The Nation Newspaper

Tag: Energy

  • Worst fuel oil loss since 2011 seen easing on import cut: Energy

    Refining losses from producing fuel oil in Asia are poised to narrow as imports from western countries and Iran decline while global economic growth boosts demand for transportation fuels.

    Cargoes of the ship and power-station fuel cost an average $10.20 a barrel below Dubai crude this month, the largest monthly discount since April 2011, according to data compiled by Bloomberg. That gap, known as the crack spread, will narrow to minus $8 a barrel in the first quarter of 2014, according to the median estimate in a survey of five analysts and traders.

    A recovery in fuel oil, which refiners typically produce at a loss after making gasoline and diesel, will help boost margins at companies including South Korea’s S-Oil Corp. and Royal Dutch Shell Plc. Iran, once the second-biggest supplier to China, has cut exports by 67 percent compared with earlier this year. At the same time, global demand for shipping fuel is forecast to rebound amid economic growth from the U.S. to China.

    “We will see more recovery in 2014,” said Ehsan Ul-Haq, a senior market consultant at KBC Energy in Walton-on-Thames, England, who forecasts a crack of minus $7.50 in the first quarter. “Demand will recover if the Chinese and western economy recovers. Iran is going to use fuel oil domestically because they always have a gas shortage in winter.”

    Front-month high-sulfur fuel oil swaps were at $622.78 a metric ton as of 11:08 a.m. London time, up 0.3 percent this year. Dubai crude, the benchmark grade for Asia, was at $108.46 a barrel today, gaining 2 percent over the same period.

    Estimates for the first quarter crack ranged from minus $7.50 to $8.83 a barrel in the Bloomberg News survey that was conducted through Dec. 17. It averaged $9.74 this quarter.

    www.bloomberg.com

  • ‘Why telcos shun renewable energy for base stations’

    Cost of acquiring land, solar panels and vandalism are some of the reasons telecom operators are not embracing renewable energy as alternative energy source to fossil fuels which is costlier and less environment-friendly.

    Chief Executive Officer, Prostar Global Energy Limited, Hyacint Udemba, said subscribers should not expect any reduction in end user tariffs because the Federal Government failed to provide the requisite infrastructure and security to the operators. According to him, the threat of vandalism is one major factor operators cannot embrace the use of renewable energy even in the face of rising cost of petroleum products.

    “The challenges associated with providing renewable energy to the BTS are many. Number one is the capacity of the BTS. The number of solar panels required will occupy a large surface area and there are problems getting land. Telcos pay heavily to all manners of persons, governments, others. To get a piece of land to install solar panel which will be able to serve about 12,000 watts of power required by each BTS, you require a solar panel of not less than 10,000 watts and that will occupy a surface area of between 50 and 60 square meters. This is not easy,” he explained.

    Udemba, who spoke at the weekend in Lagos, also decried the level of insecurity in the country.

    “You have to provide security to the solar panels because they will be stolen. If people steal bridge rails, iron pipes used to protect people from falling into the Atlantic Ocean, if they steal street lights, they certainly will steal solar panels. So another factor is insecurity,” he said.

    He recalled that the late General Sani Agacha attempted to use solar to power the communication system of the Nigeria Railway Corporation (NRC) but was frustrated because the panels were sabotaged by unscrupulous elements.

    He said: “When the late General Abacha was around, he commissioned the use of solar cells to power the railway communication gadgets but within six months of installation, they were all vandalsied. Abacha was resuscitating rail transportation then and you cannot have a functional rail without communication links as the trains move from one station to the other. Now to make sure that communication is enhanced, solar was used.” He lamented that no sooner had the panels installed than vandals ensured that it never saw the light of day.

  • Why not the Green Energy option?

    SIR: Over the years, Nigeria has always lagged behind in technological advancement and innovations. Everything integral to human progression often come to us late. This explains why we lag behind in renewable energy to drive sustenance in the energy sector. The energy generated from gifts of nature is considered infinite, free, renewable, eco-friendly and above all self sustaining. All over the world, there are structured re-awakening towards this energy generation with negligible negative impact.

