Kitchen Vegetable Oil Limited has significantly reduced its production costs by half following a switch to gas, a move prompted by Nigeria’s ongoing push for alternative energy solutions. The company’s decision to transition away from grid power was influenced by the high costs and instability of electricity, which threatened the reliability of factory operations.
Ifeyinwa Udeagbala, the company’s Executive Director, explained that the erratic electricity supply posed risks to their equipment, making it crucial for the company to find a more reliable energy source. As part of the solution, Kitchen Vegetable Oil partnered with Clark Energy to install a 1.7 megawatt (MW) Jenbacher gas plant. This plant uses pipeline gas from a major Nigerian oil company and compressed natural gas (CNG) from virtual pipeline suppliers.
Clark Energy provided the necessary engineering, equipment, and ongoing support. The gas plant has not only improved the company’s energy efficiency but also helped in cutting operational costs by replacing more expensive and less reliable diesel generators. Udeagbala noted that the switch to gas has made the company’s operations more sustainable and has improved energy efficiency.
Yiannis Tsantilas, Managing Director of Clark Energy for sub-Saharan Africa, emphasized the importance of affordable, reliable energy in manufacturing. He pointed out that, in Nigeria, inconsistent power supply and high energy costs account for up to 40% of a manufacturer’s expenses, as reported by the Manufacturers Association of Nigeria (MAN).
