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THE IMPLICATION OF THE USE OF FOOD RAW MATERIALS IN BIOFUEL PRODUCTION BY BOROKINNI, Emmanuel Olalekan 0701040009 SUBMMITTED TO THE

DEPARTMENT OF FOOD SCIENCE AND TECHNOLOOGY, COLLEGE OF AGRICULTURAL SCIENCES.

IN PARTIAL FULFILLLMENT OF THE REUIREMENT FOR THE AWARD OF HONOURS DEGREE, BACHELOR OF SCIENCE (B.Sc) IN FOOD SCIENCE AND TECHNOLOGY. JOSEPH AYO BABALOLA UNIVERSITY, IKEJI-ARAKEJI, OSUN STATE, NIGERIA

JULY, 2012

CERTIFICATION This is to certify that this seminar report was written by BOROKINNI, Emmanuel Olamilekan (0701040009) in the department of Food Science and Technology, College of Agricultural Sciences, Joseph Ayo Babalola University, Ikeji-arakeji, Osun State, Nigeria.

SEMINAR COORDINATOR

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SUPERVISOR

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HEAD OF DEPARTMENT

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ACKNOWLEDGEMENT All the thanks go to almighty God, for given me the grace and opportunity on this research carried out for my seminar presentation. Also I must acknowledge my family for their support all through my year of academics in this great school. My appreciate also go to the lecturers in the department of Food Science and Technology; Mrs. Esan, Mr O.L Otutu, Mrs Adisa, Miss D. Ikuomola, Dr. A. Sanni, Mrs. Fatiregun, Miss O. Ibidapo and also the technologists Miss Akinyele, for their support and word of encouragement throughout my stay in the department, God bless you and reward you all. My almost appreciation goes to my supervisor and also the HOD of the department Dr. A. Ojo who always encourage me in order to work hard and put effort in all what am doing. Thank you sir for your support through my research of this paper in order to make it successful. May the Lord bless your family and you too. Also to my course mates, Yewande, Tomilayo, Adeyanmola, Queen, and Abiodun thanks very much. You are the best friend and course mates I ever had. And I cannot but appreciate you Alade Funmilola, for your words of encouragement, prayer and support throughout my research of this paper and also for being there when I thought there is nobody, Alade Funmilola you the best. The Lord will see you through in the remaining years left for you and you shall excel in your academics and also whatsoever you lay your hand on shall prosper, success is yours forever. And to all my well wishers thank you very much.

TABLE OF CONTENT Title Page Certification Acknowledgement Table of Content List of Figures List of Tables Abbreviation CHAPTER ONE 1.0 INTRODUCTION 1.1 1.2 Classification of Biofuels Issues Relating to Biofuels 1.2.1 Oil Price Moderation 1.2.2 Food versus Fuel Debate 1.2.3 Poverty Reduction Potential 1.2.4 Sustainable Biofuel Production 1.2.5 Soil Erosion and Deforestation 1.2.6 Impact on Water Resources 1.2.7 Loss of Biodiversity 1.2.8 Carbon Emissions CHPTER TWO 2.0 FOOD RAW MATERIALS WHICH HAS BIOFUEL POTENTIAL 13 2.1 Biofuel Production from Sorghum 13 1 3 4 5 6 7 8 8 9 11 11 i ii iii iv vii viii ix

2.2

Biofuel Production from Cassava 2.2.1 Ethanol from Cassava

14 15 18 19 21 21

2.3 2.4 2.5 2.6

Biofuel Production from Sugarcane Biofuel Production from Jatropha Biofuel Production from Cellulose Biofuel Production from Solid Waste

CHAPTER THREE 3.0 AGRICULTURAL ROLE IN BIOFUEL PRODUCTION 3.1 3.2 3.3 3.4 24

Impact of Utilization of Agricultural Products for Biofuel Production Agricultural Impact on Bioenergy Yield Impact of Biofuel Production on Farmlands and Feedstock 26 27

Impact of Biotechnology and Genetic Engineering in Biofuel Production 3.4.1 Fermentation- A Traditional Technology 3.4.2 Enzyme-Based Bioconversion Technology 3.4.3 Rainbow Biotechnology 28 29 31 32

CHAPTER FOUR 4.0 ROLE OF GOVERNMENT IN ADVANCING THE BIOFUEL 33 35 36 36

PRODUCTION 4.1 4.2 Government Strategies for Biofuel Production Nigerias Policies and Incentives on Biofuel 4.2.1 Objectives and the Anticipated Benefits of the Policy

4.2.2 The policy Structure, Market and Investment Incentives 38

CHAPTER FIVE 5.0 IMPLICATION OF THE USE OF FOOD RAW MATERIALS IN THE PRODUCTION OF BIOFUEL 42

CHAPTER SIX CONCLUSION REFERENCE 44 45

LIST OF FIGURES Figure 2.1 Flowchart of the Production of Ethanol from Cassava 17

LIST OF TABLE Table 1: Projected Marketed Possibility 41

ABBREVIATION AAFC ADH DNA EEA FAO GDP GHG IEA ITDG LCA LDCs NNPC PDC UNIDO USEPA Agricultural and Agric-Food Canada Alcohol Dehydrogenase Di-ribonucleic Acid European Environmental Agency Food and Agricultural Organization Gross Domestic Product Greenhouse Gas International Energy Agency Intermediate Technology Development Group Life Cycle Analysis Least Developing Countries Nigerian National Petroleum Corporation Pyruvate Decarboxylase United Nation Industrial Development Organization U.S. Environmental Protection Agency