    In the United States of America, energy generated from wind and solar in the last three years has doubled from around 5.5% to over 11.1%. The construction of new wind power generating capacity alone in the fourth quarter of 2012 totalled 8,380 megawatts (MW) bringing the cumulative installed capacity to 60,007 MW. This capacity is exceeded only by China.

    Another country that is seizing on the moment of renewable energy is Germany. The Germans intend to have about 35 per cent of its energy sourced from renewables by 2020, 50 per cent by 2030, 65 per cent by 2040; and 80 per cent by 2050. It is not a wild dream because the amount of energy sourced from renewables, including wind rose from 20 to 25 per cent in the first half of 2012.

    Even Saudi Arabia, the oil-rich Gulf Kingdom, the world’s largest oil exporter, aims to meet one-third of its energy demands by using renewable energy by 2032, setting aside an incredible budget of $109 billion for achieving the goal.

    With the stagnancy in our power generating capacity, attaining sufficiency might be a tall dream, but we have an untapped alternative in renewable energy. Unfortunately, while the world is actively awake, Nigeria is still at documentation. The Minister of Power, said the government is still “trying to build a policy on renewable energy and energy conservation”.

    The push for renewable energy at this period of our national life is critical because of its abundance and eco-friendliness. Renewable energy can be generated from resources which are continually replenished such as sunlight, wind, rain, tides, waves, animal wastes, plants and geothermal heat. Nigeria is one of the very few nation blessed with all the above sources year round, though, we barely use it. So why the waste and darkness?

    • Sulaimon Mojeed-Sanni,

    Lagos

     

  • Brokers mull funding options for housing, energy sectors

    Brokers mull funding options for housing, energy sectors

    Stockbrokers are considering suitable financing products to align the capital market with the huge financing requirements of the housing and energy sectors.

    President, Chartered Institute of Stockbrokers (CIS), Mr Ariyo Olusekun, who spoke on the preparations for the forthcoming capital market workshop, said the capital market has huge capacity to fund large capital intensive projects in the housing and energy sectors.

    He said stockbrokers would use the forthcoming gathering to brainstorm on financing products that meet the requirements of the sectors.

    “We all know the position of our power sector today and this is an avenue for us as brokers to bring experts in this industry together and create products that will suite needs. We want to come up with a product that will enable developers to raise funds to develop more housing unit so that everybody can solve their housing problems,” Ariyo said.

    According to him, stockbrokers would work to develop products and services that would help to unlock the potential in the power and housing sectors.

    He noted that the Nigeria capital market is big enough to provide funds for housing and energy sectors pointing out that people did not believe that Nigerian banks can fund the kind of projects they are funding now, the same situation that applied to the capital market.

    “I want to assure you that this market is big enough to finance any project, we have been clamouring for high-intensive sectors of the economy to come and list in the market and we are assuring that when they come they would be able to raise the money needed,” Ariyo said.

    Citing the pension funds of about N3.4 trillion, he said the challenge for capital market operators is to come up with investment instruments through which these funds can be invested and used to generate growth in the economy.

    Also, Chairman, CIS’s Sub-committee on the National Workshops, Mr Bisi Oni, said brokers were focusing on the power and housing sectors because they are the two areas of pressing needs for most Nigerians.

    “The stock market has ability to solve the funding problems in the sectors. At the end of the workshop, we believe we will be able to create products that will be tradable on the floor of the Nigerian Stock Exchange (NSE),” Oni said.

    The workshop is slated for July 2, in Abuja. Expected dignitaries include President, Dangote Group, Ahaji Aliko Dangote; Dr. Oba Otudeko, Mr Tony Elumelu, Ministers of Finance, Housing & Urban Development, Environment, Petroleum, Trade & Investment and Power and other key players in economy.

     

  • Putting more energy behind your job hunting

     

    My job hunt is stuck in the mud. I know I need to fix it, but I’m feeling overwhelmed and I’ve got no energy left. I’ve tried everything, and nothing seems to work.” Does this sound like you or what you feel now?

     

    The simple truth is:

    Hunting for a job can be tiring, demoralising, and frustrating. Often, people who have internalised their inability to find work as a sign of personal failure. Confidence and self-image suffer. Not to mention the economic embarrassment As that happens, it becomes increasingly difficult to present the optimistic, energetic “can do” persona that employers seek.

