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Tag: Energy

  • Energy drags Wall St. lower, S&P set to drop

    Energy drags Wall St. lower, S&P set to drop

    United States stocks slumped on Friday, putting the S&P 500 on track for its third straight weekly decline, as a robust dollar threatened to erode the profits of multinationals and tumbling crude oil prices pressured energy shares.

    Crude oil CLc1 fell four percent to $45.15 a barrel, extending its losses throughout the morning, after the International Energy Agency said a global oil glut continued to build and U.S. oil production showed no signs of slowing. The commodity has fallen in six of the past seven sessions and is down almost 60 percent from a peak reached in June.

    The S&P energy index .SPNY fell 1.4 percent, among the biggest decliners of the 10 primary S&P 500 sectors. Chevron Corp (CVX.N) fell 1.4 percent to $101.03 while Noble Corp (NE.N) sank 5.3 percent to $13.46.

    “It’s a bit of a surprise that the U.S. continues to produce at such a high level, and that amount of oil surplus continues to push the commodity lower,” said Michael Arone, chief investment strategist for State Street Global Advisors’ U.S. Intermediary Business in Boston.

    “I don’t expect oil will go much lower, but as it keeps falling, there are bigger concerns that we could see problems with respect to capital expenditures and employment in certain regions of the country.”

    U.S. consumer sentiment fell in March, dropping well below expectations, according to the University of Michigan’s preliminary monthly reading.

    The U.S. dollar index .DXY rose 0.7 percent and was set for its fourth straight weekly rise.

  • Can renewable energy ignite consumers’ hopes?

    Can renewable energy ignite consumers’ hopes?

    Getting gas to fire the power plants has been a Herculean task. Unreliable supply infrastructure and pipeline vandals have continued to compromise its distribution to various plants. The authorities are, however, looking at renewable energy as an alternative. Will the  diversifying of sources of power supply improve electricity supply? Assistant Editor CHIKODI OKEREOCHA asks.

    It’s an idea whose time has come. The rethink in favour of diversifying sources of power supply to guarantee improved electricity supply to Nigerians and operators in the industrial sector is coming at an auspicious time. The strategy, which seeks to explore alternative power sources such as renewable energy such as coal, solar, wind, and biomass, is coming at a time the excitement and optimism that greeted the unbundling of the sector.

    However, the handover of the sector to private investors has brought agony and frustration to consumers as there has not been any visible improvement in electricity supply more than a year after the sector was privatised. Rather, electricity supply has worsened and tariff gone as high as 100 per cent in  Africa’s most populous and largest economy.

    Although the Minister of Power, Prof. Chinedu Nebo, has continued to plead with the consumers to be patient, saying that it takes a long time to build power plants. According to him, issues of pipeline vandalism and getting gas to power the plants have been tasking.

    The Minister, who spoke with reporters in Lagos, said: “Vandalism is taking a toll on us. A situation where our own compatriots vandalise the oil and gas pipelines, especially the gas pipelines that supply gas to the power stations, since 70 per cent of all of our power generation is from gas-fired turbines and 30 per cent is from hydro. We have not been doing coal, we have not been doing renewable; we have not been doing biomass, so we really are hamstrung. So, the government is now working on diversifying to make sure that we have a good, robust fuel mix.”

    Noting the need to think out of the box, Nebo disclosed that licences had been issued to investors interested in generating electricity through coal and solar power. According to him, the government was working towards generating 10 per cent of the country’s electricity from coal.

    The Nation learnt that under the plan, government would build coal-fired plants in Enugu, Benue, Kogi and Gombe states. The plan, it was learnt, kicked off about a fortnight ago when the Federal Government signed a Memorandum of Understanding (MoU) with One Nation Energy Platform Ltd. for the production of 500 megawatts (MWs) coal-fired power plant in Enugu.

    Nebo signed for the the government, while the Chairman of the company, Dr. Uzoma Obiyo, signed on behalf of the company. A statement by the Ministry described the agreement as a welcome development for the government’s quest for a robust energy mix that would support the nation’s aspiration for development of the power sector.

    The statement noted that the coal-power project will also provide stable power devoid of challenges of sabotage from vandals. It said citing the coal powered plant in the Enugu area was a welcome development as Ugwuaji, a settlement in Enugu State, houses one of the biggest transmission sub-stations in the country.

    It also described the coal deposit in Nigeria as very clean, and that the processing of the mineral resource for energy delivery would not be a cumbersome process. It further said the Southeast zone alone had enough coal deposits to deliver 5,000 Mw of coal fired power to Nigeria.

    Earlier, the government through the Nigerian Electricity Regulatory Commission (NERC) granted an operating licence to Trombay Power Generation Limited for a 500 MWs power plant to be located at Wajari village on Dadinkowa Road, Yamaltu Local Government Area of Gombe State.

    Chairman of NERC, Dr. Sam Amadi, who handed over the licence to the company in Abuja, noted that coal power plant “is becoming important in the effort to diversify our fuel source.”

    Dangote Group is also investing a whopping $250million in three coal-fired power plants in its cement plants in Obajana, Kogi State, Ibeshe in Ogun State and Gboko, in Benue State. The company, last year, imported its first consignment of coal from South Africa.  Dangote Cement Managing Director, Devacumar Edwin, explained that the decision to look towards coal fired power plants was informed by the worsening situation of power supply caused by continuous drop in gas supply to power generating stations.

