From Uche UsimAbuja
AT deepening the penetration of liquefied natural gas (LNG) in West Africa, the African Export-Import Bank (Afreximbank) through its subsidiary, the Fund for African Export Development (FEDA), has announced on Thursday that it had invested in Ecow-Gas BV (Ecowgas), a special-purpose vehicle designed to achieve this goal.
The investment follows the realization that limited grid electricity supply has plunged Africa’s industrial sector into severe power shortages, leading to high production costs, inefficient operations and reduced global competitiveness, in a scathing development.
The regional bank thus believes that off-grid solutions were needed to address the above-mentioned challenges and put Africa firmly on the path to energy sustainability.
Commenting on the development, Chairman and Chairman of the Board of Afreximbank, Prof. Benedict Oramah said that
FEDA’s investment in Ecow-Gas, in partnership with a leading international oil company, will support the creation of the infrastructure to provide access to cheaper, cleaner fuels to the region’s underserved industrial customers using the LNG.
This, he explained, will also aid efforts to minimize carbon monoxide emissions by replacing environmentally polluting fuels currently in use.
“FEDA’s investment in Ecow-Gas demonstrates its mission to provide development capital to sectors critical to the growth and development of intra-African trade, export development and industrialization. Through this investment, FEDA seeks to unlock access to affordable and cleaner energy for industrialization purposes and to have a significant impact on intra-regional trade, particularly in the East Africa region. West,” Oramah said.
Emmanuel Assiak, Acting Managing Director of FEDA, added: “We are delighted to partner with experienced operators and investors on this critical opportunity to unlock the supply of cheaper and cleaner fuel in West Africa. Complementary skills and capabilities combined across the Ecow-Gas platform stakeholders will enable the Company to execute its growth plans.We believe that EcowGas will contribute to significantly removing energy supply bottlenecks and costs that negatively impact the region’s competitiveness as a manufacturing destination.
Kwaku Boakye-Adjei, CEO of H Investments and Ecow-Gas, said, “We are excited to begin this project as we see LNG not only as a fuel for large-scale independent power producers in the region, but also for medium to small industries. good for moving from heavy fuel oil, diesel and other distillates and ultimately to renewables. LNG-powered microgeneration can help alleviate issues such as intermittency that are a barrier to large-scale adoption of renewables in West Africa.