Cormart Nigeria Embraces Gas Power to Stabilize Operations and Slash Emissions
Cormart Nigeria Limited has made a strategic pivot to gas as its primary power source, a move that is reducing emissions while protecting the company from escalating diesel expenses and unreliable grid electricity. This transition highlights a growing response among Nigerian manufacturers to persistent energy challenges, including high operational costs, inconsistent power supply, and mounting environmental regulations.
Gas Engines Deployed Across Key Facilities
The company now operates five gas engines with a total capacity of 5 megawatts (MW). This includes 1.5MW at its head office in Ilupeju and 3.5MW at its production facility along the KM 51 Lagos–Ibadan Expressway. As a result, the previously used 2.0MW and 3.1MW diesel engines at both locations have been relegated to backup roles, ensuring continuity during power disruptions.
Driven by Operational Realities and Cost Savings
Jawwad Alasa, Cormart's Technical Manager, explained that the shift was necessitated by the prevailing operational realities in Nigeria's industrial landscape. Industry data reveals that while gas-powered systems require a higher initial capital investment, they offer lower lifecycle costs compared to diesel. This advantage is increasingly vital as manufacturers strive to optimize production expenses amid economic pressures.
Enhanced Technical Support and Maintenance
A recent minor overhaul at Clarke Energy's Lagos facility underscores the growing in-country technical support capacity. The six-week intervention successfully restored one of Cormart's engines to optimal performance after 40,000 hours of operation, demonstrating improved maintenance capabilities within the domestic market.
Comprehensive Energy-Efficiency Measures
Beyond the fuel switch, Cormart has implemented a series of energy-efficiency initiatives. These include steam-leak detection systems, routine energy audits, and upgraded lighting infrastructure. Collectively, these interventions have contributed to reducing operational costs and the company's emissions footprint.
Impact on Production Costs and Competitiveness
Industry estimates indicate that self-generated power can account for 30 to 40 percent of total production costs for manufacturers, significantly eroding margins and competitiveness. Yiannis Tsantilas, Managing Director for Clarke Energy in Sub-Saharan Africa, noted that this transition aligns with broader economic and food security objectives.
"While affordable food production is the core of a sustainable food value chain, it is equally important to adopt more efficient and reliable energy alternatives to lower production costs and increase the availability of affordable products for the Nigerian population," Tsantilas emphasized.
This move by Cormart Nigeria Limited exemplifies how manufacturers are leveraging gas power to achieve operational stability, cost savings, and environmental sustainability in the face of Nigeria's energy sector challenges.
