Zambia is to set up its maiden Liquefied Petroleum Gas (LPG) power plant which will generate up to 100MW to be added to the national grid.
The power plant will be developed through a joint venture company between Tanzania’s Taifa Gas Limited and the Zambian consortium Delta Marimba Limited.
The US$100 million investment was announced simultaneously in Tanzania and Zambia by Taifa Group chairman, Mr. Rostam Aziz, and Delta Marimba’s representative, Mr. Padmore Muleya, respectively.
Mr. Muleya revealed that the power plant will be set up in northern Zambia, a strategic location from a gas logistics and supply perspective which also answers to the need for the geographical diversification of Zambia’s power generating assets.
“Zambia’s ambitious growth targets and the push for energy that is both competitively priced and environmentally conscious demand innovative solutions. This LPG-to-Power project fits this mold as it uses one of the cleanest thermal fuels available today, diversifies the country’s energy source mix, hence, contributing to de-risking our national energy portfolio and will open more opportunities for LPG-related power solutions,” Mr. Muleya stated.
LPG burns a lot cleaner than other thermal energy sources and releases much less carbon dioxide in comparison to diesel and coal, the other fuels for thermal power generation currently used in Zambia.
And Mr. Rostam Aziz credited Zambia’s favorable investment climate and the government’s policies for his company’s decision to invest in the Zambian power sector.
“Tanzania and Zambia share a profound historical connection, and there has never been a better opportunity to invest in Zambia. We are excited to contribute to Zambia’s energy landscape and foster closer ties between Tanzania and Zambia,” said Mr. Aziz.
This is the first major investment announced following Zambia’s US$6.3 billion debt restructuring agreement under the G20 Common Framework, an achievement hailed by both Mr. Aziz and Mr. Muleya as very progressive and a precursor of many large investments to flow into the Zambian economy like this one.
The 100MW LPG-to-Power project is expected to be executed and brought online within 24 months.
Taifa Gas is the largest LPG investor and infrastructure owner in Tanzania and East Africa.
It is involved in the entire LPG value chain from production to export. Its parent, the Taifa Group, has multi-million-dollar investments in power generation and other energy developments across East Africa and has also expressed interest to explore mining in Zambia, aside from energy.
Delta Marimba Limited is a consortium of Zambians that have come together to identify and participate in opportunities in the energy and resources sectors.
