Bamburi Cement Kicks Off Construction of 2 Solar Plants

Kenyan cement grinder, Bamburi Cement Plc has announced the commencement of the construction of a mega solar photovoltaic (PV) power project.

According to a statement by Bamburi Cement on 29th November, the project is ready to begin construction following the satisfaction of all the conditions required for its kick-off.

“The company has today signed the Land Lease Agreement (LLA), Connection Facilities Agreement (CFA), Conditions Precedence (CP) Satisfaction and Construction Start Date Letters with the independent power producer MOMNAI Energy Limited, a company established for the project by Frontier Energy, a leading African renewable energy developer and investor,” the statement noted in part.

Therefore, the signing marks the start of a one-year construction period for the Solar PV Plants of 14.5 megawatt and 5 megawatt capacities.

Additionally, the construction begins two years after Bamburi Cement and MOMNAI Energy signed a Power Purchase Agreement (PPA).

Of note, these PV plants are located in Bamburi’s Mombasa and Athi River sites respectively.

Bamburi Cement further revealed the licenses and approvals granted before the commencement of the ambitious project.

“In addition, the PPA has been granted licenses by the Energy and Petroleum Regulatory Authority (EPRA) for Electric Power Generation and Electric Power Distribution and Supply, the National Environmental Management Authority (NEMA) for Environmental and Social Impact Assessment (ESIA), and approvals by respective counties for Land Change of Use,” the statement clarified.

Also Read: Bamburi Cement Unveils Plan to Reduce Air Pollution

The Project is in Line with Bamburi’s Goals

Bamburi Cement’s CEO Mohit Kapoor highlighted the project milestones noting that they were a critical step towards the realization of the company’s energy efficiency ambitions.

“This is one of Kenya’s largest commercial solar projects undertaken by a cement company and the first in Sub Saharan Africa within the Holcim Group,” Mohit Kapoor put the project into perspective.

Due to the sheer size of the project, Mohit noted that it would supply a significant percentage of clean power to the cement grinder.

“It will account for 30% of our total power supply, resulting in massive energy cost savings, reduce the business impact of load shedding and significantly contributing to reaching Net Zero carbon emissions by shifting to renewable energy,” Mohit further explained.

Likewise, Bamburi Cement’s project lead and Strategy & Business Development Director Miriam Ngolo said the project aims to achieve recurrent power-saving costs for Bamburi Cement.

“This strategic partnership with MOMNAI Energy will accelerate our decarbonization journey and reduce greenhouse gas emissions by the use of zero-carbon renewable energy sources,” added Ms. Ngolo.

Notably, under the agreement, MOMNAI Energy will be responsible for financing the construction, management, and maintenance costs of the entire project.

Frontier Lauds Bamburi Cement for Initiative

In this case, Bamburi Cement will lease out land in Mombasa and Nairobi plants sites for the Solar PV Plants.

Frontier Energy Investment Director, Anders Hauch, while speaking during the signing, noted that Frontier energy had been committed to developing renewable energy in Africa.

“As a committed developer and investor in renewable energy in Africa, we are excited to start construction of our 14^th renewable energy project and our first project with a private off-taker,” Anders Hauch stated.

Just like Mohit Kapoor, Hauch echoed the immense size of the project partnership.

Also Read: Bamburi Agrees to Sell Stake in Uganda Cement to Focus on Kenyan Business

About Frontier Energy

Of note, Frontier Energy is a leading developer and investor of renewable energy and energy storage in Sub-Saharan Africa.

It boasts of capital from European development banks and institutional investors.

The project’s green light is timely as it comes following the release of the company’s 2022 Sustainability Report.

The report details Bamburi’s green growth trajectory which is geared towards decarbonizing its business operations to achieve net-zero carbon (CO2) emissions by 2050.

Additionally, in 2022, the company lowered its carbon emissions by 3.2% and achieved a 5.5% increase in the use of alternative fuels in its operations.

Notably, MOMNAI Energy was established by Frontier Energy, for the purpose of implementation and operation of the solar projects that will supply Bamburi Cement with clean power.