GUIDELINES
FOR THE IMPORTATION, STORAGE, TRANSPORTATION,
DISTRIBUTION OF BIOFUEL & BIOFUEL
BLENDED GASOLINE AND ESTABLISHMENT OF BIOFUEL PLANT
IN NIGERIA
DEPARTMENT OF PETROLEUM RESOURCES FEB 2009
1.0 INTRODUCTION These guidelines are issued pursuant to Regulation (2) and (3) of the Petroleum Refining Regulations, 1974 and shall apply to the importation, storage, transportation, blending, distribution of Biofuel and establishment of Biofuel plant in Nigeria
2.0 APPLICATION Applications for approval for importation, storage, transportation, distribution and establishment of Bio‐ethanol and Bio‐diesel or any other biomass fuel process plant shall be made in the manner described in this procedure guides.
3.0 BACKGROUND 3.1 Ethanol blended gasoline can be used in the internal combustion engines of
modern automobiles. Ethanol is a clean burning alcoholic produced from biomass and is widely recognized as an environmentally friendly fuel additive. It contains a higher percentage of oxygen, enabling more complete gasoline combustion. This is good because, even though complete gasoline combustion produces carbon dioxide, it reduces emission of other more harmful pollutants such as carbon monoxide, and those causing ground‐level ozone leading to respiratory problems and severe environmental impacts
3.2 Ethanol is made from renewable plant sources such as corn, wheat, sugarcane, cassava, waste agricultural products; woods and wood waste and produces lower quantities of unburnt carbon emission than fossil fuels after emission, ethanol, when blended with gasoline or Premium Motor Spirit (PMS) is known as an oxygenate; an octane enhancer. Therefore, ethanol increases the research octane number (RON) rating of gasoline, improves tale‐pipe emission, increases fuel efficiency and helps reduce engine Knock. Ethanol also partially replaces benzene and other harmful chemicals that are normally added to gasoline to make engine run more efficiently.
3.3 Ethanol can be blended with gasoline as an oxygenate in any proportion. Different countries such as USA, Brazil, etc
3.4 Biodiesel is a diesel replacement fuel that is manufactured from vegetable oils, recycled cooking greases or oils, or animal fats. The biodiesel manufacturing process converts oils and fats into chemicals called long chain mono alkyl esters, or biodiesel. Raw or refined vegetable oil, or recycled greases that have not been processed into biodiesel, are not biodiesel and should be avoided.
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3.5 Biodiesel can be used in several different ways. You can use 1% to 2% biodiesel as a lubricity additive, which could be especially important for ultra low sulfur diesel fuels (ULSD, less than 15 ppm sulfur), which may have poor lubricating properties. You can blend 20% biodiesel with 80% diesel fuel (B20) for use in most applications that use diesel fuel. You can even use it in its pure form (B100) if you take proper precautions.
3.6 B20 is the minimum blend level allowed for by the Government base on the official Gazette on Nigerian Bio‐fuel policy and incentives 20th June 2007. B20 can be used in equipment designed to use diesel fuel. Equipment that can use B20 includes compression‐ignition (CI) engines, fuel oil and heating oil boilers, and turbines.
3.7 Higher blend levels, such as B50 or B100, require special handling and fuel management and may require equipment modifications such as the use of heaters or changing seals and gaskets that come in contact with the fuel to those compatible with high blends of biodiesel. High blend levels are not recommended for the first‐time biodiesel users.
3.8 The specification for biodiesel (B100) is ASTM D6751‐03. This specification is intended to insure the quality of biodiesel to be used as a blend stock at 20% and lower blend levels.
4.0 OBJECTIVES Essentially, the objectives of these interim guidelines are to: i. Establish requirements and minimum standards for the importation and
handling of D‐ethanol, biofuel and biofuel‐blended gasoline in Nigeria, taking into cognizance existing local conditions, cultural practices, infrastructure and planned monitoring programme.
ii. Standardize the monitoring procedure, as well as, the analytical method of ensure proper analysis and interpretation of data for effective quality checks and control.
iii. Sensitize consumers particularly motorist, on the technical characteristics of biofuel and biofuel‐blended gasoline and compatibility of auto vehicles currently in use in Nigeria.
