Cummins Cogeneration, Sapele Power sign 300 MW deal on new gas-fired power plants

Deepak Khilnani, Chairman of Cummins Cogeneration Limited 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 project which 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.

Khilnani while at the signing ceremony recently said the partnership with Sapele Power Plc is a synergy that will birth strengths and capabilities to deliver a clean and sustainable long-term energy solution for Nigerians.

He noted that the project will offer 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.

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.

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

This partnership is coming just weeks after the company announced the signing of a 300 MW investment in neighbouring Beyin, Ghana.

KELECHI EWUZIE