FuelCell Energy, Inc. (Nasdaq: FCEL) and Oando Clean Energy Limited (OCEL) have joined forces in a promising partnership set to catalyse Nigeria’s energy sector.
The memorandum of understanding (MOU) signed between the two entities paves the way for the development of a 5 to 15-Megawatt (MW) power plant, marking a significant step toward sustainable energy solutions in Nigeria.
One of the standout features of this collaboration is FuelCell Energy‘s state-of-the-art fuel cell and electrolyzer technology. Unlike traditional power generation, these platforms can produce power while simultaneously capturing carbon dioxide, making them an environmentally responsible choice for Nigeria’s evolving energy landscape.
Nigeria, like many African nations, faces challenges in its energy sector. Currently, the country heavily relies on generators for power generation at both the local and commercial levels. Fossil fuel generators, such as diesel and gasoline-powered ones, are ubiquitous in Nigeria, contributing to noise pollution, particulate pollutants, and substantial greenhouse gas emissions.
Moreover, approximately 43% of Nigeria’s population, roughly 85 million people, still lack access to the national grid. This deficiency in power infrastructure has hampered the nation’s development and industrialization.
Read also: Oando (OCEL) receives first electric mass transit buses for Lagos
Renewable Energy Master Plan and Climate Change Commitment
The Nigerian Federal Government’s Renewable Energy Master Plan aims to bolster the share of renewable electricity in the country’s total electricity generation. The goal is to increase this share from 13% in 2015 to 23% in 2025 and a remarkable 30% by 2030. Nigeria has also taken significant steps towards addressing climate change, passing the Climate Change Act in 2021. This legislation commits the country to lower greenhouse gas emissions and achieve net-zero emissions by 2060.
Jason Few, CEO and President of FuelCell Energy, commented: “The opportunity to bring our technology to Nigeria is a critical moment for FuelCell Energy. Nigeria has an abundance of renewable energy sources that can be harnessed with the power of fuel cell technology. We are proud to have the opportunity to collaborate with OCEL to deliver stable electricity supply, better grid reliability, and security while contributing to Nigeria’s goal of net-zero emissions by 2060.”
Oando Clean Energy Limited (OCEL), the renewable energy subsidiary of Oando Energy Resources (OER), shares a vision for sustainable energy in Nigeria. Adewale Tinubu, Chairman of OCEL, emphasised the significance of this partnership in advancing the nation’s industrialization through increased access to power. This collaboration aligns with OCEL’s broader strategy of building a clean energy ecosystem while supporting the Federal Government’s vision of net-zero emissions by 2060.
Unlocking Investment Opportunities
The MOU signing occurred during a roadshow organised by the U.S. Agency for International Development (USAID) Mission in Nigeria, U.S. Government Prosper Africa, and Power Africa initiatives. This initiative aimed to expose U.S. investors to investment opportunities and the ecosystem in Nigeria.
Prominent figures from U.S. pension funds and financial service providers, managing over $1 trillion in assets, attended the MOU signing. These included Daniel Miller, Deputy Executive Director, New York City Board of Education Retirement System, and Kola Aina, Senior Vice President, Strategy and Operations North America, MasterCard.
This collaboration between FuelCell Energy and Oando Clean Energy signifies a significant leap toward transforming Nigeria’s energy landscape. As Nigeria’s energy sector aligns with global sustainability goals, partnerships like these are pivotal in harnessing Africa’s renewable energy potential. The innovative fuel cell and electrolyzer technology is set to empower Nigeria with reliable, low-carbon energy, moving the nation closer to a sustainable and cleaner future.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL) is a global leader in sustainable clean energy technologies that tackle critical challenges around energy, safety, and urbanisation. The company holds over 450 fuel cell technology patents globally, offering sustainable products and solutions for businesses, utilities, governments, and municipalities.
About Oando Clean Energy Limited
Headquartered in Lagos, Nigeria, Oando Clean Energy Limited (OCEL) is the renewable energy subsidiary of Oando Energy Resources. OCEL is committed to investing in climate-friendly and bankable energy solutions across Africa, leveraging green and renewable sources to meet the continent’s energy demand. With a focus on various sustainable energy solutions, including solar energy, gas and biofuels, and more, OCEL seeks to contribute to a carbon-neutral Africa.