The aluminium plant has been grounded by litigation since its controversial sale by the federal government to Rusal of Russia under its privatisation scheme midwifed by the Bureau of Public Enterprises (BPE) in 2006.
With the ongoing controversy over its ownership, the company has underperformed, and its 540-megawatt power plant has been moribund and non-operational. When fully operational, the plant will add 540 megawatts of electricity to the grid, helping to boost power supply and provide direct and indirect employment opportunities for nearly 15,000 Nigerian professionals and the teeming youth population.
Minister of Power, Adebayo Adelabu, during a working visit to the plant located in Ikot Abasi on Monday, October 20, lamented that 37 years after its establishment, the lack of alternative electricity supply has hindered the country from benefiting from the huge investment.
He promised a temporary solution that would ensure the company is connected to the grid while work on a long-term solution continues.
On the long abandoned Niger Delta Power Holding Company (NDPHC)-owned 330 KVA substation in the community, which was about 90 percent completed at the time it was abandoned, Adelabu lamented the dilapidated state of the substation, assuring that efforts would be made to ensure its completion within the shortest possible time, “as this is the only way the country can get value for such huge investment in ALSCON.
ALSCON, with an installed capacity of 540 MW, comprising six turbines of 90 MW each, was conceived in 1989 and completed in 1998. The controversial sale to Rusal during the administration of former President Olusegun Obasanjo has led to an unending litigation that has grounded the plant.
“These huge investments by the country have suffered from lack of power supply in the last 27 years, as they have not been connected to the grid, and we are very much aware of the huge potential of an institution like this in the upstream, midstream and downstream conversion of aluminium, that can create a lot of employment for our teeming youths, that can also serve as a supplier of raw materials to every downstream aluminium company and save us huge foreign exchange for imports of these raw materials”.
He expressed the joy of the Federal Government in taking this crucial step, as the government is committed to providing electricity to the majority of Nigerians by 2030, in line with Vision 2030 at the Tanzania declaration.
“Having appreciated this your wonderful efforts, I have come to visit the company, to discuss with the owners of the company, and all the other stakeholders, the Transmission Company of Nigeria (TCN), the Niger Delta Power Holding Company (NDPHC), and all the contractors involved, to devise an immediate solution to solve the power problem this company has been facing, Adelabu said, as he expressed delight in his meeting with stakeholders in making the entity functional and relevant to Nigeria’s energy needs.
“I am happy that we made progress with this meeting. We have determined the short-term solution is to connect this company, this institution, to the national grid, and we have also agreed on the medium-term solution.
“But the most important part of this meeting is the fact that the company also has the potential of supplying 540 MW of power onto the national grid when fully completed. Once all the infrastructures are put in place, the 330/132KV substation, which is being constructed by the Niger Delta Power Holding Company, together with the 330KV DC lines from Ikot-Ekpene to Ikot-Abasi, we will be able to evacuate the entire 540 MW to the national grid”, he said.
He added that: “There is even the possibility of expanding this by about 120 MW, because there is an open circuit line by which an additional 20 MW per turbine can be added to make 660 MW of power.
“You can imagine what this will add to the national grid capacity. So I’m happy that I came here today. I’ve listened to the company, I’ve listened to all the stakeholders, and we have a solution in sight.
“All we need to do now is to go back and work on all the agreed action lines, which I will personally supervise. And I believe that once, within the next 90 days, we’re able to achieve the short-term solution, the country will feel the impact of this company beginning operations. From the number of employees, they will generate for us in the country, they have the potential of employing up to 3,000 employees here”.
The Minister also reiterated the company’s relevance in supplying raw materials to downstream aluminium companies, noting, “This will save us millions of dollars from foreign exchange.
“We know the impact of this on our nation, the Federal Reserve, and on our Gross Domestic Product (GDP). So, it’s a company that we believe will add value to the country.
On the gas supply challenge, Adelabu said everything depends on arriving at an appropriate business decision. “If the price is right, the gas company will supply, because it’s a highly competitive market, and the preference will be given to those who pay more. So we believe they can sit down with the gas companies and agree on a commercially viable price and ensure that gas is supplied.
“That’s the least of the problems here. I believe this can be resolved with appropriate pricing. The gas pipeline is working very well. There’s a power company here that is getting gas. This is less than 500 meters from here. So the gas pipeline is working well. It’s a matter of agreeing to the correct price, or the right price, with the gas company, and the turbines will be fired immediately”, he said.
Earlier, Viacheslav Krylov, Development Advisor, said ALSCON’s operation has been hampered since the presidential directives in July 2024 to restart the plant, adding plans are on to ensure full production capacity of 200,000 MT in the sixth year, with over 15,000 direct and indirect employment for Nigerians.
He noted that smelting is a power-intensive process that requires a continuous, stable and high-volume supply of electricity to operate efficiently and effectively but noted “The current energy options at the plant are therefore completely inadequate to restart the plant”, he said.
Comments are closed.