CHAPTER ONE 1.0 INTRODUCTION

Biofuel is a renewable energy source produced mainly by the sugar fermentation process (Oyeleke and Jibrin, 2009); although it can also be synthesized by chemical processes such as reacting ethylene with steam (Anuj et al., 2007). Biogas, bioethanol and biodiesel are the main biofuels widely used today, among these, ethanol fuel is the most common biofuel worldwide, particularly in Brazil. Ethanol fuel blends are widely sold in the United States of America. The most common blend is 10% ethanol and 90% petrol (E10). Biofuels are liquid fuels for use in transport. They take the form of bioethanol from cereals, sugar beet or cane, and of biodiesel from vegetable oil. They can substitute for and be blended with fossil fuel based gasoline and diesel, respectively, and in low concentration be used in regular combustion engines of cars and trucks, and hence be distributed by oil companies relying on existing infrastructure. Energy security (bio or fossil origin) like food security in Africa is a crucial element in sustaining development and technological progress in Africa (Leuenberger and Wohlgemuth, 2006). It is a crucial element in sustaining development and technological progress in Africa. Highcost fossil fuel prices and national security concerns have sparked interest in bio-fuels in continental Africa (Pillay and Da Silva, 2009). With world petroleum reserves fast depleting, in

recent years biofuels such as ethanol and butanol, have emerged as most important alternative resource for liquid fuel. It has generated a great deal of research interest in ethanol fermentation. However, research on improving biofuels production has been accelerating for both ecological and economical reasons, primarily for its use as an alternative to petroleum based fuels (Prasad et al., 2007). This review presents the current trends in biofuel production and outlines prospects for the future of renewable energy systems. It also outlines prospects for the future of renewable energy systems and waste utilization, although this is by no means a simple task, since problems concerned with energy, the environment, population, and food, are all interrelated. One of the main arguments put forward to encourage biofuel production is that biofuels will be a reliable source of energy and will decrease dependence on fossil fuels. However, a preliminary assessment of the extent to which the potential ethanol or biodiesel supply meets those fuel needs is disappointing. Global production is still too small and the need for raw materials is still too high for biofuels to have a significant impact on the fuel market and be able to compete with fossil fuels (Forge, 2007). Using waste biomass to produce energy can reduce the use of fossil fuels, reduce greenhouse gas emissions and reduce pollution and waste management problems (USEPA, 2007). A recent publication by the European Union highlighted the potential for waste-derived bioenergy to contribute to the reduction of global warming (EEA, 2006).

1.1

Classification of Biofuels

Biofuels are energy carriers that store the energy derived from biomass. A wide range of biomass sources can be used to produce bioenergy in a variety of forms. For example, food, bre and wood process residues from the industrial sector; energy crops, short- rotation crops and agricultural wastes from the agriculture sector; and residues from the forestry sector can all be used to generate electricity, heat, combined heat and power, and other forms of bioenergy. Biofuels may be referred to as renewable energy because they are a form of transformed solar energy. Biofuels can be classied according to source and type. They may be derived from forest, agricultural or shery products or municipal wastes, as well as from agroindustry, food industry and food service by-products and wastes. They may be solid, such as fuel wood, charcoal and wood pellets; liquid, such as ethanol, biodiesel and pyrolysis oils; or gaseous, such as biogas. A basic distinction is also made between primary (unprocessed) and secondary (processed) biofuels: Primary biofuels, such as re-wood, wood chips and pellets, are those where the organic material is used essentially in its natural form (as harvested). Such fuels

are directly combusted, usually to supply cooking fuel, heating or electricity production needs in small- and large- scale industrial applications. Secondary biofuels in the form of solids (e.g. charcoal), liquids (e.g. ethanol, biodiesel and bio-oil), or gases (e.g. biogas, synthesis gas and hydrogen) can be used for a wider range of applications, including transport and high-temperature industrial processes. 1.2 Issues Relating to Biofuels

There are various social, economic, environmental and technical issues with biofuel production and use, which have been discussed in the popular media and scientific journals. These include: the effect of moderating oil prices, the "food versus fuel" debate, poverty reduction potential, carbon emissions levels, sustainable biofuel production, deforestation and soil erosion,

loss of biodiversity, impact on water resources, as well as energy balance and efficiency.

The International Resource Panel, which provides independent scientific assessments and expert advice on a variety of resource-related themes, assessed the issues relating to biofuel use in its first report towards sustainable production and use of resources: Assessing Biofuels. In it, it outlined the wider and interrelated factors that need to be considered when deciding on the relative merits of pursuing one biofuel over another. It concluded that not all biofuels perform equally in terms of their impact on climate, energy security and ecosystems, and suggested that environmental and social impacts need to be assessed throughout the entire life-cycle. 1.2.1 Oil Price Moderation The International Energy Agency's World Energy Outlook 2006 concludes that rising oil demand, if left unchecked, would accentuate the consuming countries' vulnerability to a severe supply disruption and resulting price shock. The report suggested that biofuels may one day offer a viable alternative, but also that "the implications of the use of biofuels for global security as well as for economic, environmental, and public health need to be further evaluated". According to Francisco Blanch, a commodity strategist for Merrill Lynch, crude oil would be trading 15 per cent higher and gasoline would be as much as 25 per cent more expensive, if it were not for biofuels. Gordon Quaiattini, president of the

Canadian Renewable Fuels Association, argued that a healthy supply of alternative energy sources will help to combat gasoline price spikes. 1.2.2 Food versus Fuel Debate Food versus fuel is the debate regarding the risk of diverting farmland or crops for biofuels production in detriment of the food supply on a global scale. Essentially the debate refers to the possibility that by farmers increasing their production of these crops, often through government subsidy incentives, their time and land is shifted away from other types of non-biofuel crops driving up the price of nonbiofuel crops due to the decrease in production. Therefore, it is not only that there is an increase in demand for the food staples, like corn and cassava, that sustain the majority of the world's poor but this also has the potential to increase the price of the remaining crops that these individuals would otherwise need to utilize to supplement their diets. A recent study for the International Centre for Trade and Sustainable Development shows that market-driven expansion of ethanol in the US increased maize prices by 21 percent in 2009, in comparison with what prices would have been had ethanol production been frozen at 2004 levels. A November 2011 study states that biofuels, their production, and their subsidies as leading causes of agricultural price shocks. The counter-argument includes considerations of the type of corn that is utilized in biofuels, often field corn not suitable for human consumption; the portion of the corn that is used in ethanol, the starch

portion; and the negative effect higher prices for corn and grains have on government welfare for these products. The "food vs. fuel" or "food or fuel" debate is internationally controversial, with disagreement about how significant this is, what is causing it, what the impact is, and what can or should be done about it. 1.2.3 Poverty Reduction Potential Researchers at the Overseas Development Institute have argued that biofuels could help to reduce poverty in the developing world, through increased employment, wider economic growth multipliers and by stabilizing oil prices (many developing countries are net importers of oil). However, this potential is described as 'fragile', and is reduced where feedstock production tends to be large scale, or causes pressure on limited agricultural resources: capital investment, land, water, and the net cost of food for the poor. With regards to the potential for poverty reduction or exacerbation, biofuels rely on many of the same policy, regulatory or investment shortcomings that impede agriculture as a route to poverty reduction. Since many of these shortcomings require policy improvements at a country level rather than a global one, they argue for a country-by-country analysis of the potential poverty impacts of biofuels. This would consider, among other things, land administration systems, market coordination and prioritizing investment in biodiesel, as this 'generates more labour, has lower transportation costs and uses simpler technology'. Also necessary

