FuelCell and Oando sign MOU for low-carbon energy production in Africa

FuelCell Energy and Oando Clean Energy Limited, the renewable energy subsidiary of Oando Energy Resources (OER), a part of the Oando PLC group of companies, has signed a memorandum of understanding to collaborate on the development of a 5 to 15-Megawatt (MW) power plant.

In addition to FuelCell Energy’s fuel cell and electrolyser technology, the agreement also includes the potential for the use of FuelCell Energy’s carbon capture and sequestration technologies. Unlike other carbon capture technologies that require power to capture carbon dioxide, FuelCell Energy’s platforms can produce power while simultaneously capturing carbon dioxide. The signing of this MOU is an integral part of OCEL’s drive to strengthen electricity access in African markets via low-carbon renewable energy sources starting in its home country, Nigeria.

Nigeria relies heavily on generators to support power generation at a local and commercial level. Specifically, around 84% of urban households use back-up power supply systems such as diesel/gasoline generators and/or solar-based systems, while about 86% of the companies in Nigeria own or share a generator. These fossil fuel generators create noise, particulate pollutants and are substantial contributors to greenhouse gas emissions.

Furthermore, there is a significant dearth in access to power, with 85 million Nigerians – representing approximately 43% of the country’s population – unconnected to the national grid.

The Nigerian Federal Government’s Renewable Energy Master Plan seeks to increase the share of renewable electricity from 13% of total electricity generation in 2015 to 23% in 2025 and 30% by 2030. In addition, in 2021, Nigeria passed the Climate Change Act to lower greenhouse gas emissions and implement a supporting framework to meet the country’s commitment to net zero emissions by 2060.

FuelCell Energy’s platforms are helping utilities and independent power producers transition to net zero while strengthening grid reliability with zero particulate matter emissions. These platforms can enhance grid resiliency by adding a reliable source of on-site power generated right where it is needed.

“The opportunity to bring our technology to Nigeria is a critical moment for FuelCell Energy,” said Jason Few, CEO and president of FuelCell Energy. “Nigeria has an abundance of renewable energy sources that can be harnessed with the power of fuel cell technology. We are proud to have the opportunity to collaborate with OCEL to deliver stable electricity supply, better grid reliability, and security while contributing to Nigeria’s goal of net-zero emissions by 2060.”

“As a company, Oando has always been a proponent of using energy as a lever to move Nigeria forward. With an understanding of how the gaps within our current power infrastructure impede the nation’s development, we see this MOU signing as an opportunity for us to accelerate the country’s industrialisation via increased access to power.

“The increased awareness and acceptance of renewable energy as a sustainable and long-term approach to the world’s power needs has led to lower prices and increased innovative and more accessible solutions, including FuelCell Energy’s solutions. Their flexible, cost-effective, and state-of-the-art scalable technology gives us confidence that we have chosen a good partner to help Nigerians access reliable low-carbon energy. Beyond access to power, this collaboration is in tandem with OCEL’s overarching strategy of building a clean energy ecosystem whilst supporting the Federal Government’s vision of net zero emissions by 2060.

“We are excited, not just by signing this MOU, but the progress we continue to make in identifying and deploying solutions that show Nigeria and the continent as committed to a cleaner and more sustainable future,” said OCEL Chairman, Adewale Tinubu.

Related Posts
Others have also viewed

Meet the trailblazing women collaborating to save the ocean and increase gender diversity in STEM

In Mauritius, Scotland, Manchester, London, and Australia a group of award-winning women scientists and experts ...

STUDY: UK transport and logistics industry faces sustainability gap admist AI adoption

HERE Technologies, the leading location data and technology platform, today unveiled insights from its latest ...

Einride, Mars partner for Europe’s biggest road freight electrification in FMCG industry

Einride, a freight mobility company that provides digital, electric and autonomous technology, has partnered with ...

BCG and Climeworks sign historic 15-Year carbon removal agreement

Climeworks, a global leader in carbon removal via direct air capture technology, and Boston Consulting ...