Afc Supports Nigeria’S Methanol Plant To Utilize Flared Gas And Drive Transformation.

Africa Finance Corporation (AFC), the leading infrastructure solutions provider on the African continent, is currently organizing a project development facility to support the construction of Africa’s largest gas-to-methanol plant. The primary objective of the project is to significantly reduce CO2 emissions by transforming flared natural gas into valuable chemicals for various industries such as solvents, paints, plastics, and car parts.

Located in Akwa Ibom, Nigeria, the project aims to produce 1.8 million tonnes per annum (MTPA) of methanol, thereby diversifying the local economy and creating over 18,000 job opportunities. AFC has committed to providing development stage financing to mitigate risks associated with the project and ensure its successful completion. Additionally, AFC will offer financial advisory services to assist the sponsors in raising the necessary project financing.

The project is a collaboration between Blackrose, a project development and investment firm, and the International Finance Corporation (IFC), the private sector arm of the World Bank Group. AFC, Blackrose, and IFC will co-finance the project. Nigeria is home to the largest natural gas reserves in Africa, with approximately 200 cubic feet of unexploited reserves. This presents a significant opportunity for the country to enhance its natural resource beneficiation and improve climate resilience.

Gas flaring has been a major environmental and health hazard in Nigeria since the beginning of oil production. The released chemicals from flaring have been linked to respiratory and other health issues for local communities. The gas-to-methanol plant project will not only address this issue but also position Nigeria as a global leader in low-carbon manufacturing and energy systems.

“This innovative project is transforming what was once a major negative impact on Nigerians into a significant positive outcome by harnessing the country’s abundant gas reserves. It offers a unique opportunity for Nigeria to become a leader in low-carbon manufacturing and energy systems,” said Samaila Zubairu, President and CEO of AFC.