reductions in the tariffs on biofuel imports regardless of the country of origin, especially due to the increased efficiency of biofuel production in countries such as Brazil. 1.2.4 Sustainable Biofuel Production Responsible policies and economic instruments would help to ensure that biofuel commercialization, including the development of new cellulosic technologies, is sustainable. Responsible commercialization of biofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and impoverished Asia. 1.2.5 Soil Erosion and Deforestation Large-scale deforestation of mature trees (which help remove CO2 through photosynthesis much better than sugar cane or most other biofuel feedstock crops do) contributes to unsustainable global warming atmospheric greenhouse gas levels, loss of habitat, and a reduction of valuable biodiversity (both on land as in oceans). Demand for biofuel has led to clearing land for palm oil plantations. In Indonesia alone, over 9,400,000 acres (38,000 km2) of forest have been converted to plantations since 1996. A portion of the biomass should be retained onsite to support the soil resource. Normally this will be in the form of raw biomass, but processed biomass is also an

option. If the exported biomass is used to produce syngas, the process can be used to co-produce bio-char, a low temperature charcoal used as a soil amendment to increase soil organic matter to a degree not practical with less recalcitrant forms of organic carbon. For co-production of bio-char to be widely adopted, the soil amendment and carbon sequestration value of co-produced charcoal must exceed its net value as a source of energy. Some commentators claim that removal of additional cellulosic biomass for biofuel production will further deplete soils. 1.2.6 Impact on Water Resources Increased use of biofuels puts increasing pressure on water resources in at least two ways: water use for the irrigation of crops used as feed stocks for biodiesel production; and water use in the production of biofuels in refineries, mostly for boiling and cooling. In many parts of the world supplemental or full irrigation is needed to grow feed stocks. For example, if in the production of corn (maize) half the water needs of crops are met through irrigation and the other half through rainfall, about 860 liters of water are needed to produce one liter of ethanol. However, in the United States only 5-15% of the water required for corn comes from irrigation while the other 85-95% comes from natural rainfall.

In the United States, the number of ethanol factories has almost tripled from 50 in 2000 to about 140 in 2008. A further 60 or so are under construction, and many more are planned. Projects are being challenged by residents at courts in Missouri (where water is drawn from the Ozark Aquifer), Iowa, Nebraska, Kansas (all of which draw water from the non-renewable Ogallala Aquifer), central Illinois (where water is drawn from the Mahomet Aquifer) and Minnesota. For example, the four ethanol crops: corn, sugarcane, sweet sorghum and pine yield net energy. However, increasing production in order to meet the U.S. Energy Independence and Security Act mandates for renewable fuels by 2022 would take a heavy toll in the states of Florida and Georgia. The sweet sorghum, which performed the best of the four, would increase the amount of freshwater withdrawals from the two states by almost 25%. 1.2.7 Loss of Biodiversity Critics argue that expansion of farming for biofuel production causes unacceptable loss of biodiversity for a much less significant decrease in fossil fuel consumption. The loss of biodiversity also makes heavy dependence on biofuels, very risky by reducing our ability to deal with blights affecting the few important biofuel crops. Food crops have recovered from blights when the old stock was mixed with blight resistant wild strains, but as biodiversity is lost to excessive agriculture, the possibilities for recovering from blights are lost.

1.2.8 Carbon Emissions Biofuels and other forms of renewable energy aim to be carbon neutral or even carbon negative. Carbon neutral means that the carbon released during the use of the fuel, e.g. through burning to power transport or generate electricity, is reabsorbed and balanced by the carbon absorbed by new plant growth. These plants are then harvested to make the next batch of fuel. Carbon neutral fuels lead to no net increases in human contributions to atmospheric carbon dioxide levels, reducing the human contributions to global warming. A carbon negative aim is achieved when a portion of the biomass is used for carbon sequestration. Calculating exactly how much greenhouse gas (GHG) is produced in burning biofuels is a complex and inexact process, which depends very much on the method by which the fuel is produced and other assumptions made in the calculation. The carbon emissions (carbon footprint) produced by biofuels are calculated using a technique called Life Cycle Analysis (LCA). This uses a "cradle to grave" or "well to wheels" approach to calculate the total amount of carbon dioxide and other greenhouse gases emitted during biofuel production, from putting seed in the ground to using the fuel in cars and trucks. Many different LCAs have been done for different biofuels, with widely differing results. Several well-to-wheel analysis for biofuels has shown that first generation biofuels can reduce carbon emissions,

with savings depending on the feedstock used, and second generation biofuels can produce even higher savings when compared to using fossil fuels. However, those studies did not take into account emissions from nitrogen fixation, or additional carbon emissions due to indirect land use changes.

CHAPTER TWO FOOD RAW MATERIALS WHICH HAS BIOFUEL POTENTIAL 2.1 Biofuel Production from Sorghum Sorghum is one the high drought resistance crop cultivated in about 50% of the Nigerian agricultural land, mostly the northern region (8 0N to 14 0N latitude), accounting for 6.86 million hectares of land. Annual production has been estimated to rise by 45% from the total production of 4.8 million tonnes in 1978 (Ogbonna, 2002). This figure gives Nigeria the opportunity to be the highest producer of sorghum in Sub- Saharan Africa, accounting for about 70% of the total production in the region. The commonly grown varieties are the Farfara, Guinea and Kaura, which are all resistance to different killer weeds. Sorghum is currently use in Nigeria for two main categories of purpose classified here as local and industrial. Traditionally, the crop is mostly cultivated by poor farmers to meet their local demands. They mainly use their harvest for food, beverages, and variety of drinks. Non-food uses include roofing and fencing of compounds in local communities. The local application accounts for about 73% of annual sorghum usage in the country. Industrially, the crop is used in malting and breweries. In 1984 and 1985 the demand for industrial sorghum malt in Nigeria was computed as 134170 and 161043, accounting for 64 and 74 million naira market value respectively (Ilori, 1991). This figure had since rise by about 45%.

