A Chinese firm, A-Dinota Ventures Ltd. has signed a deal with the Taraba State government to construct a US$115-million ethanol production facility in the state.

The factory will be an integrated ethanol plant that can produce 200 000 litres of fuel ethanol, 100 tonnes of cassava flour, 50 tonnes of liquid Co2 and 600 000 litres of bio fertiliser daily.

The deal with take the form of a public private partnership where the state government will provide the land and a $70 million sovereign guarantee for the importation of the equipment from China.

A percentage of the fuel produced will be sold to the local community as a cleaner and cheaper alternative to kerosene.