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Report
Biofuel production with jatropha
feedstock in Nigeria
Establishment of a network of jatropha refineries
JAVIER HERNÁNDEZ
PRESIDENT
ZEUS ENERGY
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NNECEA 2011
Abuja
4 November, 2011
OUTLINE OF THE PRESENTATION
1. PRESENTING ENERGY ZEUS CORPORATION
2. THE PROJECT
3. MARKET POTENTIAL
4. OPERATING FRAMEWORK
5. WHY JATROPHA?
6. CONCLUSION
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1. ZEUS ENERGY CORPORATION
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4 November, 2011
ENERGY ZEUS – INDUSTRIAL DIVISION
 Energy Zeus Corporation is a
Spain based company
created to promote noncontaminating 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.
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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.
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2. THE PROJECT
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4 November, 2011
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.
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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.
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Geographic phases and project extension
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THE INDUSTRIAL SITE
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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
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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.
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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
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Livestock feed plant
Land provided
Project phases
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Phase 4
Cogeneration Plant
Land provided
Phase 5
Glycerine Plant
Land provided
Phase 6
Bioethanol Plant
Land provided
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.
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Good for the
environment
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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.
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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.
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Project Cycle
+ Crushing
facilities
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3. MARKET POTENTIAL
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4 November, 2011
Biofuels life cycle
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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.
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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.
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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.
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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
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4. THE OPERATING FRAMEWORK
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4 November, 2011
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.
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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.
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Regional Integration Potential
ECOWAS provides a conduit for the marketing of biodiesel 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 cleanenergy and renewable initiatives.
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5. WHY JATROPHA?
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4 November, 2011
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.
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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.
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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.
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6. CONCLUSION
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4 November, 2011
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.
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Biofuels are going to have a massive socioeconomic 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.
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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.
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Thank you for your attention
ZEUS ENERGY
SPAIN
GUATEMALA
COSTA RICA
COLOMBIA
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