Considering the large scale demand of sorghum both locally and industrially, diversion of the crop for fuel ethanol production could have severe consequences. One, the peasant farmers would definitely shift from cultivating other subsistence crops to sorghum, creating an imbalance in the food circle. Secondly, the objective of the biofuels policy would be defeated by sudden rise in food price and inappropriate use of agricultural land. Thirdly, most of the agricultural land would be exposed to degradation due to continuous mono-cropping, and this can severely add to the already existing problems of soil erosion and desertification in the northern parts.

2.2 Biofuel Production from Cassava Cassava is another crop grown on both local and commercial scales in some major parts of Nigeria, especially the rainforest, and the savannah areas of North West and North Central, due to availability of well-drained deep loamy soils. The spread of cassava production in the country could be traced to the period between 1930 and 1946, when yam production was considered unprofitable due to considerable damage by pests. Over sixty different varieties are currently cultivated. Initially, sweet varieties that could be eaten by the local people without further processing were the dominants. However, these were subsequently matched with other improved varieties such as TMS 30572, 4(2)1425, 92/0326 and NR 8082. The annual production was estimated to have increased by about 66% from 382,000 ha

per year from 1946 (Nweke, 2004). Like the sorghum, cassava is used at both local and industrial scales. Peasant farmers employ the tubers for production of food in form of gari, fufu and fermented flour (Ugwu and Nweke, 1996). Industrially, the crop is used as raw material for starch, chips, pellets, unfermented flour and more importantly in beer manufacture. Cassava has been given a great emphasis for fuel ethanol production under the current biofuel implementation plan than sorghum. In areas where its production remain the only source of food and household incomes for the local farmers, an imbalance could be created, although may not be very severe if the existing pre-exploited land is used in preference. Careful planning is therefore necessary to ensure that, large scale cassava production is carried out screening out food-to-fuel diversion issues. 2.2.1 Ethanol from Cassava Ethanol is generally produced by the fermentation of sugar, cellulose, or converted starch and has a long history. In Nigeria, local production of ethanol from maize, guinea corn, millet, and other starchy substances, and cellulose is as old as the country itself. Apart from food and pharmaceutical uses, ethanol is finding itself alternative use for biofuel in most of the developed world for the following reasons: It is not poisonous It does not cause air pollution or any environmental hazard

It does not contribute to the greenhouse effect problem (CO2 addition to the atmosphere, causing global warming) It has a higher octane rating than petrol as a fuel i.e. ethanol is an octane booster and anti-knocking agent It is an excellent raw material for synthetic chemicals Ethanol provide jobs and economic development in the rural areas Ethanol reduces countrys dependence on petroleum and it is a source of non-oil revenue for any producing country Ethanol is capable of reducing the adverse foreign trade balance

Cassava flour (water and -amylase enzyme)

Liquification (80-85 C, pH 4-4.5)400rpm

Saccarification (56-65 C, pH 4-4.5) Glucose isomerase enzyme

Cooling (30-33 C)

Fermenter (Yeast added, carbon dioxide out)

Distillation (Feed recovery)

Ethanol Fig 2.1 Flowchart of the production of Ethanol from Cassava

2.3 Biofuel Production from Sugarcane

Since its introduction into the country through the eastern and western coasts by the European Sailors in fifteen century, sugarcane has become an important crop grown in many parts of Nigeria. Traditionally, sugarcane is grown on small holdings (usually 0.2 to 1.0 ha) for chewing as juice and preparing livestock feed. However, with the increased in demand for sugar in the country, the crop is grown on large scale as raw material for sugar industry. Around 1997, the major sugar companies operating; Bacita, Lafiagi, Numan and Sunti utilised about 12,000 ha out of the total 30, 000 ha for sugar-based sugarcane production (Agboire et al., 2002). In the year 2007/2008 an estimate of 100, 000 tonnes were produced compared to 80, 000 tonnes in 2006/2007. However, due to the persistent increased in sugar demand to 1.50 billion, making Nigeria the second largest in Africa, the local sugarcane production is insufficient to meet the demand. With the current shift to biofuel ethanol production by the government, more companies were invited to participate in sugarcane production across the country. In the last few years, a US-based company (Lemna International) proposed to establish the first ethanol production plant in Taraba State. The project analyses to cost US$ 50 million would require a land covering 30,000 to 50,000 ha for local raw material cultivation. The NNPC have clearly identifies sugarcane and cassava as the major raw materials for the bioethanol production program. Currently, investors have already invested over $3.86 billion for the construction of 19 ethanol biorefineries, 10,000 units of mini-refineries and feedstock plantations for the

production of over 2.66 billion litres of fuel grade ethanol per annum from sugarcane and cassava, leading to land requirement of 859,561 ha (Ohimain, 2010). Sugarcane-based fuel ethanol production would have very little threat to the local people, as the crop is not used for daily food like sorghum or cassava. However, sudden rise in prices of sugar and sugar products would be a great challenge. To address this, importation and sell of sugar to peasants at a subsidizes rate is necessary. Similarly, an unbiased food price versus food-fuel feasibility research should be executed simultaneously, such that proper policy modification is carried out in line with real situation. 2.4 Biofuel Production from Jatropha The policy identifies Jatropha oil as the main pilot raw material for the biodiesel industry. Jatropha is non-edible plant and therefore has not been on the large scale production by either the Nigerian food or commercial farmers. Some few research plantations were established in the recent years, as pilot studies for checking soil desertification. However, with the current biofuels plan some northern states namely Kebbi, Sokoto, Zamfara, Katsina, Kano, Jigawa, Bauchi, Yobe, Borno, Adamawa and Gombe are selected for large scale production. A number of Literature studies have indicated Jatropha to be a very good source of oil for biodiesel production; yielding nearly 100% of the fuel in short transesterification time under both homogeneous and heterogeneous conditions (Lu et al., 2009; Sahoo and Das, 2009; Vyas et al., 2009). From the economic

perspective studies indicated successes in large scale Jatropha plantations in different tropical countries. Studies by Prueksakorn et al (2010) in Thailand showed that, both 20 years perennial system and annual cultivation method, involving harvesting the trees for wood and the seed for biodiesel could produce up to 4720 and 9860 GJ of net energy per ha. In India, production and use of Jatropha biodiesel have reported to triggers 82% decrease in fossil diesel demand and 52% decrease in global warming potential (Achten et al., 2010). Therefore, selection of Jatropha in Nigeria would be a multipurpose opportunity. In addition to the sources of energy, soil degradation, desertification, and deforestation problems could be addressed. If only 10% of the available agricultural land (60,000,000 ha) in the selected states could be utilised, additional revenue of $3 billion, which is more than the annual allocation to these states, could be generated. However, the poor farmers may shift from food crops to Jatropha cultivation due to foreseeable market value, deforming the food circle. Similarly, continuous plantation is associated with soil acidification and eutrophication (Achten et al., 2010).

