PORT LOUIS, Mauritius–(BUSINESS WIRE)–Mauritius Commercial Bank (MCB) Ltd (https://www.MCB.mu), the banking arm of the MCB Group, aims to become a bigger player in the African energy landscape, by financing and supporting electrification projects that encourage the use of renewable energies. In this regard, MCB has recently participated in three flagship projects in Ghana, Rwanda and Nigeria. These projects are crucial steps in the electrification goals of these respective countries and in their transition from fossil fuels to more renewable and low-carbon energy sources. Prior to joining these three projects, MCB applied the Equator Principles to proactively identify and mitigate environmental and social risks.
Zaahir Sulliman, Head of Specialized Finance, MCB: “We are proud to contribute to these important electrification goals and the transition to more renewable energy sources”
Make a difference in Ghana
In July, Genser Energy announced that it had successfully completed an 8-year, $425 million financing, which will be used to refinance existing debt and fund critical electrification projects in Ghana. The funds will enable a 100 km gas pipeline to Kumasi, Ghana’s largest city, a 200 mmscfd gas conditioning plant at Prestea and a liquid natural gas (LNG) storage terminal at Takoradi Port. Genser Energy aims to achieve net zero carbon by 2035.
According to Genser Energy, the construction of the gas pipeline to Kumasi and the gas processing plant at Prestea will have significant economic and environmental benefits not only for Genser but also for Ghana and the West African sub-region. The transaction will support Genser’s diversification from the power sector to the midstream gas sector and mark an important milestone in its decarbonization strategy to achieve net zero carbon by 2035 while contributing significantly to Ghana’s national carbon targets. of climate change in reducing emissions.
The availability of cheaper and easily accessible piped natural gas in Kumasi and the Central Belt of Ghana via the new pipeline will encourage industries to switch from diesel and heavy fuel oil (HFO) imported by truck to indigenous natural gas as fuel at low carbon intensity. The pipeline will also support the relocation of power plants from coastal regions to reduce line losses and improve the efficiency of the national grid. Additionally, the gas conditioning plant will produce cleaner fuels and make Ghana a major producer and exporter of LNG. Additionally, the gas conditioning plant will produce cleaner fuels and make Ghana a major producer and exporter of natural gas liquids. This demonstrates the potential of natural gas to act as a transition fuel that can help Africa achieve its development agenda.
Supporting Nigeria’s gas-to-power program
MCB, as co-mandated lead arranger, helped structure and raise $260 million in debt to fund the completion of the ANOH gas processing plant.
Despite large untapped reserves, domestic gas use remains low due to lack of infrastructure. Gas development and infrastructure projects will address this imbalance and result in significantly higher household gas usage rates.
Assa North-Ohaji South (“ANOH”) is an onshore conventional gas development in Nigeria that will supply AGPC with base gas and is operated by Shell Petroleum Development Company of Nigeria. The Gas Infrastructure Development Project is one of seven critical gas development projects planned by the Nigerian National Petroleum Corporation (“NNPC”) and the Ministry of Petroleum to fill the gap between supply and demand on the Nigerian domestic gas market.
The 300 MMscfd capacity ANOH plant, located at OML53 in Imo State, is being constructed by ANOH Gas Processing Company Ltd (“AGPC”), which is equally owned by Nigerian Gas Company Limited ( “NGCL”) and Seplat Energy Plc. Seplat is already one of the main suppliers of natural gas to the Nigerian electricity sector, supplying up to 30% of the Nigerian domestic network in 2021.
A leading player in Rwanda’s Omnihydro project
Last June, the Omnihydro hydroelectric power plant was inaugurated in Nyamagabe district, Rwanda. This project, implemented by Omnicane, a Mauritian company, and financed by MCB, the main bank of Mauritius, materialized within the framework of a special purpose company (SPV) incorporated in Rwanda and operating under the name of ‘Omnihydro Ltd. common power station with two different outlets, one on the Mushishito River and the other on the Rukarara River. This plant aims to reduce CO2 emissions by approximately 14,500 tonnes per year. The hydroelectric plant is expected to power the equivalent of 175,000 homes on average with clean energy. Small dams built on the Mushishito and Rukarara rivers protect communities from floods and droughts, while creating over 600 new jobs during project implementation.
How MCB can help you
To limit global warming and mitigate the worst impacts of climate change, MCB recognizes the need for countries around the world to transition to low-carbon economies. This is particularly important for Africa, as existing development challenges such as poverty, food insecurity and instability make it the continent most vulnerable to climate change. However, MCB also recognizes Africa’s complex energy needs and the challenge of balancing economic and social progress and energy access with climate goals.
Africa has the lowest energy access rate in the world – an estimated 600 million people lack access to electricity and over 930 million lack access to cooking fuels clean. Although there has been an increase in investment in the continent’s vast renewable energy potential, this is insufficient to meet the growing energy demand. To meet the continent’s growing electricity needs and help it achieve its renewable energy objectives, MCB can be a financial partner and arranger of choice.
Commenting on MCB’s strong involvement in these projects and its ambition to support the transition of African countries towards more renewable energy sources, Zaahir Sulliman, Head of Specialized Financing, MCB, said: “We are proud to contribute to the universal electrification of Ghana, Rwanda and Nigeria. and their respective goal of driving sustainable development goals of meeting universal energy demand, while maximizing production, minimizing costs and reducing emissions.”
Mr. Sulliman added: “MCB is aware of its responsibility in the face of the climate emergency and has already committed to stop financing new coal-fired power plants and to stop commercial financing of thermal and metallurgical coal. We believe LPG and natural gas financing will be part of MCB’s phased energy transition strategy, which builds on our previous commitment to halt all new financing for infrastructure and coal trading globally. Financing more sustainable energy projects is a first step in the right direction and we look forward to continuing to support our clients’ projects that promote the energy transition through responsible consumption and production with the aim of improving the level of life “.
Distributed by APO Group on behalf of The Mauritius Commercial Bank Ltd (MCB).
Download picture: https://bit.ly/3EVBY4a (Zaahir Sulliman, Head of Specialized Funding, MCB)