ALSCON Smelter power plant

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ALSCON Smelter power plant is an operating power station of at least 180-megawatts (MW) in Ikot Abasi, Akwa Ibom, Nigeria with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
ALSCON Smelter power plant Ikot Abasi, Akwa Ibom, Nigeria 4.568734, 7.573493 (exact)[1]

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • 1, 2, 2-1, 3, 3-1, 3-2, 4, 5, 6: 4.568734, 7.573493

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology CHP Start year
1 Mothballed[2][3] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]
2 Mothballed[2][3] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]
2-1 Announced[6] fossil gas: natural gas[7] 100[6] gas turbine[6] not found 2024[6]
3 Mothballed[2][3] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]
3-1 Announced[6] fossil gas: natural gas[7] 130[6] gas turbine[6] not found 2026 (planned)[6]
3-2 Announced[6][8] fossil gas: natural gas[7] 130[6] gas turbine[6] not found 2026 (planned)[6]
4 Mothballed[2][3] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]
5 Operating[2] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]
6 Operating[2] fossil gas: natural gas[4][3] 90[2] gas turbine[2] not found 1997[5]

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
1 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
2 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
2-1 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
3 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
3-1 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
3-2 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
4 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
5 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]
6 Aluminium Smelter Company of Nigeria [100%][2][3][9] United Company RUSAL PJSC [100.0%]

Project-level captive use details

  • Captive industry use (heat or power): power[10][2]
  • Captive industry: Aluminum[10][2]
  • Non-industry use: power[10][2]


Background

In April 1997, the plant’s six units, with a capacity of 90 MW each, started operating. The power plant was meant to satisfy the power needs of the aluminum plant while supplying its excess power of about 360 MW into the national grid.[11]

In June 1999, operations at ALSCON stopped due to irreconcilable differences between Ferrostaal and Reynolds and other associated problems of lack of working capital, insufficient gas supply, and non-dredging of Imo River.[12]

In October 1997, the Nigerian Gas Company (NGC) completed the ALSCON Gas Pipeline and started supplying gas in October 1996.[11]

In 1999, the ALSCON aluminum production capacity had reduced by 80 percent due to the suspension of gas supply by suppliers and transporters because of the debt owed them by ALSCON. The gas supply disruptions continued till 2008, and the company lost several millions of dollars.[13]

In September 2002, the Bureau of Public Enterprises (BPE) commenced the privatization process of ALSCON and its assets, including the power plant.[14]

In 2004, U.S.-based private firm BFI Group was the preferred bidder for ALSCON in 2004 after offering $410 million but was later disqualified by the Bureau of Public Enterprises (BPE).[15]

In 2007, RUSAL paid $205 million and acquired ALSCON and its assets, including the power plant.  ALSCON owns 85 percent of the aluminum plant and its assets, with the remaining stake belonging to the Nigerian government.[15]

In 2009, Nigeria’s senate ordered an investigation into the sale of ALSCON because lawmakers believed the company was worth around US $3 billion and thus was hugely undersold to RUSAL.[15]

In July 2012, The supreme court ruling ordered that BPE revert to the original preferred bidder and BFI Group pay the agreed price of US $410 million.[15]

In 2014, the gas supply shortage forced the plant to shut down.[16]

The Institute of Chartered Economists of Nigeria said the commercialization of ALSCON’s 180 MW from its total capacity of 540 MW, amidst increased liabilities and vandalism of the aluminum smelting plant, could end the US $3.2billion investment.[13]

In January 2018, the Federal Government of Nigeria and UC RUSAL of Russia signed an agreement to sell ALSCON to the latter. The deal was tagged ‘Renewed Share Purchase Agreement (Renewed SPA).’[13]

In 2019, the aluminum plant had not utilized more than 20 percent of its production capacity due to a lack of gas supply since its inception. Also, the ALSCON power plant never generated electricity into the national grid.[13]

In 2021, the Federal Government of Nigeria concluded arrangements to connect the ALSCON power plant to the national grid, enabling it to resume its total production capacity soon.[17]

The private sector has proposed three new units at the ALSCON power plant with a 360 MW total generating capacity.[18]  

In 2024, the first 100 MW of capacity is expected to come online.[18]