2.5

Biofuel Production from Cellulose

Cellulose is a fibrous, insoluble, crystalline polysaccharide (Li et al., 2009). It is a major polysaccharide constituent of plant cell walls, composed of repeating Dglucose units linked by -1,4-glucosidic bonds (Jagtap and Rao, 2005) and being the

most abundant carbohydrate polymer on earth (Guo et al., 2008). Cellulose has attracted worldwide attention as a renewable resource that can be converted into biobased products and bioenergy (Li et al., 2009). Cellulose is used as a food source by a wide variety of organisms including fungi, bacteria, plants and protists, as well as a wide range of invertebrate animals, such as insects, crustaceans, annelids, mollusks and nematodes (Watanabe and Tokuda, 2001; Davison and Blaxter, 2005). Indeed, using cellulosic materials such as agricultural residues, grasses, forestry wastes, and other low-cost biomass can significantly reduce the cost of raw materials for ethanol production compared to corn (Li et al., 2009).

2.6

Biofuel Production from Solid Wastes

Human activities generate large amounts of waste such as crop residues, solid waste from mines and municipal waste (Oyeleke and Jibrin, 2009). This solid waste production is of global concern and development of its bioenergy potential can combine issues such as pollution control and bio-product development, simultaneously. They may become a nuisance and sources of pollution. It is therefore important to handle them judiciously to avoid health problems, since these wastes may habour pathogenic microorganisms (Ledward et al., 2003). Prasad et al. (2007), highlighted major agricultural, industrial and urban waste, which could be used for ethanol production in an ecofriendly and profitable manner. In addition, agronomic residues arisen from human activities, such as corn

stover (corn cobs and stalks), sugarcane waste, wheat or rice straw, forestry, and paper mill discards, the paper portion of municipal waste and dedicated energy crops, also have plentiful cellulose, which can be converted into fuel ethanol (Li et al., 2009). However, enormous amounts of these agricultural, industrial and municipal cellulose wastes have been accumulating or used inefficiently due to the high cost of their utilization processes (Kim et al., 2003). Nowadays, it has become of considerable economic interest to develop processes for the effective treatment and utilization of cellulosic wastes as cheap carbon sources (Li et al., 2009). Primarily, the utilization of these wastes for ethanol production will reduce dependency on foreign oil and secondly, this will remove disposal problem of wastes and make environment safe from pollution (Prasad et al., 2007). Agricultural wastes, including wood, herbaceous plants, crops and forest residues, as well as animal wastes are potentially huge source of energy. In Nigeria, large quantities of these wastes are generated annually and are vastly underutilized (Oyeleke and Jibrin, 2009). The practice is usually to burn them or leave them to decompose. However, studies have shown that these residues could be processed into liquid fuel such as biogas and bioethanol, or combusted to produce electricity and heat (Soltes, 2000).

CHAPTER THREE 3.0 AGRICULTURAL ROLE IN BIOFUEL PRODUCTION

Field crops offer potential source of fuel, offering promise as large-scale energy and based on its genetic diversity, climatic adaptation, biomass and sugar production (Prasad et al., 2007). There are agricultural products specifically grown for biofuel production which include corn, switch-grass, and soybeans, primarily in the United States; rapeseed, wheat and sugar beet primarily in Europe; sugar cane in Brazil; palm oil and miscanthus in South-East Asia; sorghum and cassava in China; and jatropha in India. Hemp has also been proven to work as a biofuel. Sugar will be the key feedstock of the future, as it can be used to ferment ethanol for transportation fuel, but also for a whole set of new basic building blocks. Indeed, the combination of bio-based feedstock, bio-processes and new products offers the potential to revolutionize energy sector of any nation. The use of guinea corn husk and millet husk (agricultural waste with no appreciable value to industries or competitive use as food) as alternative and cost effective feed stock for the production of bioethanol was examined by Oyeleke and Jibrin (2009), which showed that ethanol can be produced from these agricultural products using acid hydrolysis with 2.5 M H2SO4, and simultaneous saccharification and fermentation with Aspergillus niger and Zymomonas mobilis isolated from soil and palm wine. The results revealed that ethanol could be

produced from agricultural residues, such as guinea corn husk and millet husk, using Z. mobilis and A. niger as fermenting organisms. However, higher ethanol has been reported produced from fresh fruit due to higher presence of fructose and glucose in fresh fruits, as stated by Micheal and Rosaline (2000). The maximum volume of ethanol (27.10 g/l) produced from guinea corn husk in this study is in agreement with that (27.7 g/l) reported by Lekneth et al. (1994) produced 27.7 g/l of ethanol from sweet sorghum while Gunasekran and Chandra (2007) reported production yield of ethanol (59 g/l) at 120th h from cassava starch hydrolysate. This is due to cassava containing more carbohydrates, which could be fermented to ethanol (Oyeleke and Jibrin, 2009).

