Africa Oil Week (AOW): Investing In African Energy Blog
AFRICA faces a substantial infrastructure challenge. According to the African Development Bank, the continent needs to allocate $130bn to $170bn annually to bridge its infrastructure deficit, while grappling with a financing shortfall ranging from $68bn to $108bn.
This impedes both its economic and social progress, on the back of a persisting energy deficit.
Most African countries are raising capital and attracting investments tackle this challenge by launching ambitious projects in energy, transport, and industry.
Here are our top 10 picks for 2024:
- Mphanda Nkuwa hydropower project, Mozambique
In Southern Africa, Mozambique will continue to progress its new 1 500MW dam on the Zambezi river, 60 km downstream of the existing Cahora Bassa dam. The $5 billion project has been in the works since 1998 received a big boost last year following the signing of the joint development agreement between EDF (40%), TotalEnergies (30%) and Sumitomo Corporation (30%).
- Mauritania-Mali transmission line
To increase regional electricity trade, West Africa is working towards a $900 million project to build a 1 373km high-voltage power line between Mauritania and Mali, with a capacity of 600MW. It also includes a 50MW solar plant in Kiffa, Mauritania, and the connection of 100 000 new households to the grid.
The project is part of a regional initiative to harness solar energy in the Sahel. It will also create a link in a planned power corridor that will connect Mauritania to Chad, passing through Burkina Faso, Niger and Mali.
Last December, the governments of both countries launched a call for bids on the project.
- Nigeria-Morocco gas pipeline
To further regional integration across West Africa, NNPC Ltd of Nigeria and ONHYM of Morocco continue to make progress on the future 5 600 km pipeline that will carry natural gas from Nigeria’s Niger Delta to Morocco and Europe, passing through 13 African countries along the Atlantic coast. It was announced in 2016 and is expected to cost $25 billion. It will have a capacity of 10 billion cubic metres a year and could cost as much as $25 billion.
- Lake Albert refinery, Uganda
Uganda’s future 60 000-barrel-a-day oil refinery in Hoima district needs a final investment decision (FID) this year if it wants to be ready on time to process domestic oil from its western region.
The $4 billon refinery is part of Uganda’s vision to develop its oil and gas sector, which also includes the EACOP pipeline to export oil to Tanzania. It will produce refined products such as petrol, diesel, kerosene, jet fuel and liquefied petroleum gas for the domestic and regional markets – making it the only operational refinery in East Africa.
- Namibia green hydrogen project
Namibia wants to establish its leadership over Africa’s future hydrogen market with a $9,4 billion project to produce green hydrogen from renewable sources, such as solar and wind, in the Tsau Khaeb national park, near the coastal town of Luderitz. It will cover an area of 4 000km² and have a capacity of 300 000 tons of green hydrogen a year.
The project is part of Namibia’s strategy to become a green hydrogen superpower and a leader in the global energy transition.
- Redstone concentrated solar power project, South Africa
The 100MW concentrated solar power (CSP) plant being built in the Humansrus solar park could finally be commissioned in 2024. It is part of the Renewable Energy Independent Power Producer Procurement Programme and will use ThermaVault technology, which combines solar thermal technology with molten salt energy storage, to provide reliable and dispatchable power even after sunset.
- East African Crude Oil Pipeline Project (EACOP)
The 1 443 km pipeline that will transport crude oil from Uganda’s Lake Albert oil fields to the port of Tanga in Tanzania is generating much controversy but is critical to Uganda’s natural resources development plan. It was announced in 2013 and is expected to cost $5 billion, with a capacity of 216 000 barrels a day.
- Julius Nyerere hydropower project, Tanzania
With a capacity of 2 115MW, the future Rufiji hydropower plant will be one of Africa’s biggest hydroelectric dam once commissioned this year.
The plant is part of Tanzania’s ambition to increase its power generation capacity and increase its electricity supply domestically and regionally. It will notably support the development of industries and irrigation schemes in the country.
- Richards Bay LNG terminal, South Africa
To decarbonise its power and industrial sector, South Africa is planning a liquefied natural gas (LNG) import terminal in the port of Richards Bay, in the KwaZulu-Natal province. The multimillion-dollar facility is expected to have an annual capacity of 1 million metric tonnes of LNG, with the potential for expansion to 5 million metric tonnes by 2036.
- Noor Midelt solar complex, Morocco
Already a leader in solar energy in Africa, Morocco is progressing a landmark and hybrid solar power plant that combines concentrated solar power (CSP) and photovoltaic (PV) technologies, in the Midelt province of Morocco. It is expected to cost $2,4 billion and have a capacity of 800MW.
