By Edson Baraukwa | Africa Guardian
Africa Finance Corporation (AFC) is spearheading a major initiative to support the development of Africa’s largest gas-to-methanol plant in Akwa Ibom, Nigeria. This project aims to significantly cut CO2 emissions by converting flared natural gas into valuable methanol, used in solvents, paints, plastics, and automotive parts.
The plant will initially produce 1.8 million tonnes per annum (MTPA) of methanol, creating over 18,000 jobs and diversifying the local economy. AFC is providing development stage financing and financial advisory services to de-risk the project and help secure the necessary funding. The project is led by Blackrose and co-developed with the International Finance Corporation (IFC), which, alongside AFC, is co-financing the venture.
Nigeria’s vast natural gas reserves, the largest in Africa, present a significant opportunity for resource beneficiation and climate resilience. Gas flaring has been a major environmental and health issue in the region.
Samaila Zubairu, President and CEO of AFC, stated: “This project turns a major challenge into a significant opportunity by leveraging Nigeria’s gas reserves to become a global leader in low-carbon manufacturing. Our collaboration with Blackrose and IFC highlights our commitment to Africa’s transition to net zero, focusing on industrialisation, job creation, and socio-economic development.”
The plant will be developed in two phases, each with a capacity of 1.8 MTPA. Phase one will produce low-carbon methanol for various industrial uses and as an alternative fuel. Phase two will expand production to include ammonia for fertiliser.
Using advanced, energy-efficient production methods, the plant will lower net carbon intensity and incorporate carbon capture and offset strategies. The project is expected to create over 2,500 jobs during construction and an additional 16,000 jobs indirectly through manufacturing and economic growth.
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