CALGARY, Alberta & ABUJA, Nigeria–(BUSINESS WIRE)–CarbonAi Inc. (CarbonAi) is proud to announce that it has signed a memorandum of understanding (MOU) with the Rural Electrification Agency (REA) of Nigeria to identify and develop small scale solar energy projects in the country. The projects will be funded through revenues from carbon credits generated through CarbonAi-financed and developed flare gas capture projects in Nigeria.
Under the MOU, the parties will explore opportunities to finance and develop solar energy projects in unserved or underserved communities near CarbonAi’s flare gas capture projects in Nigeria. REA will use its knowledge of rural electrification needs and programs in Nigeria to identify suitable project opportunities and coordinate with local communities.
CarbonAi, in turn, will use its carbon finance and project development expertise to finance, design and build the projects. The company will also quantify, verify and monetize greenhouse gas (GHG) emissions reductions using its proprietary data management platform.
REA is an implementing agency of the Federal Government of Nigeria under the Ministry of Power. It is primarily tasked with promoting and increasing access to electricity in unserved and underserved rural communities across Nigeria.
CarbonAi is a world-leading developer of fully integrated GHG reduction projects and GHG emissions quantification and monetization solutions. Based in Calgary and Dubai, the company provides full-cycle flare gas capture services in Africa and the Middle East, from project finance, design and construction to carbon credit quantification, verification and sale. For each project CarbonAi develops, it invests a portion of carbon credit revenues to help local organizations develop sustainability initiatives through the CarbonAi Climate Dividend Programme.
“We are excited to work with REA as our CarbonAi Climate Dividend Program partner in Nigeria,” said CarbonAi’s Chief Carbon Officer, Yvan Champagne. to energy transition by using the urgent decline of today’s energy system to build the energy system of tomorrow in Nigeria.
Gas flaring is a common practice in oil and gas activities worldwide; however, it produces high levels of GHG and harmful local pollutants, often creating serious local air and water quality issues. Nigeria has the third highest number of gas flares in the world, but the country has pledged to eliminate the practice by 2025. Many communities in high-fring regions of Nigeria currently do not have access to reliable electricity. The parties believe this MOU is an important step in providing reliable renewable energy to local communities that are currently underserved and underserved, while improving local air quality associated with gas flaring. .
Managing Director/CEO of REA, Engr. Ahmad Salihijo Ahmad added that “REA’s collaboration with CarbonAi is timely and solution-driven. The off-grid space in Nigeria has undergone commendable growth. With the resulting opportunities, key stakeholders should will take responsibility to use these opportunities to accelerate sustainable impact, across the country.This is yet another strategic and innovative way to finance Nigeria’s climate-resilient infrastructure while alleviating energy poverty.
About the Rural Electrification Agency (REA)
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN), under the Federal Ministry of Power, tasked with the electrification of unserved and underserved communities with the aim of catalyzing the growth of economy and improving the quality of life for Nigerians. The REA currently manages the Rural Electrification Fund (REF) and implements the Nigeria Electrification Project (NEP) and several other initiatives in furtherance of its mandate.
To give effect to some of its initiatives, the REA obtained financing worth $550 million ($350 million from the World Bank and $200 million from the African Development Bank) for the financing of the Nigeria Electrification Project, and an additional $11 million for financing the Rural Electrification Fund for the deployment of Solar hybrid mini grids and solar home systems. These funds will ensure that millions of Nigerians have access to clean, safe, reliable, and affordable electricity.
For more information, please visit https://rea.gov.ng
CarbonAi is a world-leading developer of fully integrated greenhouse gas (GHG) reduction projects and GHG emissions quantification and monetization data solutions. Based in Calgary, Canada and Dubai, The Company provides full-cycle GHG mitigation services, from project finance, construction and operations to carbon credit accounting, verification and sales. It also offers a cloud-based data platform to integrate and manage GHG emissions data from multiple, diverse and dispersed data sources, allowing real-time emissions monitoring and forecasting, as well as streamlined verification and crediting.
For more, visit www.CarbonAi.ca