Nampower signs EPC contract for 40MW Otjikoto Biomass Project in Namibia

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  • The Otjikoto 40 MW Biomass Project is the first of its kind generation project in Namibia, which will see the development of a biomass power station near the Otjikoto substation in Tsumeb.
  • NamPower is the project’s Executing Agency, which is being funded by the French Development Agency, The Mitigation Action Facility, and the Government of Namibia.
  • The commercial operation date of the power station is set to be in 2026.

NamPower has kick-started the execution phase of the the 40 MW Otjikoto Biomass Power Station Project (OBPS), as the company signed the following contract agreements:

  • An Engineering, Procurement and Construction (EPC) Agreement with DongFang Electric International Corporation (DEC).
  • Long-Term Woodchip Supply Agreements with four suppliers.
  • The Financing Loan Agreement with The Agence Française de Développement (AfD) – who have facilitated a loan of up to 100 million EURO for the construction and bringing into operation of the power station.

The 40MW Otjikoto Biomass Power Station (OBPS) will contribute positively to the Namibian economy, allowing Namibia to generate base load electricity from its own indigenous resources sourced by local farmers and contractors. The power station will enable NamPower to cost-effectively provide baseload electricity, through operating 24 hours a day and will contribute to the expansion of power generation for the country.

In addition, the Project is an integral part of The National Strategy on the Sustainable Management of Bush Resources, which aims to combat bush encroachment and advocates for the restoration of savannahs through sustainable bush thinning practices. The project is guaranteed to make a lasting impact on the local farming and agricultural communities as Namibia is challenged by massive bush encroachment that affects over 26 million hectares of farmland, leading to billions of economic losses.

Author: Bryan Groenendaal


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