Namibia has secured over $100 million (€92.1 million) to construct a 40MW biomass plant, reported Bioenergy Insight.
NamPower signed a loan agreement, an engineering, procurement and construction (EPC) contract, and woodchip fuel supply contracts, marking the start of the execution phase of the Otjikoto Biomass Power Station Project (OBPS).
The French Development Agency will provide a loan of up to €100 million for the construction and operationalisation of the power station. The Mitigation Action Facility will grant €25 million towards the capital costs and capacity-building of the local biomass value chain. Additionally, the French Fund for Global Environment will contribute €3 million for environmental research and to extend project benefits to vulnerable communities.
“Once commissioned, the station will facilitate, support, and preserve power quality in the electricity grid by providing ancillary services such as synchronising torque, grid inertia, and reactive power control,” said NamPower Managing Director Simson Haulofu.
“This will strengthen the grid to allow further integration of intermittent renewable energy sources such as solar and wind,” Haulofu added.
