Production Of Edible Ethanol 95.5% Alcohol From Cassava Tubers In Nigeria, The Feasibility Report

Ethanol, also known as ethyl alcohol, is a versatile chemical compound widely used across food, beverage, pharmaceutical, and energy industries. It exists primarily as a colorless, volatile liquid with a characteristic alcoholic odor. Ethanol can be derived from the fermentation of sugars, starches, or cellulose-containing materials, making it one of the most important industrial and consumable alcohols globally.

In Nigeria, ethanol has historically been produced from starchy crops such as maize, guinea corn, millet, and cassava, as well as from cellulose-rich plant materials. Of these, cassava stands out as the most abundant and economically viable raw material, as Nigeria is the world’s largest cassava producer, harvesting approximately 40 million tonnes annually. Cassava provides a highly fermentable substrate for ethanol production, capable of yielding high-quality, odor-free ethanol suitable for both industrial and edible applications.Ethanol can be broadly categorized into two main types based on its intended use:

1. Edible Ethanol (Beverage Alcohol)

   • Used primarily in the production of alcoholic beverages such as spirits, liquors, and traditional alcoholic drinks.

   • Requires high purity levels (typically ≥ 95.5%) and must meet stringent safety standards to ensure it is safe for human consumption.

2. Industrial Ethanol

   • Used in industrial applications including perfumery, cosmetics, pharmaceuticals, and as a fuel additive in gasoline blends (often called bioethanol).

   • Industrial ethanol also serves as a precursor for chemicals, solvents, adhesives, and disinfectants.

Ethanol’s versatility makes it a critical input across multiple sectors:

• Fuel Ethanol: Blended with gasoline to produce biofuels, reducing carbon emissions and enhancing energy security.

• Alcoholic Beverages: Edible ethanol is used to produce spirits and liquors.

• Pharmaceuticals and Cosmetics: Serves as a solvent, preservative, and antiseptic in medicines, hand sanitizers, perfumes, and lotions.

• Food and Beverage Industry: Used in flavoring, aroma extraction, and as a preservative.

• Industrial By-products: Fusel oils from ethanol fermentation can be converted into aromatic waters for perfumes and flavorings, while carbon dioxide (CO₂) produced can be used in beverages, food packaging, and chemical manufacturing.

The global ethanol market is experiencing robust growth, driven by rising demand for biofuels, environmental regulations, and industrial applications. As of 2025, the global ethanol market is valued at approximately USD 60 billion, with projections to reach USD 90 billion by 2030, growing at a CAGR of 5–6%. Key drivers include:

• Biofuel Adoption: Ethanol is increasingly used as a renewable energy source in gasoline blends across the U.S., Brazil, and the EU.

• Industrial Demand: Rising need for ethanol in pharmaceuticals, cosmetics, and food industries.

• Sustainability Focus: Growing preference for bio-based chemicals over petroleum-based alternatives.

In Nigeria, ethanol demand is largely unmet by local production, with a significant proportion of requirements being satisfied through importation. The country has an estimated domestic demand exceeding 200 million liters annually, spanning industrial and edible uses. Contributing factors to this demand include:

• A population of over 200 million and an annual population growth rate of 5.7%.

• Steady economic growth averaging 3.5% over the past five years, boosting industrial and consumer consumption.

• Federal initiatives encouraging bioethanol blending in gasoline to reduce crude oil consumption and carbon emissions.

Given these factors, ethanol production from cassava presents a high-potential business opportunity. Nigeria’s abundant cassava supply ensures consistent raw material availability, while the growing industrial and energy sectors guarantee strong market demand.

The proposed ethanol production facility is designed to produce 7,500 liters of high-purity edible ethanol (95.5%) per day, operating 24 hours per day, 300 days per year, with three shifts of eight hours each. The plant will use cassava as the primary feedstock, with an input-output ratio of 4:1 for cassava to starch and 1:1 for starch to ethanol.

Additionally, the facility will generate valuable by-products:

• Industrial Ethanol: Used in chemical, cosmetic, and pharmaceutical industries.

• Fusel Oils: A mixture of higher alcohols suitable for aromatic waters and industrial applications.

• Carbon Dioxide (CO₂): Applicable in food and beverage carbonation, chemical production, and other industrial uses.

With abundant raw materials, favorable government policies, and a growing domestic market, establishing an ethanol production plant in Nigeria is a strategically viable investment. The project not only supports import substitution and value addition but also contributes to environmental sustainability and renewable energy goals, positioning ethanol production as a cornerstone of Nigeria’s agro-industrial development.

Table of Contents

Table of Contents: EXECUTIVE SUMMARY 1.0    Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Critical Success Factor of the Business 1.4 Current Status of Business 1.5 Description of the Business Industry 1.6 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cashflow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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