In this interview with select journalists in Nigeria, Mohammed Mijindadi: Managing Director, New Units – Anglo-West & Francophone Africa for GE Vernova’s Gas Power business, talks about Nigeria’s commitment to energy transition and the company’s determination to help Government actualise that objective
YEMISI IZUORA was there for Oriental News Nigeria
Excerpt
Is GE looking at establishing an assembly plant in Nigeria now that a company like Geometric has become operational to encourage efficiency and reducing cost of maintenance?
Mohammed: Yes, so it’s not something that we are not willing to do. I’m sure you’re very well aware, you know, we’ve been on several journeys around establishing a local assembly plant. We tried something in Calabar, the free trade zone. Based on just the way the economy was going, we had to step back.
So, it’s a conversation based on how the business is growing, we’ll make that decision to see what is in the best interest of the company at that time. But right now, we’re really focused on supporting our customers to get them what they need to solve this energy dilemma.
While you were talking, you mentioned something about optimizing the grid. Yes, now the conversation is changing a little that the grid system that we are using, right in Nigeria today, is one of the causes of the problem we have. And some experts are talking about microgrids. Now, the 2023 Electricity Act is empowering the microgrid. Yes. Empowering that renewable. Yes. So how would this change your mindset or your thinking in that area? How do you boost this by the time we begin to implement the Act?
Mohammed: Yeah, that’s great. So, optimizing the grid doesn’t necessarily mean focus on one and neglect the other. I think what the Electricity Act is pushing, which I think is actually a good idea, is trying to allow the states to have a say in creating better efficiencies. When we think about optimizing the grid, it could be at the federal level, it could be at the state level.
I think it’s also important to note that we’re working very closely with the West African Power Pool. Part of the optimization of the grid is to allow the free trade of electricity across borders. So, if things are difficult in one side, you can rely on your fellow partners. We’re working on a project with the West African Power which is on the interconnectivity center. And it’s a very big way of making all our neighbors that basically share borders, share electricity.
So, my idea of optimization is not necessarily just looking at it at the federal grid level, but it’s making sure that you are able to move out and wheel as much power as you have available on the system.
The issue of hydrogen project was mentioned. Are you also looking at that kind of green hydrogen project in Nigeria?
Mohammed: Yeah, you see, as it is today, we have two technologies in Nigeria that are hydrogen ready, when we say hydrogen ready, it means that as of today, you can burn a mixture of hydrogen and natural gas on those turbines. The goal that we’re working on, even globally, is that by the time we get to 2060 of net zero, our turbines should be able to burn 100% hydrogen. We will obviously be able to get to that target before, but you know, different people get to different things at different, you know, like I keep saying, in Africa, as much as 100% hydrogen burning is what everyone is looking at globally, that’s not the immediate need.
I think our immediate need is to create an environment where we have energy security. And we own gas. Gas is like one of the biggest natural resources. So, what we’re doing as GE is supporting the government to responsibly get to that finish line. We don’t need to leapfrog because everybody else is leapfrogging. We think we need to be responsible in utilizing the natural resources that we have and gradually tapering it to where we feel the globe is going. And that’s what it is. So our turbines are hydrogen ready. Before next year, 2060, we have turbines that will be a complete 100% hydrogen. And the company is investing a lot. We invest as a company a billion dollars every year on research and development. A billion dollars and you can quote me. Globally, yes.
A lot of conversation is going on around green economy and infrastructure development. So what role can GE play in this?
Mohammed: I think it depends on the way you look at it, and the way we look at the green economy is really as sustainable development, and the way we feel as a company, we’re very well positioned for sustainable development. Most of our business is focused on gas, on hydro, which is a renewable source, and we feel the development in that space plays very well and our equipment plays very well in that space. So, I think to the context around the green economy, we feel we’re a vehicle as an OEM, supporting most of our partners and I guess partnering nations in achieving their goals towards this sustainability. So that’s the way we look at it.
I think the country and the sector is excited about the commissioning of geometric power. Yes. And GE has had interventions, high dimensions, and all. But why this unusual excitement about geometrics? What actually happened and why is it that even the federal government is excited and we’re celebrating it?