In 2026, the second and third proposed units of 130 MW generation capacity are expected to come online.[18]

Articles and Resources

References

  1. https://www.google.com/maps/place/4%C2%B034'07.3%22N+7%C2%B034'24.8%22E/@4.5686863,7.5713583,1114m/data=!3m2!1e3!4b1!4m6!3m5!1s0x0:0x0!7e2!8m2!3d4.5686805!4d7.5735466. {{cite web}}: Missing or empty |title= (help)
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 https://web.archive.org/web/20220531111537/https://sweetcrudereports.com/economist-kicks-against-commercialization-of-alscon-power-plant/. Archived from the original on 31 May 2022. {{cite web}}: Missing or empty |title= (help)
  3. 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 https://web.archive.org/web/20220505102655/https://www.businessamlive.com/revealed-how-litigation-cannibalisation-asset-striping-took-23-years-off-lifespan-of-nigerias-3-2bn-aluminium-smelter/. Archived from the original on 05 May 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  4. 4.0 4.1 4.2 4.3 4.4 4.5 https://web.archive.org/web/20210727062110/https://www.thisdaylive.com/index.php/2019/05/05/how-gas-pricing-caused-the-failure-of-alscon/. Archived from the original on 27 July 2021. {{cite web}}: Missing or empty |title= (help)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 https://web.archive.org/web/20220927111527/https://alscon.net/ikot-abasi-smelter/77-ready-for-start-up.html. Archived from the original on 27 September 2022. {{cite web}}: Missing or empty |title= (help)
  6. 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 (PDF) https://web.archive.org/web/20220704162555/https://openjicareport.jica.go.jp/pdf/12339586_02.pdf. Archived from the original (PDF) on 04 July 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  7. 7.0 7.1 7.2 (PDF) https://web.archive.org/web/20220531131035/https://tcnpmu.ng/pmu_assets/pmu_files/2018/02/Final-Report-Text.pdf. Archived from the original (PDF) on 31 May 2022. {{cite web}}: Missing or empty |title= (help)
  8. https://web.archive.org/web/20221004004604/https://rescueanambra.org/power-plant/. Archived from the original on 04 October 2022. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  9. 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 (PDF) https://web.archive.org/web/20221028145444/https://openjicareport.jica.go.jp/pdf/12339586_08.pdf. Archived from the original (PDF) on 28 October 2022. {{cite web}}: Missing or empty |title= (help)
  10. 10.0 10.1 10.2 https://web.archive.org/web/20220531103704/https://www.premiumtimesng.com/regional/south-south-regional/460045-federal-government-to-revive-alscon-by-2023-official.html. Archived from the original on 31 May 2022. {{cite web}}: Missing or empty |title= (help)
  11. 11.0 11.1 "Ready for Start-Up". Aluminium Smelter Company of Nigeria. Archived from the original on June 2, 2021. Retrieved January 28, 2022.
  12. "NIGERIA : Alscon on the road to privatisation? - 12/01/2001 - Africa Mining Intelligence". Africa Intelligence. 2001-01-12. Retrieved 2023-03-26.
  13. 13.0 13.1 13.2 13.3 "Economist kicks against commercialization of ALSCON power plant". SweetCrudeReports. April 5, 2021. Archived from the original on April 2, 2021. Retrieved January 28, 2022.
  14. "When will ALSCON resume the production of Aluminum?".{{cite web}}: CS1 maint: url-status (link)
  15. 15.0 15.1 15.2 15.3 Camillus Eboh, Alexei Anishchuk. "CORRECTED-UPDATE 1-Nigeria court rules smelter was wrongly sold to RUSAL". U.S. Retrieved 2023-03-26.
  16. "FG to Connect ALSCON Plant to National Grid – THISDAYLIVE". www.thisdaylive.com. Retrieved 2023-03-26.
  17. "Federal government to connect ALSCON to national grid".{{cite web}}: CS1 maint: url-status (link)
  18. 18.0 18.1 18.2 "openjicareport.jica.go.jp/pdf/12339586_02.pdf" (PDF). Archived (PDF) from the original on August 7, 2021. Retrieved January 20, 2022.

Additional data

To access additional data, including an interactive map of gas-fired power stations, a downloadable dataset, and summary data, please visit the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.