3.1

Impact of Utilization of Agricultural Products for Biofuel Production on Food Market

A number of observers are wondering what effect; the increase in demand will have on the food market, and especially food prices. However, it is still too early to determine the specific effect of the biofuel boom on the various agricultural foods and feed markets, and to know whether farmers will benefit over the long term. While the Canadian grains and oilseeds industry has stated on a number of occasions that increased biofuel production will have a positive impact on prices, it has not indicated whether this impact could reverse the long-standing downward trend in grain prices and have a significant effect on farm income. In Canada, the

livestock industry has expressed concern that the expansion of the biofuels market will affect the price and availability of grains used for animal feed (Forge, 2007). Increased demand for and production of biofuels, specifically ethanol, in North America will inevitably affect the agricultural market. However, there are very few studies of the expected impact, and almost all of them deal exclusively with the U.S. marketplace (Forge, 2007). 3.2 Agricultural Impact on Bioenergy Yield

With increasing worldwide interest in this non-food human and animal crop, the possibilities are exciting. Jatropha oil can be used as a diesel substitute for rural electrification and transport. The energy yield from ethanol or biodiesel depends on the feedstock used. For instance, one hectare (ha) of sugarcane grown in Brazil produces almost twice as much ethanol as the same area of corn grown in Canada. It would take slightly less than 2 ha of wheat or 0.6 ha of corn grown in Canada to run a car entirely on biofuel for one year, while 0.3 ha of sugarcane grown in Brazil would provide enough biofuel for the same level of consumption. By using 16% of its total corn production in 2006, the United States replaced 3% of its annual fuel consumption with biofuels. According to Agriculture and Agri-Food Canada (AAFC), if 100% of the total U.S. corn productions were used, that figure would rise to 20%. According to an article in the New Scientist in 2006, Canada would have to use 36% of its farmland to

produce enough biofuels to replace 10% of the fuel currently used for transportation (Wikipedia, 2008). Brazil, by contrast, would need to use only 3% of its agricultural land to attain the same result. In order for Canada to reach its biofuel target of 5% of fuel consumption by the year 2010 (about 2.74 billion litres of ethanol and 0.36 billion litres of biodiesel), the AAFC estimates that 4.6 million Tonnes of corn, 2.3 million tonnes of wheat and 0.56 million tonnes of canola will be required. If all these feedstocks were grown domestically, they would represent 48-52% of the total corn seeded area, 11-12% of the wheat seeded area and about 8% of the total canola seeded area in Canada (Forge, 2007).

3.3

Impact of Biofuel Production on Farmlands and Feedstock

It is very likely that the proportion of farmland required will decrease with improved yields and the cultivation of marginal soils, if the demand for biofuels raises the price of feedstock. However, the need for feedstock will remain high if the demand for biofuels increases. Therefore, there is concern about the rationale for allocating farmland to energy production rather than food production. Some observers believe that there is already competition between the two markets: according to the United Nations Food and Agriculture Organization (FAO), the rising demand for ethanol derived from corn is the main reason for the decline in world grain stocks during the first half of 2006 (Forge, 2007).

3.4

Impact of Biotechnology and Genetic Engineering in Biofuel Production

Biotechnology is an important tool for economic and sustainable development through which the issue of biofuel production can become a success and a thing of reality (Pillay and DaSilva, 2001). Genetics today largely is the result of research that was performed during the 20th century. Although DNA was discovered in 1869, discovery of physical structure of the miracle molecule of life in 1953 by Watson and Crick marked the beginning of modern genetics (Niazi, 2007). As a result of research in genetics and advances in the field of biotechnology, the major benefits have been in the areas of agriculture, environment and medicine. Recombinant DNA technology has produced fundamental changes in agricultural food production. Biotechnology is now an emerging field in food and its specific applications in food biotechnology, human health and diagnosis, industry and environment are few to mention. There were several agricultural challenges on which the scientists worked deliberately and as such agriculture have been improved in resistance to disease and insect and hybrid varieties have desirable qualities such as increased protein values (Niazi, 2007). Over the past four decades genetic manipulations have produced many transgenic plants and GM crops have revolutionized, however much of the concern centers on issue of safety (Atherton, 2002).

Genetic techniques will be used to clone the cellulase coding sequences into bacteria, yeasts, fungi, plants and animals to create new cellulase production systems with possible improvement of enzyme production and activity. It is predicted that the use of genetically engineered raw materials with higher carbohydrate content combined with the improvement of conversion technology could reduce the cost of ethanol a lot. This will give a great help for solving the problems of energy and food in the world (Li et al., 2009).

3.4.1 Fermentation- A Traditional Technology Prior studies for natural cellulose hydrolysis have revealed many cellulolytic microorganisms and their complex cellulases (Lynd et al., 2005). Traditionally, ethanol has been produced in batch fermentation with fungal strains such as Aspergillus niger, Mucor mucedo, and Saccharomyces cerevisiae, which cannot tolerate high concentrations of ethanol. Therefore, improvement programmes are required in order to obtain alcohol-tolerant strains for fermentation (Gunasekaran and Chandra, 2007). There have been many papers dealing with more efficient cellulose degrading enzyme from various organisms such as Trichoderma reesei, Trichoderma viride, Trichoderma lignorum, Chrysosporium lignorum,

Chrysosporium pruinosum and Fusarium solani (Tong et al., 1980), Aspergillus and Rhizopus species have also been extensively studied by several researchers

(Murashima et al., 2002; Saito et al., 2003), only limited research has identified the yeast as cellulase producer (Hong et al., 2007). Zymomonas mobilis, a Gram negative bacterium, is considered an alternative organism in large scale ethanol production. Its advantages over yeasts include higher sugar uptake and ethanol yield, lower biomass production and higher ethanol tolerance (Oyeleke and Jibrin, 2009). Z. mobilis is able to produced ethanol due to the presence of pyruvate decarboxylase (PDC) and alcohol dehydrogenase (ADH), which are key enzymes in ethanol formation, as reported by Gunasekaran and Chandra (2007). It was also stated by the authors that the ADH of Z. mobilis appears to facilitate continuation of fermentation at high concentration of ethanol. Investigations on ability of microbial strains to utilize inexpensive substrate and improvement of enzyme productivity have been done (Stenberg et al., 2000; Villena and Gutierrez-Correa, 2006). However, by far, although the cellulase enzyme cost has dropped due to improvements in expression vectors and on-site production, there is still a necessity of engineering a new generation of cellulase cocktails that would further reduce cellulase cost (Kobayashi et al., 2003; Kashima and Udaka, 2004; Li et al., 2009).

