Who We Are
ESG
Impact
Phase II
Media
Corporate
Contact

Yemi Osinbajo on the Azura-Edo IPP

December 4, 2020 // in: Uncategorized

Azura Power West Africa Limited

azuraedo.com

i nfo@azuraedo.com

Common FAQs

Who are the sponsors of Azura-Edo?

The majority shareholder and lead sponsor of the Azura-Edo IPP is Azura Power Holdings Limited, an investment holding company developing a portfolio of world-class IPPs in Africa. The other minority shareholder of the company is the Anergi Group. Azura Power Holdings shareholders are Actis (majority shareholder), Amaya Capital (the original founder of the Azua Edo project), and Africa 50.

What is the Azura-Edo IPP?

The Azura-Edo IPP is a 461MW open cycle gas turbine power station and the first phase in a 1,500MW Independent Power Plant facility being developed near Benin City in Edo State, Nigeria. The plant is being executed in three phases: Phase 1 is now complete and was delivered eight months ahead of schedule in May 2018; Phase 2 will be the conversion of the plant into a combined cycle with a capacity of 670MW; and Phase 3 will be an extension to Phase 1 and 2.

What’s the difference between an open cycle and a combined cycle gas plant?

Open cycle gas turbines draw air from outside of the plant and compress the air in a centrifugal or an axial flow compressor. The compressor heats the air and feeds it into a combustion chamber where the gas is burnt at a specified temperature. The pressure from the burning gas causes rotation in the plant turbines. The rotational movement in the turbines generates electricity as well as driving the compressor, while the burnt gas fumes are released back into the atmosphere.

Combined cycle gas plants use both gas and steam turbines and can generate significantly more electricity than open cycle plants. These plants are capable of generating 50% more electricity because the ”waste heat” generated by the gas turbine is fed through a waste heat boiler to generate steam which is then fed to the steam turbine to generate additional electricity.

What are the key strengths of the Azura-Edo IPP?

The Azura-Edo IPP benefits from the following strategic attributes:

Access to a secure and reliable source of gas. The Azura-Edo IPP is situated close to substantial mature and proven domestic gas reserves and located only 1km from the path of the country’s main gas trunkline, the Escravos Lagos Pipeline System (ELPS).
Access to evacuation capacity to the electricity grid. The location of the Azura-Edo IPP was specifically chosen to ensure that all the power generated can be safely and easily evacuated onto the national grid, as a result of close proximity to the existing Benin Main Sub-Station and the new Benin North Sub-Station.
Support from the Edo State Government. The Edo State Government is a minority shareholder in the Azura-Edo IPP through its provision of land and infrastructure. Furthermore, the EDSG has been instrumental in enabling Azura to work closely with the local communities.
Best-in-class partnerships. Azura has established close relationships with world-class suppliers, contractors, service providers and advisors who have deep experience in their respective industries and in operating in Nigeria and Africa.
Commercial Power Purchase Agreement with the Nigerian authorities. Azura signed a Power Purchase Agreement (PPA) with the Nigerian Bulk Electricity Trading PLC (NBET), the Federal Government parastatal established for the purpose of acquiring the bulk of the power generated from new IPPs.
Strong financial support from the World Bank Group. The Azura-Edo IPP participates in the World Bank’s Partial Risk Guarantee program and has Political Risk Insurance placed with MIGA, both of which ensure the bankability of the project to lenders and investors.

Why did Azura choose Benin and Edo State to locate its plant?

Azura conducted a comprehensive study of various locations in Nigeria before deciding to build a plant in the North Eastern outskirts of Benin City. The main reasons why this location was chosen were:

Benin is one of Nigeria’s key nodal points for evacuation with the city located within a radius of multiple high voltage transmission interconnections. Azura will evacuate its power through the adjacent Benin North Substation.
The project site is located only 1km from the path of the country’s main gas trunkline, the Escravos Lagos Pipeline System (ELPS). Compared to building a dedicated pipeline, this means that significantly less capital and time is needed to connect the gas required to the power station. Furthermore, the capacity of the ELPS pipeline is being doubled from 1 billion scfd to 2 billion scfd through the addition of a second (twinned) gas pipeline, which means there will be sufficient capacity to transport fuel for Phase 2 of the project.
The site is located in close proximity to Koko Port, which has a proven capacity to handle the inward shipment of the heavy equipment required at the site.
There is good road access directly to the site and excellent road access between Koko Port and the site with bridges that have a proven capacity to withstand the transportation of heavy equipment.
From an environmental and social perspective, there is minimum disruption to local communities and the environment resulting from both the actual site location and the routing of the second ELPS pipeline (which is using the same ‘rights of way’ as the existing ELPS pipeline).
From a security perspective, over the past two decades Edo State has been less exposed to acts of civil disturbance than the other major oil and gas producing states in the Federation, providing a secure working environment for both local and international workers.

View all

Azura Policies
Legal Disclaimer
Privacy Policy