Aksa Energy Commences Development of Saint Louis Gas Power Plant
Turkish company Aksa Energy has commenced the development of a 255MW combined cycle gas-powered plant and pipeline in Saint Louis, Senegal. The $475m project was awarded to NDAR Energies SA, a subsidiary of Aksa Global Investments BV (one of the group companies of Aksa Energy) last February. The plant is also located near Phase I of the Greater Tortue Ahmeyim (GTA) LNG project currently being developed.
Following the award, the African Export-Import Bank (Afreximbank) and NDAR signed a Framework Agreement to finance the development, design, construction and operation of the power plant and pipeline. According to the bank, it will serve as the lead project developer and mandated lead arranger to take the lead in the provision of project preparatory services and in syndicating the debt raise.
Aksar expects the plan to begin commercial operations by 2026. When completed, it will be Senegal’s first plant using natural gas produced in Senegal to generate power. NDAR Energies SA has signed a 25-year power purchase agreement with Senelec, the state utility company.
Cemil Kazancı, CEO of Aksa Energy, in a company statement, noted that Africa is an important part of the company's "Sustainable High Growth" and "Globalization" strategy. Aksa is one of Turkey's largest global electricity producers with an expanding footprint in Africa. The company already has an installed capacity of over 570MW of heavy oil and gas across 4 African countries, Congo, Ghana, Mali and Madagascar.
Senegal’s push for energy diversification
According to Power Africa, Senegal has a total installed generation capacity of 1,555MW and an electricity access rate of 69%. The majority of this capacity is provided by fossil fuels, mainly oil and gas.
In recent years, the country has adopted a policy to diversify its energy mix and increase clean energy’s contribution to its installed capacity to 40% of the total electricity mix by 2030. This has resulted in significant support for large-scale clean energy projects. In 2021 the largest wind plant in West Africa, the 158.7MW Taiba N'Diaye Wind Power Station was commissioned.
Senegal last year achieved its unconditional Nationally Determined Contributions (NDCs) targets – with installed capacities of 235MW of solar, 150MW of wind, and 314 MW of hydroelectricity – under the Paris Agreement. Last June, Senegal agreed to increase its conditional targets to 335MW of solar, 250MW of wind, 50MW biomass, and 50MW Concentrated Solar Power capacities following an agreement with the International Partner's Group (IPG) for the mobilization of €2.5bn for clean energy projects.
Image Source: Aksa Madagascar
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