Africa-Press – Mozambique. The Mozambican government and GL Energy Mocambique on Thursday in Maputo finalised a concession agreement to finance and operate a 250 Megawatt gas fired power plant in Nacala district, on the coast of the northern Mozambican province of Nampula.
A press release issued on Thursday by GL Africa Energy indicated that the agreement was signed by the Minister of Mineral Resources and Energy, Max Tonela, and the Director of GL Africa Energy, Michael Kearns. The deal marks the start of a three phased investment.
Initially, GL Energy Mocambique will create a 50 MW capacity in 16 months. The second and third phases will add 200 MW, to be completed within 24 months.
The deal has been structured as a 30 year Public-Private-Partnership (PPP), and the publicly owned Electricity Company, EDM, will hold the initial public interest in the project and will be the off-taker for the electricity generated. The project is a key pillar of the government’s gas monetisation strategy.
Domestically, the plant will improve electricity supply in a country where about 40 per cent of the population has no access to reliable sources of electricity. The company also hopes this investment will support the country’s plan to turn the region into a viable power hub.
The plant’s LNG (liquefied natural gas) solution provides an almost instant bridge fuel throughout the next two decades, reducing reliance on more polluting fuels, such as diesel and coal.
LNG will play a crucial role in the transition towards renewable sources for the country and the region, enabling a quicker and higher penetration of renewables into the energy mix in the long term.
Throughout the construction phase of the plant, estimates indicate that over 300 workers will be employed.
GL Africa Energy is a UK registered company investing in energy solutions in the Great Lakes and Southern African regions. The company’s goal is to invest, develop and operate strategic projects, while offering sustainable energy solutions centred on Sub-Saharan Africa.
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