    We all hear the longer you are out of work, the harder it is to get work. One of the reasons for this is employers are looking for you, Mr/Ms. Jobhunter not to be jaded, tired, and “down.” And, they fear that the longer you are out of work, the more likely it is you won’t have the vim and vigor they seek.

    How can you put more energy to your flagging job hunting campaign?

    There are things you can do to energize your job hunt. Below are my suggestions. This list is hardly exhaustive, but it’s a good start:

     

    Remember getting a job is a job

    Treat it with the same sense of professionalism that you would bring to any employment. Show up on time every day. And, at the end of the day don’t feel guilty about packing the work up, and transitioning to “personal” or “family” mode. As with any job, it’s i mportant to maintain a healthy work/life balance.

     

    Recognise and confront your self-imposed roadblocks

    Are you frozen in place by a fear of possible future failure? Many people have experienced so much rejection that they are afraid to have any more piled on. Such feelings are real, and they need to be acknowledged.

    Sometimes inaction can be a psychological defense mechanism. It’s important, however, to understand that inaction is a certain road to the status quo. Try to move forward every day – even if you only do one or two small “baby step” things that can help to build up your self-confidence.

     

    Break out of your isolation

    Figure out who are the members of your support system – your family, friends, other job hunters you meet at networking groups, members of your church or synagogue and so on. Talk to them on a regular basis. Tell them what you’ve been up to, what seems to be working, and what seems to be frustrating you. Make them part of your team. Ask for their feedback and advice. Help them to help you by creating a context of “us” instead of “me.” And of course: seek a good job hunting coach who can understand and relate to you, and provide both guidance and the occasional “kick in the pants” when it’s called for.

     

    Balance your job hunting activities

    You can’t be everywhere, all the time. Strive to create a balance over the course of a week or two in a cycle. If you think of your search for work as a job hunt, then imagine each tool or tactic as one arrow in your quiver. You need a variety of arrows including: informational interviewing; attending professional meetings and seminars; social networking utilising LinkedIn, Facebook, and Twitter; writing your blog, and so on.

    However, important online activity has become, remember that social networks are but the means to the end of building personal relationships. Nurture your relationships both in the real and virtual worlds.

     

    Stay focused and uses your time wisely

    People who work out of their homes often say that one of the biggest challenges they face is managing their time. It’s easy to be distracted by kids, pets, housework, TV, internet, computer games, and so much else! Organise your day and week in advance. Create an hourly schedule and stick to it by setting alarms on your computer calendar or wherever they will best be seen and heard.

     

    Practice, practice, and practice some more

    Rehearse your elevator speech out loud and prepare answers to interview questions that you can anticipate. For example, don’t allow yourself to be flummoxed by opening queries like, ”Tell me about yourself.” Did you know Larry Bird, one of the greatest basketball players of all time, shot 1,000 baskets EVERY DAY! He was great because he understood the need for constant repetition and skill building.

     

    Maintain your mental and physical health

    Eat healthy. Exercise at least three times each week. If it’s been a while since you exercised with any regularity, start slow and gradually build yourself back up. Get those endorphins flowing and you will look better, have more energy, and feel better about yourself.

  • ‘Solar energy now the way to go’

    ‘Solar energy now the way to go’

    The prediction is scary. In 50 years, some experts have said, the country’s oil reserve will dry up. Can anything be done to remedy the situation? Yes, says Managing Director, Sovereign Solar Energy Ltd, Dr Felix El-Schaeddhaei, in this interview with TOBA AGBOOLA. He advises that Nigeria to pay more attention to renewable energy, saying solar energy has the capacity to solve Nigeria’s power problem.

     

    Do you think solar energy can solve power challenges in the country?

    Sure, it will. The power problem is borne out of the shortsightedness of policy makers. Without vision the people suffer. The government should promote and fund the development of solar industry in Nigeria.

    The demand on the Power Holding Company of Nigeria (PHCN), domestically, publicly and industrially, is so huge that it needs to triple its capacity to meet up. With the development of an alternative energy sector, residential and public energy consumption can be eliminated thus increasing energy at the disposal of industries for economic growth.