    Edwin said: “As you know, the gas and the fuel oil supply situation is going from bad to worse every day and all the manufacturing industries and all the power plants are affected.”

    He added that because of the difficulties the companies that bought the power plants are experiencing as a result of inadequate gas supply, there are fears that they might not be able to settle their obligations to the banks. He said to continue hoping without taking action will amount to watching one’s investments go down the drain.

    “We are trying to be proactive because if we keep slacking, nobody will come to our aid. So as much as we are going to appeal to the government for help, we have made investment so that our business will continue to thrive,” he said, adding that the Group’s investment in coal has created opportunities for the sector and that the move will reduce the company’s cost of production.

    He, however, said the group was looking at exploring the opportunity in the local coal industry as supplies from within the country would be cheaper in the long run. For the group and other investors in coal-powered electricity generation, the local coal industry holds lots of promises. For instance, Nigeria has about 22 coalfields spread over 14 states, including Adamawa, Anambra, Bauchi, Benue, Cross River, Edo, Enugu, Gombe, Imo, Kogi,  Kwara, Nassarawa, Ondo and Plateau states. Available geological data suggest that Nigeria’s coal reserves, which can be described as proven and capable of being exploited in commercial quantities are about 639 million tonnes.

    Also, the inferred reserves – resources present, but with a less assured reliability of commercial recoverability – are about 2.75 billion tonnes. Interestingly, Nigeria’s coal, according to experts, is unique because of its low sulphur and ash content. It also has low thermoplastic properties, making it very attractive for power generation.

     

    The imperative of

    renewable energy

     

    At various fora, Nebo said pipeline vandalisation is the major reason for the challenges of power supply in the country. He explained that about 2,300MW was lost in the past few months due to the vandalism of five gas pipelines that supply power to the national grid.

    According to him, the affected pipelines include the Escravos-Lagos Gas Pipeline System (ELPS) with a generation capacity of 800MW and the Trans-Forcados pipeline with capacity of 800MW.

    Others are Trans-Niger pipeline with capacity of 500MW, the Alakiri-Onne gas pipeline and Chevron gas plant with capacity of 2,672 MW, which were also affected.

    At the last count, about 20 ruptured pipelines have been identified, all due to sabotage, according to the Nigerian National Petroleum Corporation (NNPC). The corpoation reported that saboteurs were responsible for the destruction of Escravos gas pipeline in 2013. It also said the Escravos-Warri stretch of the ELPS and the Trans Forcados crude pipeline were also destroyed, adding that investigations by the Nigerian Gas Company (NGC) shown the pipelines were punctured. “The cumulative effect of the above interruptions is a real degradation of power supply to Nigerians,” NNPC said.

    However, pipeline vandals are not the only ones wrecking havoc on the nation’s electricity supply. Persistent low water level has also compromised the hydro-power dams. The Minister, however, assured that rehabilitation was ongoing at the Kainji and Shiroro dams to upgrade them.

    Nebo, during a visit to The Nation as part of his tour of media houses, also said the government was thinking of picko-hydro that can be powered by the smallest stream to generate power at least for a little community of people.

    The government has also begun the building of the 700 MW Zungeru dam and will soon begin work on the 3,050 MW Mambilla power plants, both of which have been on the drawing board for decades. At least 17 small and medium hydro power plants are being developed across the country.

    It is expected that when the Kashimbilla power plant is fully functional, it will generate an additional 40 MW, while the Dadinkowa dam will rake in 34 MW.

     

    Solar, biomass to the rescue

     

    Although the Federal Government, The Nation learnt, is planning to add 2,483 MW of electricity to the national grid this year through renewable energy sources, part of it would come from solar. As Nebo pointed out, one of the celebrated milestones in the power sector is the flag-off and commissioning of Operation Light-up Rural Nigeria projects in three rural communities of Abuja, namely Durumi, Shappe and Waru. He said residents in those villages, who hitherto had never seen electricity, marked uninterrupted solar power supply for one year.

    Already, plans have reportedly reached advanced stages to replicate the projects in hundreds of communities across the country, while also encouraging the private sector to key into it for wider spread.

    Similarly, biomass is increasingly becoming attractive as an alternative energy source. According to Nebo, the option would ride on the huge waste generated in major cities across the country such as Lagos, Kano, Port Harcourt, Enugu, Kaduna and Ibadan, among others.

    “We can aggregate these and put more power plants here and there, and feed them directly to the distribution network of the country and that is embedded generation and distributed power,” the Minister explained.

    Another alternative energy source that holds promise is wind energy. For instance, Nigeria has wind plant in Katsina State. However, the project, which is over 97 per cent completed, ran into a hitch following the kidnapping of the French national in charge of the project. But the Minister expressed hope that the project would be inaugurated soon.  He said there was no reason some parts of Nigeria would not benefit from wind energy.

    According to him, Jos in Plateau State and Katsina in Katsina State have a lot of wind velocity to support wind-powered electricity.

     

    Renewable energy policy

     

    For electricity consumers, the renewed hope in renewable energy received more impetus from the National Policy on Renewable Energy and Energy Efficiency. The Minister said Nigeria, which hitherto did not have a renewable energy policy, now boasts a draft policy. The Minister said the policy has been taken to the National Executive Council (NEC) for approval.

