Exploiting Coal To Boost Electricity Generation

Incessant power outage in the country has continued to constitute a major challenge to Nigeria’s economic growth and development. Solving the lingering electricity problem is critical to realising the nation’s quest of becoming one of the 20 largest economies of the world by 2020 as well as preferred investment destination in Africa. Ruth Tene in this report? takes a look at the possible difference, the use of coal in power generation would make.

Mark (surname withheld) is a resident of Mpape, a suburb of the Federal Capital Territory, Abuja and says he has not seen a blink of light in over two weeks in his area, despite promises made by the federal government to increase power supply and hike tariffs.

In a chat with LEADERSHIP SUNDAY, he said, “I am afraid that just as the price of fuel was hiked without palliatives to cushion the blow and a promise to earn a better standard of living, the tariff for power has gone up too with no recourse to improved power supply”.

“I have become so dependent on generator despite the stories we hear of people killed by generator fumes and other related negative outcomes of generator usage. I see no recourse than to continue to use a generator despite the annoying sound and contaminating fumes which are hazardous to humans and other living things around”, he said.

Passionately decrying the state of power supply, Mark said: “And this is only for us that live in the city, so you can imagine the plight of people that live in the villages and other remote places”, he queried. “Because if I live in the FCT and have no light or water supply, you can imagine what will be the condition of those who live in the villages.

Worse, is that I have to power my generator both at home and at my electrical shop to work on jobs collected, this therefore means I have to charge double to make a little profit, considering the price of petrol and transport before charging for workmanship, believe me there is nothing one can do about it”, he says.

But that is for those who live in the suburbs, as Tola who lives in Maitama and Moses in Utako respectively say they enjoy minimal of 12 hours of light daily, which they say has been a remarkable improvement compared to 2011, when they could barely boast of six hours or went for days without light at a time.

For Mrs. Hajara Mbonu from Kaduna State, the situation is a far cry from improved as she says, “We enjoy less light today than we use to, because in the immediate past we went for days without light, which was not the case in the distant past when we used to enjoy constant power”. She laments: “It is no longer a luxury but a necessity to own a generator as there is hardly ever light in our area.

Power generation and supply has become one of the most often heard and longest cries of Nigerians who continue to depend on generators as alternative power source, for everyday living and for production purposes.

This, however, is not a good alternative as the need for generators has pushed the price beyond the reach of the ordinary Nigerian, aside the very high cost of fuel needed to run the generator. This has over time, led to high cost of living and production, as well as making the prices of goods and services to rise a little higher, irrespective of the quality and quantity.

However, with the efforts of the federal government to create alternative power sources to complement the present less than 1,500 mega watts (MWs) which can barely serve the needs of the 167 million people may just be another beacon. The government is seeking for succour and alternatives through solar, wind, coal, nuclear, hydro-electric, gas, refuse among many others.

The need for such alternative is what has led to the transformation agenda of the incumbent Jonathan administration which seeks to create an alternative power source using coal. The need for these development implies that Nigeria must be able to open its domestic market to foreign investors and investments, both in power supply and power generation.

To this effect the Minister of Mines and Steel Development, Architect Musa Mohammed Sada has assured that in keeping with the Ministry’s mandate of producing coal as fuel for power generation, the ministry is set to develop at least 30 per cent of the power mix? by the year 2015.

The Minister while on a visit to the Zuma Coal Mines in Kogi State recently, said Coal happens to be at the top of mineral development for the various reasons of the challenges we have with power by the year 2015, we should be able to obtain 30% power mix from coal”. This, according to him, will? help to ensure not only 30% of the energy to source for power, but will be a means to wealth creation and poverty alleviation.

He said the purpose of mineral exploitation is to make sure that the people that live within the zones that the minerals exist in are helped to eliminate poverty? and get employment, education, health care facilities? through the implementation of Community Development Agreement (CDA) by Mining companies, which will be of immense benefit to the existing communities and their surroundings.

