Obajana Cement power station

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Obajana Cement power station is an operating power station of at least 135-megawatts (MW) in Obajana, Kogi, Nigeria.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Obajana Cement power station Obajana, Kogi, Nigeria 7.926, 6.423 (approximate)

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

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Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology
Unit 1 operating coal: unknown, fossil gas: natural gas, fossil liquids: fuel oil, bioenergy: agricultural waste (solids), bioenergy: refuse (municipal and industrial wastes)[1] 45 unknown
Unit 2 operating coal: unknown, fossil gas: natural gas, fossil liquids: fuel oil, bioenergy: agricultural waste (solids), bioenergy: refuse (municipal and industrial wastes)[1] 45 unknown
Unit 3 operating coal: unknown, fossil gas: natural gas, fossil liquids: fuel oil, bioenergy: agricultural waste (solids), bioenergy: refuse (municipal and industrial wastes)[1] 45 unknown

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Unit 1 Dangote Industries Ltd [100%] Dangote Industries Ltd [100.0%]
Unit 2 Dangote Industries Ltd [100%] Dangote Industries Ltd [100.0%]
Unit 3 Dangote Industries Ltd [100%] Dangote Industries Ltd [100.0%]

Project-level captive use details

  • Captive industry use (heat or power): power
  • Captive industry: Cement & Building


Project-level coal details

  • Coal source(s): unknown

Background

According to Dangote Cement PLC’s website, the Obajana Cement Plant’s power source is a 3 x 45 MW captive gas-, coal-, and low-pour fuel oil (LPFO)-fired power plant.[2]

In 2005, the Social and Environmental Impact Assessment for the Obajana Cement Project noted the cement factory would be equipped with 135 MW of Gas/Steam turbines to “generate its own electric power for use by the cement kilns and other production processes.” In addition, the development of the proposed gas pipeline from Ajokuta to Obajana was proposed to “to utilize abundant natural gas to power cement kilns and generate electricity of 75-100mw capacity at the proposed Obajana Cement Plant.” The EIA for the cement plant and captive power plant received provisional approval from the Federal Ministry of Environment in July 2004.[3]

According to GE Gas Power’s website, GE modernized seven aeroderivative gas turbines at Dangote Cement’s plants in Obajana and Ibese.[4]

In 2020, it was reported Dangote was looking to expand the cement plant.[5]

In October 2022, the cement plant was reportedly shut down for ten days in a dispute with the Kogi State government, who alleged that Dangote did not follow due process in their acquisition of the cement plant. After the Nigerian federal government intervened, the plant reopened and resumed operations.[6]

Transition to coal

As of 2021, the website said: “Obajana uses gas for its kilns and power plants and until late 2014, relied on low-pour fuel oil as a back-up fuel for its kilns. In November 2014 we commissioned a coal mill to serve Line 3 and are installing coal mills to serve Lines 1, 2 and 4.”[2]

In 2014, it was reported that the Dangote Group was planning to establish three coal fired power plants, one each for its cement plants in Obajana in Kogi State, Ibese in Ogun State, and Gboko in Benue State.[7] According to a 2016 study on Captive Power in Nigeria, the Obajana power station was listed as a coal plant.[8]

In addition, a company statement said “Although Obajana is primarily gas-fuelled, we recently commissioned coal facilities to fuel its kilns as well, being significantly cheaper as a backup fuel than the low pour fuel oil (LPFO) we had originally used.”[9]

According to September 2021 reporting, the company adopted the use of coal for power generation at the Obajana plant as a tool to reduce its power bill.[10]

Dangote's interest in alternative fuels

Dangote's 2022 annual report, which appeared to be released in April 2023, stated that they had commissioned alternative fuel (AF) feed systems in select lines at their Obajana and Ibese cement plants. According to the company, the alternative fuels consisted of co-processed wastes, "such as: agro wastes, waste lubricants, tyre derived fuels, sawdust, and packaging materials. AF thermal substitution rate averaged at 4.3% compared to 2.6% in 2021." The company allegedly incorporated alternative fuels in response to rising costs for coal, diesel, and gas.[11]

