Shell Receives 10-Year License For Afam Plant

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Shell Receives 10-Year License For Afam Plant

The power generation license for Afam VI power plant has just be renewed by the Nigeria Electricity Regulatory Commission (NERC). The plant is a 650MW-capacity facility that has delivered over 24.16 million Megawatt-hour (MWh) of electricity into the Nigerian grid between inception in 2008 and 2016.

Shell’s Media Relations Manager, Bamidele Odugbesan confirmed this development in a statement yesterday.
Afam VI is owned by The Shell Petroleum Development Company Joint Venture (SPDC JV) and located in Okoloma in Oyigbo Local Government area of Rivers State.

Presenting the renewed licence to the leadership of SPDC at the Commission’s office in Abuja yesterday, NERC’s Commissioner, Legal, Licensing and Compliance, Mr. Dafe Akpeneye, described SPDC JV as a committed partner in the Nigerian power sector adding that the company’s belief in the sector and its resolve to help it develop were remarkable.

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“We hope for greater efficiency and improved operations from Afam VI in the next 10-year phase of your operations just as we look forward to working together to resolve some of the challenging issues in the power sector,” he said.

Receiving the license, the General Manager, Gas of SPDC, Dr. Philip Mshelbila, described the Afam VI as a model worthy of emulation by the government and other players in the power sector.

He lamented the challenges of debt, power evacuation and off-take which he said prevented the plant from delivering optimally at 15 percent of the total national grid-connected electricity.

Afam VI uses combined cycle gas turbine technology that burns 40 percent less gas than plants using older open cycle technologies. Built with the most efficient technology in the industry and utilizing waste heat energy from the gas turbine exhaust, the plant generates an additional 200MW from the steam turbine without consuming any additional gas, thereby considerably reducing its carbon footprint.

The operations at Afam VI have generated subcontract opportunities and employment for over 150 staff from the 16 host communities. It also provided hands-on and offshore training for 15 youths in Electrical, Mechanical and Instrumentation engineering on Combined Cycle Power Plant operations and maintenance. All the trainees are already employed in the Nigerian power industry. Arrangements have been concluded for the training of another 15 community youths.

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