Global Courant
On May 29, 2023, Nigeria was in turmoil. The newly elected president, Bola Ahmed Tinubu, had just announced the abolition of the centuries-long fuel subsidy that has kept fuel prices reasonably low for Nigerians. Fuel subsidies have become unsustainable and have plunged Nigeria into debt. Following the announcement, the market ignited as fuel prices skyrocketed, fueled by a wave of panic buying and hoarding. At the height of the market disruption, Nigerians bought fuel for as much as N600. Currently they pay almost three times the previous price for a liter of fuel, which is currently between N488 and N577 per litre.
Curious about the public’s reaction to the suspension of the grant, I turned to Twitter. And the first thing that caught my attention on the timeline was a video showing the use of a gas cylinder to power a generator. While not new, the use of LPG for domestic energy generation is surprising as it has moved at a snail’s pace over the years.
The slow adoption, Busayo Fabunmi, GM of operations for Asiko Energy Holdings Limited, told Ventures Africa, can be attributed to Nigeria’s fuel subsidy regime that existed before, making it difficult for gas-powered innovations to thrive. But now things seem to be turning around.
Access to electricity in Nigeria is still something of a luxury for some citizens. The World Bank says that about 85 million Nigerians (43% of the population) have no access to the electricity grid, making it the country with the largest energy access deficit in the world. With such a poor power supply and wide energy gap, generators have become a life saver for Nigerians to perform many of their daily activities from simple things like charging to running their businesses.
According to the International Renewable Energy Agency (IRENA) recent report, 84% of urban households use backup power systems such as fossil fuel diesel generators, while 86% of businesses in Nigeria own or share a generator. This intensive and widespread use has led to Nigeria adopting the top importer of Premium Motor Spirit (PMS) and diesel generators in Africa from 2022. This naturally entails costs, not only for individuals, but also for companies.
In the first half of 2022, the largest publicly traded companies by market capitalization, including Dangote Cement, BUA Foods, Guaranty Trust Holding Company (GTCO), and Zenith Bank, N207.54 billion on energy. Dangote Cement, which incurred the most energy costs, reported an increase of 31.32 percent to N129.97 billion from N98.97 billion in H1 2021, a price that accounts for 40.31 percent of the total cost of production from sales in the first half from 2022 These figures are unsustainably high and hinder the growth of companies or investments.
But now using LPG for generators has become one of the alternatives that Nigerians have embraced to stay afloat in this period of high fuel prices and a proposed increase in electricity tariff. It is remarkable that its use is becoming increasingly widespread.
The conversion: Gasoline to propane.
While generators designed specifically for natural gas are not common in Nigeria, retrofitting existing generators offers a practical solution to meet the energy realities and meet the country’s power needs. During the conversion, the fuel carburetor is replaced by a hybrid carburetor so that the generator can operate on both petrol and gas.
Fabunmi explained that the conversion kit currently used in Nigeria is mainly designed for four-stroke engines. Four-strokes have separate compartments and tanks for fuel and oil, making them compatible with available conversion kits. But a two-stroke engine, for example, requires mixing oil and gasoline in the same tank and cannot be converted with the existing conversion kits. A perfect example of this is the small popular household generator dubbed I better pass my neighbor.
Converting a 5-6 kVA fuel-powered generator with a complete setup, including a cylinder and other necessary accessories, typically costs around N90,000-N95,000. However, a conversion without buying a new cylinder would cost around N50,000-N55,000. Generators with a higher generating capacity of more than 10 kVA cost between N55,000 and N100,000.
One of the contributing factors to the expensive kits is the reliance on imported components, often resulting in higher prices. This price difference is caused by factors such as import duties, transport costs and exchange rates. And with the current economic realities of the country, this can be on the high side for citizens, posing a significant hurdle in adopting gas-powered generators.
From fumes to fortune.
A recent analysis by Asiko Energy Holdings Limited revealed a few months ago that despite the initially high cost of conversion, the process generates significant cost savings for the average Nigerian in the long run. The study showed that switching to gas can lead to cost savings of around 40% over time
This video from Asiko Energy Holdings Limited discloses that, taking into account cost and consumption, using a 12.5 kg gas cylinder provides approximately 15 hours of electricity at a cost of approximately N500/hour on a 7.5 kVA generator. On the other hand, 14 hours of electricity with petrol requires 30 litres, which costs N1050/hour, twice as much as using gas. At this time, the country’s gas prices are starting to fall. Therefore, using gas as a fuel proves to be cost effective, and it takes about 150-200 hours to run the generator to recoup the costs incurred during the conversion process. These cost savings can significantly benefit households, businesses and industries.
