Azura-Edo Independent Power Plant Environmental Impact ... - IFC

3.8.2 Alternative Site Location
Several locations within Edo State were considered during the design phase of
the Project but the preferred Site chosen for the Project is considered to be the
site which offers the least disruption to the natural environment and to the
local community.
More specifically, the Site is located adjacent to all three of the following: the
existing NIPP (Ihovbor-Evboeka) Power plant, the Benin North Substation
and the ELPS. The proposed power generation activities are therefore
compatible with surrounding land uses; and fuel supply to (and power
evacuation from) the Site are both available at minimal cost and with minimal
social and environmental disruption. Other salient factors are listed below:
• The Project Site has good existing road access, as well as close proximity to
an inland port (Koko Port). This is key for the inland transportation of
equipment and materials for the power plant.
• From a security perspective, in comparison to other key oil and gas
producing States Edo State has witnessed fewer instances of civil
disturbance and unrest.
• The Edo State Government is a key player and minority shareholder in the
project which is a confirmation of the Project’s match with government
policies and priorities.
3.8.3 Design, Technology and Fuel Diversification Options
The power plant will be fuelled by natural gas, with diesel used for start-ups.
Natural gas has a much less damaging impact on the environment than other
fossil fuels (eg coal or heavy fuel oil) as it produces lower greenhouse gas
emissions and other air and ozone pollutants. The use of gas as the feedstock
will also help to address the problem of gas flaring that commonly occurs in
Nigeria as a result of oil extraction.
Recent analysis has demonstrated that hydroelectric power can only meet a
small portion of Nigeria’s long-term power generation requirements.
Moreover, the Federal Government has signalled its commitment to the
development of three large power plants at Mambilla (2,600 MW); Zungeru
(760 MW) and Gurara (300 MW). Should these projects ever to come to
fruition, the country’s potential hydropower generating capacity (including
the existing hydropower facilities of Kainji, Jebba and Shiroro) would be
substantially exhausted; although a modest amount of additional hydro
capacity might be still be accessible via a succession of smaller “mini-hydro”
projects. Nevertheless, even on the most optimistic of estimates, the country’s
long-term hydro-generating capacity is unlikely to exceed 6,000 MW (Azura
Power, 2011).
AZURA EDO IPP
3-26
DRAFT EIA REPORT