Home Business Abyssinia Steel inks Ksh 306M deal for clean power

Abyssinia Steel inks Ksh 306M deal for clean power

Abyssinia Steel has signed an agreement with Empower New Energy for the construction of a Ksh 306 million solar power plant at its Awasi factory in Kisumu County.

The solar power plant with a capacity of 2.5 megawatts is expected to help the Kenyan steel manufacturer transition to clean energy within its facilities as well as reduce its grid power bill.

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“This new 2.5MW solar plant represents another significant step towards a green and more prosperous future for the company”, said Jateen Patel, Abyssinia Iron and Steel Chief Executive Officer.

The firm has also signed a 25-year Power Purchase Agreement (PPA) with Empower New Energy, the project financier and developer of the ground-mounted solar plant to be constructed by the Spenomatic Group.

Upon completion, the solar power plant is projected to generate at least 4.8 gigawatt hour of electricity annually thereby help the steel manufacturer save some 2 500 tons metric tonnes of carbon emissions annually.

“We are thrilled to partner with Abyssinia Steel and Spenomatic to bring cost-saving and clean energy solutions to Kenya. Together, we will contribute to the growth of a low-carbon economy in Kenya, fostering a greener future for the manufacturing industry in Kenya,” added Terje Osmundsen, CEO Empower New Energy.

Abysinnia Steel is one of East Africa’s largest steel producers with an annual capacity close to a million metric tonnes.

“Together, we set a benchmark for clean energy adoption in the industrial sector,” noted Spenomatic Managing Director Berjeesh Surty.

The new solar plant will also enable Abyssinia Steel to integrate renewable energy into its manufacturing process seamlessly.

“It is through such partnerships that we can pave the way towards a greener and more prosperous future for all,” added William Nyaoke, Regional Director for East Africa in Norfund.

The steel manufacturer also has manufacturing and mining operations Kenya, Uganda, Ethiopia, and Rwanda.

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