Fully integrated greenhouse gas (GHG) reduction projects developer based in Calgary, Canada and Dubai, CarbonAi, announced it has signed an MoU with the Rural Electrification Agency (REA) of Nigeria to identify and develop small-scale solar projects in the country.
Under the MoU, both parties will work together to finance and develop solar projects in unserved or underserved communities.
The REA is an implementation agency of the Federal Government of Nigeria under the Ministry of Power, aiming to accelerate the electrification process in unserved and underserved rural communities across Nigeria. The agency will leverage its knowledge of Nigeria's rural electrification requirements and programs to identify appropriate project opportunities and liaise with local communities.
While CarbonAi will apply its carbon finance and project development expertise to finance, design and construct the solar projects. The company will also quantify, verify and monetize GHG emissions reductions using its proprietary cloud-based data management platform.
It's worth noting that Nigeria has high GHG emissions resulting from gas flaring—a typical process during oil production. The country has set up a goal to eliminate the practice by 2025. However, in the meanwhile, many of Nigeria's high-flaring regions are suffering not only severe air pollution but poor electricity services. Under this MoU, the parties will prioritize project opportunities near CarbonAi's flare gas capture projects. The solar projects will be funded by proceeds from the carbon credits that are generated through these flare gas capture projects.
The collaboration the REA between CarbonAi is regarded as an important step in providing reliable renewable energy to local communities that are currently unserved and underserved while improving local air quality.
"REA's collaboration with CarbonAi is timely and solution-driven. The off-grid space in Nigeria is undergoing commendable growth," commented Ahmad Salihijo Ahmad, Managing Director and CEO of the REA. "This is another strategic and innovative way to finance climate-resilient infrastructure in Nigeria while alleviating energy poverty," added Ahmad.