Cummins seals 300 MW power generation pact with Sapele Power

CUMMINS Cogeneration Limited has signed a 300 MegaWatts (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.

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, held in London recently, Chairman of Cummins Cogeneration, Deepak Deepak said his company was “excited about our partnership with Sapele Power Plc, because we believe this synergy will bring 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 per cent 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.

With 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, Chairman of Sapele Power Plc, Anthony Onoh 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.

“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 per cent 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.”

Onoh added 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.