K&M Advisors Leading the Way in Gas Study Projects Across West Africa
K&M Advisors continues to support the energy transition in West Africa. Many West African countries still rely on diesel and heavy fuel oil (HFO) to satisfy their energy needs. National power utilities use these fuels to provide baseload power. Large mining operations use diesel or HFO for power generation and heavy-duty equipment (hauling trucks, trains, excavators, crushers, etc.). With abundant domestic gas reserves in the region (Nigeria, Mauritania, Senegal, Angola, Morocco, and others), it is imperative to find regional solutions to transition away from diesel and HFO and into using the abundant regional gas reserves. This transition could boost economic development by reducing the cost of energy, increasing access to energy, reducing pollution, and increasing energy security.
K&M is working hard to assist private and government stakeholders in finding pragmatic and robust solutions to make this transition a reality.
K&M is working with private and government stakeholders in Mauritania to determine the most viable uses of Bir Allah gas for domestic consumption and the potential market for LNG exports. This includes analyzing how gas could be used for grid-connected power generation, off-grid mining power generation, hauling trucks, mining locomotives, and several other applications. K&M is estimating the gas demand from these applications, analyzing the economics of switching to natural gas, and developing pragmatic roadmaps and implementation plans to make this transition a reality.
K&M is also working in Morocco with two private companies to develop a gas-to-industry business that will use gas from the Acnhois field to displace LPG, Diesel, HFO, and other fuels used by industries in Tanger, Kenitra, and Casablanca. The business will help industries save energy costs and reduce their carbon footprint by replacing existing fuels with natural gas. K&M will analyze options for transporting gas via a virtual pipeline (in liquid or compressed gaseous form), perform the conceptual design and cost estimates of the required facilities, analyze the business case for each industry to switch to natural gas, and design the special purpose vehicle (SPV) that will operate the gas-to-industry business.
K&M’s West Africa work also includes a more in-depth analysis of the business case for using natural gas for an alumina refining plant under development in Guinea. A private company is considering supplying gas from LNG imported in Kamsar to a regional mining customer. This mining customer is considering constructing a new alumina refinery that would produce 1–2 mtpa of alumina, whose electricity, steam, and calcination needs would be met by energy from LNG/natural gas. K&M is performing a pre-feasibility study of the energy supply solutions (either in the form of electricity and molecules or only molecules) to the refinery.
Overall, through these projects, K&M’s work has helped to raise awareness of the potential for natural gas to contribute to the energy security and economic development of West Africa. K&M Advisors is committed to supporting natural gas development in West Africa and will continue to work with governments, businesses, and financial institutions to help realize the region’s gas potential.
The recently concluded Africa Energy Forum (AEF) 2023 was an extraordinary gathering that brought together over 3,000 delegates from various sectors, all sharing a common goal of driving Africa’s energy transition forward. As a proud participant, K&M was privileged to be a part of this remarkable event, taking place for the first time in mainland Africa. Here’s a glimpse of our experience and the key takeaways from AEF 2023.
- Embracing the Green Hydrogen Revolution: Green hydrogen emerged as a central theme at AEF 2023, as African countries displayed a keen interest in establishing themselves as leaders in this promising field. Recognizing the continent’s immense renewable energy potential, K&M is fully committed to supporting Africa’s vision of becoming a key player in the green hydrogen economy. With our extensive experience in green hydrogen studies, we aim to facilitate the development of green hydrogen projects across the continent.
- Unlocking the Potential of Battery Energy Storage: As the region rapidly expands its renewable energy infrastructure, stakeholders at AEF 2023 acknowledged the crucial role of battery energy storage systems (BESS). However, there remains a need for clear guidelines on assessing the economic value-add of battery storage and creating enabling regulations. K&M is thrilled to contribute to this vital area through our BESS project with Africa GreenCo in Zambia.
- Harnessing Natural Gas Resources for Growth: Countries blessed with abundant natural gas resources are now formulating plans for domestic usage and exploring opportunities for gas exports to other African nations. Intra-African gas trading is expected to witness significant growth in the medium term, with countries investing in LNG infrastructure and expanding their gas networks. K&M stands ready to support these countries in realizing their aspirations, leveraging our deep expertise in gas market analysis and LNG-to-Power studies.
AEF 2023 served as a crucial platform for collaboration and knowledge-sharing among governments, investors, developers, and technology providers in Africa’s energy sector. At K&M, we are inspired by the enthusiasm and commitment demonstrated by African countries toward achieving their goals for climate change and sustainable development. We remain steadfast in our dedication to supporting Africa’s sustainable energy future, contributing our expertise and experience to drive the continent’s energy transition forward. Together, we can build a greener and more prosperous Africa.
#AfricaEnergyForum #AEF2023 #Africa #EnergyTransition #Innovation #SustainableDevelopment #energy
AEF 2023 has exceeded expectations! Engaging discussions and incredible camaraderie! K&M relished a delightful dinner in Nairobi with cherished friends and esteemed colleagues.
🌍 Exciting News from Nairobi!
We’re thrilled to attend and exhibit at #AEF2023 in Nairobi, starting tomorrow, June 20th, until June 23rd! 🎉
Don’t miss this opportunity to network, explore industry trends, and discover innovative solutions. We can’t wait to connect with you at #AEF2023 in Nairobi!