3.4.2 Enzyme-Based Bioconversion Technology Cellulases provide a key opportunity for achieving tremendous benefits of biomass utilization (Wen et al., 2005). There has been much research aimed at obtaining

new microorganisms producing cellullase enzymes with higher specific activities and greater efficiency (Subramaniyan and Prema, 2000). But currently, two significant points of these enzyme-based bioconversion technologies are reaction conditions and the production cost of the related enzyme system (Li et al., 2009). The complete enzymatic system include three different types, that is, exo--1,4glucanases (EC 3.2.1.91), endo--1,4-glucanases (EC 3.2.1.4), and -1,4glucosidase (EC 3.2.1.21) (Wilson and Irwin, 1999). These enzymatic components act sequentially in a synergistic system to facilitate the breakdown of cellulose and the subsequent biological conversion to an utilizable energy source, glucose (Beguin and Aubert, 1994). The endo--1, 4-glucanases randomly hydrolyzes the -1,4 bonds in the cellulose molecule, and the exo--1,4-glucanases in most cases release a cellobiose unit showing a recurrent reaction from chain extremity (Li et al., 2009). Lastly, the cellobiose is converted to glucose by -1,4-glucosidase (Bhat and Bhat, 1997). This whole enzymatic process to hydrolyze cellulosic materials could be accomplished through a complex synergistically reaction of these various enzymatic components in an optimum proportion (Tomme et al., 1995). The cellulose enzymes will be commonly used in many industrial applications such as biofuel production, and the demand for more stable, highly active and specific enzymes has be growing rapidly (Li et al., 2009).

3.4.3 Rainbow Biotechnology This is a modern technology which has been described as a portal for African sustainable development and bio-economic prosperity by Pillay and Da Silva (2009). The sense of accomplishment and satisfaction of time well-spent in acquiring food, feed, fibre and fertilizer for ones family in an urban, rural or village settings indicate that Africa is setting its own biotech agenda for sustainable development. According to Pillay and Da Silva (2009), in brief, Africa is taking the lead in creating its own biotechnology agenda and roadmap to socioeconomic and sustainable development. The emergence of Rainbow Biotech serves as a catalytic portal amongst others for collaborative effort and continental development (Lout, 2006; Pincock, 2006; RIS, 2006).

CHAPTER FOUR ROLE OF GOVERNMENT PRODUCTION IN ADVANCING THE BIOFUEL

The role of government in advancing biofuel production cannot be overemphasized. The government of any nation especially in the developing countries has a role to play the game of biofuel production as an alternative energy security. National, regional and international consultations and debates ensure timely attention of peer-reviewed guidelines concerning significant issues like bio-risks, bio-safety, and bio-security that impinge on daily human existence and welfare (Pillay and Da Silva, 2009). Since the second half of the 70's, and as a result of the 1973 oil crisis, the Brazil government has been promoting ethanol as a fuel. By 1978 the first gasohol automobile was developed. The Brazilian government provided three important initial drivers for the ethanol Industry: guaranteed purchases by the state-owned oil company Petrobras, low interest loans for agro-industrial ethanol firms and fixed gasoline and ethanol prices where hydrous ethanol sold for 59% of the government-set gasoline price at the pump. These pump-primers have made ethanol production competitive yet unsubsidized. In recent years, the Brazilian untaxed retail price of hydrous ethanol has been lower than that of gasoline per gallon (Lovins, 2005). Approximately US$50

million has recently been allocated for research and projects focused on advancing the obtention of ethanol from sugarcane in So Paulo (Balister, 2006). Furthermore, the federal government of most developed nations announcement of a strategy to encourage biofuel production generated a great deal of interest in the agricultural sector. Like most industrialized countries, Canada has launched programs to encourage biofuel production. In the mid-1990s, the federal government waived its excise taxes of $0.10 per litre for ethanol blended with gasoline, and $0.04 per litre for biodiesel. It has also established a program to protect producers from any negative impact in the event of changes to this policy. In 2003, the Canadian government launched the Ethanol Expansion Program, which supported investments in building and enlarging ethanol plants (Forge, 2007). The delivery instruments are political will, provision of education, and investment in low-cost high-quality multipurpose biotechnologies such as the integrated biogas systems and the recycling of wastewaters by the government. These simple to implement small- or village-scale bioprocesses as proven in Brazil, China and India uplift human dignity, empower endeavour, enthusize the morale spirit and conserve values (Pillay and Da Silva, 2009).

4.1

Government Strategies for Biofuel Production

On 20 December 2006, the government released a strategy with the goal, announced earlier in the year, of increasing biofuel consumption to 5% of total fuel consumption in Canada by 2010. According to Forge (2007), the strategy comprises the following elements: 1. The drafting of regulations that will require a renewable content of 5% in gasoline by 2010 and a 2% renewable content in diesel fuel and heating oil by 2012. 2. The establishment of the Capital Formation Assistance Program for Renewable Fuels Production, a $200-million, four-year program designed to encourage agricultural producers participation in the renewable fuels industry. It will build on the $10 million budgeted for 2006-2007 for The Biofuels Opportunities for Producers Initiative, which is aimed at assisting agricultural producers with preparing business plans and conducting feasibility studies into developing and increasing production capacity for renewable fuels. 3. The establishment of the Agricultural Bio-products Innovation Program, a $145million, five-year program designed to promote research, development, technology transfer and the commercialization of agricultural bio-products, includes biofuels, in Canada.

4.2

Nigerias Policies and Incentives on Biofuel

The Nigerian Biofuels Policy and Incentives drafted in 2007 by the national oil company (NNPC) is the first of its kind established in Nigeria with the view of integrating agricultural activities with oil and gas exploration and production since the discovery of commercial quantities of oil in 1956. The policy addresses the key government plans with regards to ethanol and biodiesel production across the country from the research and development phase to large scale production and investment stages. The federal government of Nigeria in line with its program (Automotive Biomass for Nigeria) mandated NNPC to draft the policy in August 2005, such that the nations overdependence on oil and gas economy and the environmental threats associated with the fossil fuels exploitation could be reduced to as low as reasonably practicable levels. The mandate requires that the policy is designed to allow the future usage of biofuels in the country, to make significant impact on gasoline, diesel and other petroleum products quality enhancement.

