It is disheartening that Nigerians at this level of technological development worldwide are still importing alcohol from overseas countries when we can boast of more than enough cassava and other useful raw materials in this country.
The technology and manpower are also available to produce enough industrial alcohol for use within the country and reserves for exports.
Ethanol (industrial alcohol) has wide industrial applications. It is used in pharmaceutical companies, distilleries, laboratories, hospitals, soap and detergents (cosmetics) and beverage industries, to mention but a few.
The importance and demand for this product have necessitated the massive importation from overseas countries. Yet the supply cannot match the ever-increasing demand, hence the need for more investors in this aspect.
It is imperative that producing this product within this country will forestall further importation, which in turn will increase the supply base, add to the achievement of the nation’s macro-economic objectives in the areas of employment generation for the unemployed, and add to foreign reserves which will maintain a favourable balance of payment positions.
It is also worth noting that Nigerians stand in a better position to produce the most concentrated and more internationally acceptable ethanol than any part of the world.
This is because the raw materials needed for this project are all available in large quantities in this country, unlike Ghana which has been aspiring to increase its production base and export of the product.
Raw materials requirement
The major raw material for this project is cassava tubers.
Apart from cassava, other raw materials needed for this project are palm-wine, maize, potato, molasses, sawdust, and yam to mention but few. All these are equally abundant in Nigeria.
Required plants, machinery & equipment
The machineries required for this project can be produced locally. Durable, functional and sophisticated machines are available for prospective investors. The machines required are filtration unit (distillation columns), hammer mill, mixer, fermentation tanks, stirrers, plastic pumps, laboratory quality control units, pasteurizer, filling and corking machines.
The application of some of these machines depends wholly on the type of raw material needed.
Production Processes in brief
The production process is simple but technical and depends also on the type of raw materials applied. For application of cassava tubers, relevant details include washing, peeling, cutting and drying, to produce tapioca/chips with about 90 percent starch content.
This is transferred to the feed line weighed through conveyors. The raw materials are moved to the milling and liquefaction section. The hammer mill will grind the cassava into fine powder. The powder is mixed with water and transferred to the slummy tank and then heated.
At this point, the superfine cooker where it is heated up to 140c, using steam injected hydro-heating mechanism. This breaks down the starch and makes it more soluble and gelatinous.
Liquefying enzymes is added which breaks starch into molecular chain called dextrin. A saccharifying enzyme is added which converts the dextrin into dextrose or sugar. They yeast contained in the pre-fermentator is added for conversion of sugar to alcohol.
One tone of cassava tubers yields between 400-600 liters of alcohol, while palm-wine yields between 128-140 liters of ethanol. Details will be worked out in a bankable and comprehensive feasibility studies available for prospective investors.
Market potentials
In spite of huge consumption by various chemical industries in Nigeria and the West African sub-region, there are a few ethanol plants in the country with very low production capacity. At the last count there were only four. In effect, about 90 percent of local consumption is still imported at exorbitant prices. An investment in ethanol production will certainly be good especially when viewed from industries that need the product such as:
Alcoholic/Beverages Industries: The many products of various gin, brandy, whisky, wine, etc make use of ethanol in large quantities.
Surface Coating Industries: Paint makers consume a lot of ethanol during the production of certain paints and thinners. Certain adhesives incorporate ethanol as an important solvent.
Cosmetics Production: The cosmetic industries find ethanol useful in the production of perfumes, dyes, after-shave lotions, etc.
Drugs Making: Ethanol is used in making over the counter (OTC) drugs such as dermatological creams, methylated spirit, some syrups and mixtures.
As Preservatives: Biological specimens are preserved in laboratories using ethanol.
Fuel: Ethanol is used as fuel for spirit lamps and stoves and for flaming in hotels and foundry works where soot is not required. Ethanol has been used and is still being used as substitute to petrol as fuel in countries like Brazil, etc.
Other uses: In laundry and dry-cleaning ethanol is used to some extent. It is good antifreeze for automatic radiations. It is also raw material for making resins, acetic acid, chloroform, etc. Aside from these, the by-products are also very useful as it will be seen later.
The international demand for this product is so high. The product is demanded by reputable industries in USA, Germany, South Korea, Poland et cetera at competitive prices. The international market prices required exportable standards.
Suitable location of the project
This project can be located in any part of the country. Due consideration will be given to accessibility, raw material availability, electricity and good roads.
Legal requirement
It should be noted that there is no legal constraint on establishment of this project in Nigeria. There is a sustained and intensive campaign by the government for industrial development, backward integration and self-reliance. Investment of this nature is in line with the nation’s industrial policy and objectives. The project can conveniently be set up in between one to two plots of land.
Suggested capital requirement for take-off
Before an exact amount for the proposed project can be determined, there are some basic questions to be answered by the prospective investor. Such questions as location, proposed capacity of production and what the promoter has on the ground need to be answered. However, the writer is of the view that the project could be established with the sum of N70.55 million for a very small capacity. The writer can assist prospective investors to source the required funds for this project on request.
Investment analysis
Analysis carried out had shown that profit after tax in the first two years is N33.9 million and fifth year N101.6 million. Net cash flow in the first year is N25, 694 million and fifth year of operation N54.799 million. The payback period is within one year of operation. The return on investment is 74 per cent.
The total projected turnover of N335 million is expected in first year. This project is foreign exchange free since no importation is required. The raw materials and human requirement of 12 persons in the first year of operation are all locally available.
Professional evaluation of this project indicates that both profitability and viability analysis are all positive and highly impressive.
The writer is of the opinion that this project will contribute to the nations GDP, earn foreign exchange to the proposed investor, increase the nations export based and generate more employment for some of the nation’s teeming unemployed. Cassava and palm-wine the major raw materials are locally available. There is also high demand for this product on both local and international level.
This project is socially desirable, economically worthwhile, technically feasible, commercially viable and highly profitable. Hence do recommend this project to the numerous commercial cassava farmers, local government areas, Federal Government and other numerous investors in the country and other parts of the world.
For details on comprehensive & Bankable feasibility studies, Business Plan; procurement & installations of strong and durable machines, packaging methods, Export markets and funding arrangements, please contact the writer on 08023664368 or email: [email protected]
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