    Public places, offices, streetlights, agricultural settlements, poultry farms and residences can all be solar-powered thus leaving manufacturing industries to have the much-needed power to run their plants.

    Spain is one of the most advanced countries in the development of solar energy, and one of the European countries with the most hours of sunshine. In 2008, the Spanish government committed to achieving a target of 12 per cent of energy from renewable energy by 2010 and by 2020 expects the installed solar generating capacity of 10,000 megawatts (MW). Total solar power in Spain was 3.859 GW by the end of 2010 and solar energy produced 6.9 terawatt-hours (TW·h), covering 2.7 per cent of the electricity demand in 2010. By the end of 2011, 4.214 GW had been installed, and that year, 7.912 TWh of electricity was produced.

    Through a ministerial ruling in March 2004, the Spanish government removed economic barriers to the connection of renewable energy technologies to the electricity grid. The Royal Decree 436/2004 equalised conditions for large-scale solar thermal and photovoltaic plants and guaranteed feed-in tariff. This singular act promoted solar development and application nationwide.

    With adequate public enlightenment and education, Nigeria can make its energy problems history.

    For instance, the privatisation by the Federal Government is a welcome development. However, this alone cannot alleviate the power problem facing Nigeria. There is need for all facets of the sector to embrace adequate planning, setting of achievable targets, investment in alternative sources of energy, and accountability.

    Are Nigerians responsive to solar energy adoption?

    Most Nigerians don’t understand the concept of using the sun to generate electricity. We at Sovereign Solar Energy Power are working to create public awareness of the technology and how it can be easily deployed to the populace.

    We are willing to delve into the private sector; we want to address that lack of confidence in people when it comes to solar power. I have talked to a number of people who said that solar does’t work in Lagos, but the truth of the matter is that the amount of sunlight emanating from Nigeria is greater than what Germany and the United States have.

    Germany is the leading country when it comes to solar usage, so there is no reason solar cannot work in Nigeria. It is all about proper implementation to ensure that it works in different localities in the country.

    Can it be used by big industries?

    Of course! By Febuary 22, last year, the Chattanooga Airport had saved 90,000 kilowatt-hours of power since installing a 4.5-acre solar farm in December 2011. Spain is producing solar power in terawatt-hours and we have the Sahara Desert with enormous solar resources wasting away everyday. We have more than enough solar power resources to power all our industries if fossil fuel energy source fails.

    The earlier we embark on renewable energy development in Nigeria, the better the chances of our rapid economic advancement.

    What can be done to encourage the adoption of solar technology?

    First, we need to understand that solar can work in Nigeria. I have heard from a lot of people that solar power cannot work in some states.We are blessed with more sunlight than leading solar user countries. Having clarified that as a technology in its infancy, adequate awareness/education is key in encouraging solar adoption.

    Many people either haven’t heard of solar or are not convinced of its potential. Some see the huge capital investment cost as a major deterrent, but proper education, including fact-based report, such as cost benefits analysis will go a long way in combating such fear.

    Does government have any role to play in this regard?

    It is the major player.The government needs to create incentive/subsidy package to encourage the early players in the industry. This could be in form of solar import tax rebates, net metering packages, etc.

    What are your challenges in doing business in Nigeria?

    Nigerians are generally scared of change. To achieve change, we have to give up a lot of things. For instance, it has been hard convincing people to ditch their generating sets for a hazard-free hybrid system. In our line of business, it is a continual process educating the people on the advantages of a green economy. Patience has been our key word as we continually strive to light up Nigeria.

    Are you facing challenges at all?

    Our major challenge is subsidy from the government because solar technology is very expensive as much as its products.Although the price of solar panel is dropping, we hope it drops to the level of one dollar per watt, then we will surely compete favourably with the power generated by other means.

    Another problem is that we don’t have a single company producing batteries in Nigeria. All the solar batteries are imported, so we need a company producing battery so that the cost will be reduced.

    In other countries, solar is subsidised by the government, but here there is no form of subsidy, the end user pays for everything and that’s why it is expensive. Just like petroleum subsidy, there should also be subsidy for solar, which is even more environmental friendly. It doesn’t have any form of environmental pollution. Its only impact is that it covers space. Maybe the space that would have been used for agriculture is now used for solar lighting or to fix solar panels. If we want to address that issue, we will find out that there are lots of virgin land not used for agriculture; such land can be used.