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5.0 GENERAL 5.1 Target Audience: These guidelines are issued for the benefit of the following
categories of people: i. Petroleum Products Importers/Traders ii. Oil Marketing Companies iii. Operators of Bulk Storage Facilities and Retail Outlets iv. Oil Transportation Companies v Automobiles Manufacturers vi. Vehicle Owners vii. Refineries/Blending Companies viii. Aviation Industry Operators ix. Regulatory Agencies x. General Public xi. Marine industry operators xii. Biofuel producers 6.0 REQUIREMENTS FOR IMPORTATION OF BIOFUEL BLENDED PETROL 6.1 Special Requirements i. The biofuel component of the imported fuel blends must be of biological or
renewable source, not petroleum/ fossil oil origin. ii. Fuel blend must contain corrosion inhibitors comparable to regular unleaded
gasoline. iii. The biofuel blend must meet the required specification as contained in table 1. 6.2 CONDITIONS FOR IMPORTATION I. Any Marketer, manufacturer, hauler, blender, agent, jobber, consignment agent
or distributor who imports, store, transport and distributes motor vehicle fuel products which contain at least zero point one per cent (0.1%) and not exceeding five per cent (5%) alcohol must state/declare on the certificate of quality (C of Q) or any invoice, bill of lading, shipping paper, or other documents used in normal customary business practices, the percentage of alcohol, and co‐solvent, the type of alcohol and the antiknock index of the products imported, stored, transported and distributed.
II. All imported biofuel blended gasoline must meet the acceptable international
standards and those specifications approved by the Department of Petroleum Resources as required in the specification table below.
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III. It is mandatory for the importer to obtain an Import Permit from the Department of Petroleum Resources (DPR) office prior to shipment of the product.
IV. At least seven (7) days prior to the arrival of the imported Cargo at a Nigerian
Port, the importer shall ensure that the Certificate of Quality (C of Q) of the consignment issued by the exporting refinery, blender, consignment agent or a competent authority in the country of origin is submitted to the Department of Petroleum Resources (DPR) office at the receiving jetty.
V. The under listed items shall be submitted to the Department of Petroleum
Resources by the importer of the consignment within seven (7) days prior to arrival of vessel:
(a) Relevant Invoices (b) Bill of Lading (c) Photocopy of Approval Form “M” (d) Clearance or Import duty Payment of Nigeria Customs & Excise (e) A tanker manifest which shall provide the following:
Name of the tanker and its country of origin Owner of the tanker Detail cargo information such as direct shipment, ship to ship, name of mother vessel, certificate of quantity and certificate of quality, last port of call, etc.
Destination of the tanker after discharge.
VI. Application for Import Permit which must be made on company’s letter headed paper and on DPR’s prescribed form shall be forwarded to the Department of Petroleum Resources (DPR), 7 Kofo Abayomi Street, Victoria Island, Lagos.
6.2.1 Requirement for the Importation and blending of De-natured
ethanol (D−C2H5OH) A. STAGE I : Approval of Intent to Import (AII) Application for approval to import ethanol shall be submitted in writing to the Director of Petroleum Resources at least eight (8) weeks before the expected arrival of the consignment in Nigeria with the following documents:
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a. Product data sheet and quality specifications of the D–ethanol to be imported from the manufacturer.
b. Permit to operate as an oil industry Service issued by the DPR to the importer.
c. Country and place of the product origin and expected Port of Entry / Discharge in Nigeria.
d. Samples of the consignment with appropriate production batch number and the source tank identification for laboratory confirmatory analysis.
e. Safety and Environmental Impact programme for the handling and utilization of Ethanol.
f. Calibration certificates of ship and receiving facilities (jetties storage, depot storage and trucks). All local calibration exercises shall be witnessed and certified by the DPR.
g. Importer should have a well equipped laboratory for sample analysis. h. None refundable application fee and service charge in bank draft payable to “Federal Government of Nigeria DPR Fees Accounts” and
“Department of Petroleum Resources” respectively. i Modification of existing facilities for handling ethanol/ D‐ethanol shall be
adequately monitored and approved by DPR. j. Facilities certification shall be carried out by the DPR to determine heir suitability for handling of ethanol. k. A trade name reflecting the percentage of Ethanol in gasoline should be specified. l. The quality of ethanol added to gasoline is important. The industry standard
specification for D natured Fuel ethanol for blending with gasoline is ASTM D 4806 as shown is table 1.
m. All gasoline used in blending Ethanol shall be unleaded.
Approval of Intent to Import granted: Not transferable Validity of Approval: Three (3) months Statutory Approval Fee: N50,000 DPR Service Charge: N20,000:00 Approval of Intent to Import (AII) D‐Ethanol shall be issued upon satisfactory submission and review of the above. Each AII issued shall have a transaction code which shall be quoted for the entire expiration / conclusion of an importation.
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B. STAGE II: Permit to Import D-Ethanol (PIE) It shall be necessary for the importer to obtain an Import Permit after Approval of Intent to Import D‐Ethanol into Nigeria prior to shipment of the product. Attestation of D‐ethanol quality and quantity (AQQ) per compartment by the ship captain, to be issued at the point of loading, should get to the Director, DPR before the vessel enters the Nigerian waters. Design of AQQ format apart from the physical parameters, handling and hazards information shall also contain ethanol denaturing product and its percent (%) volume in the consignment. A satisfactorily submitted AQQ along with the AII shall be processed within 24hours by the DPR for issuance of Permit to Import Ethanol (PIE). No vessel carrying D‐Ethanol shall enter the Nigerian waters without a Permit to Import D‐Ethanol (PIE) issued by the Director, Department of Petroleum Resources. C. Approval to discharge (ATD) Upon the arrival of vessel in Nigeria, the importer shall pay a non‐refundable service charge of one hundred thousand naira Only (N 100,000:00) to the DPR.
