Tag: energy transition

Axxela Limited, a leading African gas and power company owned by Helios Investment Partners and Sojitz of Japan, has announced a Final Investment Decision to develop a 50 million standard cubic feet per day (MMscf/d) gas processing plant in Delta State, as it pushes towards sustainable energy solutions in Nigeria. This decision is bolstered by Axxela’s successful ₦16.4 billion bond issuance earlier this month, which was oversubscribed by 109 percent. The announcement comes as Axxela continues to expand its footprint in the energy sector, following last year’s agreement with BUA Group, one of Africa’s largest conglomerates, and CIMC ENRIC, a global leader in the energy equipment industry, to build a 700-ton-per-day mini liquefied natural gas (LNG) project. The new gas processing plant, expected to begin operations by the end of 2024, will start with a 12 MMscf/d modular unit and is designed for rapid expansion, with the potential to increase the plant’s output to 50 MMscf/d within 18 months. It is a key part of Axxela’s strategy to support the Nigerian government’s Decade of Gas initiative and to enhance domestic gas utilization. Strategically located in OML 152, the gas processing plant is expected to serve as a central processing hub for surrounding oil & gas operators, with the potential to transform gas flaring into a valuable economic resource, and significantly reduce CO2 emissions. “We are positioning to develop requisite infrastructure for natural gas processing and last mile distribution that creates market access for at least 20% of Nigeria’s gas demand,” Axxela’s Director of Business Development, Franklin Umole, said in a company statement. “Over the past two decades, we have been at the forefront of natural gas advocacy, and this project is a further reaffirmation of our dedication to gas infrastructure development and our vision to deliver innovative energy solutions across Nigeria and Africa.’’ In preparation for the project, Axxela has secured a long-term feedstock supply agreement with a leading local upstream company and established equipment supply arrangements with top-tier Original Equipment Manufacturers (OEMs). Upon completion, the processed gas will support various market segments, including Compressed Natural Gas (CNG) for vehicles, industrial feedstock, and decentralized power solutions, marking a significant step towards energy security and economic growth in Nigeria. Boost from successful bond issuance In a related financial achievement, Axxela recently raised ₦16.4 billion in an oversubscribed bond issuance, despite challenging economic conditions marked by rising interest rates and limited market liquidity. The funds will be instrumental in realizing the gas plant project. “This is a significant indicator of increasing investor confidence in our company’s reputation, brand, and performance,” CEO at Axxela Bolaji Osunsanya said. “The bond proceeds will support the development of our growth projects, signifying the importance of local and international capital markets in the development of critical infrastructure.” With the FID and successful bond issuance, Axxela looks to advance Nigeria’s gas infrastructure, support the energy transition, and meet the increasing demand for cleaner energy solutions.

Egypt is gearing up to host the Egypt Energy Show (EGYPES) 2024, a three-day event that will bring together thousands of energy experts, investors, and policymakers to discuss the challenges and opportunities of the global energy transition. The show, which will run from Feb. 19 to Feb. 21 at the Egypt International Exhibition Center in Cairo, is expected to attract more than 35,000 attendees and 2,200 delegates from across the energy supply and value chains, according to a statement from the organizers. The theme of the show is “Driving Energy Transition, Security, and Decarbonisation,” reflecting the urgent need to cut greenhouse gas emissions and achieve net-zero targets in line with the Paris Agreement on climate change. The show is held under the auspices of Egyptian President Abdel Fattah El Sisi and supported by the Egyptian Ministry of Petroleum and Mineral Resources, which has been leading the country’s efforts to diversify its energy mix and become a regional energy hub. Africa Dialogue Conference A highlight this year is the Africa Dialogue Conference, a forum for influential African stakeholders, including government officials, financiers, economists and energy though leaders. They will tackle thorny issues such as policy, regulation, gas infrastructure and how to harness Africa’s abundant energy resources for a greener and richer future. Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla said the show has become a cornerstone of the energy ecosystem in Africa and the Mediterranean, spurring business and investment in the regional energy market. “Each year, we witness substantial growth, increased interest, and the formation of invaluable partnerships, thereby accelerating Egypt’s ascendancy as a regional energy hub,” he said in the statement. The show will feature a comprehensive conference programme, with more than 80 sessions and 300 speakers covering topics such as decarbonisation and methane reduction strategies, energy security and affordability, and the role of fossil fuels and renewables in the energy transition. Among the speakers are John Ardill, vice president of ExxonMobil, who said he looks forward to the show as a vital opportunity to engage in constructive discussions regarding energy security, investments in oil and gas, and the transition towards a lower carbon, lower emissions, and sustainable future. Future Energy Zone & Theatre The show will also feature a new Future Energy Zone & Theatre, an immersive platform for showcasing energy innovations. It will cover all aspects of the energy transition, from decarbonisation and hydrogen to digitalisation and alternative energy. It will also host discussions on the regional impact of emerging technologies and the role of different players in shaping the future of energy for Egypt, the region and the world. More than 500 exhibitors from local and international firms will display the latest gadgets, gizmos and solutions in the energy sector. The exhibition will include 12 country pavilions and 26 national and international oil and gas companies. CLIMATECH Challenge Another innovation is the CLIMATECH Challenge, a contest for energy start-ups to pitch their resilient business models and inventions. The aim is to speed up regional adaptations, highlight the importance of climate technology for a low-carbon future and spot undiscovered energy entrepreneurs. Other attractions The show will also host the EGYPES 2024 Sustainability in Energy Conference, where industry leaders will explore the latest developments in clean energy and the strategies required to accelerate net-zero targets by 2050. The EGYPES 2024 Finance and Investment in Energy Conference will bring together energy leaders, sustainable finance experts, and climate professionals to address the economic uncertainties facing global economies and the financial mechanisms and capital market tools to support future energy systems. The EGYPES 2024 Equality in Energy Conference will unite global industry experts, including organisational change management, inclusion, and sustainability leaders, driving discussions on how talent strategy is becoming a paramount priority in shaping a people-centred energy future. In addition to the overarching theme of EGYPES 2024, the EGYPES Energy Awards will take centre stage, honouring trailblazers and energy pioneers making headlines in energy, whose contributions have been instrumental in advancing the global energy landscape towards achieving net-zero emissions and enabling transformational change for people, organisations and economies. To facilitate exclusive networking opportunities, the EGYPES Energy Club (EEC) will continue to elevate EGYPES 2024 as a private membership club lounge, where industry veterans and C-suite leaders can connect and explore critical partnerships for the future. Serving as the destination for all energy stakeholders, the Energy Club will set the stage for signing agreements and MOUs, executive meetings, and media-free networking enabling energy negotiations and decisions of national and global significance. The show comes at a time when the energy sector faces unprecedented challenges and opportunities amid the covid-19 pandemic, geopolitical tensions and climate mandates. The show hopes to foster dialogue, collaboration and action to drive the energy transition and decarbonisation agenda in Africa and the Mediterranean. For more information, including how to plan your EGYPES 2024 experience, visit the show’s website: egypes.com.