Karpowerships to save Ghana $120m annually

turkey pixGhana’s power purchasing agreement with Karpower-ship is expected to save the country between 100 to 120 million dollars annually.

This is because the Karpower-ships which are expected in Ghana soon, has the flexibility of using the lowest cost heavy fuel and natural gas, unlike light crude which is mostly used in Ghana.

Speaking to journalists who toured the construction site of Karpowership in Turkey last week, Mr. Orhan Remzi Karadeniz, Chief Executive Officer, Karpowership said heavy fuel main operating costs were low, ensure long-term continuous operation and reliable operation, long life expectancy, fast and quick returns on investment.

He said Ghana could save cost with the use of the Powership by eliminating the high cost of power production, positive cash flow effect for the national economy and immediate savings on import fuel cost.

Messrs Karadeniz Power Group/Karpowerhip of Turkey, a renowned global power ship manufacturing company in June 2014, Karpowership signed a 10-year Power Purchase Agreement with the Electricity Company of Ghana for the provision of 450MW directly to the country’s national grid via two Powerships.

The first is to be delivered in 215 days after the financial closure while the second is to be completed in 365 days after the financial closure.

The project dubbed: “Power of Friendship for Ghana” is the first powership project in Africa and seeks to meet the electricity demand of Ghana.

The project is expected to account for 22 per cent of Ghana’s total energy generation.

Powerships are ship mounted floating power plants, delivering the most reliable power supply solution with an optimum cost. It provides available power with proven medium speed diesel engine, and natural gas technology which is very suitable for peak or base load supply.

 

No sovereign guarantee

“What is even more interesting about the deal with the Electricity Company of Ghana is that, it is purely a commercial arrangement which the state is not providing any sovereign guarantee as often seen in most power deals,” he said.

He said, “Ghana holds a unique position for our powership project because it is the first country where we signed a contract. Our Ghana power purchase agreement is for 10 years with dual flexibility using lower cost fuels and natural gas. First five years with heavy fuel with an option to switch to natural gas, second five years.”

Mr. Karadeniz said the powerships being manufactured for Ghana was not only to serve the emergency power needs of Ghana but would provide a medium-term solution for the country.

“It is a ‘bridge solution’ for the current energy crisis in Ghana. It allows for the Ghanaian government and power agencies enough room to take stock and plan for immediate repairs, reinvestment and future permanent plants built with no added pressure of energy crisis,” he said.

 

In Lebanon

Before the visit to Turkey, Journalists were conducted round the company’s powership in Beirut, Lebanon to have firsthand information on how the powership works.

In Lebanon, the powership which is providing electricity to feed the national grid is named ‘Fatmagül Sultan’.

According to Mr. Patrick O’ Driscoll, Director Africa and Asia, Karpowership who briefed the team from Ghana, the powership arrived in Beirut last year under a three-year deal agreed between Lebanon’s government and Karpowership.

After securing a supply of heavy fuel oil and hooking up to Lebanon’s national grid, the ship is delivering 25 per cent of Lebanon’s electricity needs.

Mr.O’ Driscoll described the ships as an environment-friendly, innovative hi-tech concept.

“Power ships are fast-track, standalone, utility-size solutions for medium power-generating needs,” he said.

He said the company’s powerships have previously operated in the port of Basra in southern Iraq, where post-invasion electricity shortages became a part of daily life. It also supplied Karachi, southern Pakistan.

By David Adadevoh,
Back from Instabul,
Turkey

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