How Nigeria plans to increase bi-fuel vehicles count on roads

The Federal Ministry of Petroleum Resources is fiddling with an ambitious programme that aims to increase the number of bi-fuel vehicles on Nigerian roads as a component of the National Gas Expansion Programme (NGEP).

A bi-fuel system uses two types of fuel, but the fuels are not mixed during operation. The engine is capable of switching between the two so that it is always using the type of fuel most efficient for the conditions at hand.

Under the automobile gas development as a component of the NGEP, plans have reached an advanced stage aligning with ministerial directive and support for the development of liquefied petroleum gas (LPG), compressed natural gas (CNG) and liquefied natural gas (LNG) colocation in Nigerian National Petroleum Corporation (NNPC) owned and operated mega stations in the 36 states and the Federal Capital Territory (FCT).

Under this arrangement retail outlets will offer a full complement of gas products as transportation fuels in addition to existing white products as a cheaper cleaner and more environmentally friendly alternatives.

“The NNPC and mega retail outlets owners and equipment providers are fully on-board in this objective and measures are in place to achieve a roll-out of this programme by end of September 2020 using select NNPC owned outlets as pilots,” Justice Derefaka, technical adviser, on Gas Business & Policy Implementation, to Minister of State, Petroleum Resources said.

There is also a draft of a bi-fuel engine importation and domestic manufacturing policy underway, intending to push through the endorsement of government as an executive order with effect from January 2021. This will compel all engine imported or manufactured domestically to comply with the bi-fuel requirement as it is done in many other countries that have made significant progress in autogas utilisation. This will imply that all engine imports or manufactured domestically must comply.

In the case of Nigeria bi-fuel engine vehicles use either petrol or diesel and compressed natural gas (CNG). This is not new because as of 2013, it was estimated that 3, 000 vehicles had been converted to run on compressed natural gas and petrol in Benin City. The Green Gas Limited, a joint venture between the Nigerian Gas Company and NIPCO Plc drove this initiative. But the joint venture has fizzled out according to a source who does not want a mention.

Of the three companies given the licence to pioneer the CNG revolution in 2007, only NIPCO Plc has stayed on course. In 2018, NIPCO Plc claimed it has converted a total of 5,600 vehicles in Nigeria to use Compressed Natural Gas (CNG), as one of the company’s efforts at providing access and alternative to the motorist to power their automobiles. The conversion of the vehicles was done at the company’s workshops in Benin, Edo State and Ibafo, Ogun State.

Conversion costs remain prohibitive though. It costs between N100, 000 and N300, 000 to purchase the kit needed in converting a car from petrol or diesel engine to a CNG engine, depending on the nature and condition of the car. But the conversion leads to a 40 percent savings in energy cost for car owners.

“All our trucks run on CNG. This is a much better fuel, as it is cheaper and much cleaner. We strongly believe that it is a more viable alternative to petrol and diesel, however, market forces need to determine the price,” Sumeet Singh, director, sales and strategy at Powergas Nigeria told BusinessDay on the phone.