In 2005, the sub-Saharan African nation of Togo consumed 576 million kWh of electricity—importing 486 million kWh from neighboring Ghana. While projections indicate that demand for electricity in West Africa will increase by about 5 percent annually through 2026, only about one in three inhabitants of the region have access to electricity. Togo’s electricity supply is one of the region’s smallest.

The Benefits of Tri-Fuel Burning Engines

We are spearheading development of a 100 megawatt power generation plant in Lomé, Togo’s capital, which will ultimately use natural gas supplied by the West Africa Gas Pipeline (constructed by a consortium led by Chevron Corporation to deliver a stable and less costly supply of fuel to Togo, Benin, and Ghana from Nigeria). Until the natural gas supply is available, the plant will burn heavy fuel oil, which is in compliance with The World Bank’s environmental standards. Heavy fuel oil is substantially cheaper than the diesel and jet fuel which are currently being used to generate electricity. Our plant will enable the Togolese to optimize their electric system purchases and add a substantial source of reliable, competitively priced power to its generation portfolio. The plant itself will include six Wärtsilä 50-DF engines which can utilize natural gas, diesel, and heavy fuel oils as feedstock. Importantly, switching between fuel sources can be measured in minutes.

Our new plant diversifies Togo’s power generation portfolio and supplements the country’s hydroelectric power – an important consideration in a country subject to periodic drought.

Cooperation and Partnership

In October 2006, we signed a concession agreement with the government of Togo, and in May 2007, we signed a long-term power purchase agreement to sell all of the plant’s generation to the national distribution company.  In July 2008, we received approval for $209 million in financing and political risk insurance by the Board of Directors of the Overseas Private Investment Corporation (OPIC) for the construction and term funding of our tri-fuel burning power plant. We have pioneered change by infusing the largest generation investment in West Africa in over a decade, and the largest electricity investment ever made in the Republic of Togo.  Plant operations are expected to begin at the end of 2009.