    How cost-effective is it?

    I have had people coming in to make enquiries. At that time, some of our portable 500W solar generators were selling for N90,000. A particular gentleman said he would rather stick to his “I better pass my neighbour”generator because it only costs him a mere N300 fuel to run each day. When I analysed for him that he is spending an average of N9,000 per month and that he would have spent N90,000 worth of fuel in 10 months, he bought the solar generator – seeing that he would save a lot of money in the long run.

    The same applies to larger solar systems for homes and public places. The initial outlay may appear enormous, but huge savings will be realised for many years thereafter, justifying the investment in the first place.

    What is the lifespan?

    The average lifespan of the solar system is 20 to 25 years, however, the batteries’ efficient life is usually three to five years when they are due for renewal.

    When there is no light, how does it work?

    In majority of cases, the solar system will continue to provide power from its energy store for an average of three days. However, because the efficiency of newly developed thin film silicon cells used in building solar panels is high, it has the capability to start harnessing power from the sun at day break without direct sunshine.

    A combination of factors, for example, the intensity of rays of the sun, the panel’s wattage size and efficiency, the inverter and regulator efficacy and adequacy of battery bank will determine how long the system will work assuming there is total darkness.

    How much maintenance does one need?

    All things being equal, the system is maintenance free over its life expectancy of 20-25 years with the exception of course, the battery bank, which needs renewing within three to five years.

    Where do you see Nigeria in the next 10 years as regards solar power?

    Where Nigeria will be depends on a number of factors which include: successive government policy vis-à-vis renewable energy; how much public awareness is created in relation to renewable energy; individuals and organisations’ drive to find alternative energy source in solar power; price of the component parts of solar system and the state of the economy

    What is solar power and why is it efficient?

    A photovoltaic panel (or solar panel) is a packaged interconnected assembly of photovoltaic cells, also known as solar cells. They are used as components in a larger solar system to provide electricity for civil, commercial and residential applications. The solar system harnesses energy from the sun, and converts it into energy that can be used for multiple practical applications.

    Solar technology provides environmental and social advantages over other energy sources. Some of the advantages are low energy costs. The sun provides solar radiation for free. It has low maintenance: Fewer moveable parts means fewer parts can break. No emissions. Solar lighting does not contribute to global warming. Besides, solar solutions continue working even if there is power cut.

    Can you tell us about your products and how they are doing in the market?

    Our solar products are designed and constantly redesigned with end-consumers such as individuals, domestic, community, commercial and public in mind. This is reflected in the variety of products developed over the years – from solar key-ring flashlight, to all-in-one solar streetlight, solar generator and solar home systems to mention a few.

    We are sensitive to the need for constant power supply if meaningful economic development and growth are to be achieved by individuals, entrepreneurs, society and the nation.

    We acknowledge that power supply on the African continent is grossly inadequate. This invariably affects every aspect of human endeavour and development – private, public, commerce and industry.

    Our policy decision to establish our first African outlet in Nigeria was based on huge economic resource potential available that will be enhanced by renewable energy supply.

    We have carried out remote installations in Nyanya in the outskirts of Abuja as well as home installations in Lagos (Maryland), Nasarawa State (Karu Court, Mararaba) and in Ibadan (Ologuneru area), Oyo State.

    Is Nigeria ripe for this technology?

    The bane of the nation’s economic advancement is deficiency and inefficiency in power generation and distribution.This is a nation wallowing in poverty in the midst of plenty.

    Nigeria is blessed with huge natural and human resources in the energy sector and scientific field. No nation will ever be described as ripe for technological growth.

    Technological advancement for any nation is synonymous to a child learning to sit, crawl, stand, taking the first steps and becoming unstoppable in walking and running.

    It is not a question of whether or not Nigeria is ripe for solar energy technology, but a question of resource recognition, development and management. The most important aspect of the solar energy technology is the sun, which is a major player and raw material. Nigeria has no excuse since at the dawn of each day, the creator has covenanted that solar energy be made available unhindered. All that is left for our policy makers is to make available the component parts by promoting their localised productions. Nigeria needs to start from somewhere; somehow, otherwise she will never be ready for solar technological development. The starting-point will be hands-on research projects working in co-operation with technologically advanced nations, such as USA, India, China or South Korea.

