APM Terminals' West Africa Container Terminal (WACT) has entered into a significant Power Purchase Agreement (PPA) with Starsight Energy, a leading clean energy provider across Africa, to install a 1.2 Gigawatt hour (GWh) solar power system at its site in Onne Port, Rivers State.
Nigeria's Role in the Global Decarbonization Strategy
WACT stated that the collaboration represents a major advancement in the company's goal of achieving net zero emissions. Through the PPA, Starsight Energy will provide WACT with 1.2GWh of solar-generated green energy over 15 years.
According to Leadership, this sustainable energy will account for roughly 30 percent of the total terminal consumption, underscoring its dedication to spearheading the transition to renewable energy in Eastern ports. This effort aligns with APM Terminals' broader strategy of reducing carbon emissions across its operations worldwide.
During the signing of the Power Purchase Agreement (PPA), Jeethu Jose, the Managing Director of WACT, expressed his passion for decarbonization and green energy. He reflected on the journey, acknowledging doubts in reaching this point but emphasizing Nigeria's pivotal role in the global industry's decarbonization strategy. Jose highlighted the significance of the moment, marking it as a milestone in WACT's history that everyone present can take pride in.
"Decarbonisation and renewable energy are subjects close to my heart. When we first brought up this subject a year or two ago, I wasn't entirely certain that we would go this far.” Jeethu noted. “Nigeria is a major player in the group's plan to decarbonise the global sector, and for all of us in this room, including myself, this is a significant first step in that direction. We should all be proud of the moment we document in WACT's history today.”
WACT’s Role in the Solar Project
Adding to the discussion, Ladi Sanni, the managing director of Starsight Energy, emphasized that the partnership aligns with the company's goal of establishing enduring connections and aiding international brands like APM Terminals’ WACT in broadening their energy sources through the utilization of clean, renewable energy, notably solar power.
He remarked that the Power Purchase Agreement (PPA) serves as evidence of WACT's progressive energy management and commitment to environmental responsibility.
“The installation of a 1092kWp solar-only system will be carried out through the use of a Power Purchase Agreement (PPA). Throughout the contract, the project will significantly lower WACT's carbon footprint and CO2 emissions by about 15 million kg. Additionally, this project supports the larger goals of switching from carbon-intensive fossil fuels to greener energy, which benefits the Nigerian energy industry as a whole,” said Sanni.
The West Africa Container Terminal (WACT), a subsidiary of APM Terminals, stands as Nigeria's inaugural greenfield container terminal constructed through a Public-Private Partnership (PPP) model. Situated within the Oil and Gas Free Zone at Onne Port, Rivers State, the terminal has evolved into the premier conduit to markets beyond West Nigeria and serves as a crucial access point to East Nigeria.
Overcoming the Challenges to Solar Investment in Nigeria
Similar to numerous other nations, Nigeria is progressively adopting solar energy as an environmentally friendly and economically viable remedy for its energy shortages. In its endeavour to broaden its energy portfolio and diminish reliance on conventional fossil fuels, solar power presents itself as a hopeful substitute.
Addressing solar investment challenges in Nigeria necessitates collaborative efforts from the government, private sector, and international stakeholders. Clear regulatory frameworks, resolution of land acquisition issues, investment in training programs, innovative financing mechanisms, and grid infrastructure upgrades are essential steps to unleash solar energy's potential.
Overcoming these hurdles will not only foster sustainable energy development but also establish Nigeria as a trailblazer in the renewable energy sector across Africa. Maximizing solar investment value in Nigeria entails strategic planning, utilization of quality equipment, efficient energy usage, and community engagement.
These approaches not only contribute to a sustainable energy future but also ensure long-term economic and environmental benefits from solar investments.