• Thursday, February 29, 2024
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Proton energy’s $250M sunrise project to start operations 2025

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Proton Energy’s $250 million Delta Sunrise project is expected to start supplying energy to the national grid by 2025, following the signing of a long term gas supply aggregation agreement with five key partners.

These partners are the Nigerian National Petroleum Company Ltd. (NNPCL), The Shell Petroleum Development Company of Nigeria Limited (SPDC), TotalEnergies (EP) Nigeria, Nigerian Agip Oil Company Limited (NAOC) and Gas Aggregation Company Nigeria Limited (GACN).

Read also: Proton Energy to boost Nigeria’s power supply with $250 million investment

Speaking at the signing ceremony in Abuja on Thursday, Ike Osakwe, Chairman, Proton Energy, said the project is reaching a financial close by the end of the year, after which construction will start and in two years the project will be putting electrons to the national grid.

“The plant will be built in two phases with the first phase delivering 150 MW of electricity to the national grid, whilst the second phase will add a further 350 MW and expand the plant’s capacity to 500 MW, It is expected that the first phase will reach commercial operations in 2025, delivering much needed reliable incremental power megawatts to the national grid,” he said.

He noted that Nigeria currently scores low on major indices tracking the supply of reliable electricity to its population and the Agreement is in line with Government’s twin objectives of accelerating the development of a robust electricity sector and better utilizing its gas endowment for the betterment of its citizen.

“The successful implementation of the project, combined with other electricity value chain initiatives that are currently underway, will help to lay the foundations, in the medium term, for an era characterised by the supply of reliable and affordable electricity to the general populace,” he said

Oti Ikomi, Executive Vice-Chairman and CEO, Proton Energy said as a result of this project over 10 thousand jobs will be created, 400 thousand households and SMEs will be empowered, adding that around $250 million worth of Foreign Direct Investments will be generated.

“The project will be one of the first projects in Nigeria to utilize a more efficient Combined Cycle Gas Turbine configuration (CCGT) and will incorporate cutting-edge carbon reduction technologies; This will enable the project to reduce its carbon footprint and meet the most stringent emissions standards for a gas to power projects,” he said.

Ikomi added that the project additionally allows for a future option to incorporate the use of hydrogen as feedstock in the future. Critically and in the context of national climate pledges the project will enable the country to further deepen and accelerate the incorporation of intermittent renewable projects into the national grid through the supply of reliable base load power.

In his remarks, Abubakar Bagudu, governor of Kebbi State, said that there are courageous entrepreneurs who still believe in Nigeria as a primary destination for investment which is a statement of confidence

Post Ukraine-Russia crisis, the economics of Nigeria’s gas is much more than expected and it suggests that more can be done with gas.

He expressed optimism that the incoming administration will always support investors and investments especially in the energy sector.

Wale Edun, former Lagos state Finance Commissioner who is currently a member of the Presidential Transition Council (PTC) said Gas has been an area of emphasis and hope adding that although there has been some disappointment particularly lack of adequate supply which Proton looks to address.

Wale Edun in his remarks said on behalf of the president elect, It is the policy, plan and objectives of the incoming government to pave way for investments that will increase productivity, grow the economy, create jobs and reduce poverty.

“We are meant to be in a boom period particularly after the COVID-19 disruptions as well as the Russia-Ukraine crisis as there is a shortage of gas supply; the incoming president will create an enabling environment starting with improved security to allow increased gas supply so Nigeria can benefit from the boom in the price of gas and other petroleum products worldwide,” he said.