1. D‐ethanol samples shall be taken from the vessel’s tanks in the presence of a DPR staff for quality re‐certification.
2. Quality/Quantity re‐certification shall be conducted in the presence of a DPR
staff by a registered oil industry service company and minimum specifications shall be as per table 1.
3. Safety procedures and provisions necessary for discharge of Ethanol shall be
confirmed as adequate and active. 4. Receiving facilities shall also be confirmed in line with approval intent to import
(AII).
5. Discharge valve alignment to nominated tank, truck, pipeline shall be confirmed
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Approval to Discharge (ATD) shall be issued to the importer upon a satisfactory report on the above issues. If samples are confirmed to be below the AQQ declarations, the DPR shall refuse the discharge of such product (s). DPR Service Charge: N100,000:00 6.3 REQUIREMENTS FOR CARGO CLEARANCE AT DISCHARGE JETTY
FOR BIOFUELS Vessel Discharge Schedule:‐ This information should be submitted to the DPR office at the jetty of the receiving company, before the vessel berths to discharge the cargo. It should contain the following:‐ i. Name of vessel ii. Name of consignee and consignor of the biofuel and biofuel‐blended gasoline
cargo iii. Estimated time of berthing and berth to be used iv. Estimated time of commencement of discharge v. Tonnage of product to be discharged vi. Tanks to be used to receive the product vii. Pump rate and estimated duration of discharge NOTE: Each invoice, loading tickets, bill of lading, delivery tickets and any other document that accompanied a shipment of gasoline containing ethanol/biofuel shall contain a legible and conspicuous statement that the gasoline being shipped contains ethanol or any biofuel, the percentage concentration of biofuel and any other additives therein. 6.4 MEASUREMENT OF PRODUCT RECEIPT AT THE JETTY A vessel laden with imported biofuel blended product shall only be allowed to discharge where: i. There is an evidence of import permit issued by DPR and used in importing the
product. ii. The importing company complies with the one week mandatory submission of
the “Certificate of Quality”, bill of lading and other relevant documents in respect of the imported product.
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iii. The compartments of the vessel containing the imported product have been jointly fiscalized by an official of the DPR and receiving company officials, and “Certificate of Quantity” issued.
iv. A re‐certification analysis of the product composite sample is conducted jointly by DPR officials and third party surveyors. A vessel shall therefore, not discharge until the laboratory recertification of a product is conducted and accepted.
v. Documents received from the vessel are not in conflict with those submitted by the importer of the product.
CAUTION: In the event that the re‐certification of the products fails to conform with the prescribed specification, the DPR shall refuse the discharge of such product. 6.5 LABORATORY CERTIFICATION
i. For every cargo of imported ethanol/biofuel or biofuel‐blended gasoline and other petroleum products, each vessel tank compartment shall be sampled for quality recertification by staff of DPR and company officials and shall conform with specifications in table 1 in the case of imported fuel grade ethanol.
ii. Product sampling and test protocol shall be in accordance with the requirement of the NIS 116 Revised and ASTM D5798 for biofuel‐blended gasoline with ethanol content of no more than 5% by volume (E5).
iii. The quality of the biofuel‐blended gasoline (E5) shall meet the following prescribed limits and standards as stipulated in Table 2:
TABLE 1: Standard Specification for D-Ethanol (denatured fuel grade ethanol) S/NO PROPERTY SPEC. ASTM TEST METHOD 1 Ethanol vol%min 92.1 D5501 2 Methanol, vol%max 0.5 3 Solvent‐washed gum,mg/100ml max 5.0 D381 4 Water content, volume %, min 1.0 E203 5 Denaturant content, vol. %, min 1.96 6 vol % max 4.96 7 Inorganic Chloride content,
mass ppm (mg/L) max 40 (32) D512
8 Copper content, mg/kg, max 0.1 D1688 9 Acidity (as acetic acid CH3COOH),
mass percent (mg/L), max .007 (560) D1613
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10 pHe 6.5‐9.0 D6423 11 Appearance‐visibility free of suspended
or precipitated contaminants (clear &bright)
6.5.1 Acceptability of Ethanol
1. Purity: ASTM D 5501 should be the standard method for determination of ethanol purity.
• To determine the impurity content in the D‐ethanol.
2. pHe: To determine the acid strength and reports a pHe value, ASTM D 6423 is the recommended test method for D‐ethanol fuel.
• Work by auto manufacturers has indicated that low pHe D‐ethanol can contribute to accelerated corrosion of certain fuel system parts.
