Dangote plans to sell 500MW surplus from proposed Kenya refinery plant

The Dangote Group plans to sell about 500 megawatts of surplus electricity from a proposed power plant to be built alongside its planned refinery in Lamu, Kenya. Dangote Group President Aliko Dangote disclosed the plan during a fireside chat at the Nairobi Securities Exchange. He said the power project would have a capacity of 1,000MW, while the refinery would require about 500MW.

According to Dangote, about 450MW would be needed for refinery operations and a further 50MW would cover fluctuations. The remaining 500MW would be sold to the Kenyan Government under an agreement. He said the additional capacity could encourage industries to establish operations in Lamu because investors would not need to build their own power-generation facilities.

Dangote described the project as part of an industrial ecosystem that would grow around the refinery. The group previously said the Lamu power plant would be twice the size of the plant at its Lekki refinery, which currently generates 500MW for that facility. Dangote also said the planned refinery development would require more than 60,000 people and attract other businesses and services.

The Lamu project is expected to include a refinery, polypropylene and base-oil production, as well as the power plant. Dangote said the refinery would have a capacity of 700,000 barrels per day. He estimated the cost of the project at between $15bn and $16bn and said it was expected to be completed by 2030.

The source material does not provide further details about the agreement with the Kenyan Government, including its duration or the planned tariff for the electricity. Dangote has also previously pledged to address power shortages in Nigeria and Africa through a $10bn investment. His comments in Kenya link the proposed generation capacity to industrial development around Lamu, where the group is planning the refinery and associated projects.