Namibia has secured over $100 million (€92.1 million) to support the construction of a 40MW biomass plant. NamPower finalized several key agreements on May 24, including a loan agreement, an engineering, procurement, and construction (EPC) contract, and woodchip fuel supply contracts, marking the official start of the Otjikoto Biomass Power Station Project (OBPS) execution phase.
The French Development Agency is providing a loan of up to €100 million for the construction and operationalization of the power station. Additionally, the Mitigation Action Facility is contributing a €25 million grant towards the capital costs of the power station and the development of the local biomass value chain. The French Fund for Global Environment is also contributing €3 million for environmental research and extending project benefits to vulnerable communities.
“Once commissioned, the station will facilitate, support, and preserve power quality in the electricity grid by providing ancillary services such as synchronizing torque, grid inertia, and reactive power control,” said NamPower managing director Simson Haulofu. “This will strengthen the grid to allow further integration of intermittent renewable energy sources such as solar and wind.”