3. Sulfur content: A low sulfur limit is expected in D‐ethanol (e.g. as low as 10ppm).
Recommended test is ASTM 5453.
4. Ethanol content: Recommended test for determining ethanol content of gasoline/ethanol blends shall be ASTM D 4815.
TABLE 2: Requirements for biofuel-blended gasoline (E5) NIS 116 Revised
S/NO Characteristic Limits Test Methods
1. Appearance Clear & Bright Visual
2. Color To be reported Visual
3. Biofuel content %vol. max 5 ASTM D 5501 4. Specific Gravity @ 15/150C 0.720‐0.780 ASTM D1298
D4052 D4815 5. Distillation
Distillation Temp 0C @ % Evaporated, @ 101.3kpa Pressure) 10% (v/v) 50%(v/v) 90%(v/v) End Point
65 max 77 – 121 190 max 225 max
ASTMD86
6. Distillation Residue, % vol. max 2 ASTM D86 7. Reid Vapor Pressure, kPa (psi) 69 (10) ASTM D4953
ASTM D5190
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ASTM D5191 8. Oxidation Stability, 0C (min) 360 ASTM D525 9. Existent Gum ( Solvent washed)
mg/100ml (max) 4 ASTM D 381
10. Copper strip corrosion, ( 3h @ 50 0C) (max)
Class 1b ASTM D130
11. Lead content, MAX ppm 0.00 ASTM D3341 ASTM D5059
12. Sculpture content, % mass, max 0.10 ASTM D 2622 ASTM D1266 ASTM D5453
13. Benzene content, % volume, max 2.0 ASTM D5443 ASTM D6277
14. RON, min MON
91 82
ASTM D2699 ASTM D2700
15. Water content % max 0.1 ASTM D5510 16. Acidity (as Acetic Acid) mg/l max 0.007 ASTM D1613 17.. pHe 6.5 ‐9.0 ASTM D6423 6.5.2 Special Requirements for Bio-diesel iv. The bio‐diesel products must be of biological or renewable source, not
petroleum/ fossil oil origin. v. The 100% Bio‐diesel (B100) has physical and chemical properties similar to
petroleum based diesel but must meet the required specification as contained in table 3.
vi. The B100 is specifically meant for blend with petrol‐diesel to produce the lower blends of 20% bio‐diesel and 80% petroleum based diesel (B20) as approved by Federal Government vide official gazette: Nig. Bio‐fuel Policy and Incentives no: 72 Vo.l 94, June 2007.
vii. Product sampling and test protocol shall be in accordance with the requirement of the ASTM D6751
viii. The quality of the B100 shall meet the following prescribed limits and standards as stipulated in Table 3 and that of B20 as described on Table 4:
Table 3. Requirements for Bio-diesel (B100) Blend Stock - ASTM D6751-03 Property ASTM
Method Limits Units
Flash Point D93 130.0 min. °C
Water and Sediment D2709 0.050 max. % vol. Kinematics Viscosity, 40°C D445 1.9 ‐ 6.0 mm
2/s
Sulfated Ash D874 0.020 max. % mass
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Sulfur* D5453 0.0015 max. (S15)
0.05 max. (S500) % mass
Copper Strip Corrosion D130 No. 3 max. Cetane Number D613 47 min. Cloud Point D2500 Report to Customer °C
Carbon Residue** D4530 0.050 max. % mass
Acid Number D664 0.80 max. mg KOH/g Free Glycerin D6584 0.020 max. % mass Total Glycerin D6584 0.240 max. % mass Phosphorus Content D4951 0.001 max. % max.
Distillation Temperature, 90% Recovered (T90)*** D1160 360 max. °C
TABLE 4. Requirements for B20 bio-diesel blend.
Property Requirement Test Method Volume percent biodiesel in B20
20 ± 1 volume percent Appendix A
Appearance Clear, bright, and visually free from undissolved water, sediment, and suspended matter
ASTM D 4176 Procedure 1
Kinematics Viscosity,
mm2/s, @
40°C
1.3 – 4.1 ASTM D 445
Flash Point, °C April – September October – March
52°C min 38°C min
ASTM D 93
Low Temperature Properties
1/ 1/
Total Acid Number, mg KOH/g Sample
0.2 max ASTM D 664
Water Content, volume %
0.05 max ASTM D 2709
Sulfur Content, mass % 0.05 max ASTM D 5453, D 2622
Cetane Number 41 min ASTM D 613 Ash Content, mass % 0.01 max ASTM D 482 Distillation, °C T90
338 max ASTM D 86
Copper Strip Corrosion, 3 hours
3 max ASTM D 130
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@ 50°C
Micro Carbon Residue, mass %
0.05 max ASTM D 4530
7.0 REQUIREMENTS FOR HANDLING & STORAGE OF BIOFUEL–BLENDED GASOLINE 7.1 General Ethanol, even at 5% blend with gasoline, has been recognized to readily absorb water. It may absorb significant amounts of water from the atmosphere in humid conditions. If too much water is absorbed, phase separation of the blended fuel can occur, which results in the water and ethanol combing and falling to the bottom of the fuel storage tank. The combined water and ethanol can be quite corrosive to metal fuel tanks, electric fuel pumps, rubber seals and other fuel system components, especially if the water (absorbed) and alcohol are allowed to remain at the bottom of the fuel tank for some length of time. 7.2 REQUIREMENTS FOR HANDLING AND STORAGE AT THE DEPOT 7.2.1. Facilities Inspection And Certification All facilities for the storage of imported biofuel shall be inspected by the DPR prior to licensing. The facilities must meet the specification for the storage of biofuel as stipulated below:
(i) All permanently placed bulk storage tanks shall be installed within a bund wall capable of containing the contents of the largest of the storage tanks plus ten per cent of the capacity of the remaining tanks.
