Aggreko, a world-leading provider of energy services, has been appointed preferred power supply contractor for 12MW HFO power plant at Colluli, Eritrea.
The appointing firm, Colluli Mining Share Company (CMSC), has entrusted Aggreko with the provision of full scope support services for the supply, commissioning, and maintenance of the power plant, which it will transfer to CMSC, under 5-year Buy Own Operate Transfer (BOOT) contract.
Aggreko will provide the funding for the power solution which provides certainty over delivery of this preferred solution.
According to CMSC, the agreement is a BOOT contract, as the equipment is available now and does not need to be built, and de-risks the development schedule. The equipment can therefore be mobilized at short notice as required during the development of the project. The costs of the power solution provided by Aggreko over the 5-year contract period is lower than the FEED study results.
Aggreko is funding the capex required for the power plant and all equipment will be transferred to CMSC at no extra cost at the end of the contract period. This power solution is scalable and can increase/decrease according to CMSC’s needs.
CMSC is a Joint Venture between Danakali Limited and the Eritrean National Mining Corporation (ENAMCO). Danakali Limited is focused on the development of the Colluli Potash Project located in the Danakil Depression region of Eritrea, East Africa.
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Niels Wage, CEO of Danakali, commented: “We are very pleased to announce the appointment of Aggreko as our single power provider. With 55 years of experience in delivering high-quality, reliable service to a large number of projects we are confident they have the capabilities to provide our power needs for Colluli. At the early stages of the project development, the HFO solution will provide us with flexibility and reliability, and as confirmed by SEIA, Colluli will have a relatively small impact on the environment. Going forward, once project development is in more of a steady state, we will look to diversify our energy sources towards renewables available in the Danakil region, as per our commitment to sustainable and environmentally friendly solutions”.
John Lewis, Managing Director, Africa -Aggreko commented: “We are delighted to have been chosen as the preferred power contractor to work with Danakali and its partners on the Colluli Project. Our extensive experience in Eritrea and knowledge of the local market means that we are ideally placed to provide a solution which meets the specific needs of Danakali and deliver a reliable power supply for this project.”
About Aggreko:
Aggreko (AGK-LSE), has nearly 60 years of experience in delivering complex power plant solutions to projects in challenging locations. They are world leading providers of mobile, modular, temperature control and energy services. Aggreko provides short-term hire and longer-term power solutions to a diversified customer base in mining, oil & gas, utilities, petrochemicals & refining. Operating in around 100 countries around the world, of which 35 are in the African continent, including providing off-grid power solution to a mining company in Eritrea since 2012.
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