Nigeria, China sign €7.6 bn clean energy deal

Nigeria and China have signed a €7.6 billion green hydrogen energy agreement aimed at gradually transitioning from fossil fuels to clean energy in line with global best practices.

The deal was formalised over the weekend in Uyo, Akwa Ibom State, between the Federal Government, APPL Hydrogen Limited (AHL), and LONGi Green Energy Technology Company Limited (LGETCL), a Chinese firm.

Uche Nnaji, minister of Innovation, Science, and Technology, signed on behalf of the federal government, while Idara Ekpo, Chief Visionary Officer (CVO) of AHL, and Francois Cui, Vice President of LONGi – Europe, represented their respective companies.

The project is set to be located within the Liberty Free Trade Zone (LFTZ) at Atabrikang in Ibeno Local Government Area of Akwa Ibom State, according to a statement from the ministry.

LONGi, a global leader in cleany energy transition, and AHL, a Nigerian company specializing in environmentally friendly fuel, will collaborate to drive the initiative, as outlined in the Memorandum of Understanding (MoU).

Speaking at the signing, Nnaji emphasized the project’s importance in Nigeria’s shift towards renewable energy, industrialization, and technology-driven economic growth.

“This project marks a significant step in Nigeria’s journey towards a sustainable energy future. As the global energy landscape shifts towards cleaner alternative, investments in green hydrogen, green methanol and green ammonium production place Nigeria at the forefront of green energy innovation,” he stressed.

The minister listed the benefits of science and technology integration in the sector to include industrial development, job creation, foreign investment attraction, as well as establishing Nigeria’s position in the global energy market.

According to Nnaji, the AHL project aligns with national priorities, particularly in fostering a robust research and development ecosystem that supports sustainable energy solutions, maintaining that ‘the federal government will collaborate with the Akwa Ibom State government in the areas of investment and technological advancement.”

He, therefore, called for synergy between public and private sector stakeholders to enable the project achieve the desired success.

On his part, Bamanga Jada, managing director of Oil and Gas Free Trade Zone Authority, described the project as “one that will diversify Nigeria’s economy, encourage export and help solve the issue of foreign exchange.”

“It will lead to technology transfer, create massive employment for our people; and it is environmentally friendly and sustainable”, he added.

Giving insight into the project, the CVO of APPL Hydrogen Limited, Idara Ekpo, explained that his company was going into the green hydrogen project because the world is moving towards green hydrogen to mitigate the effect of climate change.

“From green hydrogen, APPL Hydrogen will be producing green methanol which is one of its kind in the world. We will be producing 1.2 metric tons per year of green hydrogen derivatives which is going to be green methanol for export. From that green methanol, we will have medical oxygen and food grade carbon dioxide”, he said.