The Africa Finance Corporation (AFC) is facilitating the development of what is set to be Africa’s largest methanol plant in Akwa Ibom, Nigeria, aimed
The Africa Finance Corporation (AFC) is facilitating the development of what is set to be Africa’s largest methanol plant in Akwa Ibom, Nigeria, aimed at transforming the region’s gas resources into methanol while significantly reducing carbon emissions.
By offsetting natural gas flaring, the plant will produce an initial 1.8 million tonnes per annum (MTPA) of methanol, which is crucial for industries such as pharmaceuticals, paints, plastics, automotive manufacturing, and construction. The project is a joint effort led by Blackrose, a project development firm, in collaboration with AFC and another international development finance institution.
Stages of development
Nigeria has an estimated 200 trillion cubic feet of natural gas reserves, yet a substantial portion remains underutilized, leading to high levels of flaring. Gas flaring releases harmful chemicals that pose health risks to local populations, making this project vital both economically and environmentally. AFC President Samaila Zubairu highlighted the project as a “transformative” initiative that repurposes Nigeria’s natural resources toward sustainable, low-carbon industrial growth, helping Nigeria become a leader in eco-friendly manufacturing.
This project will be implemented in two phases, each with a 1.8 MTPA production capacity. Phase one focuses on producing low-carbon methanol, essential for many everyday products and a low-emission fuel alternative for industries like shipping and industrial heating. Phase two will extend production to include ammonia, a key component for fertilizer manufacturing.
With an emphasis on sustainability, the project will employ energy-efficient production technologies, reducing carbon intensity compared to traditional methods. Additionally, the facility will implement carbon capture strategies and utilize external hydrogen to move closer to carbon neutrality. During the construction phase, the project will create approximately 2,500 local jobs and 16,000 indirect jobs by spurring manufacturing and economic diversification in the region. Once operational, the plant will offer long-term environmental and economic benefits, addressing both energy needs and carbon footprint reduction.