    The Federal Government has to key into the advancements made in solar energy. This will enable the government to provide cost-effective rural electrification with positive environmental impacts.

    Although Nigeria needs adequate supply of energy to drive its economy and power its domestic, economic, technological and social sectors, it has been difficult to meet the energy needs of the citizenry by successive governments.

    Nigeria is blessed with a variety of energy sources in abundance. It has fossil energy, such as crude oil, natural gas and coal, and renewable energy resources such as solar, wind, biomass, biogas, and so on. Nigeria’s oil reserve is predicted to be exhausted before the next 50 years, thus it is imperative to pay more attention to renewable energy sources.

    By using solar photovoltaic panels of only five per cent efficiency, the country could generate close to 600,000mw, from only one per cent of its land area.

    Renewable energy is always available on cyclic basis, and can never be exhausted, unlike the conventional energy of oil, coal and gas.

    As long as there is life in us, solar energy will always be there, everyday.When the sun comes up, solar energy is available.We also have wind as a renewable energy. Wind arises as a result of extra-terrestrial solar heating of the air masses in the extra-terrestrial space; leading to pressure differences, manifesting in the flow of air.

    We can also tap significant amount of energy from wind. Hydropower is also available from cyclic activities of the rainy reason. Rivers are there and we can tap. We also have biomass – biofuels; they are all part of renewable energy. They are always available on cyclic basis.

    If we can learn from Germany and Japan and tailor various Nigerian market specific programmes aimed at reducing the cost of solar power systems, we will be able to support the growth of the solar industry.

     

     

     

     

    Can you tell us about your company, Sovereign Solar Energy?

    Sovereign Solar Energy Technology Limited is in the business of solar system research, design and development, production, marketing, installation and maintenance services.

    The company’s head office is in England with branches in the Federal Capital Territory Abuja and Lagos. Our main areas of specialisation are in systems design, production and installation of street, community and residential renewable power needs. We have been engaged mainly in home systems installations and other consumable solar power products such as laptop and phone chargers, table and flashlights, lanterns, rechargeable fans and fence lamps to mention a few here in Nigeria.

    The company has grown over the past five years to become a force to reckon with in the renewable energy sector in Europe. It has acquired a leading edge technology to produce user-friendly personal and domestic solar consumable products and commercial solar products with hassle-free installations.

    The company has the necessary infrastructure and know-how to achieve its objectives and complete its projects ahead of schedule in most cases while maintaining high standards of quality control as its benchmark.

    The company was established to alleviate problems in two fronts – environment – to do our bit in reducing global warming, and to contribute to accelerated economic advancement through regular power supply.

    We are committed to providing power to whosoever may be in need of it – school pupils and students ( for their home-work/assignment) farmers in the remote locations where there is no form of power supply as well as small entrepreneurs.

  • Power generation to exceed 7,000MW by December

    Data from the Power Holding Company of Nigeria (PHCN) facilities and the National Integrated Power Project (NIPP), show that the Federal Government will exceed power generation capacity of 7,000 megawatts (MW) by end of the year.

    The Managing Director of Niger Delta Power Holding Company (NDPHC), which superintends the NIPP, Mr James Olotu, said the NIPP plant would supply at least 2500MW by year end. Generation from the PHCN facilities stood at 4477MW as at last month.

    While the government is making effort to rehabilitate dysfunctional units Egbin and other power plants, the NDPHC is also working to bring on stream new units from its power plants.

    Given this scenario, generation is expected to well exceed the current targeted combined generation of 6977MW.

    Olotu, who spoke at the inauguration of a newly built 150MVA transmission facility at the Ikeja West Transmission Station in Lagos, said four of the 10 plants supervised by NDPHC, are currently operational and generate 1150MW into the national grid. The four plants are Olorunsogo in Ogun State, Omotosho in Ondo State, Sapele in Delta State and Alaoji in Abia State.

