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CNG: Expert urges establishment of Green Energy Bank

 As the race for the use of Compressed Natural Gas (CNG) as alternative to premium motor spirit (PMS) gathers momentum, a renewable energy firm, Prostar Global Energy Group Ltd, has urged President Bola Tinubu to explore the establishment of a Green Energy Bank (GEB) to address the huge cost that would be associated with engine conversion.

Recall that the Chief Executive Officer, Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, Engr. Michael Oluwagbemi, had pegged between N300,000 and N600,000 as conversion cost of vehicles to run on CNG.

Speaking in an interview, the CEO, Prostar Global Energy Group Ltd, Chief Hyman Udemba, commended the bold initiative of Mr. President which he said aligned with global shift from fossil fuels with its attendant impact on the environment to cheap and clean fuel but added that conversion cost might be a disincentive to many Nigerians who might be willing to key into the presidential initiative.

He said though the conversion from petrol to CNG engines as a Federal Government-led program should have started about 15 years ago, it nonetheless worth doing now that it has been introduced.

“The Federal Government may therefore set up a Green Energy Bank with sole aim of incentivizing vehicle owners to go green. It will then be the bank’s duty to conduct surveys that could yield expected result in that regard.

“And since the estimated cost of conversion is within obligor limit of almost all Micro Finance Banks (MfBs), the Green Energy Bank or its equivalent may collaborate with select MfBs for ease of access to funds,” Udemba said.

He said CNG, as an efficient combustion process that leads to clean and greener environment, involves a lot of processes which include procurement and installation of CNG kits which involves a lot of technicalities and tests that vary from one automobile type and age to another, stressing that training of the installers was also key.

“The kits take up larger boot space which might affect the acceptance of the project as Nigerians are used to carrying high volume of luggage in their boots,” he said.

According to Prime Solar Power Ltd CEO, it took many years for oil marketers to build petrol station across the country, adding that more petrol stations are still being built.

“Evidently, the establishment of CNG refill stations may take a long while to spread meaning that aside the installation technicalities, making the gas available for the consumers at convenient locations may pose another challenge. This is where the establishment GEB becomes necessary to take care of the funding challenges that might come with the initiative,” he said.

He said the program is doable as it has been done in other parts of the world, arguing that for the conversion cost not to serve as a disincentive for many, GEB would help come out with repayment plan which will not be felt deeply by the people.

“Agreed that the high cost of petrol might be a reason for one to wish to switch to gas, the initial cost for the conversion remain a disincentive which the GEB would address. This will no doubt enhance the success of the initiative,” Udemba who is COREN certified; member of Nigeria Society of Engineers (NSE) technical partner, National Agency for Science and Engineering Infrastructure (NASENI), said.