By extension, a gas-powered generator provides operational benefits in terms of reduced engine wear and minimal debris buildup. Due to its operating processes, it experiences a cleaner burn and produces less residue, resulting in less deposit build-up on critical engine components such as spark plugs and valves. With this cleaner combustion process there is less engine wear which extends the life of the engine. These cost savings can significantly benefit households, businesses and industries.
But apart from the cost-effectiveness, it is also environmentally friendly. While not a completely clean source of energy, it produces lower emissions compared to fuel-powered generators. And this from a sustainability perspective aligns with Nigeria’s ambitious commitments to combat climate change and meet sustainable development goals, reaching net zero by 2060.
In particular, the use of LPG or natural gas (autogas) goes beyond generators as it can also be used efficiently in tricycles and vehicles. Fabunmi explained that conversion costs for four-cylinder cars like the Toyota Corolla currently vary between N300,000 and N400,000, taking into account the prevailing exchange rate. As for tricycles, the conversion cost drops from 100,000 to 200,000. The initial investment in conversion can be earned back within 9-12 months. This means that for every kilometer travelled, switching from petrol to gas saves N40 in the case of a Toyota Corolla. For tricycles, the savings range from N10 to N15/km, which equates to a significant reduction of around 50 to 70%. The time it takes to recoup the conversion costs for tricycles is approximately 3-4 months.
Set the fire to safety.
When the topic of using gas such as Liquefied Petroleum Gas (LPG) in internal combustion engines such as generators comes up, safety considerations naturally come to mind. The potential risk of a fire breaking out due to sparks or heat generated by the generator is a prime concern. Last month the Lagos State Government warned citizens of the risks of converting gasoline generators to liquefied petroleum gas (LPG) generators, stressing the need for caution and proper handling.
According to Fabunmi “The use of LPG for generators is not new, and it is very safe. In terms of operation, it can be compared to the use of cooking gas in the kitchen. When the installation is done correctly by a trained technician and the operation is carried out according to the correct procedures, there is no problem. Potential problems arise when there is a lack of care in selecting a qualified technician for the conversion process or failure to follow operating instructions”
He argues that security starts from the moment users try to get their hands on a conversion kit. “It starts with selecting the right kit to match the specific engine being converted. It is crucial to check that the kit meets the correct connection standards. Even the regulators used must adhere to specific standards. Using the right type of gas after conversion is just as important and most users are not aware of this. However, problems can arise when individuals choose unreliable sources who lack the necessary knowledge about these standards. Patronizing such corners can lead to complications and potential safety issues. To ensure safety throughout the process, it is essential to rely on professionals who have the right knowledge and adhere to recognized standards.” he claimed.
He further explains that it is important to consider the state of the generator during the conversion process. For example, with older generators, there may be instances where the generator vibrates on ignition and begins to move from its original position. According to him, this situation is undesirable when driving on gas, because it can cause the hose to be pulled out if it is not properly secured. Using a regulator without a self-shutoff device and excessive gas flow may result in the release of flammable gas into the atmosphere. So it is crucial to make sure that the generator is securely fastened to prevent vibration-induced movement.
“The hose must be securely fastened to prevent accidental loosening due to minor movements. And this can be done by keeping a reasonable distance between the engine and the cylinder to prevent the formation of a flammable atmosphere near the hot part of the engine,” he said.
In addition, Fabunmi recommended using a regulator equipped with excess backflow or an unusual flow sensing mechanism, which detects if the hose is stretched and prevents gas from flowing freely. These precautions ensure safe operation of the generator conversion and minimize potential risks.
Finally, regular system inspections are critical, especially for outdoor installations exposed to direct sunlight and harsh weather conditions. Periodic checks, such as leak tests, become necessary to ensure the integrity of the system. This is especially important when replacing cylinders as it provides an opportunity to ensure that everything is in good working order and free of any potential issues.
