Federal government has assured Nigerians and would-be investors in the power sector of its commitment to the coal to power initiative.
Minister of Power, Prof. Chinedu Nebo,who received the ETA Zuma Group in audience in Abuja, said the initiative wasaimed at utilizing the abundant coal reserves that spread across 9 states of the country.
He said there seemed confusion over the quantum of coal and gas resources available in Nigeria, as people sometimes argue as to which of these resources Nigeria was most endowed with.
He said Nigeria must pursue its energy mix strategy now to guarantee its security, as it stands, at least 30% of its requirement should be provided by coal, while also using the opportunity to call on investors to cash in and to take advantage of the gap.
He expressed satisfaction with the “giant strides” recorded by ETA Zuma Energy Group (EZEG), an indigenous company.
He also said he was happy with the quality of exploration data provided by the company, saying pointed to the company’s level of seriousness.
He said the 380m tonnes of high grade coal available for exploration had shown that Zuma had enough proven reserves to service power plants for a minimum of 30 years.
He assured the company of a ready market for all the coal that could be mined as coal can equally be used for domestic purposes
He therefore, called on other investors desirous of investing in coal-to-power not to hesitate as this was the time to invest for bumper harvest tomorrow.
Chairman of the group, Dr. Innocent Ezuma, assured Nigerians that the first phase of the project would attract investment of $3 billion.
He said his plant would use clean coal technology known as Circulating Fluidised Bed Technology (CFB), which meets World Bank requirement, as it had permissible emission level.
He said financing his project had reached advanced stage, saying construction would last between three to four years when it kicks off in the 4th quarter of 2014.
He said the company which is located in Itobe – Kogistate, was currently developing 1,200mw installed capacity with plans to expand to 3,000mw and has reserves that can last for a period of 30 years.
He assured that when the plan was fully operational, it would provide employment for over 10,000 Nigerians.
