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​​Renewable Energy

Since civilization man has met his energy needs one way or the other. Modern man has depended largely on fossil fuel which is non renewable and has been the major cause of greenhouse gas emissions thereby degrading the environment. In 2005 a presidential directive was given to the NNPC for the exploration of Renewable Energy as a source of energy i.e. energy that is replaced by a natural process at a rate that is equal to or faster than the rate at which that resource is being consumed. This led to the creation of the Renewable Energy Division (RED) of the NNPC in August 2005. The Division is to midwife the birth of renewable energy initiatives of the NNPC. This is consistent with the dictates of the Kyoto protocol of which Nigeria is a signatory.

NNPC is to spearhead the launch of a bio-fuel program for Nigeria which aims at creating a sustainable domestic industry by integrating the energy and agricultural sectors of the country. The rationale for the program, which is aimed at growing a thriving home grown industry includes; providing jobs and economic empowerment to rural communities, reducing Nigeria’s dependence on fossil fuels and protecting the environment while participating in the Clean Development Mechanism (CDM) program.
The NNPC through the RED has initiated the Automotive Bio-fuel program for the production of fuel-ethanol and bio-diesel that would be blended with PMS (Premium Motor Spirit) otherwise know as Petrol and AGO (Automotive Gas Oil), in proportions not exceeding 10% volume. The resulting new fuel which is to be called “Green Gasoline” will reduce the volume of carbon dioxide released into the atmosphere, improve air quality and ultimately reduce global warming and its catastrophic consequences.


Company Profile

​The Renewable Energy Division (RED) was established in August 2005 to pioneer and coordinate the development of the Automotive Biofuels Industry in Nigeria. 

The initiative is a national response to the global aspiration to curb Green House Gas (GHG) emissions by diversifying towards a Low Carbon Regime, in a sustainable manner.

The primary aims are to:

  • Link the Oil and Gas sector with the agricultural sector through the commercial production of biofuels from selected energy crops as blend stock for petroleum fuels, while fostering the exploitation of other Renewable Energy sources
  • Mitigate Climate Change  and earn Carbon Credits from Clean Mechanism Development (CDM) projects  activities
  • Serve as additional line of profitable business  for NNPC, including food production and power generation
  • Diversify the Nigerian economy, create jobs and promote sustainable environment​


RED Vision

RED would be a leading player in Renewable Energy business towards a low carbon economy.​

RED Mission

To provide alternative energy by profitably exploiting Renewable Energy sources and generating Carbon Credits through emission reduction projects in Nigeria.


Broad Objective

Engage in Commercial production of Biofuels; exploit other Renewable Energy Resources and earn Carbon Credits from CDM Projects​

Key Objectives

  • Engage in the commercial in-country production of Biofuels in partnership with core investors
  • Secure 10% of NNPC Mega Station Retail Inventory and become a dominant player in Biofuels business in Nigeria
  • Exploit other cost effective renewable energy sources like solar, wind, waste to energy etc. for NNPC’s commercial benefit
  • Earn Carbon credits by engagi​ng in CDM Project, trading in Carbon Credits and participate actively in the Global Carbon emissions reduction initiatives​


Agasha-Guma Fuel Ethanol Project​

S/No. Products S/No.​ Products
Fuel-Ethanol 2.      Biodiesel
Refined Sugar 4.     
Crude Palm Oil
Electricity 6.     
CERs (Under CDM) 8.     
Carbon Dioxide
Yeast (Animal Feed) 10.   


Benefits of Biofuels​

Economic Benefits
  1. Good returns on investment
  2. Increased local production of Fuel, Food and Power 
  3. Lower pump price for fuel blends (E10, B20)​
  4. Increased energy security and energy mix
Social Benefits
  1. Rural wealth and job creation
  2. Social Equity
  3. Promotion Sustainable Development

Environmental Benefits
  1. Environmental Integrity 
  2. GHG emission reduction
Political Benefits
  1. ​Potential to curb restiveness and socio-political tension across the Country​


Benefits of CDM

Economic Benefits
  1. Improvement of NNPC bottom-line through Carbon credit  earnings 
  2. Green Power generation
Social Benefits
  1. Promotion Sustainable Development
  2. Job creation
  3. Improved Corporate image and branding
Environmental Benefits
  1. Environmental Integrity 
  2. GHG emission reduction
  3. Climate change Mitigation
Technological Benefits
  1. Technology Transfer
  2. International Best Practices
  3. Expertise in Technology Needs Assessment



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