Project director: PCNGi has invested $450m in CNG value chain

The Presidential Compressed Natural Gas Initiative (PCNGi) says it has invested more than $450 million in the compressed natural gas (CNG) value chain.

Michael Oluwagbemi, PCNGi project director and chief executive officer (CEO), spoke during the 9th edition of the Nigeria Energy Forum (NEF2024) in Lagos.

According to the PCNGi CEO, the amount was invested in mother stations, daughter stations, refuelling stations, and conversion centres.

Oluwagbemi, who was represented by Tosin Coker, PCNGi head of commercial, said the initiative had effectively converted more than 10,000 vehicles from petrol to CNG.

“By 2027, the initiative will have converted more than one million vehicles using petrol to CNG,” he said.

On incidents of explosion of vehicles using CNG, Oluwagbemi assured Nigerians that it had taken precautionary measures with various agencies of government to ensure safety.

In November, Oluwagbemi said over $200 million has been invested in CNG value chain.

Ibironke Olubamise, national coordinator of the global environment facility (GEF) small grants programme (SGP), managed by UNDP, said the programme was investing in youth energy innovation for economic growth and environmental sustainability.

On his part, Joseph Osanipin, director-general, National Automotive Design and Development Council (NADDC), said that the council had trained over 4,000 auto technicians regarding the conversion of petrol vehicles to CNG.

Osanipin said the council had started campaigns to sensitise Nigerians on the benefits of using CNG to power their vehicles.

“CNG can guarantee cleaner environment, it is cheaper and affordable,” he said.

Also speaking, Oluwatobi Ajayi, chairman and managing director, Nord Automobile Ltd, said the company was established to address the growing demand for vehicles in Africa and reduce import dependency.

He said due to the federal government’s CNG initiative, the company had incorporated the fuel into Nord’s vehicle production to meet up with the government policy.

Adekunle Makinde, NEF co-chair, said the 2024 AEIC has GEF-SGP UNDP as a principal supporter, with Afrexim Bank and Oando Clean Energy Ltd. as co-supporters.

“The top three winners of the youth innovation contest were awarded grant prizes to upscale and deploy the innovative energy solutions across real life applications,” Makinde said.

“The first prize of N2 million was awarded to solar-powered dehydrators for agro-processing.”

Makinde said the second prize of N1.5 million was awarded to an irrigation loop by Thinpower, while the third prize of N1 million went to solar-powered irrigation and cold storage for farms.