Geregu Power Plc has entered into a partnership with Siemens Energy to expand the capacity of the Geregu 1 power plant in the country.
This was contained in the company’s notice to the Nigerian Exchange Limited.
The collaboration, formalized through a Memorandum of Understanding signed in Berlin on Wednesday, May 29, 2024, aims to enhance sustainable, resilient, and efficient power generation.
It was also to ensure the longevity of assets to support the growth and sustainability of the Nigerian Electricity Supply Industry.
The statement reads, “Geregu Power Plc and Siemens Energy have signed a Memorandum of Understanding to jointly develop solutions for capacity expansion at the Geregu power plant towards ensuring sustainable, resilient and efficient power generation.
“The initiative is to safeguard the longevity of assets aimed at supporting the growth and sustainability of the Nigeria Electricity Supply Industry (NESI).”
According to the statement, during the ceremony, representatives from both companies discussed and proposed several solutions, including upgrading the Geregu 1 Power Plant from its current capacity of 435MW to 500MW.
They also plan to establish combined cycle operations to generate an additional 200MW and construct new builds with lower emission turbines to add 500MW, thereby creating Geregu 3.
The company noted that these initiatives will bring Geregu Power Plc overall nameplate capacity to 1200MW.
According to the statement, the discussions involve the proposed implementation of various solutions ranging from the upgrade of the Geregu 1 Power plant from its current capacity of 435MW to 500MW, the establishment of combined cycle operations to generate an additional 200MW and new builds using lower emission turbines with an added capacity of 500MW to birth Geregu 3, bringing Geregu Power Plc overall nameplate capacity to 1200MW.
“The company noted that these initiatives will bring Geregu Power Plc overall nameplate capacity to 1200MW.”
The company noted that the initiatives are targeted at higher power output, improved efficiency, lower emissions, higher flexibility, longer equipment life span and maximizing shareholder value through increased earnings.
According to the statement signed by the Company Secretary, Akinleye Olagbende, Chairman Board of Directors of Geregu Power Plc, Femi Otedola led the Geregu Power Plc team while Dietmar Siersdorfer, Managing Director of Middle East and Africa led the Siemens Energy Team.
The company closed the trading day on Friday, May 31, 2024, at N1, 000.00 per share on the Nigerian Stock Exchange. Geregu Power Plc began the year with a share price of N399.00 and has since gained 151 percent on the price valuation.
On October 6, 2022, Geregu Power became the first power generating company in the country to be admitted into the Mainboard of the Nigerian Exchange Limited by way of listing by Introduction.
The company, majorly owned by billionaire businessman, Femi Otedola’s 2.5 billion ordinary shares of 50 kobo each at N100 per share was admitted on the Exchange.
The listing of Geregu’s shares added N250, 000,000,000 billion to the market capitalization of NGX and further boosted liquidity in the Nigerian stock market and provided opportunities for wealth creation.
On its first trading day on the NGX, Geregu Power’s share gained 10 percent to close at N110 per share from the N100 per share it was listed by introduction.
The gain pushed its market capitalisation to N275 billion from the N250 billion it was listed.
A total of 8.5 million shares of Geregu worth N935 million was traded in one day as its listing further boosted liquidity in the Nigerian capital market.
