The Federal Government has backed an initiative aimed at reducing gas flaring in the Niger Delta by converting wasted flare gas into electricity for homes, businesses and other critical users in the region.

The initiative, being developed by clean-energy company Energy Ventures B.V., is expected to generate electricity for about 80,000 homes and business connections, potentially serving roughly half a million people in the Niger Delta.

The project is being implemented at the Agbada-2 oil field under a partnership involving Energy Ventures B.V. and Heirs Energies Limited, operator of OML 17 in a joint venture with the Nigerian National Petroleum Company Limited (NNPCL).

Heirs Energies invited Energy Ventures to deploy its FlareOut® technology in Nigeria, provided the Agbada-2 site for the pilot project and will supply the flare gas required to generate electricity under a gas sale agreement with Africa Global Trading Company (AGTC).

The Federal Government’s support for the project was disclosed during a media briefing in Abuja attended by the Chief Executive Officer of Energy Ventures B.V., Herbert Okibe; Chief Financial Officer, Govert Rietema; and Chief Commercial Officer, Yvonne Te Wierik-Chioke.

Okibe said the company had engaged officials of the Bureau of Public Enterprises and the Ministry of Power, adding that the government agencies welcomed the project and indicated their willingness to support its implementation.

He said the project aligned with efforts to tackle the environmental consequences of gas flaring while increasing electricity supply to communities in the Niger Delta.

According to him, the Agbada pilot would deploy modularised FlareOut units designed by FB Group in the Netherlands to convert flare gas that would otherwise be wasted into electricity.

“The project will utilise modularised ‘FlareOut’ units designed by FB Group in the Netherlands. These units will be digitally connected to allow Original Equipment Manufacturers to perform remote diagnostics and root cause analysis on gas engines,” Okibe said.

He said the initiative could help address the environmental impact of more than six decades of gas flaring in the Niger Delta by putting the wasted gas to productive use.

The company said the pilot could also provide a model for expanding the technology to more than 100 other flare sites across Nigeria, potentially helping the country reduce gas flaring while increasing access to electricity.

Te Wierik-Chioke said access to reliable energy was critical to economic development, business growth and improved living standards, while stressing that the project would also contribute to reducing pollution associated with gas flaring.

“Once you are able to have access to clean, reliable energy, it means that you can build and grow your business. You can plan better by simply having access to electricity,” she said.

She added that successful implementation of the Agbada project could pave the way for similar interventions at other flare sites across the country.

The company said the project would initially target approximately 80,000 households and business connections within its immediate coverage area.

Okibe, however, acknowledged that the initiative would not by itself eliminate Nigeria’s power deficit but said it could improve electricity access for local businesses, schools and hospitals in the Niger Delta.

He also said the company had engaged community leaders, youths and local government chairmen as part of efforts to secure local support for the project.

According to him, local electricity committees would be involved in the operational process, while security measures, including fencing and security personnel supported by Nigerian authorities, would be deployed to protect the infrastructure.

Okibe said discussions with government stakeholders had also opened opportunities for collaboration on metering and electricity distribution.

He explained that the company had discussed its plans with relevant government authorities, adding that officials had provided suggestions on areas where further engagement was required.

“For example, with the electricity metering system we’re trying to put in place, they could link us to the Presidential Metering Initiative,” he said.

The Energy Ventures CEO said the project could have benefits beyond the communities directly connected to the initiative.

He explained that by generating electricity close to customers in the Niger Delta, the project could potentially reduce pressure on electricity supplies elsewhere in the country.

“The benefit for Nigeria as a whole is, of course, that when one takes away the customers in the Niger Delta, whatever is left of the power supply in Nigeria can be better distributed to the rest of the country,” he said.

The initiative therefore combines two objectives of the Federal Government’s energy policy: reducing the environmental impact of gas flaring and increasing electricity generation by putting previously wasted gas to productive use.

With the Agbada-2 project serving as a pilot, the company said successful implementation could provide a pathway for deploying the technology at additional flare sites across Nigeria.