    Presenting the Draft National Policy on Renewable Energy and Energy Efficiency at a stakeholders’ workshop in Abuja, Director of the Electrical Inspectorate Services (EIS) in the Federal Ministry of Power, Abayomi Adebisi, said that under the policy, 8,188MW will be achieved with Renewable Energy (RE) by 2020 on a medium term, while the long-term target is on the realisation of 23,134 MW by year 2030.

    Adebisi said RE would contribute by 1.3 percent in the year to the national grid with a corresponding increase of 8 per cent and 16 per cent, between 2020 and 2030. “While large and small hydropower would contribute 2,121 MW and 140 MW to the renewable energy generation this year, it is also expected that solar accounts for 117 MW, with biomass electricity at 12.3 per cent,” he said.

    He also added that the policy development was being facilitated by some partners with a grant from GIZ, a German agency. “We sourced for grants from GIZ, then we pooled over 30 documents from people who had once done something on renewable energy. We got a committee of experts to develop the policy, and the draft was approved by the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREE) in May 2013,” Adebisi explained.

  • Embrace energy therapy, Nigerians advised

    Embrace energy therapy, Nigerians advised

    Nigerians have been urged to patronise energy medicine.

    According to the pioneer energy therapy (ET) practitioner in Nigeria, Chief Iwowarri James, energy therapy, which is also known as energy medicine or energy psychology offers various treatment’s options.

    He said the name was coined in the late 80s by some clinical psychologists, and energy healers, adding: “In the late 1990s, the National Institutes of Health (NIH), which is the official arm of health policy and implementation in the United States defined areas within Complementary and Alternative Medicine through five subdivisions.

    They are: mind–body medicine, biologically-based practices, energy medicine, manipulative and body-based practices, and whole medical systems.

    ET, he said, is the third leg of medicine in what is now known as integrative medicine, which combines orthodox medicine practice with natural medicinal practice comprising herbal and energy medicine.

    Moreover, energy medicine recognises that everybody is all energy and that our energy field gets clogged with all kinds of negative energy which man generates through emotional outbursts, environmental fields, electromagnetic waves, food we eat and the things we drink.

    The clogging, he said, affects people’s physical and emotional conditions which cause them to become diseased. “We need to clear the energy blockages resulting from the above so that we can be free and healthy, hence Energy Therapy,” he said.

    James said energy medicine is an age-old healing modality. Explaining further, he said it started over 5000 years ago in China and has been active in Indian cultures for over 3000 years. It is currently about 40 years in the US and 30 years in the United Kingdom and other European countries.

    “In Africa, energy therapy is as old as the Continent but because of lack of documentation in traditional African settings, its use was not documented. So we can say it is science of healing, which I now pioneer, it is just about nine years old in Nigeria. I started it in 2005.

    Energy therapy is recognised by the National Health Institute of America under its National Centre for Complementary and Integrative Medicine, as a major form of complementary and alternative medicine. Energy therapy is now making inroad into conventional health service provision as a credible alternative and complementary medical knowledge that is vital and supportive of healing and wellbeing. It has been found useful in human behaviour modifications and therefore complements and even replaces active models in this aspect of human resources development strategy. We are delighted to be the champions of this process that supports people in changing and upgrading their lifestyle through the elimination of burdensome thoughts and negative emotions, a veritable step in total physical and emotional healing journey. Naturopathy is a form of energy medicine even because it recognised the element of vibration in the process of restoration of the human system, though it was recognised earlier than the various other components which have become more efficacious in clinical practice such as Tapping.

    James said he introduced ET into Nigeria about  eight years ago.

    The reason why it is not so popular, he said, was because his inability to raise awareness on the profession. “The efforts so far have been one man’s effort,” he noted.

    Besides, I am seeking support from the Federal Government, corporate organisations and individuals to promote it.

    He said ET ensures speedy healing, adding that it handles very wide scope of diseases. “It is a major tool in trauma healing and helps in behaviour modification. More importantly is the fact that it is drugless,” he said.

    He further said that ET involved meetings between the client and the therapist.

    “The therapists has the knowledge of ET, the skill required to dig into the problems, the cause, and how to support the client achieve freedom. The energy therapist must be able to do exploratory diagnosis, know how to tap, understand how to achieve chakra health and in securing clean aura.

    “It is also in overcoming psychological reversals, which prevent people from healing at all levels. Energy Therapy helps the client to remove energy blockages, bring about energetic balance and support the individual to achieve total integration at body, mind, and spirit level.

    He said there are products and machines that can be used to enhance clients energy system. They are Resonance Tuner Card, Tesla Energy Lights, Young Living Essential Oils, Magnetic Bands.

    The products, he said, can be used to enhance energy level, dissolve negative energies and build immune system of people.

    The GIET Institute provides training in the use of these materials which any user must first evaluate energetically to be sure that their frequencies match theirs before use.

    He said treatment is affordable, adding that his Centre for Energy Healing Awareness in Lagos and Port Harcourt are the only centres in Nigeria.

    The other option is to go abroad where my colleagues provide similar service. However, going to the US or the United Kingdom will entail airfare, hotel bills, and associated expences. So doing it in Nigeria will obviously be cheaper even if it is a little pricey.

    James said there are plans in the pipelines to train at the GIET Institute.

