Sapele Power, firm sign 300mw power purchase agreement

16 February 2016, Lagos –  Cummins Cogeneration Limited has signed a 300 megawatt- Power Purchase Agreement (PPA) with Sapele Power Plc as part of Cummins’ plans to build a gas-fired power plant in Nigeria.

Power4Speaking at the recent signing ceremony, the Chairman of Cummins, Deepak Khilnani said his company was excited about its partnership with Sapele Power Plc.

According to him, the synergy between the two firms will leverage individual firm’s strengths and capabilities to 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,” he explained.

Sapele Power Plc operates Nigeria’s second largest power plant with an installed capacity of about 1,020MW, 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, the Chairman of Sapele Power Plc, Mr. Anthony Onoh stated that the project would be split into two phases.

“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,” Onoh explained.

“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.
Onoh further explained that talks with the United States’ 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 Limited has a strong track record with both captive and independent plants.

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