27 August 2013 – Nigeria’s federal government has signed a Memorandum of Understanding (MoU) with Chinese energy company HTG/Pacific Energy for a US$3.7 billion coal to power project. Chairman of Pacific Energy, Adedeji Adeleke, says the MoU represents the first step towards building plant that will generate an additional 1,200 MW for Nigeria’s national grid.
The majority of the funds required to carry out the project will be sourced from foreign banks. The expectation is that the first power from this project can be generated onto the grid within the next four years. The power station is to be built in Enugu state, using the coal that will be mined from the Ezima coal mine.
The MoU relates to the allocation of the coal mine, Adeleke says. With the signing of the MoU, the company can now move into the Ezima coal complex to commence exploitation of the abundant coal deposit within the area. “There is an estimated reserve and a confirmed reserve, but we are going to do our own work to confirm the actual reserve to make sure that we have enough to power the 1,200 MW for the next, say, 50 years.” He says the investment will be in two parts, one part involving the development of the coal mine and the other the construction of the power plant.