    He said the practice has a bright future in Nigeria. This is because the world is moving steadily towards drugless therapies. “Energy Therapy is very well positioned to support Nigerians in their journey to total health and well-being without over reliance on drugs.

    “We need energy healings in schools, government, hospitals, organisations, businesses, sports and politics, among others. Just as we need energy therapists in these areas.

    He said ET does not cure any ailment rather it helps to eliminate negative energies in the human energy system.

    “Negative energies come from or are caused by issues such as anger, grief, worry, anxiety, fears and phobias, very bad feelings from emotional traumas resulting from rape, war, accidents, loss of relations, loss of jobs, loss of positions, and many more.

    “Research has also shown that some ailments of organ failures or organ discomforts start with these negative emotions,” James said.

  • Crude slump weighs on energy shares

    Crude slump weighs on energy shares

    United STATE stocks fell, after the Standard & Poor’s 500 Index posted its first back-to-back weekly retreat since October, as the continuing selloff in crude pulled down energy shares before the start of corporate earnings.

    Energy shares tumbled 2.8 percent, the most among 10 groups in the S&P 500, (SPX) as crude dropped 4 percent. Tiffany & Co. lost 14 percent after the jewelry retailer lowered its annual forecast after sales declined during the holiday. SanDisk Corp. fell the most in almost six years after reporting preliminary results below its own estimates.

    The S&P 500 slid 0.8 percent to 2,028.43 at 4 p.m. in New York. Losses accelerated after the market’s open as the benchmark gauge fell through its average price for the past 50 days. The Dow Jones Industrial Average lost 93.86 points, or 0.5 percent, to 17,643.51. The Nasdaq 100 Index slid 1 percent as technology shares retreated.

    “When you get the kind of 1 percent moves we’ve had in both directions, there’s definitely still uncertainty out there and that’s usually not the sign of a healthy market,” Matt Maley, an equity strategist at Miller Tabak & Co. in Newton, Massachusetts, said by phone. “With earnings kicking off the question is going to be how much of the decline in energy company earnings is already priced in.”

    The index lost 0.7 percent last week, following a 1.5 percent drop the prior week, amid concern over sliding oil prices, falling U.S. wages and that the European Central Bank’s bond-buying plan won’t be enough to combat deflation.

    Investors were whipsawed during the week as the S&P 500 had up and down swings of more than 1 percent on three separate days, with an average daily move of 1.3 percent for the full week. The volatility stands in contrast to 2014, when the gauge fluctuated 0.53 percent on average each day for the calmest year in U.S. stocks since 2006.

    The S&P 500 has fallen 3 percent since a record in December amid sliding oil prices. That’s prompted analysts to cut their profit forecasts for companies in the index, with reductions spread across nine of 10 industry groups and energy producers seeing the biggest cut.

    “Markets have been volatile because they still haven’t made up their mind whether lower oil prices are positive for consumers and the overall world economy or whether it means more financial stress,” Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich, said by telephone. “This has been the tug of war between the two camps. We think it’ll be positive for consumption. We’re overweight in the U.S. this year.”

    Falling oil prices have kept damped inflation, leaving it below the Federal Reserve’s target even as the economy shows signs of accelerating.

    Fed Bank of San Francisco President John Williams, who will vote on policy this year, said raising interest rates in June would be a close call amid “strong momentum” in the labor market and weaker wage gains.

    Fed Chair Janet Yellen told reporters last month not to expect the central bank to raise rates before the end of April, leaving expectations intact for a move around mid-year.

    Profit at companies in the benchmark gauge probably climbed 2 percent in the final quarter of 2014, and 2.8 percent this period, analysts forecast. That’s down from October estimates of 8.1 percent and 9.2 percent, respectively.

    Alcoa Inc. will post fourth-quarter earnings after the market closes today, unofficially kicking off the reporting season. Later this week, investors will weigh reports for clues on the health of the world’s largest economy, including retail sales, manufacturing in the New York region and industrial production.

    Schlumberger Ltd., which posts earnings this week, fell 3.9 percent. The world’s largest oilfield-services provider was cut to neutral, the equivalent of a hold, from buy at Goldman Sachs Group Inc.

    Other energy stocks also retreated after Goldman reduced its forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year. Oil needs to trade near $40 a barrel in the first half of this year to curb shale investments, the bank said.

    “Many people are fearful that this is a sign of deflation coming,” Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Wealth Management Inc., said via phone. “There’s a little bit more fear in the air and it revolves around things we can’t control, including overseas economies and concern over how fast they’re growing.”

    Exxon Mobil Corp. and Chevron Corp. plunged at least 1.8 percent today to lead declines in the Dow. Forty-two of the 43 members in the S&P 500 Energy Index retreated, as the gauge slumped 2.8 percent. Transocean Ltd. lost 3.7 percent for a 10th straight drop and the lowest level since 1995.

     

    In Europe, oil-and-gas producers tumbled 1.3 percent for the second-biggest drop in the Stoxx Europe 600, while an index of developing-nation energy companies slid 1.9 percent to pace losses in the MSCI Emerging Markets Index.

    Technology companies in the S&P 500 declined 1.2 percent as SanDisk lost 14 percent. The maker of data-storage chips for mobile devices reported preliminary quarterly revenue that trailed its own forecast on lower sales of retail and flash-technology products.