(ii) Where there is only one tank, the bund wall shall be capable of containing the content of the tank.
(iii) Be fitted with access doors sufficiently large to enable easy access and vents capable of relieving any excess pressure or vacuum.
(iv) Have access to the roofs by means of a ladder or staircase of a type approved by the Director, Petroleum Resources and all floating roof tanks shall have adequate wind girders.
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(v) Have provision for containing any leakage to prevent oil contaminating the water when located above water.
(vi) Be provided with efficient spark arrestor and lightening protector.
(vii) All facilities handling biofuel must be dedicated to the product only. biofuel must not be commingled with other fuels.
(viii) All storage tanks shall be fixed roof tank with a floating internal cover.
(ix) Frequent check of seal and maintenance shall be carried out.
(x) Suction point shall be at the top or 3/4 length level of the tanks.
(xi) Daily checks for water using approved water finding paste and subsequent drainage to a dedicated sump and shall conform to specifications as prescribed in Environmental Guideline and Standards for Petroleum Industry in Nigeria (EGASPIN).
(xii) It is mandatory to provide a well equipped and functional laboratory for sample analysis, which shall include Gas chromatography, Research Octane Number (RON) equipment and sulfur analyzer amongst others.
(xiii) The product quality specification shall be recertified daily in the presence of DPR representative before discharge or any loading operation commences.
(xiv) Should the product quality falls short of specification as in table 1, the product shall be evacuated and tanks properly cleaned.
(xv) Existing diesel or other hydrocarbon tanks may be converted for use but it must be properly cleaned, with attached cleaning details and the tanks recalibrated.
(xvi) Approval of such conversion as contained in item (xv) shall be obtained from DPR before implementation.
(xvii) An on‐line filter shall be provided upstream of the metering system.
(xviii) The receiving facilities shall be grounded of static electricity and conductivity.
(xix) The receiving facilities shall be adequately protected from corrosion by sacrificial anode or impressed current and frequent checks shall be carried out on the anode.
(xx) Monthly returns of all intake and offtake shall be forwarded to DPR on or before 2 week of the proceeding month.
(xxi) Safety warning signs must be conspicuously displayed at the facility;
(xxii) Every storage, loading/ dispensing devises which contain 0‐5% by volume of biofuel shall be labeled as follow
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“CONTAINS BIOFUEL”
7.3 TRANSPORTATION: REQUIREMENTS FOR TRUCKING
All trucks used for handling biofuel blended fuels must be dedicated to the product only. biofuel must not be commingled with other fuels. The equipment suitable for transportation of gasoline may be acceptable for handling biofuel but:
i. Truck compartment(s) shall be cleaned and dried properly before loading, tamper proof and water tight must be secured.
ii. The tank compartments shall be designed/ constructed of forged or stainless steel
iii. Contamination from water, leaded fuels or diesel shall be avoided.
iv. There shall be no product transfer from truck to truck unless otherwise approved by DPR. If for any reason there is need for such transfer, the product quality shall be recertified by DPR representative.
v. Trucks must be grounded during loading and unloading operations.
vi. Hoses must be purged; lines and pump must be cleaned before first delivery of the biofuel blend.
vii. All entry points to the trailer shall be sealed with tamper proof, identifiable seals, and all seals accounted for on the ticket.
viii. Trans‐shipment of certified product to another location shall be re‐certified by DPR representative at the new location before discharge is permitted.
7.4 TRANSPORTATION: REQUIREMENTS FOR PIPELINE
i. The existing pipeline facility for straight run gasoline shall be adequate for the biofuel blend.
ii. In the event that the pipeline has been previously used for other hydrocarbon, the line shall be properly flushed before introducing biofuel blend.
iii. The pipeline shall be adequately protected from corrosion by sacrificial anode or impressed current and frequent checks shall be carried out on the anode.
iv. Periodic pigging of the pipeline shall be carried out every two years.