See you there! ✨
K&M has been making significant strides in green hydrogen, contributing its expertise to various projects worldwide. Most recently, the Inter-American Development Bank (IADB) has engaged the K&M team to assist the Government of Trinidad and Tobago in developing and implementing green hydrogen demonstration projects.
K&M’s responsibilities under this project include conducting comprehensive financial and economic analyses. The goal is to assess production costs and analyze economic benefits. With an estimated aggregate investment of USD 120 million, K&M will create a financial and economic model for the demonstration projects. This model will project cash flows, estimate costs, and evaluate the viability of producing green hydrogen and related products like green ammonia and green methanol.
Additionally, K&M will lead the design of these projects’ business models and financial structures. K&M will propose multiple business models involving private and public partners and work closely with the government to determine the most suitable approach. Risk assessments and mitigation strategies will be developed to ensure the long-term success of the projects.
K&M’s expertise extends beyond Trinidad and Tobago. In another assignment, K&M was part of a team the Inter-American Development Bank hired to design a strategy to introduce green hydrogen into Panama’s energy market, exploring its potential for sale in the domestic and international markets. K&M is also assessing the opportunities for utilizing excess geothermal energy to produce green hydrogen in the Eastern Caribbean and to market this green hydrogen in a regional hub.
K&M’s work in the green hydrogen sector showcases its commitment to sustainable energy solutions. Through financial and economic analyses, business model design, and strategic support, K&M is helping drive the transition to a greener future.
Exciting news! Our team at K&M is proud to announce the successful completion of our latest project, the Global Procurement Initiative: Interstate Clean Energy Procurement Program for India, sponsored by the U.S. Trade and Development Agency (USTDA).
This program encompassed two impactful workshops held in New Delhi, India, focusing on clean energy procurement practices. We aimed to integrate international best practices and value-based determinations into India’s clean energy sector.
The workshops delved into advanced value and quality-based procurement methods, emphasizing optimal results in public procurements within the renewable energy sector. We aimed to enhance technical capacity, including developing specifications, utilizing life-cycle cost analysis (LCCA), and creating non-price evaluation criteria.
Partnering with the Business Council for International Understanding (BCIU), we were entrusted with the responsibility to develop and deliver USTDA-funded training sessions on international procurement best practices and achieving value for money in the clean energy sector.
During the workshops, our team contributed to agenda development, delivered engaging training presentations, and actively participated in an industry roundtable alongside private sector representatives. We had the privilege of sharing insights with public sector energy representatives from 10 Indian states.
Topics covered ranged from the role of new energy technologies to best value structures, renewable energy tenders, bankability of projects, and considerations for value management during tendering and implementation.
We are incredibly grateful for this opportunity to foster cross-border knowledge sharing and contribute to the procurement of renewable energy. Together, let’s drive sustainable energy practices and make a positive impact on our world.
K&M is excited to announce that Africa GreenCo, a southern-Africa-focused renewable energy intermediary off-taker and service provider, has teamed up with K&M to conduct a feasibility study for developing and implementing a battery energy storage system (“BESS”) pilot in Zambia and expanded portfolio of BESS projects to serve the region. Funded by a USTDA grant, the 10-25 MW / 40-100 MWh battery energy storage system pilot (“BESS Pilot”) and 400 MWh of BESS projects (“BESS Portfolio”) aim to address the intermittency of renewable energy, redistribute power between off-peak and peak hours, and balance Solar PV supply.
The feasibility study will assess the viability of implementing the BESS Pilot in Sesheke District, Zambia, and provide recommendations for the expanded BESS Portfolio. K&M’s scope of work, with support from POWER Engineers, includes commercial and market analysis, technical assessment of battery storage technologies, economic and financial analysis, and assessment of financing options. A preliminary environmental and social impact assessment, development impact analysis, and U.S. sources of supply analysis will also be conducted.
“We’re looking forward to working with GreenCo to assess the feasibility for Zambia’s first utility-scale BESS,” said K&M Advisors’ President Alfonso Guzman. With utility-scale energy storage being key to facing the challenges posed by renewable energy’s intermittency and other limitations, this project represents an important step towards sustainable and reliable energy solutions for the people of Zambia.
To learn more, please follow the link below:
Congratulations to our colleagues Kathleen Cohen and Alfonso Guzman for co-authoring with CSIS a paper on unlocking the geothermal potential of Latin America and analyzing the challenges and opportunities.
The article discusses the potential for geothermal energy development in Latin America and the challenges that need to be addressed for its successful implementation. The region has significant untapped geothermal potential that could help meet its growing energy demand while reducing greenhouse gas emissions. However, the lack of a regulatory framework, financing options, and technical expertise has hindered the development of geothermal projects.
To learn more, please follow the link below:
K&M is excited to announce its engagement with the Water and Sewerage Corporation of The Bahamas.
The general objective of this consultancy is to prepare a Corporate Business Plan for the corporation. The plan is for the period from 2023 to 2027 and covers elements related to the quality of service, operations, finances, capital investments, and the legal and regulatory framework.
K&M is tasked with a wide range of activities in this assignment. These activities include developing a financial model, conducting a cost-of-service study, creating an action plan for tariffs, advising on water supply contracts, and establishing a prioritized capital investment plan, which will increase operational efficiency and quality of service and improve resilience. In addition, K&M will advise on changes to government policies and the legal and regulatory framework. In addition, K&M will lead several stakeholder engagement fora and present recommendations to WSC’s Board and the government.