Evtec Energy has signed a partnership with MICT for a $150 million investment in Nigeria. Under the agreement, Evtec will build a 110 MWp solar photovoltaic plant to power a factory of Tingo Foods, MICT's subsidiary in Nigeria.
Evtec Energy will invest in Nigeria. The project manager has signed an agreement with financial technology group MICT to build a 110 MWp solar PV plant. The plant will provide clean energy to a factory being built in Delta State in southern Nigeria. The plant of MICT’s subsidiary Tingo Foods is under construction in the village of Ishiekpe in Onicha Ugbo Aniocha North Local Government Area.
Work has been ongoing since the beginning of January 2023 and is expected to last between 18 and 24 months. Initiated in the wake of the establishment of the African Continental Free Trade Area (AfCFTA), the plant which will require an investment of US$1.6 billion is expected to process several commodities including rice, tea, coffee, chocolate, biscuits, edible oil, cashew milk, millet-based cereals, beer, mineral water, soft drinks, pasta and noodles.
A solution to load shedding
According to Dozy Mmobuosi, the director of Tingo Foods, his factory will also serve as a “platform for the development and distribution of new products in the future”. By opting for solar energy, Tingo wants to minimise the environmental footprint of its factory while securing its electricity supply in a Nigerian context marked by the resurgence of load shedding.
“In addition to the significant environmental benefits of using on-site renewable energy to power what is expected to be the largest food processing plant in Africa, we will achieve significant savings in energy costs, improving the overall margins and profitability of this extremely exciting and potentially large business within our group,” says Darren Mercer, MICT’s group chief executive officer.
Evtec’s financial partners
Following the partnership agreement, Tingo is expected to sign a power purchase agreement (PPA) with Evtec Energy. The David Roberts-led company will invest $150 million. “I am delighted that we have been able to call on the leading clean energy expertise of TAE Power Solutions to help us deliver the optimal technology for the plant,” said Evtec Energy’s president after signing the partnership with Tengo.
Evtec Energy is expected to receive financial support for the project from Credit Suisse, the US bank JPMorgan Chase and Roth Capital Partners, an investment bank based in California, USA.
Jean Marie Takouleu