Mohammed: We’ve been, you know, sometimes hindsight is twisted 20. We’ve walked the walk in Nigeria, and I say that, not to toot our horns, but I say that we have been a tried and trusted partner of Nigeria. Prof’s project is one of several, several projects. But to answer your question directly, why the excitement, you’re in Nigeria, where is the capital of the industrialization in Nigeria? Aba is the capital of Nigeria’s Industrialization.
Regardless of what anyone says about power, if you’re unable to incentivize and drive industrialization, as a mission we’re not going anywhere. Prof’s project is at the heart of what we think will inspire a lot of other industries to move forward. Imagine what 24 hours of light will do to the people in Aba. Today they barely have electricity, yet all of the industries in cars, clothing, basic manufacturing, everything, that is where the heartbeat is. Prof’s project single-handedly can start the revolutionization of the industrial space, and that’s why we are really happy. We worked with Prof for over 10 years on that project. Not too many people will know, we not only brought equipments we’ve provided technical support and services, we have tried to link in with other financiers to move the project forward. We’re very proud of Prof’s project but Prof is one.
Almost everybody in that room has a story and that is what I was telling you about this journey. We’re celebrating Prof today because Prof has gotten to a destination. There are so many places and so many projects that are like that. Now imagine if every year we have two, three of this, we will be able to move this country forward. That’s what the excitement is about. That’s why we’re here. That’s why we’re happy to be involved with this.
We just want to add, perhaps, another conversation that one of the panelists was so passionate about this. And if you look at G.E. intervention, it is more towards thermal-powered stations. Now, what is your own view?
Mohammed: So, I think I’ll start first by correcting your notion. I don’t think a lot of our focus is in thermal space. I just started by telling you, we’re very active in the hydro renewable space, we’re active in wind, we’re active in the electrification space. So, we’re active across many places. I think there’s a sweet spot in generation in Nigeria today because we control about, or rather we have assets that power about 65%. This question about what the government should be doing, I think is a government question, but I will share some thoughts. I think there needs to be focus in the investment to try to drive it forward. I think everybody understands the importance of gas, but I don’t think everybody understands it. It’s just like crude oil.
The way the government is laser focused in crude oil in Nigeria, with regards to deliberate attempts to push investment, attract investors, because everybody understands that or is able to understand how to monetize crude oil today. At the expense of gas, today sometimes we even flare gas at the expense of crude oil. I think there needs to be a deliberate attempt in trying to commercialize gas. That will drive the availability, it will drive down the competitiveness with regards to pricing, because remember this gas is not just only used domestically, everybody around the world is using gas. So, when you have investors that are less incentivized to push gas domestically, a lot of this gas is going outside. LNG is about to launch trade 8. Half of what they’re doing is thinking about externally where they can send it to because the market dynamics doesn’t incentivize them to really push things domestically. So I think there’s a lot of work on the government and maybe the private sector but somehow on the government to manage policies, push a lot of investments because it is a huge capital investment, you’re not only going to look at every investor, you can’t depend on major capital investor projects on private sector. I think the government has a responsibility to show some goodwill, private sector will jump, but there needs to be concerted effort to develop the gas infrastructure that allows us to properly commercialize it. This is my humble opinion.
Please permit me to ask this question. One of the panelists, I was excited about the way he was talking about power distribution and tariff. Do you think as GE there is a way, given the economic situation of Nigeria, talk about the population and the rest of it, is there any way your research and development can bring about affordable and sustainable electricity to the local and rural area?
Mohammed: So, I think you’re touching on the emotional side of this conversation. Yes. And it’s important. I think we all, as a people, need to get very angry. We need to get angry enough to be able to see the change that we are looking for. You missed it but the panelist who was just speaking right now, Billy Jim, he talked about how 10 years ago while he was an advisor to the government, half the conversations we are having are the same conversations we are having. And he says his fear is that 10 years from now his children will be having the same conversation. 
I think what the major problem is around this affordability of power, we must be honest with ourselves as Nigerians, a lot of the frustration that drives a lot of these price is man-made. I think we need very strong policies that ensure that we’re not over padding the way projects should be. I don’t think equipment is unnecessarily priced. It’s the same pricing around the world. I think people today are paying even higher for self-generation, but what we are suffering is the bureaucracy in the system where across the value chain, everybody is padding and padding that by the time it gets to the mes’ and yous’, if it gets to the mes’ and yous’ of the world, it gets very frustrating. I think we have regulations, and we have policies in place and if everybody does what it is that they need to do, I think a lot of these things can be leaned out. This is my honest opinion.
