By Sebastine Obasi

The federal government’s alternative energy policy drive appears to be yielding fruits as Kitchen Vegetable Oil Limited stated that its production costs have been reduced by half since transitioning to gas.

Ifeyinwa Udeagbala, Executive Director of the company stated that the high cost of grid power and the instability of electricity supply, which poses a risk to their factory equipment influenced the company’s decision to switch to gas, while relying on diesel gensets as a backup.

To tackle its power challenges, the company partnered with Clark Energy to integrate a 1.7 megawatt (MW) Jenbacher gas plant, sourcing pipeline gas from one of Nigeria’s foremost IOC downstream subsidiaries and compressed natural gas (CNG) from virtual pipeline suppliers.

Clarke Energy provided the front-end engineering designs, supplied the gensets, commissioned the plant and currently provides after sales services.

“The gas plant is generating cleaner electricity and significantly reducing our operational costs compared to diesel, ” Udeagbala said. “It has addressed efficiency issues, making our operations more sustainable.”

She also explained that manufacturers’ challenges are multifaceted. “The challenge is not just about meeting market standards; it is about navigating the economic and logistical barriers that make production and distribution difficult, ” She stated.

Yiannis Tsantilas, Managing Director of Clarke Energy for sub-Saharan Africa, emphasized the importance of sustainable and cost effective energy solutions for manufacturers

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Globally, the availability of raw materials and reliable and affordable energy are important drivers in industrialising any economy. In Nigeria, many manufacturers experience these challenges, especially the issue of irregular grid supply and high energy costs, which constitute almost 40 per cent of their expenses,” said Tsantilas, citing data from the Manufacturers Association of Nigeria(MAN).