Abyssinia Iron and Steel Limited today signed a Power Purchase Agreement with Norway’s solar power financier Empower New Energy.
The 25-year contract will result in the construction and operation of a 2.5 MW ground-mounted solar plant by the Spenomatic Group, a leading renewable engineering, procurement, and construction (EPC) company in East Africa.
The ground-breaking partnership will result in a USD2 million investment by Empower New Energy for Abyssinia Steel, one of the leading steel manufacturing companies in the region.
Abyssinia Group of Industries (AGI) has grown to become one of East Africa’s largest steel producers with an annual capacity close to a million metric tons throughout the group, with manufacturing and mining operations spread in East Africa, namely Kenya, Uganda, Ethiopia, and Rwanda.
The 2.5MWp solar project is Empower New Energy’s first investment in Kenya and marks a significant step in Abyssinia Steel’s journey towards become 100 % powered by renewable energy. By harnessing the abundant solar resources in Kenya, the project will generate about 4.8 GWh of clean electricity per year, saving about 2 500 tons metric tonnes of carbon emissions annually, while at the same time reducing Abyssinia’s cost of electricity.
“We are thrilled to partner with Abyssinia Steel and Spenomatic to bring cost-saving and clean energy solutions to Kenya,” said Terje Osmundsen CEO of Empower New Energy. “Together, we will contribute to the growth of a low-carbon economy in Kenya, fostering a greener future for the manufacturing industry in Kenya.”
“Abyssinia Steel is proud to announce our partnership with Empower New Energy and Spenomatic, supported by a shared vision for sustainability and progress. This new 2,5 MWp solar plant represents another significant step towards a green and more prosperous future for the company,” says Jateen Patel, CEO, Abyssinia Steel.
Spenomatic, with its rich history of delivering high-quality engineering solutions, will provide comprehensive EPC support for the project. Their expertise in designing and implementing sophisticated systems will ensure the successful execution of the solar project, enabling Abyssinia Steel to integrate renewable energy into its manufacturing process seamlessly.
“We are excited to collaborate with Empower New Energy and Abyssinia Steel on this transformative solar project,” expressed Berjeesh D Surty, MD of Spenomatic. ” Together, we set a benchmark for clean energy adoption in the industrial sector.”
The signing event, attended by the Norwegian Ambassador to Kenya H.E Gunnar Andreas Holm among as well as representatives from Norfund East Africa took place at the Norwegian Embassy in Nairobi.
“Today marks a significant milestone in the collaboration between Norway and Kenya, as we witness the signing of the Power Purchase Agreement for Empower New Energy’s 2,5 MWp solar project for Abyssinia Steel. It is through such partnerships that we can pave the way towards a greener and more prosperous future for all,” William Nyaoke, Regional Director for East Africa in Norfund.
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