Nigeria is set to host Africa’s largest gas-to-methanol plant, a groundbreaking project designed to significantly reduce CO2 emissions by converting flared natural gas into methanol, a key component in solvents, paints, plastics, and automotive parts.
Project Overview:
- Architect: Blackrose, a leading developer in Africa’s industrial sector.
- Constructor: Blackrose is overseeing the project in collaboration with Africa Finance Corporation (AFC) and International Finance Corporation (IFC), which are providing financial support.
- Start Date: Construction began in 2024.
- Completion Date: While a specific completion date is not provided, the project is expected to reach production milestones in phases.
- Cost: Financial details are not fully disclosed, but the involvement of AFC and IFC suggests significant investment.
- Location: The plant is located in Akwa Ibom, Nigeria, a region rich in natural gas resources.
Significance: The plant is projected to create over 2,500 jobs initially and up to 18,000 in the long term. It aims to reduce gas flaring and produce methanol for various industries, including pharmaceuticals, plastics, and automotive.
Nigeria holds the largest natural gas reserves in Africa, with over 95% of its 200 trillion cubic feet remaining untapped. This presents a tremendous opportunity for resource development and climate change mitigation. Historically, gas flaring has posed significant health risks due to the release of harmful chemicals.
Samaila Zubairu, President and CEO of AFC, stated, “This revolutionary project is transforming a major loss into a significant opportunity for Nigeria, positioning the country as a leader in low-carbon manufacturing and energy innovations.” He emphasized the partnership with Blackrose and IFC as a commitment to Africa’s shift towards net-zero emissions, industrialization, and socio-economic progress.
Project Phases: The project will unfold in two phases, each with a 1.0 MW installed capacity. In the first phase, the plant will produce low-carbon methanol, used in a wide range of products from pharmaceuticals to construction materials. This methanol will also serve as a lower-emission fuel for hard-to-abate sectors like shipping and industrial boilers.
The second phase will focus on converting methanol into ammonia, a crucial raw material for fertilizer production. By adopting efficient production methods and integrating carbon capture and offset technologies, the plant will minimize its carbon footprint and utilize gas that would otherwise be flared.