLION going by the quantum of import of the product in Nigeria. It also important to note that it is only a paltry 2 – 3 percent of the annual consumption of ethanol by Nigeria that is produced in the country. This leaves a gigantic opportunity for an investor.