In September 2023, Dangote Cement announced that they aimed to cut fossil fuel use by 25% in all of their cement plants by 2025. The company was reportedly planning to install alternative fuel feeding systems into all of their operating lines by 2024.[12]

Coal source

Moves by major industrialists and electricity-generating companies to import coal from South Africa to augment industrial power generation reopened the debate on the abandoned 2.75 billion tonnes coal deposits in Enugu and other parts of Nigeria.[13]

Ownership

The project is sponsored by Dangote Industries Limited (DIL), a leading Nigerian producer of sugar, salt, and wheat flour and an importer and market leader in cement. DIL is part of a group of businesses controlled by Mr. Aliko Dangote, a Nigerian industrialist.[14]

Public health & environmental impacts

In April 2012, the community of Obajana issued a communique to the management of Obajana cement plant requesting basic amenities for inhabitants of the community. Issues raised included the dualization of the Lokoja-Obajana and Kaba road, as well as the provision of houses, hospitals, electricity, water, and houses to the local community.[15]

In 2017, the Ripples Centre for Data and Investigative Journalism (RCDIJ) published a detailed report documenting the many ways the cement plant and power station negatively impacted the community. For example, the main source of water in Obajana, Oyin River, flowing across the House Colony, was dammed by Dangote Cement and the portion left for public use was contaminated. In addition, Chief Oluwasegun Obanla, a former community leader in Obajana, explained:[16]

“Do you know that the factory now uses coal to power some of their machines, adding to the pollution? We’ve seen people battling with cancer and lung-related ailments. We were living healthily before Dangote Cement came here, but now we are unsure of how long we can live before we all get killed by these dangerous things daily released into the community by Dangote Cement.”

According to Dangote's 2021 annual report, the Obajana location is the company's biggest user of energy and water, and it is the greatest polluter. In 2021, the cement plant emitted over 6 million tons of carbon dioxide.[17]

Articles and Resources

References

  1. 1.0 1.1 1.2 (PDF) https://web.archive.org/web/20240125131530/https://www.dangotecement.com/wp-content/uploads/2023/04/DCP-2022-Annual-Report-UPDATED.pdf. Archived from the original (PDF) on 25 January 2024. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 “Obajana Cement Plant,” Dangote Cement PLC, accessed December 2021
  3. “Social and Environmental Impact Assessment Obajana Cement Project,” Obajana Cement Project, January 2005
  4. “Nigeria’s Dangote Cement,” GE Gas Power, accessed December 2021
  5. “Dangote Cement plans Obajana cement plant capacity expansion to 16.5Mt/yr,” Global Cement, March 6, 2020
  6. "5 interesting facts about Dangote’s beef with Kogi State government of Nigeria," Business Insider Africa, October 17, 2022
  7. “Dangote to build three coal power plants for cement factories,” The Nation, August 15, 2014
  8. “Captive Power in Nigeria: A Comprehensive Guide to Project Development,” European Union Energy Initiative, Partnership Dialogue Facility, 2016
  9. "Dangote Cement switches to coal to power plants," Sweet Crude Reports, July 16, 2016
  10. “Nigeria: How Dangote re-invented his supply chain,” The Africa Report, September 9, 2021
  11. "Annual Report and Accounts 2022," Dangote Cement PLC, April 2023
  12. "Dangote to cut dependence on fuel by 25%," Punch Nigeria, September 13, 2023
  13. "COAL-DEAD! Living with ghosts of Enugu’s forgotten mine pits," The Nation, December 5, 2021
  14. “IFC Project Information & Data Portal,” Obajana, accessed December 2021
  15. “Dangote’s Obajana Cement Plant, Kogi State Nigeria,” InfoGuide Nigeria, July 15, 2017
  16. "A trail of broken promises: The story of Dangote Cement and the people of Obajana (1)," Ripples Centre for Data and Investigative Journalism (RCDIJ), March 13, 2017
  17. "2021 Annual Report," Dangote, 2021

Additional data

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