LEADERSHIP SUNDAY’s efforts to see how much Coal Nigeria had to meet the 2015 target, revealed through the Director General of the National Steel Raw Materials Exploration Agency (NSRMEA), Alex Ohikere, that Nigeria could either solve or at least minimise the challenges of power supply through the alternate use of coal as Nigerian has a huge proven reserve, out of which 128 million is in Obi Lafia of Nassarawa State alone.

He said ordinary coal can be used to generate power to help in resuscitating the power sector, such as those realisable from Enugu, Kogi, Nassarawa among other states of the federation, adding that Nigeria could boast of 128 million tonnes of proven coal in Nassarawa state, Okaba, Kogi state 61 million tonnes, Enugu state 43 million, Ezimo 29 million tonnes, Owukpa 51 million, Ogohoyoga 83 million tonnes, Maiganga about 60 million tonnes among others.

He said that the NSRMEA in the meantime depends on metallurgical coal: “What we look for is metallurgical coking coal to generate heat to melt the iron ore and contribute carbon for carbon steel production. He assured that with the abundant coal reserves Nigeria could depend on coal for alternative energy and power development in line with government promises if the minerals are properly harnessed and developed”.

The Chief Executive, Zuma Coal Mines, Eta Zuma who spoke on the phone with LEADERSHIP SUNDAY, said the Zuma Mines has a proven reserve of 380 million tonnes which they intend to use to build their own power plant, aiming at 1,200 megawatts at Etobe, in? kogi state

He said the 1,200 megawatts output which will be connected to the national grid, represents about 30 per cent of the nation’s power supply need, and explained: “considering that Nigeria is producing less than 1,500 megawatts presently and we will produce about 30 per cent additional power to the grid supply of electricity, an improvement in the quantity of the nations power supply would be guaranteed”.

Zuma assured that as “we develop more resources, we will plan for new power projects and make coal available for other coal fired plants, including cement manufacturing companies which will make them use less of gas”.

“This will give impetus to the use of coal for other projects and products manufacture, thereby giving hope to Nigerians that not only will harnessing the coal be a means to supply alternative power to Nigeria but will also be a means to poverty alleviation, increased employment opportunities as well as better living for indigenes and community members through provision of better infrastructures”, he further explained.

Speaking on the challenges that bordered on developing coal projects, the Zuma Coal Mines boss described them as a past issue as the present Minister had stepped in to create relief by granting a waiver which allowed them to bring in much equipment duty free; “even though we had to make huge investments in the purchase of? the equipment which were not available”, he said.

Towards the end of 2011, the Ministry of power announced the achievement of 4.420 MW generations, while Nigerians across the country confirmed that power supply had substantially improved. However, from the beginning of 2012, the story changed as the shortage of power supply was blamed on the inadequate supply of gas to the thermal power plants to the power sector.

The Minister of Power, Prof. Barth Nnaji had planned to achieve a grid ability of 5,000 megawatts and an additional 1,000 before 2012 runs out, but as at now the nation still remains in darkness as power demand continues to out weigh supply.

With the prospects in coal, the power minister should partner with the ministry of mines and take advantage of the existing opportunities to meet his target of improved MWs and indeed better power supply for the nation.

The need to create an alternative source of power supply cannot be overemphasised as power remains the chief source of development and technological progress in any economy, in addition to being the focal point of the present government transformation agenda.

President Goodluck Ebele Jonathan during the May 29 democracy day celebrations which held in Abuja, reiterated his administration’s commitment to the rapid and beneficial development of the country’s minerals and metals potentials”.

The President said: “In the last year, we recorded remarkable achievements in Mines and Steel Development. We increased the number of investors in the mining sector due to the transparent manner in which titles are now issued on a “first come-first served? and use it or lose it basis”. A total of 2,476 active mineral titles were issued compared to 666 titles issued out in the previous year, thereby reducing, significantly, illegal mining activities

He also said “about 350,000 additional jobs were created, arising from the activities of newly registered operators. We have initiated a programme to support private steel production outfits. This has resulted in an increase in production figures for steel and other metals to over one million tonnes.