Cummins Incorporated is investing about N395 billion($250 million) in power related investments in the country over a period of five years in Joint Ventures operation to provide captive power to industries to design, construct, operate as well as maintain gas-fuelled power plants in the country.
Deepak Khilnani, the chairman of Cummins spoke while addressing investors and clients of the company at the residence of the British High Commissioner in Ikoyi, Lagos. The companies that are receiving the services of the company include Heinken, Proter and Gamble , AG Leventis.
He said there are moves to establish an independent power plant in Aba. Earlier at another location in Lagos, Tony Satterthwaite, president, Cummins Power Generator, while cutting the Ribbon at Cummins Energy Solutions Nigeria, in Ikeja, had disclosed that the company has also entered into partnership with a UK-based power plant company, Gentec, to provide cost effective power solution in the country.
According to him, the company’s energy solutions business have been very successful in Nigeria, having operated joint venture agreement with three companies to provide cost effective power solution in Nigeria.
He added that most of the installations in the country have been provided on a turnkey basis where Cummins Energy Solutions undertakes the complete end-to-end responsibility for design and construction of the power plant.
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“Cummins ensures that it takes on the full responsibility of providing after market services. As of today we provide after sales support to 98 percent of our installed fleet in Nigeria with a strong team of expatriate and Nigerian qualified technicians. We have over 400 workers that assist the company to provide quality energy solution to industries,” he added.
He noted that the company’s power ins tallations cover a cross-section of Nigerian industry from plastics, steel, chemical industries, breweries, glass and soap manufacturers and food processing. In addition, “We have operating experience in diverse industries and applications, as we have executed projects for the best of Nigerian industries.”
Speaking on the partnership between Cummins and Gentec, Director, Power Generation, Africa, Satis Jayaram, explained that the joint venture with Gentec, was to built turnkey and Independent Power Producer (IPP) plants powered by class leading Cummins gas generators in Asia, Europe and Africa.
“With over a million hours of operating experience with Cummins Gas Gensets in Nigeria, we are confident that we have the right product and the right capability to meet the needs of Nigerian industries,” he said.
He added that gas power delivers significant operational savings in these difficult economic times.
“Cummins is set to capitalise on Nigeria’s growing network of natural gas distribution and this fuel source will facilitate the construction of distributed power plants to meet a wide spectrum of industrial and IPP customers in Nigeria. We will also introduce smaller gas powered solutions from 40Kva to 1MW to enter into the SME segment,” he added.
Jayaram added that the new venture further illustrates Cummins’ commitment to Nigeria and this business will be an important vehicle to contribute towards reducing Nigeria’s critical power deficit.
He noted that the venture would harness the strengths of Cummins’ global expertise and its industry leading efficient gas technologies with Gentec’s proven power plant project implementation expertise in emerging markets. “This strategic investment is testimony of Cummins’ vision and strategy to accelerate our presence and investments in Africa.”
He emphasised the need for the Federal Government to provide enabling environment for businesses to thrive in the country. “We support government’s power sector reform and we believe it will not affect our operations in the country,” he added.
