Wärtsilä service agreement central to maintaining Nigerian cement plant’s production schedule
Wärtsilä Corporation, Press release, 7 May 2024 at 11:00 AM EEST
Technology group Wärtsilä has signed a ten-year Operations and Maintenance (O&M) Agreement for a captive power plant providing the energy for a Nigerian cement producing facility. The new cement plant is owned by Mangal Industries and is located in Kogi State, Nigeria. The order was booked by Wärtsilä in Q2, 2024.
The power plant is critical to the facility’s cement production since the site is remotely located with limited access to the electricity grid. It operates with five Wärtsilä 34DF dual-fuel engines delivering an output of 50 MW. The O&M agreement is designed to ensure that the facility can reliably maintain its cement production target of three million metric tons per year.
“We are reliant on the power plant for our operations. This is why we have opted to take advantage of Wärtsilä’s depth of experience and know-how to run and maintain the power plant. Not only will the agreement provide the assured reliability we need, but it also gives us cost predictability,” said Fahad Mangal, Managing Director, Mangal Industries Limited.
The ten-year agreement starts immediately as the facility commences operations in Q2, 2024, running on liquid fuel initially. The facility will switch to natural gas operation when the natural gas pipeline will be commissioned. The power plant’s dual-fuel engines can be operated both on liquid fuel and natural gas and could be converted to operate with future low- or zero-carbon fuels when they become available.
“Wärtsilä now has more than 400 MW of installed capacity for the cement industry in Nigeria, and we are operating three captive power plants in three different states. This successful track record clearly indicates our capabilities and highlights the added value we can deliver to our customers through our experience and expertise in supporting their operations,” comments Patrick Borstner, Director, Operations Africa at Wärtsilä Energy.
Nigeria has an increasing demand for cement for its many infrastructure projects, and there has been a domestic supply gap. With this new plant, Mangal will partly address this issue.
Media contact for more information on this release:
Katri Pehkonen
Communications Manager
Wärtsilä Energy
Mob: +358 50 591 6180
katri.pehkonen@wartsila.com
Image caption: Signature day, from left: Prashant Saudagar (Country agreement manager, WNG); Wale Yusuff (WNG MD); Fahad Mangal (Mangal Industries MD); Tomas Lorente (Mangal Industries Project Director) © Mangal Industries
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Wärtsilä Energy in brief
Wärtsilä Energy is at the forefront of the transition towards a 100% renewable energy future. We help our customers and the power sector to accelerate their decarbonisation journeys through our market-leading technologies and power system expertise. Our solutions include flexible engine power plants, energy storage and optimisation technology, and services for the whole lifecycle of our installations. Our engines are future-proof and can run on sustainable fuels. Our track record comprises 79 GW of power plant capacity, of which 18 GW are under service agreements, and over 125 energy storage systems, in 180 countries around the world.
www.wartsila.com/energy
Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve environmental and economic performance. Our dedicated and passionate team of 17,800 professionals in more than 280 locations in 79 countries shape the decarbonisation transformation of our industries across the globe. In 2023, Wärtsilä’s net sales totalled EUR 6.0 billion. Wärtsilä is listed on Nasdaq Helsinki.
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