Energy Commission Seeks Policy On Bio-Fuel

The Energy Commission of Nigeria, on Thursday in Abuja
advocated for a clear cut policy to ensure the development and sustenance of
bio-fuel technology in the country.

Prof. Elijidere Bala, Director, Renewable Energy, who gave
the advice in an interview said “the policy issues are to create the market
involved for both the suppliers and the user, in that respect, we need the
private sector in view of government position of doing business.’’

Bala stated that the private sector involvement was needed
in the development of jatropha carcus, a seed that can be processed to produce
high quality bio-diesel.

According to him, the private sector involvement is
necessary, considering the fact that government is not too good in handling
business.

“This is the main reason why the growing of the feedstock is
to be done through the private sector.’’

Bala said that the Ministry of Agriculture had developed
some incentives to entice the private sector to go into production of feedstock
and bio-fuels, while other incentives for users were also being developed.

He said that to get a higher participation of the private
sector, there was need to provide very low interest rate credit facility for
the development of renewable energy in the country.

“This is the reason why in our policy, we were agitating for
the creation of a development fund for the jatropha purpose, perhaps in a
larger capacity, as a renewable energy funds which can be assessed below a
single digit interest rate.

“This is a situation whereby we allow the industries not to
pay tax within the first 10 years of their operation; this is to give them an
edge for them to channel all their energy towards production and supply.’’

He said that there was also need to involve the local
farmers in the development of renewable energy in order to ensure the success
of the process.

Bala said that the commission had invited the Jatropha
Farmers Association for discussion to know what their problems were and suggest
a way forward in the production of the feed stock.

“Fuels are generally used as an energy source like
transportation, heating, starting machines and many more, they can also be used
as an alternative for powering cars and many other things in Nigeria.

“We have fuel from petroleum products, we have PMS, AGO
which are fuel substances that can easily be finished because the rate at which
we consume is faster than the rate at which we produce.

“So bio-fuels can be used as an alternative to petroleum
product,” he noted.

Bala said “by the time the petroleum we are using get
finished or cannot service the country effectively, we can fall back to these
bio-fuels that are grown like an agricultural produce which is sustainable.’’

He said that the aim of the commission was to sensitise
Nigerians on the need to look inward for alternative sources of energy.

He appealed to the federal government to set up development
funds, through which businessmen can easily access loan at lower interest.