BACKGROUND


ACE Ltd CEO Prince Leke Oyinlola on Biofuels and clean alternative energy in Africa.

BIOGAS FOR ENERGY AND ENVIROMENTAL PROCTECTION

ENERGY: Biogas consist mainly of methane ( 60% to 80%) and carbon dioxide( 20%-40%) with some other gases, such as hydrogen sulfide, ammonia and water vapor in trace amounts. It is highly flammable and is produced through the anaerobic- without oxygen- decomposition of organic materials from plants and animals. It is similar in most respects to Natural gas (obtained from fossil fuels) used for electricity, heating, transportation and cooking in homes and industries. Natural gas, just like biogas consists mainly of methane. Therefore, after undergoing some purification, biogas can be used just the same way natural gas is used to produce electricity, heating, transportation and cooking in homes and industries.

Unlike natural gas, biogas is renewable, can be replaced in a life time, is environmentally friendly, and it reduces greenhouse gases. Methane gas from Swamps, Landfill sites and Sewage Treatment sites, that could be released directly into the atmosphere are redirected for energy production by the biogas sector of the Renewable Energy industry. In cases like that of ACE Ltd. Trademarked digesters the “Moringa” plant is planted to provide supplementary feedstock to the digesters. These “Moringa” plants serve as sinks to reduced the amount of carbon dioxide released to the atmosphere and are also an important source of nutrition for the local community.

Biogas can be compressed, much like natural gas and used to power motor vehicles. If concentrated and compressed, it can also be used in rail transportation. Various studies have shown that biogas is more cleaner and more efficient than biofuels for use in transport. According to an “EU well-to-wheel study” of more than 70 different (fossil and renewable) fuels and energy paths, biogas was found to be the cleanest and most climate-neutral transport fuel of all.

ENVIRONMENTAL PROCTECTION: Many developing countries, Nigeria included, face a net outflow of soil nutrients. This is because most farmers use chemical fertilizer to maintain the fertility of their soil. The production as well as application of chemical fertilizer has a GHG- Green House Gas- effect mainly as a result of the high energy requirement for chemical fertilizer production and the Nitrous oxide(N2O) emissions. A major by-product of ACELtd. biogas production is bio-slurry. Bio-slurry is the digested dung that is discharged from the digester during the biogas manufacturing process. The nutrient value (NPK- value) of the bio-slurry is in no way affected by the manufacturing process, thereby making the final product good organic fertilizer that can replace or reduce the application of chemical fertiliser

Europe seems to be the leader in the production and use of biogas. The German government is considering feeding biogas into the country’s natural gas network. Ironically, the main obstacle to this has been that biogas is too good for the network- exceeding Germany’s upper limit on gas heating value. According to the government, locally produced biogas could supply up to 10% of Germany’s total gas consumption by 2030. Germany is the largest producer of biogas in Europe, and biogas is its fastest growing renewable energy sector. Also in the UK, for example, biogas is estimated to have the potential to replace around 17% of vehicle fuel. A biogas-powered train has also been in service in Sweden since 2005. One controversial study in 2011 claimed that the European Union- EU could produce enough biogas to replace all natural gas imports from Russia by 2020. If the study were to ever being proven correct, then it will mean that biogas could change Europe’s energy security outlook considerably and result in a reduction of 15% of Europe’s CO2 emissions. The Kyoto protocol demands a reduction of 10% for Europe’s CO2 emissions.

EXECUTIVE SUMMARY

For years the people and industries- Timber, Rice milling, Tourism-( Olumirini Waterfalls), etc. based in and around Ilesa, Osun State in the south-western part of Nigeria have suffered chronic shortages of energy in the form of electricity supply. In the town of Erin-Oke, for example, the main transformer supplying the town blew up in the month of March 2012 and it took the combined efforts of all the town folks, both at home and abroad, contributing cash money before the transformer could be replaced- 6 months later.

The demand for constant and independent source of energy to power the rapid development of the local region is the target for the 2.0MW biogas electricity generating plant that ACELtd. is building in Erin-Oke.

ACELtd. inspiration for using biogas for electricity was the desire to reduce organic and biological pollution while providing reliable power supply to the energy starve market in Ilesa, Osun State, Nigeria. The goals of less dependency on PNHC, production of new products from waste, clearer waters, less odor from pig production and new job opportunities in the local community are also major driving forces behind the cooperate strategy of ACELtd..

ACELtd. is private company based in Ilesa, Osun State, Nigeria with it is R&D operations in Cotonou, Republic of Benin. The company specializes in Renewable Energy with a recognized global expertise in the use of animal waste to generate biogas that is used to produce electricity using biogas turbines supplied by its technical partners, AGR of the UK. The ACELtd. Trademarked digesters, used to turn the waste into biogas, are of the latest technology in the industry and are supplied by ENV of Germany.

ACELtd. is on record as building the first operational indigenous biogas digester anywhere in the Federal Republic of Nigeria at it main site in Erin-Oke, via Ilesa in Osun State. The digester’s construction was completed by the company’s engineers and technicians on 25th September of 2012 and it was commissioned by the ALUA of Erin-Oke, Oba Adedeji Aladejobi, Orundemokun III on the 10th November 2012. To date we are not aware of any domestic biogas project that has been validated and registered under the currently valid CDM methodologies in Nigeria, except for the ACELtd. project.

ACELtd. biogas is produced artificially using Trademarked biogas digesters. These digesters are large air-tight tanks that simulate the natural processes that produce biogas, by enabling the digestion of organic matters from plants and animals under anaerobic conditions.

