Namibia Power Corporation (NamPower) has made significant strides in advancing its Biomass Power Project, awarding a N$2.3 billion Engineering, Procurement, and Construction (EPC) contract to Dongfang International Electrical Corporation, a Chinese firm.
The Biomass Power Project, aimed at bolstering Namibia’s renewable energy capacity, will feature two 20 MW grate-fired boilers, with the objective of generating 210-300 GWh of energy annually. This initiative, which is expected to take 30 months, is poised to address the nation’s energy needs sustainably, marking a crucial milestone in Namibia’s transition towards cleaner energy sources.
NamPower Managing Director, Kahenge Haulofu, said the project has garnered substantial financial backing from international and domestic partners.
“The French Development Agency has facilitated a loan of up to €100 million for the construction and bringing into operation of the power station. The Mitigation Action Facility is providing a grant of €25 million towards capital costs and capacity building of the local biomass value chain,” he added
Furthermore, the French Fund for Global Environment has allocated €3 million towards environmental research and extending project benefits to vulnerable communities, demonstrating a commitment to sustainability and social responsibility.
Haulofu emphasized the government’s support, with the Ministry of Finance and Public Enterprises contributing N$400 million towards the project. This collaborative effort underscores the importance of public-private partnerships in driving sustainable development initiatives.
The Otjikoto Biomass Power Project is not only a strategic energy venture but also a catalyst for economic growth and job creation. With a total project budget of N$2.64 billion approved by the NamPower Board, significant macroeconomic and microeconomic benefits are anticipated.
According to projections by NamPower, the project is expected to yield a net present value of N$16.1 billion, with tangible benefits accruing as the project progresses. Additionally, the initiative is forecasted to generate over 2500 jobs, both directly and indirectly, providing employment opportunities across various sectors of the economy.
Project Manager Tangeni Tshivute highlighted the significant impact on youth unemployment, with the project set to create approximately 1000 direct jobs in harvesting and induce a further 1500 through economic spin-offs. The construction phase alone is expected to generate around 300 jobs, with the potential for additional employment opportunities in ancillary industries.
The Biomass Power Project aligns with Namibia’s National Strategy on the Sustainable Management of Bush Resources, aiming to combat bush encroachment and promote savannah restoration through responsible bush thinning practices.
By sourcing biomass within a 100 km radius and adhering to Forest Stewardship Council (FSC) principles, the project ensures environmental sustainability while maximizing resource efficiency.
As NamPower forges ahead with the Biomass Power Project, Namibia stands poised to harness its renewable energy potential, bolstering economic resilience and environmental sustainability. With strong government support, international collaboration, and a commitment to inclusive growth, this initiative represents a paradigm shift towards a greener, more prosperous future for the nation.
