GE says that the deal will help to solve the country’s energy distribution challenges and encourage growth in the emerging industrial sector.
The project represents the first sale of GE’s new 616 diesel engine globally, which will deliver higher fuel efficiency and extended service intervals when compared with many other diesel engines.
The announcement was made by Clarke Energy at this year’s East African Power Industry Convention in Nairobi, Kenya.
Paul Gbededo, chief executive officer, Flour Mills of Nigeria, plc, said: “As Nigeria continues to grow its industrial might in the global economy, we have opted to invest in GE’s new 616 diesel engines to deliver higher fuel efficiency at our sites in Lagos and Kano.
“We have been working with Clarke Energy since 2005, and we are confident in its ability to support us in the engineering installation and maintenance of the units”.
The Flour Mills project will include five of GE’s 616 units, delivering up to 12.5 megawatts (MW) of electrical power or enough to power 33,000 Nigerian homes.
Two of the units will be used at the Kano facility in northern Nigeria, where natural gas access is limited and older, less-efficient diesel units have been used in order to maintain power for production. The new GE engines will deliver 5 MW of baseload electrical power, with an expected capital payback in less than 12 months on diesel fuel cost savings alone.
The other three GE engines will be at Flour Mills’ facility in Apapa, Lagos, the same city in which Clarke Energy opened its first sub-Saharan Africa site nearly a decade ago. This site already features 11 of GE’s J620 gas engines, and the diesel units will provide backup power generation capacity in the event of maintenance on the site’s existing power generation equipment or in the event of a gas supply failure.
Alan Fletcher, main board director of Clarke Energy said: “The sale of these engines to our valued long-term customer Flour Mills of Nigeria demonstrates the significant benefits of reduced fuel consumption and extended maintenance intervals from GE’s new 616 diesel platform”.
Clarke Energy has had a long history in sub-Saharan Africa. Its first office opened in 2005 in Apapa, Lagos, and over 250 MW of gas-fueled power plants have since been installed to meet expansion of Nigeria’s domestic gas supplies.
Since inception, Clarke Energy’s Nigerian operations have expanded and moved to Ikeja GRA, opening a new branch office in Port Harcourt in 2012.
Cory Nelson, general manager diesel engines of GE’s Distributed Power business, said: “Our new 616 diesel engine is the first high-speed model for power generation, allowing us to serve customers with a wider reciprocating engine portfolio.
“We are honoured by the trust Flour Mills of Nigeria has extended to Clarke Energy and GE as collaborators in providing power generation for their growth.
“Flour Mills will benefit from the 616, which couples medium-speed engine fuel economy with the lower costs of high-speed engines and helps customers improve their total life cycle costs.
GE Power & Water’s Distributed Power business is a leading provider of power equipment, engines and services, focused on power generation at or near the point of use.
Distributed Power’s product portfolio includes GE’s aeroderivative gas turbines and reciprocating engines, which generate 100 kilowatts to 100 MW of power for numerous industries globally. Headquartered in Cincinnati, Ohio, Distributed Power employs about 5,000 people around the world.
Clarke Energy is a leader in the engineering design, installation and long-term maintenance of gas engine-based power plants. The company is the authorised distributor and service provider for GE’s Jenbacher gas engines in 16 countries.
Clarke Energy employs over 1000 staff and has over 4,000 MW of Jenbacher generation equipment installed in its operational areas. Its UK headquarters is in Knowsley on Merseyside.