40 MW Otjikoto Biomass Power Station takes root:

Signing ceremony of key funding; Engineering, Procurement and Construction (EPC) contract; and woodchip supply contracts

AUTHOR: Silpa Kanghono Coordinator:DigitalMarketingandEvents@RDJPublishing

Courtesy:RDJConsulting

The move for Biomass as a part of the Namibian energy mix took root on April 25, 2024, when NamPower hosted a signing ceremony for the key funding, Engineering, Procurement, and Construction (EPC) contract, and woodchip fuel supply contracts for the 40 MW Otjikoto Biomass Power Station. This event marked the official commencement of the execution phase for the Otjikoto Biomass Power Station Project (OBPS).

The OBPS project represents a significant stride towards NamPower's goal of sustainably and cost-effectively providing baseload electricity while expanding the country's power generation capacity As a game-changer in Namibia's energy sector, this transformative initiative is set to enhance energy security and pave the way for a sustainable future.

The 40 MW Otjikoto Biomass Power Station (OBPS) and several other generation and transmission capital projects, currently at various stages of implementation, have emerged from NamPower’s the 2019/2020 – 2024/2025 Integrated Strategic Business Plan (ISBP). The ISBP aligns with the Ministry of Mines and Energy's (MME) determination on new generation capacities

This project is of great national importance, contributing towards the government's goals, including the 5th National Development Plan (NDP5) and the current National Integrated Resources Plan (NIRP), by ensuring security of supply, cost-efficiency, and self-sufficiency. It will also support the renewable energy commitments outlined in the Renewable Energy Policy and National Energy Policy as well climate commitments

The French Development Agency (AFD) in support of the project objectives has facilitated a loan of EURO 100 million for construction and operationalization of the power station Additionally, the Mitigation Action Facility is providing a grant of EURO 25 million towards the capital costs of the power station and for capacity building within the local biomass value chain The French Fund for Global Environment is contributing EURO 3 million for environmental research and extending the project's benefits to vulnerable communities. The Namibian Government, through the Ministry of Finance and Public Enterprises, has made a significant contribution of 400 million Namibian dollars

In conclusion, the Otjikoto Biomass Power Station will play a crucial role in reducing greenhouse gas emissions by displacing higher-emission electricity imports and enabling the integration of more renewable energy sources This will reduce the reliance on heavy fuelled peaking plants and imports during peak times Furthermore, the project will have a lasting impact on local farming and agricultural communities by addressing the massive bush encroachment issue that affects over 26 million hectares of farmland in Namibia, resulting in billions of economic losses.