Yemis Izuora/Ijeoma Agudosi
Cummins Cogeneration Ltd. has signed a 300 MW Power Purchase Agreement (PPA) with Sapele Power Plc as part of its plans to build one of Africa’s largest gas-fired power plants.
The deal was endorsed by Deepak Khilnani, Chairman of Cummins Cogeneration Ltd.
This partnership is coming just weeks after the company announced the signing of a 300 MW investment in neighbouring Beyin, Ghana.
Speaking at the event, Deepak said “we are excited about our partnership with Sapele Power Plc because we believe this synergy will birth strengths and capabilities that will deliver a clean and sustainable long-term energy solution for Nigerians.
This project will be operated using Cummins Combined Heat and Power (CHP) lean burn gas generator sets which emit up to five times less nitrogen oxide than comparable diesel generator sets and near-zero particulate matter.
In adding to this, it offers a 48 percent reduction in carbon dioxide emissions compared to traditional steam turbine engines, which makes this a highly efficient and environmentally sustainable project.
Currently, Sapele Power Plc operates Nigeria’s second largest power plant by an installed capacity of about 1020MW, capable of meeting the energy needs of around 750,000 homes at full capacity.
Upon this partnership, the plant will distribute electricity generated from the plant directly to Nigerian Bulk Electricity Trading Plc (NBET), supplying millions of homes and businesses with clean power.
Expressing delight on the signing of the agreement, Anthony Onoh, Chairman of Sapele Power Plc, said “We know that Nigerians have high expectations from the privatized power sector and that is why the company, has a strong focus on sustainable power generation focused on capacity recovery from its existing asset, as well as expansion from a mix of projects which would double the plant installed capacity within the next three years.”
He further said, “The project will be split into two phases; the first phase is expected to be completed and exporting power by July 2016 and the second phase is forecast for commissioned by December 2017.
Upon completion, the project will supply approximately three billion kilo-watt-hours of electricity to the Nigerian grid per annum, which is approximately 10 percent of total production today.
“We are innovatively rising to the challenge of improving performance at our generating station; as well as integrating more renewable energy into the grid.” Anthony further explained that talks with the U.S. EXIM Bank, the African Development Bank, and the African EXIM Bank about funding for the power generating plant expansion projects were ongoing.
With operations in over fourteen power plants in Nigeria, Cummins Power of Cummins Cogeneration Ltd has a strong track record with both captive and independent plants.