     

  • Power supply rises to 3,666.76MW

    Energy supplied  by the Nigerian Electricity Supply Industry (NESI) has increased to 3,666.7Mega Watts.
    The Federal  Ministry of Power which made this discourse on its website in its latest Power Statistics of December 21, had in on December 11 sent out 2,954.51MW.
    The ministry however noted that energy generation which was 3,206.09MW on December 11 , increased to 3,732.27MW in the latest statistics.
    Of the 3,732.27MW generated energy, the Transmission Company of Nigeria (TCN) which is responsible for wheeling electricity to the electricity distribution companies could not evacuate 65.51MW.
    According to the statistics, the electricity market recorded a peak power generation of 3,912.3 on December 11.
    The NESI which hitherto has a peak demand forecast of 12,800MW, attained its highest peak generated energy of 4,517.6 MW on December 23, 2012.
    It would be recalled that the Federal Government is still battling to meet its 5,000MW target this year. But according to the ministry, vandalism, shortage of gas and other constraints still militate against the attainment of the goal.
    Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has approved the review of the Multi Year Tariff Order (MYTO) 2 regime with an implication for takeoff date for a disciplined electricity market by January 1, 2015.
    The commission explained that it would insulate residential customers from the present hike.

  • Sourcing energy from sugar cane

    Sourcing energy from sugar cane

    Despite the Federal Government’s efforts to increase power generation, the impact has not been felt by rural farmers. To address the challenge,  private firms are exploring the possibility of converting sugar cane into electricity , DANIEL ESSIET reports.

    The  agricultural sector is undergoing a rebirth, courtesy of public-private partnership and cutting-edge technology. But, despite the government’s initiatives to develop the sector, many farmers are yet to feel the impact.The search for cheap power has prompted experts to look towards  sugar cane as a source of electricity.

    To this end, many private sector firms have begun the cultivation of sugar cane on a largescale.

    One of such outfits is Sunti Farm which is 30 kilometres west of Mokwa in Niger State. It is owned by the Golden Sugar Company Limited. The farm has a 10,000-hectare sugar cane estate which will feed its renewable energy project.

    If all goes according to plan, the company will kick-start a rebirth in the sugar industry with the conversion of sugar cane into the much-needed electricity for domestic and industrial consumers.

    The major challenge to most rural farmers in Nigeria is how to generate electricity at farm mills. Not helping the issue is the  fact that a large number of farmers are not connected  to the  national grid.

    Minister of Agriculture and  Rural Development, Dr Akinwumi Adesina, said increased  agricultural productivity, is vital for stimulating growth in other parts of the economy.

    But achieving accelerated growth requires effective power support to the millions of small farmers, many of whom are in remote areas. For this reason, he said the government would focus on pragmatic ways to  promote high-value agriculture linked to a dynamic rural farm sector.

    Ultimately, to experts, success will also depend on concerted action to confront the challenges of power supply at the farms, as  well  as technologies for  food staples production.

    To this end, experts have identified various agricultural residues within the country which can be used for electricity generation.  One is sugar cane.

    One of the promoters, is the Group Managing Director/Chief Executive Officer, Flour Mills of Nigeria Plc. Mr. Paul Gbededo, who  is  convinced about the country becoming the future  hub for sugar generated electricity on farms.

    Although the sugarcane-based power industry is booming, only a handful of companies are developing plants.

    But the crop’s real potential will rely upon the sugar processing. This is what Gbededo said  his company is set to achieve through its  subsidiary, Golden Sugar Company Limited, owners of Sunti Golden Sugar Estate Limited.

    He said the company has a 17,000 hectare Sunti farm estate.

    He said the company is developing 10,000 hectares of that into sugar cane.

    In the next two or three years, he said the company is planting the whole sugar cane segment of the farm. According to him, it would be producing about 100,000 metric tonnes of raw sugar.

    He said while the farm will produce 100,000 metric tonnes of sugar annually, it will generate 10 mega watts of electricity.

    He explained that the production  of its sugar-cane electricity, will enable the development of small and medium enterprises to support the new town of  Sunti and its burgeoning population.

    To boost the prospect of its  project, Gbadebo, said a great deal of research and development is dedicated to developing new varieties of the crops with increased sugar yields, adding that within the estate farm, the company will produce raw sugar from the farm, and then refine it  for table and industrial use.

    So far, the  company has   invested $250 million in Golden Sugar Company Limited.

    Minister of Trade and Investment, Dr Olusegun Aganga describes the project as having “significant potential.

    He said the company‘s efforts to improve infrastructure to boost  production has enhanced agricultural output, with sugar cane production growing faster than the regional average.

    Aganga said the government is encouraging local production of sugar cane to meet the nation’s sugar need and create jobs, and refocus the economy that still relies on imports.

    To achieve this, he said the government intends on implementing a full scale sugar programme to enable the nation produce over 5 million metric tonnes of sugarcane, which will far exceed the current domestic production of about 1.3 million metric per year.

    With the economic crisis occasioned by the fall in oil prices, Aganga said agriculture is one of priority sectors to sustain the economy that is why the government is pushing ahead with efforts to revive sugarcane crop to tap demand for molasses, biofuel and other derivatives.