In terms of investment and presence in Nigeria, what do we expect of GE in the next 10 years for example?
Mohammed: I think we’re going, GE like I said we’ve been present in different phases over time. Like I said when we started here almost 100 years ago it was more of a briefcase company where people were bringing products. I think in recent times we’ve had a presence. At some point, we were almost 1,000 employees. I think where GE Vernova is going in this future, my hope is that Nigeria becomes or continues to be the most relevant market for us in the Sub-Saharan African region.
As it is right now, Nigeria is the house of the largest GE turbine capacity that we have across Sub-Saharan Africa on the thermal side, and I hope we continue to do that. My hope down the line, again it’s not my company, but my hope down the line is that we see a power market that continues to incentivize companies like GE and GE Vernova to invest in having larger presence, localization of maybe some aspects that allows our businesses to continue to thrive, but it’s a journey that we’re all going to ride together. But it is my hope that we eventually get there together as the industry progresses.
What motivated GE to actually put this dialogue together?
Mohammed: Okay, you know, to be honest with you, we’ve had various forms of this dialogue. We probably just have not had it the way it is today. What was special about today is we’re getting ready to launch, let me not say launch, to introduce GE Vernova starting April 2nd. So, like I had mentioned when I was speaking, GE Vernova is all our power portfolios coming together as one standalone company that will be publicly traded in the stock exchange. So, what we have been trying to do was how do we get all our customers together, reinvigorate the spirit of partnership, remind them of why we started this journey in the first place and look towards possible collaborations that will allow us into the future where we’re going as GE Vernova.
Also, you know, there’s been a lot of conversation around energy transition. GE is a voice and trusted partner in this space, and we’ve been working in Nigeria for a very long time.
So, we thought an event like this would, one, allow us to get together with friends and partners, two, remind ourselves of why it is that we keep doing what it is that we do, which is literally trying to improve energy access availability one megawatt at a time to citizens of Nigeria and find ways that we can creatively continue to partner as GE Vernova goes forward.
We had so many speakers because during the panel discussions, we talked about challenges, we talked about opportunities, but in your own view at GE, where do we go from here? Having listened to the challenges and the opportunities that are there, in your own view, how do we move forward?
Mohammed: So I think it’s a great question, and when you think about it, I think GE is not immune to these challenges and opportunities. I only did not sit down to listen. I am also a player in the market. Like I told you, apart from just being an equipment manufacturer, we’ve invested in projects.
We have partnerships in these projects. So, these challenges and opportunities were not just things that we listened to, we are a part of them. I think where things go from here for me, we keep saying the perfect way we are going to be able to move forward in the industry is where we have the right level of environment, enabling environment, and the perfect partnership between the government and private sectors to move things forward.
We are not going to solve the crisis in the energy industry with this dialogue, for what it is doing is bringing some of these topical issues to the top of mind. What I hope will happen with this, obviously we’ve touched on several things, and we just left there. There are still conversations that are going on. Importance of partnership, the importance of enabling environment, the spirit of trying to understand how we can use our natural giving resources, which is gas, to ensure that we continue to have a say in the energy transition story.
I think these are things that for us, we need to keep the dialogue alive. We keep looking at creative ways that we will be able to solve problems. I think we as GE, there’s some specific things that we’ve looked at specifically in the transition story. So, while different people are looking at it as 100% net zero, you need to burn hydrogen, we’re working with the government to think about more creative ways that we can go through a meaningful just transition. So, part of the immediate thing we’re trying to do is work with our customers to try to see how we can convert a lot of the simple cycle power plants that we have today into combined cycles. Because one of the most important things for us if we think about transition is how do we reduce negative gas emissions.
You know, a lot of the power that’s generated in Nigeria today is from diesel and dirty fuel. The more we’re able to get cleaner fuel on the grid, the more it will reduce that. So immediately part of what we’re doing is optimizing the grid through our electrification business and grid, trying to make more efficient power, trying to do a bit of this combination of conversions to combine cycle, and then down the line bring a few of the technologies that we’re working with globally around burning hydrogen, looking at carbon capture, utilization and storage. So, this conversation of where I think this will go for me is getting everyone on the same page on looking for a realistic way that we can continue to transition as we go forward.