Nigeria: Investing in an Ethanol Plant for Export
by Uba Godwin (This Day/AllAfrica.com/Global Trust Consulting Group) Uba Godwin writes on how cassava and other raw materials could be processed into ethanol for export — It is disheartened that Nigerians at this level of technological development worldwide are still importing alcohol from oversea countries, when we can boast of more than enough cassava and other useful raw materials in this country. The technology and manpower are also available to produce enough industrial alcohol for use within the country and reserves for exports.
Ethanol (industrial alcohol) has wide industrial applications. It is used in pharmaceutical companies, distilleries, laboratories, hospitals, soap and detergents (cosmetics) and beverage industries to mention but few.
The importance and demand for this product have necessitated the massive importation from oversea countries.
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Apart from cassava, other raw materials needed for this project are palm-wine, maize, potato, molasses, sawdust, and yam to mention but few. All these are equally abundant in Nigeria.
The machineries required for this project can be produced locally.
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One tone of cassava tubers yields between 400-600 liters of alcohol, while palm-wine yields between 128-140 liters of ethanol. Details will be worked out in a bankable and comprehensive feasibility studies available for prospective investors.
Market Potentials: In spite of huge consumption by various chemical industries in Nigeria and the West African sub-region, there are a few ethanol plants in the country with very low production capacity. At the last count there were only four. In effect, about 90% of local consumption is still imported at exorbitant prices. An investment in ethanol production will certainly be good especially when viewed from industries that need the product such as:
(a) Alcoholic/ Beverages Industries: The many products of various gin, brandy, whisky, wine, etc make use of ethanol in large quantities.
(b) Surface Coating Industries: Paint makers consume a lot of ethanol during the production of certain paints and thinners. Certain adhesives incorporate ethanol as an important solvent.
(c) Cosmetics Production: The cosmetic industries find ethanol useful in the production of perfumes, dyes, after-shave lotions, etc.
(d) Drugs Making: Ethanol is used in making over the counter (OTC) drugs such as dermatological creams, mentholated spirit, some syrups and mixtures.
(e) As Preservatives: Biological specimens are preserved in laboratories using ethanol.
(f) Fuel: Ethanol is used as fuel for spirit lamps and stoves and for flaming in hotels and foundry works where soot is not required. Ethanol has been used and is still being used as substitute to petrol as fuel in countries like Brazil, etc.
(g) Other uses: In laundry and dry cleaning ethanol is used to some extent. It is good antifreeze for automatic radiations. It is also raw material for making resins, acetic acid, chloroform, etc. Aside from these, the by-products are also very useful, as it will be seen later.
The international demand for this product is so high.
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This project is socially desirable, economically worthwhile, technically feasible, commercially viable and highly profitable. Hence do recommend this project to the numerous commercial cassava farmers, local government areas, Federal Government and other numerous investors in the country and other parts of the world. Funding The Federal Government just released through CBN over N500Billion for injection into small and medium scale industries development in Nigeria. Anybody with good business plan will benefit from the funds. There are also financial institutions and Special Project Funding Organizations that would be recommended to prospective investors on contacting the writer. READ MORE and MORE (AllAFrica)