Clean energy companies Vara Energia Ltd and Canada-based HydroThermIA Inc, on Monday, presented a technical and commercial framework to the Federal Government aimed at unlocking Nigeria’s estimated $3 billion annual carbon finance potential.

The initiative was presented to the Federal Government during a high-level technical session in Abuja, where officials of the two companies met with the Mitigation Division of the Department of Climate Change at the Federal Ministry of Environment.

Speaking during the session, the CEO of Vara Energia Ltd, Mr Segun Aikulola, said the engagement established a commercial and technical framework for national industrial decarbonisation and green hydrogen production, in line with President Bola Tinubu‘s Renewed Hope Agenda and the National Carbon Market Framework.

He explained that in the framework, the companies will deploy containerised, co-located technologies designed for hard-to-abate sectors.

The system will capture flared gas at source and convert it into clean hydrogen and stable power, addressing persistent gas flaring challenges.

Aikulolasa said: “The development builds on the momentum of the National Green Growth Dialogue organised by the Nigerian Economic Summit Group (NESG) in collaboration with the Federal Ministry of Budget and Economic Planning, themed ‘From Commitments to Green Growth”.

“Under President Tinubu’s administration, the Federal Government has operationalised key climate governance structures, including the National Carbon Market Framework and the National Council on Climate Change (NCCC), with a new NDC 3.0 target of cutting emissions by 32 per cent by 2035 and achieving net-zero by 2060.”

In a statement, Aikulola said Vara Energia and HydroThermIA were positioning themselves as implementation partners to translate the country’s climate commitments into practical industrial and commercial outcomes.

Speaking on the commercial and environmental benefits of the initiative, the Executive Director, Commercial and Business Development of Vara Energia Ltd, Mr Ochonogor Uche Zoe, said the project could significantly reduce carbon emissions while creating alternative revenue streams for Nigeria.

He further emphasized that cultivating local technical integration and domestic manufacturing is vital to empower Nigerian engineers to lead the clean energy revolution.

Also speaking, the Assistant Director in the Department of Climate Change (Head of Mitigation Division), Dr Asmau Jibril, said the partnership is aligned with the presidential vision of 2035 National Frameworks of the Nigerian Economic Summit Group (NESG) and the National Green Growth Dialogue.

According to the partners, the innovation will significantly reduce operational costs for heavy industries and upstream operators by cutting dependence on expensive diesel and unreliable grid power.

The Deputy CEO of Vara Energia Ltd, Mr Victor Ntofon, maintained that the initiative is expected to drive foreign exchange inflows through verified carbon revenues, create thousands of high-value jobs, and unlock access to Green Climate Funds and international climate finance.

He said that beyond domestic needs, the project is projected to lay the foundation for Nigeria to emerge as a regional and global exporter of green hydrogen and ammonia.

The partners called on the Presidency, the NCCC, and the Federal Ministry of Environment to leverage the partnership as a cornerstone for national progress, while urging private sector players, including manufacturers and energy firms, to plug into the ecosystem to reduce costs and meet emerging carbon compliance requirements.

They reaffirmed their commitment to supporting the Federal Government’s industrial decarbonisation goals to deliver energy security, technological sovereignty, and long-term