Multilateral finance institution Africa Finance Corporation (AFC) is arranging financing for the development of a gas-to-methanol plant in Akwa Ibom, Nigeria, de-risking the project and advancing it towards financial close.
Financed in partnership with investment firms the International Finance Corporation and Blackrose, the project aims to eliminate natural gas flaring and produce 1.8 million tons of methanol annually in its first phase.
“This strategic collaboration with Blackrose and IFC underscores our dedication to supporting Africa’s pragmatic transition to net zero, emphasizing rapid industrialization, local job creation, and socio-economic advancement through the production of methanol, a versatile and low-carbon industrial feedstock,” stated Samaila Zubairu, President and CEO of AFC.
Methanol will be used for industrial applications – including the production of paints, plastics and car parts – and to decarbonize as well as fuel industries such as shipping. Phase two of the project will expand methanol production to include ammonia for fertilizer production.
The project – ‘Africa’s largest gas-to-methanol facility’ – aims to diversify the local economy and bolster employment, generating 2,500 jobs during the construction phase and an additional 16,000 jobs once operational.
AFC’s financing falls under the firm’s commitment to support Africa’s transition to net-zero.