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7.5 TRANSPORTATION: REQUIREMENT FOR COASTAL VESSELS i. In the event the vessel nominated for the lifting of the biofuel blend has never
been used for such product previously, tanks cleaning and re‐calibration exercises shall be witnessed and certified by DPR representative.
ii. Every other condition applicable to the BIOFUEL shipment as enumerated above shall imply.
8.0 REQUIREMENTS FOR HANDLING AND DISPENSING AT RETAIL
OUTLETS
8.1 Storage Tanks (i) All facilities handling biofuel must be dedicated to the product only. BIOFUEL
must not be commingled with other fuels.
(ii) New underground tanks shall be double‐walled, low‐carbon/ mild steel tanks with corrosion protection or reinforced plastic.
(iii) All existing single wall tanks that are more than 10 years shall be replaced.
(iv) Daily checks for water using approved water finding paste and subsequent drainage to a dedicated sump and shall conform to specifications as prescribed in the EGASPIN.
(v) Tank man‐hole cover must be water tight and the seal/gasket shall be subjected to frequent checks.
(vi) Minimum tanks thickness shall be 7mm as prescribed in BS ‐2654 or API‐ 650.
(vii) Leak detection test shall be carried out every two years.
(viii) Verification exercise shall be carried out monthly by DPR. 8.2 Dispensing Equipment (i) All facilities handling biofuel must be dedicated to the product only. BIOFUEL
must not be commingled with other fuels.
(ii) All dispensing equipment shall be labeled “CONTAIN BIOFUEL” and clearly independent of PMS equipment.
(iii) Monthly returns of all intake and offtake shall be forwarded to DPR on or before 2 week of the proceeding month.
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(iv) The price for the biofuel shall be conspicuously displayed on the “products price bill board”.
(i) Underground piping shall be galvanized / steel plated and corrosion free. Conventional zinc‐plated piping shall not be used.
(ii) The piping arrangement for dispensing biofuel from the storage tank to the dispensing pump shall be dedicated for biofuelL only.
(iii) A micron filter is recommended for dispensing equipment (upstream the pump) to trap the debris from the storage tank.
9.0 QUALITY ASSURANCE / CONTROL The quality of the biofuel product as indicated in Table 1 needs to be maintained from the point of shipment to the point of retailing at various retail outlets. Therefore quality certification/ re‐certification shall be endorsed by recognized laboratories and DPR representative(s) at the following points:
a. At export loading point (separate tank compartment); b. At transshipment point(s) if any; c. At the jetty before discharge d. Daily at the depot before truck loading e. Before truck discharge at retail outlets f. Daily at retail outlets g. The fuel BIOFUEL shall expire after 6 weeks of storage/ handling.
10.0 PRE- CAUTIONS The advantages of biofuel as oxygenate, an octane enhancer, which increases the research octane number (RON) rating of gasoline, improves tale‐pipe emission, increases fuel efficiency and helps reduce engine Knock may not be over emphasized. In spite of the advantages enumerated, the following precautions based on the properties of the biofuel need to be observed:
a. Biofuel readily absorbs water hence water ingress must be avoided at all points. b. It is a solvent, which can readily dissolve many materials including fiber glass;
therefore, frequent checks must be carried out on handling facilities, storage tanks, vehicle fuel systems and the engines.
c. Biofuel is a corrosive substance hence BIOFUEL product must contain corrosion inhibitors
d. It has high conductivity hence static electricity must be dissipated through proper grounding.
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e. The retention time of the BIOFUEL product must not exceed six weeks in the storage tanks to avoid phase separation, which will lead to reduction in RON.
11.0 SIGNAGE: a. All facilities handling biofuelL shall be displayed conspicuously labels to read as
“BIOFUEL BLEND”. b. This signage below shall be displayed at appropriate locations in and around the
storage facilities area and dispensing pumps.
PPooiissoonnoouuss
FFllaammmmaabbllee
GREEN
f
GUIDELINES FOR THE ESTABLISHMENT OF
BIOFUEL PLANT IN NIGERIA. These guidelines are issued pursuant to Petroleum Refining Regulations 1974 and shall be applied to the design, construction, installation, commissioning and operation of fuel grade ethanol plant, biofuel plant and any other petrochemical plants in Nigeria. There shall be three stages of approval: 1. LICENCE TO ESTABLISH AN BIOFUEL PLANT
(Concept Approval, Site Approval, Preliminary EIA Approval, Fees) 2. APPROVAL TO CONSTRUCT
(Detailed Design Approval, Approval of Major / Metering Equipment Test Procedures, Detailed EIA Approval)
3. LICENCE TO OPERATE AN BIOFUEL PLANT
(Successful Pre‐commissioning, Fees) A. LICENCE TO ESTABLISH BIOFUEL PLANT This is the first documentation stage and the expected deliverables from the company is: 1. PRELIMINARY MARKETING PLAN
Indicating targeted markets whether domestic, export, or both . 2. BLOCK FLOW DIAGRAM AND PROCESS DEFINITION OF THE PROJECT
To better understand the integration of the intended process units, configurations and capacities .