    While reiterating the commitment of the government to reduce sugar importation, the minister said his organisation is pleased with the efforts of private sector organisations such as Flour Mills of Nigeria to establish large scale sugar farms such as Sunti, adding that the government is determined to implement the National Sugar Master Plan (NSMP), since it is a core component of the Nigeria Industrial Revolution Plan to create jobs, generate wealth and enhance economic growth.

    The minister noted that developing the sugar sector is clear, and the sugar master plan is the roadmap. In a bid to address the energy shortage affecting the country, he said the government will support projects designed to use sugarcane for bio-electricity plant and ethanol for export. According to him, the project will make a huge difference to the Sunti communities, as well as creating stable income for farmers involved in the sugar cane supply chain.

    Aganga said: “The project is in tandem with government’s efforts to revive sugarcane crop for sugar production and generate other derivatives such as  molasses, biofuel and other by-products.”

    Impressed by the investment in the farm and the construction work on the multi-billion naira sugar mill, Aganga said it was the most advanced mill in the country, evidence of government’s industrial revolution plan. The sugar mill is expected to run at full capacity on completion in the 2015/2016 cropping season.

    While reaffirming government’s commitment to reducing sugar importation, the minister said he was pleased with the efforts of the private sector organisations such as Flour Mills of Nigeria to establish large-scale sugar farms, such as Sunti. Aganga also said that the Federal Government is determined to implement the National Sugar Master Plan (NSMP), since it is a component of the Nigeria Industrial Revolution Plan, to create jobs, wealth and enhance economic growth.

    The commercial farm project, of which N16billion of the total N45billion target has been expended, covers a 16,500ha land area, expected to produce 10,000 metric tonnes of sugar annually.

    Chairman, Flour Mills of Nigeria Plc, John Coumantaros, said the need for the company, through its agro-allied division, to optimise local content food and feed production as well as support government’s Transformation Agenda led to the establishment of the estate in Niger State.

    Estate Manager, Mr. John Beverley, said various factors make Sunti unique to sugarcane production.

    The area has an established  local sugarcane industry and land suitable to grow the crop.

    According to Beverley,  the project is in the permitting stage and is expanding the amount of sugarcane being cultivated. He  expects to the  project  to take-off by 2016.

    The sugar plant would have the capacity to process  4,500 tonnes  of  cane daily and 10 megawatts of electricity. A portion of that electricity will be used to power the plant and the remaining power will be used  for  the community.

    The plant will require approximately 10,000 acres of sugarcane.  The development of additional plants is scheduled to begin as soon as the first plant is operational.

    He said his company is working closely with farmers to develop sugarcane plots to support  production. The project, according to him,   will bring a sustainable, profitable crop to the area  and produce consistent streams of revenue for the farmers. The project, Beverley, said, will  create numerous job opportunities in the region.

    Employment will  be created for  15,000 people, of  which  3,500 will  be direct employees and a further 3,000  will  be  small scale out growers.

    The sugar cane farm will provide  animal feed and fertiliser as by  products, saving the nation over $50 million yearly in foreign exchange .

    For watchers, the government is looking to sugarcane farmers to boost the country’s power generating capacity as shortages persist.

    A lot of farmers who buy into the project as they face problems disposing sugar cane waste.

    This mammoth project is a prime example of the private  sector   plan to open up the state ’s interior to economic activity, increase agricultural production, promote alternative exports to wean itself off the almost total reliance on extractive industries for foreign exchange and create employment.

    Experts said Niger  State has an excellent chance at meeting all those goals, due to several important factors including the state’ s natural attributes and its history as a major agricultural producer.

     

  • Energy and the Carbon economy: Global Environmental challenges

    Energy and the Carbon economy: Global Environmental challenges

    The seven critical issues that were brought up at the Rio+20 United Nations Conference on Sustainable Development included managing cities to ensure welfare of society without putting unnecessary demand on land and resources. Creation of jobs in the aftermath of the global recession, keeping environmental health in mind; “Green jobs,” was highlighted and natural disasters are also on the list.

    A gutter on a street in Lekki halfway through development is littered with rubbish leading to the usual environmental issues of blocked drained, putrid odours and the associated ill health.
    A gutter on a street in Lekki halfway through development is littered with rubbish leading to the usual environmental issues of blocked drained, putrid odours and the associated ill health.

    Throughout the world, 25 per cent of the land has suffered extensive degradation with enhancement of 10 per cent. Companies like Newmont Ghana Gold Ltd address Social & Environmental issues by implementing a systematic land restoration policy which repairs the environment they operate on to eco-friendly conditions.
    The Chinese whose ancient wisdom is respected worldwide have healing methods and techniques which are also known throughout the world. The Chinese have proven that items of waste such as a piece of paper lying on the floor of a room can cause ill health. This is part of a wider picture of corruption, degradation and pollution that follows West African nations in every sphere of society. We focus on the important issues and how they are all interlinked in resolving the desperate situation in which Nigeria finds herself.

    A flooded street on a Lekki road asks the question of which way Nigeria is headed; further development or further degradation?
    A flooded street on a Lekki road asks the question of which way Nigeria is headed; further development or further degradation?

    It is clear that safety with regards to certainty of returns is a key issue affecting investment of public finance. This is why major financial institutions in Nigeria are choosing to stick with the trusted oil (and now gas) economy.