4.2.1 Objectives and the Anticipated Benefits of the Policy The main objective of the policy is to firmly establish an ethanol and biodiesel industry, which will be solely dependent on local agricultural products as feedstocks, so that the quality of the fossil fuels for use in automotive industries and other sectors could be improved. It therefore seeks to provide an appropriate link

between the agriculture and energy sector (NNPC, 2007). Furthermore, it aims to create an avenue for integrated national development covering all sectors of the economy. The specific anticipated benefits of the policy are as follows. Diversification of the countrys sources of revenue as additional taxes could be generated from commercial activities attributed to the industry. Creation of sustainable job opportunities for citizens and the empowerment of rural communities who are currently neglected from enjoying the national cake. Improving agricultural benefits by advancing farming techniques and agricultural research. Ensuring that the projected energy demand in the country is addressed sustainably; Reduction in environmental pollution due to fossil fuels. Biofuels could drastically reduce tailpipe emissions and the depletion of ozone layer. They can also be used as desirable replacements to toxic octane and cetane enhancers in gasoline and diesel respectively.

4.2.2 The Policy Structure, Market and Investment Incentives The policy has been structured into two major components in line with the available agricultural land, research and development and implementation strategy. The first phase of the program defined in the policy as seeding the market involve the importation of commercial quantities of fuel ethanol to seed the market base on 10% ethanol blend (E-10) with gasoline up to the time when local production could be fully implemented. This can take up to ten years from the initiation period (NNPC, 2007). The second stage of the program (Biofuel Production Programme) will begins simultaneously with the seeding phase, and would continue, involving large scale plantations using the massive agricultural land distributed across the country. Agricultural crops such as cassava, sorghum and sugar cane are the most likely options for ethanol production while Jatropha for the biodiesel production. These crops could be grown in different part of the country, especially the north and central belts. With regards to biofuels market, records indicate that these commodities have not been use previously for any commercial fuel application. The projected demands were therefore deduced from the recent and future gasoline and diesel production in the country. For the anticipated E-10 ethanol blend in gasoline, about 1.3 billion Liters of ethanol are required annually. This has been deduced to reach 2.0 billion Liters by 2020 and beyond. The demand for biodiesel is projected based on 20% blend (B20) in line with international biodiesels specifications. 900 million Liters

would be required by 2020 compared to the estimated current requirement of 480 million Liters. The market is anticipated to reach 100% establishment by the year 2020. These projections are summarized in Table 4.1 Looking at these market possibilities as well as potential exports to other African countries like Niger republic, Cameroon, Chad e.t.c the program will attracts investment from both local and international companies, especially the victims of long time Niger Delta insecurity. To aid this, the government has so far outlined the following investment incentives under section 6.0 of the policy (NNPC, 2007). Funding of research and establishment of biofuels agency to limit investment costs and access to any government subsidy by the companies Tax Holiday (Pioneer Status): All registered businesses engaged in activities related to biofuels production and/or the production of Agricultural feedstock for the purpose of biofuels production and Co-generation within the country shall be accorded pioneer status within the provisions of the Individual Development (Income Tax Relief) Act. Withholding tax on interest, dividends etc.: Biofuels companies shall be exempted from taxation, withholding tax and capital gains tax imposed under Sections 78, 79, and 81 of the companies Income Tax Act in respect of the interest on foreign loans, dividends and services rendered from outside Nigeria to biofuels companies by foreigners.

Waiver on Customs and Import Duties: Biofuels companies shall be exempted from the payment of customs duties, taxes and all other charges of similar nature. Waiver on Value-added Tax: Companies that are involved in the production of biofuels or feedstock and/or the generation of electricity from biomass shall be exempted from payment of value-added taxes on all products and services consumed.

Table 4.1 Projected marketed possibility S/N TREND Market Demand per Year (litres) 1 Gasoline (E-10 blend)-current -2020 2 1.2 billion 2 billion

Paraffin (Replacement with Ethanol Based 3.75 billion Cooking Gel Fuel)

3 4 5 6

Raw material for Portable Ethanol Total Market Size Current market possibility (B-20) Biodiesel Estimated Biodiesel demanded by 2020

90 million 5.04 billion 480 billion 900 million

Source: Azih (2007), Authors modified

CHAPTER FIVE IMPLICATION OF THE USE OF FOOD RAW MATERIALS IN THE PRODUCTION OF BIOFUEL Majority of the already-exploited agricultural land in Nigeria is used by the local people for the production of food. Therefore, diversion of the land to biofuel raw material cultivation is associated with hunger threats. In line with this, the largest percentage of the respondents (70%) strongly discouraged the used of this land. Only few support the exploitation of the food-land. Majority of the participants therefore encouraged that; pre-cultivated land should be used instead. This opinion directly correlates with experience in countries like India and Thailand (Achten et al., 2010; Prueksakorn et al., 2010). Similarly, Msangi et al. (2007) showed that, even at the global scale, this could result to upward pressure on international food prices, making staple crops less affordable for poor consumers; potentially significant adverse impacts on both land (soil quality and fertility) and water resources, and on biodiversity and ecosystems in general. With regards to whether, biofuels production will create additional imbalance to local people, having poor access to amenities, more than 80% of the respondents strongly disagreed, basing their arguments on integrated approach whereby access to jobs would be improved. Similarly, construction of mechanized agricultural projects such as feeder roads, irrigation facilities etc., would promote the standard

of leaving in many rural areas. On the other hand, less than 10% of the respondents strongly opposed the potential contribution of the program to economic growth and access to energy in the rural areas. 75.68% are in strong agreement. Revenue generation, climate change mitigation and attracting investment, thereby creating more job opportunities to jobless are the major targets of the biofuels policy, such that, the countrys over dependence on oil and gas economy would be greatly reduced. 91.89% of the people strongly agreed with generation of more revenues, leading to increase in the countrys gross domestic product (GDP) due to potential increase in farm output. Environmental degradation by deforestation is a key challenge as suggested by 97% of the respondents. However, the selected crops for the production are mainly adaptive to the northern part of the country that is a non-forest belt. But soil acidification and continuous cropping could be strong threats. 91.89% of the respondents strongly suggest that the biofuels policy will not create any imbalance to the nations economy.

CHAPTER SIX CONCLUSION 1. Biofuel production will reduce the affordability of food materials. 2. It will increase the use of land for biofuel production than food production. 3. It will increase the rate of malnutrition that is people will no longer eat according to what is needed to the body but eat what is available for them to eat. 4. Also the production of biofuel may lead to fold-up of many food companies because of the less supply of food raw materials for food production. 5. Many local people will be enticed to this business because of the profit they will be getting from it. RECOMMENDATION The Government should encourage mass production of the food raw materials that have the potential of biofuels. There should be standard measure for the amount of raw materials which is needed to be used for the production of biofuels.

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