The Honeywell Group and the United States Trade Development Agency (USTDA) Thursday signed a grant agreement for a feasibility study on the company’s N31 billion Sagamu Independent Power Plant (IPP) project.
The agreement was signed by the USTDA Director, Leocadia Zak and Honeywell Group’s Head of Corporate Development and Investment, Dr. Teddy Ngu in Lagos.
The Sagamu IPP is a phased power plant development intended to address the power needs and in turn stimulate the economic development of the South-western region, with emphasis on Sagamu, Abeokuta and the Lagos-Ibadan expressway industrial clusters by supplying a mix of captive, embedded and on-grid power generation. It is expected to provide continuous and reliable power supply in those areas.
The study would also investigate the viability of providing embedded generation capacity to the Ibadan Distribution Company and power evacuation to the National Grid from the Sagamu IPP.
Furthermore, it is expected to provide a formidable platform to access international finance, world-class technology and service providers.
Speaking at the signing ceremony, Ngu said: “Honeywell thanks the USTDA for the collaboration, which is coming on the heels of the successful implementation of a similar venture to jointly fund a study for the development of a multi-billion dollar gas-based industrial complex.
“This partnership on power is expected to provide substantial support to the development of the Sagamu IPP.”
He revealed that the project has a potential to supply up to 140mw of power over the next five and seven years as the demand for electricity increases in the target areas; some of which Honeywell would use in its foods and agro-allied industrial complex that is being built on 63 hectares of land in Sagamu.
The Honeywell Group owns and operates a 15mw gas-fired power plant in Apapa and is developing a 500mw Independent Power Plant at Akute Esorun, Ifo LGA, in Ogun State.
The Sagamu IPP project is in line with the Honeywell Group’s strategic plans to generate 1,000MW of power through a mixed portfolio of captive, embedded and on-grid power generation projects by 2020 and an affirmation of the Group’s reputation for engaging in well-meaning, mutually beneficial global partnership.