    Carbon from an exhaust pipe from a 15KV generator
    Carbon from an exhaust pipe from a 15KV generator

    ​‘What you don’t know will not hurt you?’ goes the saying. Unfortunately, the preoccupation of the nation with oil and gas as well as solid fuels is an unhealthy one. CO2 (Carbon dioxide), CO (Carbon Monoxide), Methane (CH4), PAH’s (Polycyclic Aromatic Hydrocarbons) amongst other emissions are detrimental to human health (cancer, respiratory tract disease), destroy ecosystems and reduce atmospheric quality (air and Ozone).
    This is aside from the fact that we are depleting our non-renewable sources of energy without persistently pursuing development of more environmentally friendly and renewable sources of energy. ‘Optimizing use of limited resources is one of the biggest challenges facing any decision-maker’ according to the Health and Environment Linkages Initiative (HELI) of the World Health Organisation.
    As far back as June 6, 2007 The Ghanaian Minister of Local Government and Rural Development & Environment, Mr Stephen Asamoah-Boateng, repeated a call on Ghanaians to take up ‘sound environmental practices’. Brazil and Ghana have partnered towards developing a bio-fuel energy economy in Ghana as exists in Brazil. Nigeria has plans to embark on a similar route particularly if it proves economically and environmentally worthwhile.
    During the “Indabas” (Zulu for important meeting) in Durban which followed the Kyoto Climate Conference it was generally agreed that the Kyoto Protocol did not do enough to control the level of pollution from developing economies. Countries such as Barbados made pleas for “language instructing all parties to dig deeper into their carbon emissions to speed up the process, arguing that the survival of their countries and millions of climate-stressed people were at risk.” More recently the Climate Change Summit once again addressed these issues.

    Aftermath - residual carbon being pumped out into the atmosphere from a 15KV generator. Generators used for hotels and larger businesses and organisations are much larger and operated for much longer hours.
    Aftermath – residual carbon being pumped out into the atmosphere from a 15KV generator. Generators used for hotels and larger businesses and organisations are much larger and operated for much longer hours.

     
    Below is analysis from the World Health Organization, Geneva, Switzerland: The organization claims that ‘evidence from epidemiological studies have shown that exposure to smoke from incomplete combustion of solid fuels is linked with a range of conditions including acute and chronic respiratory diseases’.

    WHO analysis

    Figures for Water, Health and Sanitation show that 61% of the Nigerian population had access to improved sources of drinking water up from 55% in 2005. Sanitation continued a downward trend in the 21 years from 1990 till 2011 down to 31% from 34%. These conditions resulted in a total of 177,806 deaths in 2004. The deaths account for years of life lost due to premature deaths as well as those lost to disease.
    The total number of deaths attributable to environmental health factors in 2004 reached 669,665. According to the WHO Global Health Observatory Data Repository 74% of the Nigerian population used solid fuels whilst 58% used non-solid cooking fuels as at 2007. Indoor air pollution related deaths in Nigeria in 2004 amounted to 95,255. Outdoor air pollution exposure was at 124 PM10 ug/m3 (Particulate Matter in micrograms per metres cube), in 2006. The number of deaths resulting from outdoor air pollution was 2,547 in 2008. 57 deaths in ‘low-and middle-income countries of the African Region’ (WHO figures) were attributable to climate change.
    Information from the Chronic Diseases and Health Promotion Department, WHO reports 235 million asthma sufferers as at 2011. 3 million deaths in 2005 resulted from Chronic Obstructive Pulmonary Disease (COPD) of which 2.7 million occurred in low to middle income economies.
    The hurdle is a requirement for a quantitative measure of the cost of environmental pollution which will help propel any proposed measures to address the issue. The bind is that majority of the costs can only be measured in terms of health due to ignorance and poverty in many of the affected nations.
    ‘Economic assessment is a vital tool that can enumerate potential costs and value the anticipated benefits of a proposed programme, policy or regulatory initiative, and reflect trade-offs inherent in alternatives’, says HELI.

    The World Health Organisation’s (WHO) report concerning ‘Research for Universal Health Coverage’ which includes ‘Investigations ranging from clinical trials to health policy studies can help chart the course to improved health outcomes and reduced poverty, but research needs national and international backing to succeed,’.

    Maria E. Amezaga, Global Strategy Manager – Brand, Social Media and Innovation at Shell asks if ‘taxing carbon emissions is a viable solution for reducing the carbon footprint and improving sustainability?’ In light of the pressures for energy efficiency, carbon trading would help the developing countries’ need to drive economic growth. It would also promote development of alternative energy such as solar power and wind energy.

    To make our economies stronger and protect the environment, energy, which plays a role in every aspect of our everyday lives, must be used efficiently and sustainably. ‘United Nations Secretary-General Ban Ki-moon leads a Sustainable Energy for All initiative to ensure universal access to modern energy services, improve efficiency and increase use of renewable sources’.

     

    www.linkedin.com/groups/Future-Energy-Shell

    www.uncsd2012.org/7issues

    http://www.who.int/evidence/bod

    http://apps.who.int/gho/indicatorregistry/App_Main/view_indicator.aspx?iid=2256

     

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  • ‘Embrace energy medicine’

    ‘Embrace energy medicine’

    All nigerians  have  been urged to embrace energy medicine.This advice was given by an  Alternative medicine practitioner; Chief Iwowarri James in Lagos.