3. PLOT PLAN OF THE FACILITIES ON PROPOSED SITE This shall be accompanied by the property C of O with the beacon coordinates. DPR will inspect the site.
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4. BIOFUEL PRODUCT FISCALIZATION SYSTEM
To understand proposed metering systems and meter proving procedures. 5. FINANCIAL PLAN
Indicating the project cost estimate and sourcing of funds 6. PRELIMINARY FEEDSTOCK SLATE
To determine the specifications and sourcing of the proposed feed stock 7. PRELIMINARY PRODUCT SLATE
For product specifications and proposed volumes or tonnage 8. PRELIMINARY PROJECT IMPLEMENTATION SCHEDULE
9. PROPOSED SAFETY PROVISIONS
Hazard Identification (HAZID) and preliminary environmental impact statements. 10. TECHNICAL PRESENTATION on the project shall be made to DPR to review
the above and the value of the project to the Nation.
FEES LICENCE FEE: $50,000 DPR Service Charge: N150,000:00 B. APPROVAL TO CONSTRUCT (ATC)
THE EXPECTED DELIVERABLES ARE: 1. Submission of final process configuration including detailed P&ID of the process units, utilities and offsite.
• to ensure that proposed designs adhered to both international and local codes and standards, as the case may be.
2. Final process technology selection and licensors. • to ensure that technology commensurate to industrial best practices are proposed
3. Proposed Feedstock Supply and Product evacuation scheme • to ensure adequate planning for feedstock and product transportation in & out of
the plant
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4. List of major equipment and equipment test procedures. • to facilitate the statutory participation of DPR in FAT exercises.
5. Detailed Environmental Impact Assessment (EIA).
6. Final project implementation schedule.
To facilitate statutory DPR participation schedule and milestone points for monitoring the progress of work
7. Detailed feedstock supply and product meter proving procedures and evacuation schemes.
8. Electrical & Control system philosophy.
To ensure adequate plans are made for power generation, safety purposes in terms of proper earthen protection, load flow analysis and short circuit study. A properly designed process control and instrumentations system will guarantee a good automated controlled of all installed critical equipment.
ROLE OF DPR :
1. Continuous Participation in engineering design phases and milestone reviews at the activities location
2. Participation in factory acceptance tests and pre‐shipment inspections 3. All project activities necessary for milestone approvals.
Service Charge: N50,000 per Milestone approval B1. CONSTRUCTION
This comprises of fabrication, installation and erection stages. Fabrication a) All fabrication and welding procedures shall generally follow the relevant
specifications in the under‐listed documents: i) American Welding Society – Structural Welding Code A.W.S.D.1.1
88 and the subsequent revisions. ii) API Standards 1104 – 17th and subsequent editions for welding of
pipelines and related facilities.
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b) The refiner or plant operator shall provide the Honorable Minister with the following information before the commencement of fabrication: i) The name of the contractor and the fabrication program. ii) The yard in which all pressure vessels, columns and ancillary
equipment would be fabricated. iii) The arrangements made for the statutory monitoring of the various
stages of the fabrication by officials of the Department of Petroleum Resources.
iv) The name and job references of the company appointed as quality control inspectors for the job and Curriculum Vitae (CV) of its principal technical staff.
c) At the completion of fabrication, the quality control inspecting company
shall compile a report confirming that all materials used were strictly in accordance with approved specifications as verified through steel mill certificates with the approved Standards and Codes of Practice. The quality control inspection shall be by Non‐Destructive Examination (NDE). Consequently, inspection and certification of all welded parts of vessels, columns and piping shall be by any of the following techniques as applicable viz.: i) Liquid Penetrant Technique ii) Magnetic Particle Technique iii) Radiographic Technique iv) Ultrasonic Technique A comprehensive report of the inspection so carried out shall be forwarded to the Ministry through the refiner or plant operator.
B2. ENVIRONMENTAL FACTORS
These shall include all available meteorological parameters, such as the prevailing wind direction, maximum wind velocity, maximum and minimum atmospheric temperature, relative humidity, rainfall, local flood or tide conditions. a) All environmental parameters shall be obtained from independent site
survey with all the data gathered being properly documented. b) Soil test and geo‐technical investigations shall be carried out for
foundation or load‐carrying characteristics of the site. c) Contour maps (site plan), showing ground elevations shall be prepared d) Effect of borehole water withdrawal on ground water table shall be
investigated and result submitted.