ACELtd. current activities primarily consist of setting up the pig and poultry operations that will form the basic core of its reliable energy production and distribution. The company also get additional revenue from Waste Treatment, and the sales of Organic Fertilizers and Green Certificates.

PRESENT SITUATION

After the successful commissioning of our proto-type digester in Erin-Oke, we have now commenced work on our main project of supplying 3.0MW of electricity, enough to power 150,000 homes and businesses, to the towns of Erin-Oke, Erin-Ijesa and Ipetu Ijesa.

The project is divided into 3 phases, and it is to be completed over a period of 13 months.

The first, is the Agricultural and Logistical phase of the project which was begun in Q2 of 2015 and it is expected to be completed by end of Q1, 2016. The agricultural and logistical systems that will provide the feedstock to be used to power the digesters is the main work that is being carried out during this phase of the project. This phase of the project became necessary as a result of our experience while building the prototype digester, in that we found that we could not rely on pig farmers in Osun State to deliver the amount and type of pig waste needed to power the digester.

The Manufacturing phase, which will commence at the start of Q2, 2016 is when ACELtd. Trademarked digesters that manufactures the biogas will be installed and commissioned. This process is estimated to take a total of five months to complete. Three(3) 2000m3 will be installed during this period at our site in Erin-Oke, these digesters will produce a total of 9,000-12,000m3 of biogas per day.

THE PROJECT TEAM

The strength of ACELtd. team running the Erin-Oke project steams from the combined expertise in project management and biogas technology. This has produce the outstanding result in the form of the first locally constructed digester in Erin-Oke, Osun State. The leadership and alignment characteristics of ACELtd. project team enable the company to set broad and flexible technical goals, in the ever changing and difficult Nigerian economic and social environment.

The purpose of the prototype digester in Erin-Oke is to enable our foreign technical partners have the exactly technical specifications of the biogas being manufacture with ACELtd. local specific feedstock which will in turn facilitate the design of the turbines for maximum efficiency.

The project team is made up of the following personnel;

Project Director- Adeleke Oyinlola a native of Erin-Oke, is an Aeronautical engineer and an Economist by training and an Entrepreneur by instincts (see appendix).

Project Manager- Daniel Simeon a Nigerian is a certified electrical engineer whose professional experience includes my different areas in the energy industry. He was a logistics specialist involved mainly in the downstream sector of the Oil & Gas industry before joining this project. Mr. Simeon’s background of managing working capital, inventory and cost control has been of great benefit to theteam he currently manages on the Erin-Oke project. The electrical designs for the gas bulb switches that were locally integrally design for prototype digester’s lit bulbs required Mr. Simeon’s knowledge and experience of electrical wirings, (gained while working on ocean going vessels).

Project Coordinator- Gbade Aladejobi a native of Erin-Oke is a graduate of Business Administration from the Osun State Polythenic, Ire. His background and intimate knowledge of the local terrain has been of great benefit in coordinating our Community& Governmental relations, Staffing & Training as well as our Logistical and Security liaison with the State and Local authorities.

Controller- Agriculture & Logistics- Dr. Oluwole Johnson is a vet nary doctor of over 30 years experience in both the private and public sectors. A member of National Association of Private Veterinary Practitioners of Nigeria. His is an expert in the distribution network of animal protein sources in Nigeria, with his main specialty is in animal breeding and genetics. Dr. Johnson is responsible for the first phase of this project, i.e. the raising and welfare of all our animal stock that will power the digester – a total of over 80,000 heads of pigs.

Controller- Biogas manufacture , Research & Development: Dr. Cyrus Tohinlo a French national is an internationally renowned expert in the biogas field. His pioneering work while he was the head of biogas at the world famous Songhai farms, includes using locally available alcohol to liquefy biogas- a very important breakthrough in the potential mass marketing of domestic biogas. Dr. Tohinlo’s work also include the first successful conversation of a diesel generator into a biogas generator in west Africa.

Controller- Power Generation & Distribution-Engr. Olujimi Alli a native of Ibadan is a graduate of Texas A & M University with an MBA from Dallas Baptist University both in the United States of America he was previously based in Europe, working in the Netherlands in the Waste to Energy sector of the Green Energy industry in Amsterdam before joining the ACELtd. team in Nigeria. Engr. Alli is also an alumni of the Petroleum Institute of Education, Calgary, Canada, his field of expertise includes Bio-power systems, Electrical Meters & Metering, Electrical Systems Operations as well as Energy Trading & Hedging.

Consultant- Legal & General- Barr. Odogiyon a native of Ifon, Ondo State has had his law practice in Ilesa, Osun state for over 16 years, a law graduate of University of Uyo, Akwa Ibom who was called to the Nigerian bar in 1995, he specializes in commercial law and land matters. His vast experience in land matters and local government issues in Osun State has enable this project to proceed in an orderly manner. Barr. Odogiyon has been handling all the legal and regulatory issues pertaining to this project.

UN/CDM Consultants- Ecco-Synergy (UK) Ltd.- representated in Nigeria by Mr. Rotimi Padonu, the firm specializes in United Nations (UN) certified Clean Development Mechanism (CDM) projects. The company has been providing advisory services on the CDM guidelines and steps required by the Kyoto Protocol for this project to generate Tradable Certificates (CER/VER/ER). ACELtd. has signed a long term agreement with the company to trade Carbon Credit Certificates for this project.