    He assured that the improvement in power supply would be sustainable, adding that the NIPP henceforth would be inaugurating a new power facility either from generation or transmission or distribution every month.

    But categorically noted that each month new facilities would be commissioned to improve supply.

    Speaking during the inauguration of the 150MVA transmission facility at the Ikeja West Transmission Station, which brought the total capacity of the station to 750MVA, the General Manager, Transmission Company of Nigeria, Lagos Region, Oyeleke Adeoye, said the same 150MVA facility is being replicated at Akangba Transmission Station in Lagos.

    He said: “Ikeja West is a major station in Lagos. We have another one in Akangba and as you can see the leap achieved with this new facility, this additional capacity will affect the whole of Lagos State and part of Ogun State, up to Abeokuta. We have increased capacity now, before we had 4x150MVA, which translates to 600MVA and we now have additional 150MVA. So we have 750MVA here. With this, we will have increased power supply, which we are already experiencing in Lagos. If you live around Lagos, you could have noticed that.

    “In terms of maintenance, just like in the older transformers, we have maintenance programme for all of them. For us in Transmission we have always had equipment maintenance programme and that is why we have been able to keep the older transformers for over 40 years. We are having another intervention of 150MVA at Akangba.”

    Olotu also added that by next month, the NDPHC will commission more projects like this in Ibadan and Benin and will continue to commission new projects till end of the year. Every month, we will commission a new project in one part of the country to improve power supply that is our promise to Nigerians. However, he noted that the issue of gas supply has become a problematic one but is being addressed at the highest level.

    “The President, the Vice President, Ministers of Petroleum Resources and Power and all stakeholders sit on daily basis over this issue. All efforts are being put in place through this integrated mechanism to ensure that some emergency gas is delivered between now and December.

    “The Nigerian Gas Company has said that between 300 million standard cubic feet (mscf) and 500 mscf would be made available under this emergency period and would be dedicated to NIPP power plants. If we get that, we will get more power into the grid. This intervention is aimed at enhancing the efficiency of power delivery,” he added.

    He said that Alaoji is a 1074mw plant when completed and two units out of the six are ready now and will and be wheeled into the grid subject to availability of gas. He added that actions are being taken by the government to rehabilitate dysfunctional power stations to make them effective. “We have had shortage of capacity at the generation, transmission and distribution ends and the population of Nigeria is increasing, which calls for more supply,” he said.

  • NAPE to Ondo: Exploit other solid minerals

    The Nigerian Association of Petroleum Explorationists (NAPE) has advised the Ondo State government to exploit other minerals in the state other than crude oil.
    President of NAPE Dr. Mayowa Afe when the association paid a courtesy call on the state Governor, Dr. Olusegun Mimiko at the government house Alagbaka Akure, said only three out of 11 minerals in the state are categorised as strategic, while the remaining don’t get the required attention.

    Afe said: “The Geological Survey of Nigeria has identified eleven solid minerals in the state. Only three which are bitumen, coal and limestone are categorized as on the Federal Government’s strategic minerals for development while others – kaolin, gemstone, gypsium, feldspar, granite, clay, glass-sand, and dimension stones, are classified as non strategic.

    “There is need to ensure these strategic minerals are evaluated and exploited to its full benefit for the state and the federation.
    “Ondo is also known to have the largest deposit of tar sand in the country and if the contents of the proposed Petroleum Industry Bill (PIB) is anything to go by, this huge resource will soon be managed by the Ministry of Petroleum Resources and who knows, the state could become a force in the area of bitumen production with the potential of making the state an investment haven. I therefore urge your Excellency to argue the transfer of this asset from solid minerals to petroleum ministry as it is done in other parts of the world.”

    Afe in a statement also explained what the association stands for and the need for the state to partner. “NAPE is a foremost professional organization in the oil and gas industry committed to promoting the teaching and practice of the geosciences in relation to the exploration and exploitation of petroleum resources. As explorationists, our ideas indeed find oil and gas.

    “The membership of the association includes students in tertiary institutions and individual practitioners, government institutions as well as operators in the oil and gas industry, mining industry and other energy sector. Established in 1975, NAPE is an affiliate of the American Association of Petroleum Association (AAPG) with membership spread across the globe.