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B3. ENVIRONMENTAL PROTECTION
a) There shall be a detailed Environmental Impact Assessment (EIA) study of the area as provided for in the National Environmental Guidelines and Standards for the Petroleum Industries, before commencement of construction.
b) The general layout of the location and provisions for all waste disposal in the Biofuel plant shall comply with the applicable specifications in the National Environmental Guidelines and Standards for the Petroleum Industry in Nigeria, issued by the Department of Petroleum Resources
c) The Biofuel/Biofuel plant shall be equipped with adequate provisions for containing and handling spills and accidental discharge of potential contaminants.
d) All the systems and components of the refinery shall be designed to withstand any anticipated extremes of environmental phenomena on location.
e) The provision of effluent and recipient water quality monitoring shall be in accordance with the Environmental Guidelines and Standards issued by the Department of Petroleum Resources for the Petroleum Industry.
B4 SAFETY FACTORS
a) All offices, warehouses and process buildings shall be constructed with utmost consideration for the safety of the workers and equipment. Laboratory building construction shall take into consideration the safety of personnel and provision of adequate ventilation as well as that for proper disposal of waste.
b) Material Safety Sheet (MSS) shall be prepared in respect of all potentially hazardous chemicals and materials.
c) Emergency alarm system and evacuation programs shall conform to Standards Industry Practice to the satisfaction of the Honorable Minister.
d) The noise level at any point in the refinery emanating from engines and fluid velocities in the piping shall not exceed 90dBA. Where this level is to be exceeded, wearing of ear protection device shall become mandatory.
e) The flare stack shall be located at a distance of at least 60m (200ft) from the unit or storage tanks and the flare shall conform to the approved limit of atmospheric emission.
f) The automatic control system for emergency shutdown of all strategic or critical equipment in the plant such as columns, fired heaters, separators,
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surge vessels, pipeline and manifolds compressors and pump discharge headers shall be based on fail‐safe logic designs.
g) Fire sensors and gas detection and alarm system shall be installed at strategic points of the Biofuel plant and its offsite facilities. In addition, adequate fire mitigation systems shall be provided at all identified fire risk areas of the refinery.
B5. HAZARD AND OPERABILITY REVIEW (HAZOP)
Biofuel Plants designs shall be subjected to SAFE Chart and HAZOP reviews at the following stages of the design and development. 1) At the completion of the plot plans and engineering models. 2) At the completion of the detailed engineering design and specifications.
Accredited representatives of the Ministry shall be present at these SAFE Chart and HAZOP reviews. It shall be mandatory for each of these stages of engineering design successfully scale through the appropriate SAFE Chart and HAZOP reviews. For this purpose, a minimum of four (4) weeks notice shall be given to the Ministry for arrangements to be made for the participation of its representatives at those review meetings with all relevant P&ID’s made available for appropriate review ahead of time.
C. APPROVAL FOR FACILITY MODIFICATION
Any proposed modification or enlargement of existing facilities for importation, dispensing, storage or establishment of Biofuel /Biofuel plant shall be communicated to the DPR and must be approved in accordance with the provisions of Regulation 3 of the Petroleum Refining Regulations, 1974 before being carried out.
DPR Service Charge: N50,000:00 D. LICENCE TO OPERATE BIOFUEL PLANT
At mechanical completion, DPR & downstream experts will carry out inspection of the plant to ascertain conformance with approved design.
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Upon receipt of a satisfactory inspection report, the Honorable Minister will grant the approval to commission and operate the plant. The following shall be the pre‐requisites to quality: 1) A qualified Biofuel plant manager is appointed and his appointment is
notified in writing to the Minister of Petroleum Resources. 2) Complete equipment reports on all critical equipment such as pressure
vessels, fired heaters, boilers, rotating equipment and storage tanks. 3) Completion of all fiscalization equipment and systems to approved
standards. 4) Availability of adequate spare parts, chemicals, catalysts, lubes, greases
and other operating consumable materials in the warehouse appropriately codified and organized.
5) Availability of commissioning spare parts, apart from operating spare parts, all properly coded and arranged in the warehouse.
6) Approved operating manuals, maintenance manuals, mechanical catalogues, would have all been supplied, subject to appropriate modifications after commissioning.
7) Approved operating and maintenance organization and availability of trained manpower in sufficient strength.
8) Completion of all fiscalization equipment and system to approved standards.
9) Functional and effective fire prevention and fighting organization already in existence.
10) Functional and effective Safety enforcement Organization and Policies already in existence.
11) All approved engineering drawings in agreed numbers of copies have been supplied by the contractor, subject to modifications to reflect changes during construction.
12) The quality control laboratory is completed and functional. 13) A well‐staffed and equipped First Aid Clinic is in place. 14) All other provisions, which are reasonably required to facilitate effective
commissioning of the plant, have been made. 15) An effective and international applicable materials codification and
management system is in place. 16) Confirmation that all‐environmental protection standards and during
design have been met. 17) Payment of prescribed application and license fees. FEES LICENSE : $100,000
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Annual Renewals: $100,000 Service Charge: N150,000
DPR ROLE INVOLVES:
1. Construction supervision 2. Certification of mechanical installation 3. Review of operating manuals 4. Safety and environmental provisions certification.
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