China New Energy to develop Nigerian biorefinery for Sunbird

Oct 29, 2013 - Bioethanol and biobutanol project developer China New Energy Ltd (LON:CNEL), or CNE, said today it had signed a memorandum of understanding (MoU) to develop a biorefinery in Nigeria for Sunbird Bioenergy Africa Ltd.

The initial project, estimated at around CNY 150 million (USD 24.6m/EUR 17.9m), could be extended to include the construction of nine more facilities.

Under the terms of the MoU, CNE will immediately start work on the design of the first plant which will be processing cassava feedstock to make 100,000 tonnes (110 million litres) of anhydrous ethanol annually. The company will deliver its pre-treatment, fermentation, distillation and dehydration technology for the project. Meanwhile, local partner OBAX World Ltd will take care of the civil engineering and construction of the facility.

The first plant is scheduled for completion within two years and is seen to start full commercial production in early 2016. It will be operated by Sunbird, while CNE will deliver long-term training, support and maintenance services. The other nine projects could be built within a decade.

The first scheme will contribute to the objectives of the Nigerian Federal Ministry of Agriculture and Rural Development (FMARD). Under the Agricultural Transformation Agenda (ATA), Nigeria aims to develop value-chains that promote the making of value-added products from surplus agricultural products, thus creating employment and developing local infrastructure.

(CNY 10 = USD 1.642/EUR 1.192)

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