    I am pleased to inform you that the current President of NAPE, Dr. Mayowa Afe is from Akure, Ondo State.
    “One of the goals of the association is to visit tertiary institutions as well as corporate and government institutions that employ geoscientists in different parts of the country to drum up support for our Annual International Conference and Exhibition(AICE) that comes up in November this year. Based on the involvements of the State in exploration and production activities and its vast oil and gas resources, a substantial part of which is yet to be exploited, the association is extending its hand of fellowship to the state for mutually beneficial relationship.”

    “It is important to let you know that as a state with an Exploration and Production company, i.e. Owena Oil and Gas which owns 45 percent in Ororo field and substantial interest in OML 241, in deepwater Dahomey basin, the State is an ally of the association and a potential corporate member of NAPE. Ondo state also has several tertiary institutions where the geosciences are taught and therefore captures the attention of the association as a fertile ground for attracting young geoscientists to NAPE.”
    NAPE also advised the state government to ensure well demarcated/defined and established coastal boundaries with others because of the issue of offshore dichotomy up to/beyond 200 metres water depth and also insist Federal Government retains the current fiscal agreement on offshore dichotomy.”

  • Shell to construct world’s first oil sands CCS project

    Shell Company has said it would go ahead with the first carbon capture and storage (CCS) project for an oil sands operation in Canada. The Quest project will be built on behalf of the Athabasca Oil Sands Project joint venture owners (Shell, Chevron and Marathon Oil) and with support from the Governments of Canada and Alberta.

    In a statement issued by the company, its Chief Executive Officer, Peter Voser, explained that CCS is critical to meeting the huge projected increase in global energy demand while reducing carbon dioxide (CO2) emissions. “If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number of fronts around the world, but Quest will be our flagship project,” he added.

    Alberta’s oil sands are a secure, reliable source of energy and an economic engine which drives employment, training and business development across Canada and beyond.“We will need all sources of energy to meet world demand in the coming decades,” Voser noted adding that lower CO2 energy sources will grow, but even by 2050 at least 65 per cent of our energy will still come from fossil fuels, so CCS will be important to manage climate impacts.

    The Athabasca Oil Sands project produces bitumen, which is piped to Shell’s Scotford Upgrader near Edmonton, Alberta. From late 2015, Quest will capture and store deep underground more than one million tonnes a year of CO2 produced in bitumen processing. Quest will reduce direct emissions from the Scotford Upgrader by up to 35 per cent – the equivalent of taking 175,000 North American cars off the road annually.

    “Quest is another example of how we are using technology and innovation to improve the environmental performance of our oil sands operations,” said Shell Executive Vice President of Heavy Oil, John Abbott. “The opportunity Quest provides to reduce emissions from our upgrading activities is an important achievement in itself, but the project’s technical and strategic value reaches beyond the emissions it will capture.”

    “Quest is important because it is a fully integrated project that will demonstrate existing capture, transportation, injection and storage technologies working together for the safe and permanent storage of CO2. The knowledge it provides will help to enable much wider and more cost-effective application of CCS through the energy industry and other sectors in years to come.”

    Both the Canadian federal and Albertan provincial governments have identified CCS as an important technology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million in Quest from a $2 billion fund to support CCS, while the Government of Canada will invest $120 million through its Clean Energy Fund.

    “We will continue to invest in innovative clean energy technologies such as the Shell Quest project to help support high-quality jobs and responsible development of Canada’s energy resources,” said the Honourable Joe Oliver, Minister of Natural Resources. “Carbon capture and storage has the potential to help us balance our need for energy with our need to protect the environment.”

    “Today’s announcement reaffirms Alberta’s position as a global leader in carbon capture and storage,” said Energy Minister Ken Hughes. “Technologies like CCS will play an instrumental role in helping to lower greenhouse gas intensity from the oil sands and demonstrate to the world Alberta’s commitment to responsible energy development,” he added.

    The International Energy Agency (IEA) calls CCS “a crucial part of worldwide efforts to limit global warming” and estimates that it could deliver about one-fifth of necessary worldwide reductions in greenhouse gases by 2050. Shell is also working with governments and experts to help the development of CCS in other countries, including projects in Norway and Australia.