AFC supports construction of large methanol plant in Nigeria

In Nigeria, Africa Finance Corporation (AFC) said it is arranging a project development facility to support Africa’s largest gas-to-methanol plant, with the aim of significantly reducing CO2 emissions by offsetting flaring of natural gas and turning it instead into a valuable chemical for solvents, paints, plastics and car parts.

The project in Akwa Ibom, Nigeria, targets producing an initial 1.8 million tons per annum (MTPA) of methanol, diversifying the local economy and generating over 18,000 jobs. 

AFC has committed development stage financing to de-risk the project and enable it reach financial close, along with providing financial advisory services to the sponsors to raise the required project financing and support successful delivery of this transformational project. The venture is led by Blackrose, a project development and investment firm, and co-developed with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which are co-financing alongside AFC.

Samaila Zubairu, President and CEO of AFC, said: “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.”

The project will be implemented in two phases, each with an installed capacity of 1.8 MTPA. Phase one will produce low-carbon methanol, while phase two of the project will expand methanol production to include ammonia.

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