Nigeria’s Geregu Power Plc has recently entered in a partnership with Siemens Energy that shall foresee the Geregu 1 Power Plant Upgrade in the country. This information was revealed by the company’s notice to the Nigerian Exchange Limited seen by Nairametrics.
The partnership that was formalized through a Memorandum of Understanding (MOU) was signed in Germany Berlin on Wednesday May 29, 2024. This partnership aims to enhance sustainable, resilient, and even efficient generation of power. Additionally, it was also to assure the longevity of the assets to support the growth and sustainability of the Nigerian Electricity Supply Industry (NESI).
The statement released says:
“ Geregu Power Plc and Siemens have just signed a Memorandum of Understanding that will foresee the joint development of solutions for the expansion of capacity expansion of the Geregu power plant towards ensuring that there is sustainable, resilient, and also efficient generation of power.
“This initiative shall safeguard the longevity of assets that are aimed at both supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI).”
Moreover, there are also plans to set up combined operations that will foresee the generation of an additional 200MW of energy and construct brand new builds with lower emission turbines to add another 500MW, thereby creating the Geregu 3.With the implementation of all these three initiatives, the overall nameplate capacity of Geregu Power Plc will be increased to an impressive 1,200MW.
Geregu 1 Power Plant Upgrade to 500MW
According to the statement that was released, the discussions entail the proposed implementation of quite a number of solutions which range from upgrading the Geregu 1 Power Plant from its current capacity of 435MW to 500MW. Geregu Plc also plans to establish combined cycle operations that are set to foresee the generation of another 200MW.
Furthermore, they also have plans for new builds using lower emission turbines with an additional capacity of 500MW thereby bringing forth the birth of Geregu 3, bringing Geregu Power Plc’s overall nameplate capacity to the planned 1, 200 MW.
Significance of the Upgrade Works to Geregu Plc
According to Geregu Power Plc, these initiatives are aimed at increasing their overall power output, improve their efficiency, cut emissions, improve flexibility, increase the life span of the equipment and also maximize the shareholder value through increased earnings. According to a statement that was signed by the secretary of the company, Mr. Akinleye Olagbende, the Chairman Board of Directors of Geregu Power Plc, Mr. Femi Otedola led Geregu Power Plc while Mr. Dietmar Siersdorfer, who is the Managing Director of the Middle East and Africa led the Siemens Energy team.
The company closed the trading day on Friday, May 31, 2024, at N1,000.00 per share on the Nigerian Stock Exchange (NGX). Geregu Power Plc began the year with a share price of N399.00 and has since gained 151% on the price valuation.
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