Nigeria is increasingly being seen as a good investment option for European companies.
Case in point is a recent investment by an Italian green energy company in a Nigerian oil palm plantation – the oil produced will be used to fuel power projects in Europe and for sale on the Nigerian domestic market.
Fri-El Green Power is one of the main European producers of green electricity, predominantly from wind sources and is involved in 19 wind farms in Italy. The company is however, exploring other areas of renewable energy such as biomass, biogas and marine and river currents.
The oil produced in Nigeria will be used to fuel biomass power plants in Europe. While palm oil has
for many years been used in many household items such as bread, crisps and soap, it is increasingly being used as a biofuel.
Said Thomas Gostner, company president: "Fri-El Green Power is committed to further diversify its mix of business lines. Since 2005 we have been consolidating our activities in power generation from biomass. Power generation from biomass is neutral when it comes to CO2 emissions, as there is a zero balance between the carbon dioxide produced following biomass combustion and the carbon dioxide that plants absorb from the atmosphere during their life cycle."
"We plan to invest in the palm oil plantation, the processing of the fruit and convert it into electricity in Europe. However, each oil mill can additionally produce some electricity for local needs using waste product. The terms and solution’s still have to be discussed with local authorities," says Gostner.