    According to him, energy medicine or therapy is a drugless healing method, which combines the Eastern Oriental medicine practice with Western psychological therapy to eliminate emotional and physical challenges people face.

    He said conventional medicine has not given attention to some health challenges, such as anger, grief and loss of appetite.

    Others are post-traumatic stress disorders and various types of trauma, especially childhood and adulthood traumas.

    This, he said, may be due to accident, attack and past issues. “These are challenges that impede effective functioning of a person’s organs.

    Energy medicine, he said, attempts to eliminate negative energy from human energy system.

    “Experience has shown in our practice the energy medicine has solved deeply rooted psychological issues.

    “So, relationship and unfulfilled expectations have been death with using energy therapy,” he said.

    James said about 90 per cent of physical issues or ailments are rooted in emotional level.

    Conventional medicine, he said, has failed in addressing issues at the physical level through medications and surgeries.

    “However, energy therapy supports the healing of an individual wholly by eliminating the psychology and energy causes of ailments.

    Energy medicine, he said, is a new field of therapy in the country, adding that conventional medicine should find it useful in helping people get better.

    This treatment method, he said, will promote the immune level of every individual, if applied through designated exercise and the use of energy-based product.

    “It is important that immune level is maintained at optimum level, that is, the basis for good and effective performance,” he said.

    James said many people have benefitted from using energy therapy.

    “We have heard series of testimonies in the last eight years since energy medicine began in Nigeria. It has helped people to solve their physical, emotional level and spiritual challenges.

    “Infertile challenges due to physical and emotional trauma were treated. A man had a long time anger problem solved with energy therapy. Four years female infertility addressed and the client became fruitful. These are verifiable stories of effectiveness of energy medicine,” James said.

  • Union urges govt to address energy, insecurity

    The Textile Garment and Tailoring Senior Staff Association of Nigeria (TGTSSAN) has called on the Federal Government to ensure  adequate supply of energy and subsidise electricity consumption, diesel and black oil in order to revive the sub-sector.

    In a communiqué issued this year’s  industrial relations seminar in Enugu, its National President, Comrade Ambi  Karu,  called on the government to tackle the insecurity in the country.

    According to him, it has hindered investors and stopped the movement of finished goods to the northern part of the country.

    The communiqué read in part: “Government should step up efforts to ensure adequate supply of energy and subsidise electricity consumption, diesel and black oil that are used in the factories.

    “Government should tackle the insecurity in the country that has hindered investors and stopped the movement of finished goods to the northern part of the country.

    “Government should reduce duties on chemicals and dyes-tuff and lift the embargo on the payment claims on Export Expansion Grant (EEG). Government should implement the recommendations of the Ministry of Industry, Trade & Investment that Nigerian officials and all our Military, Para-Military and Agencies should use made-in-Nigeria textiles”.

    The government through the Ministry of Labour and productivity, Karu said,  should ensure that workers are given free hand to unionise without undue interference from managements, adding that the government should implement its recommendations contained in the team analysis document presented from the office of the Ministry of Industry, Trade & Investment on ‘How Nigeria can revive her cotton, textiles and garment sub-sector’.

    In a related event, unions have been urged to organise their practices in order defend the rights of workers and the Nigerian masses. The President, National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), Comrade Oladele Hunsu, disclosed this during a three-day capacity building and skills development workshop organised by the union in Ilorin, Kwara State.

    Hunsu tasked members to organise to save the movement from collapse, adding that the “union’s effort should go beyond organising workers in the factory and organise ways to save the industry”.

  • Stanbic IBTC Bank secures $100m facility for SME, energy financing

    Stanbic IBTC Bank secures $100m facility for SME, energy financing

    In its bid to support the economic growth and development of the country, Stanbic IBTC Bank has received a USD100 million Line of Credit (LOC) from the African Development Bank (AfDB) for on-lending to small and medium-size enterprises (SMEs) operating in various sectors of the Nigerian economy.

    It was gathered that part of the fund will also be applied to the financing of renewable energy and energy efficiency projects in Nigeria, in line with the requirements of the Clean Technology Fund (CTF).

    According to information made available to The Nation of the total amount, Stanbic IBTC Bank will fund SME projects in Nigeria with USD75 million, while USD25 million will be used for the funding of renewable energy and energy efficiency projects. Stanbic IBTC Bank is the first Nigerian bank to receive CTF’s approval.

    Speaking, the Chief Executive of Stanbic IBTC Bank, Mr. YinkaSanni, said that the bank will continue to partner with reputable institutions to create avenues for growth and development of the Nigerian economy. “We will continue to explore various channels of credit to empower small and medium-sized businesses. We recognise that the SME and energy sectors form an integral part of the Nigerian economy as a whole. As a result, we will remain at the forefront to empower our clients and help them achieve their business goals,” he added.

    “We appreciate the trust bestowed upon us by the African Development Bank in granting us this facility which is devoted to the funding of SMEs, energy and energy efficiency projects in Nigeria,” Sanni noted.

    The USD100 million LOC to Stanbic IBTC Bank was approved by AfDB’s board of directors on Wednesday, 26 March 2014 and April 13th 2014 in Tunis. In approving the LOC, the board of directors emphasised that the SME sector represents a strategic pillar for Nigeria’s quest to modernise and improve its economy. The AfDB highlighted financial inclusion as part of CBN’s drive to diversify the Nigerian economy.