WINDHOEK, May 24 (Xinhua) -- Namibia has secured over 100 million U.S. dollars in financing to support the construction of a 40-MW biomass power station.
The southern African nation on Friday signed a loan agreement, an engineering, procurement and construction (EPC) contract, and other key documents, including one on wood chip fuel supply, paving the way for the project's implementation.
"This project will be one of the answers to the long-awaited realization of a baseload power station in Namibia," said Kahenge Haulofu, managing director of NamPower, the national electricity utility.
The Otjikoto Biomass Power Station will enable NamPower to cost-effectively provide baseload electricity, and will contribute to the expansion of power generation for Namibia, he said.
According to Haulofu, the French Development Agency has provided a loan of up to 100 million euros (about 108 million U.S. dollars) for the construction of the power station, the Mitigation Action Facility is contributing a grant of 25 million euros, and the French Fund for Global Environment is offering 3 million euros for environmental research and extending project benefits to vulnerable communities.
The biomass power plant is expected to reduce Namibia's reliance on imported electricity by providing a stable and cost-effective baseload power source. It will also significantly cut greenhouse gas emissions by replacing high-emission electricity imports and integrating renewable energy sources like solar and wind, he said.
The project also aims to tackle Namibia's severe bush encroachment issue, which affects over 26 million hectares of farmland and results in billions of dollars in economic losses.
"Effective countermeasures through sustainable bush thinning programs can help preserve biodiversity, restore savannahs, and create massive economic opportunities," Haulofu said.
He said the Otjikoto Biomass Power Station, once commissioned, will support and preserve power quality in Namibia's electricity grid by providing ancillary services such as synchronizing torque, grid inertia, and reactive power control. ■
