ContourGlobal announced that it will receive $37.8 million in political risk insurance from the Overseas Private Investment Corporation (OPIC), to support the company's construction and operations of three Combined Heat and Power (CHP) generation plants for Nigeria Bottling Company (NBC), an affiliate of Coca-Cola Hellenic Bottling Company, S.A (CCH). The construction, which is being carried out by ContourGlobal Solutions, Nigeria, a subsidiary of ContourGlobal, will enable NBC to significantly reduce its energy consumption, carbon dioxide emissions all while reducing production costs in the West African country.
The projects supported by the OPIC political risk facility are, a 4 megawatt CHP plant in Ikeja, a 1.2 megawatt plant in Apapa, and a 3.6 megawatt plant in Benin (Nigeria), all of which will provide power, heat, steam, and, in the case of Benin, food-grade CO2 to NBC's beverage bottling facilities. The energy efficiency from CHP can be as high as 90 percent, compared to 35-40 percent for conventional gas-fired simple cycle power plants.
Moreover, ContourGlobal's QuadGen process incorporates carbon capture technology to remove, capture and purify approximately 95 percent of the CO2 from the CHP's flue gas. The purified CO2 is then used by the bottler and other customers requiring food grade CO2.
The project is the latest initiative in an ongoing partnership between ContourGlobal and OPIC. In October 2009, the two concluded a memorandum of understanding by which OPIC agreed to provide ContourGlobal with financing and political risk insurance to support power projects in emerging markets, including highly energy-efficient facilities which substantially reduce carbon dioxide emissions.
In April, OPIC's Board of Directors approved up to $250 million to support ContourGlobal's program of building and operating CHP plants for CCH bottlers, largely in Eastern Europe and Nigeria. The loan agreement was signed in August of this year.
"We are very pleased to have broken ground on these highly innovative facilities and we look forward to working with OPIC as we continue our power development activities in Nigeria for CCH-NBC and other customers," said Stephane Loosen, Managing Director of ContourGlobal Solutions, Nigeria. "We are proud to partner with OPIC on this transaction, an organization that has high standards and strong commitment to clean energy."
OPIC President and CEO Elizabeth Littlefield, said, "Supporting energy efficiency is a top priority for OPIC, and is exemplified by this innovative project, which will also support local economic development in Nigeria."
ContourGlobal secures $37.8MM from OPIC for CHP plants in Nigeria