Orion Energy Liberia Power Project Independent Technical Review
Orion Energy engaged K&M to provide technical advice to support the development of a proposed 24 MW HFO-fired power plant near Monrovia, Liberia. K&M reviewed technical specifications for the proposed project and advised Orion Energy on technology options, fuel supply needs, and other issues. K&M accompanied Orion Energy to assess potential sites in Liberia and to attend high-level meetings with Government stakeholders to market the proposal.
K&M was engaged by the Overseas Private Investment Corporation (OPIC) to conduct due diligence for a proposed OPIC loan to finance an expansion of the Buchanan Renewables 35 MW biomass project in Liberia. The expansion of the project would add a materials handling facility to increase the efficiency of wood chip processing for export. K&M assessed the technical feasibility of the proposed facility and analyzed the effect of the expansion on the project company’s projected financial performance. K&M visited the project site and assessed the adequacy of the project’s proposed operational, management, and logistics structures, and K&M identified key project risks for OPIC to consider in its lending decision.
Structured Finance Energy (FMO) and Swedfund engaged K&M to perform a technical, environmental, and social review of their investment in the proposed Buchanan Renewables 35 MW biomass project in Liberia. The purpose of the review was to update and expand upon K&M’s earlier assessment of the project from 2009, using the most recent data available. K&M was responsible for preparing a technical report and an environmental and social due diligence report. K&M’s technical report included a technical and commercial evaluation of all project agreements (PPA, EPC contract for both the plant and transmission line, concession agreement, and O&M agreement) and an assessment of the sponsor’s financial model. In conducting environmental and social due diligence, K&M visited the site, interviewed local stakeholders, and reviewed all available certifications, permits, and previous impact assessment reports. K&M identified a number of gaps in the project’s environmental and social impact management plan and made recommendations to FMO and Swedfund for how to address these issues.
K&M was engaged by the Overseas Private Investment Corporation (OPIC) to perform technical and commercial due diligence for the provision of a project finance loan to Buchanan Renewables to develop a 35 MW biomass-to-power project in Liberia. The project would involve harvesting non-productive rubber trees to produce wood chips for fueling the on-site biomass plant and for export overseas. The company would also support the planting and tending of new rubber trees to replace the harvested crop and revitalize future local rubber production. K&M evaluated the project’s potential technical and environmental risks that could lead to delays, cost overruns, operations shortfalls, and other events which would impact the project’s service of the OPIC loan. K&M’s performed a technical review of the proposed concession agreement, power purchase agreement, and EPC contract. K&M also assessed the project’s commercial risks and reviewed environmental and social impact reports for compliance with OPIC requirements.
IFC is developing an LNG terminal situated in the harbor of Freetown, Sierra Leone, based around a floating storage unit (FSU). The envisioned facility would be comprised of an FSU, a mooring system, two small LNG carriers, and a small onshore facility with regasification, truck and ISO container filling capabilities. With this combination of assets, the LNG terminal company would be able to provide LNG and natural gas in Freetown and deliver small parcels of LNG to ports in Guinea (Kamsar, Conakry) and Liberia (Buchanan, Monrovia).
K&M was hired to perform the demand analysis for potential LNG / gas off takers in Guinea, Liberia, and Sierra Leone.
K&M’s scope of work includes:
Performing an Industrial and Mining Demand Analysis: The project will include the means to put LNG onshore, where there will be the capability to load LNG trucks and ISO containers and to provide a regas service. Within the Sierra Leone market, there is potential for broad uptake of LNG by industrial users in the food & beverage, agribusiness, cement, hospitality, and other segments, most of which would be served via LNG trucking. In addition, the LNG terminal expects to provide a regas service for the Western Area Power Generation Project that is under development with a target COD of 2022.
Establishing a Sierra Leone LNG Users Forum: K&M will design an users forum that is proto-LNG consumer organization designed to provide information about LNG to potential users, help them understand competitive fuel economics, and map LNG demand in Sierra Leone by location, size, sector, and other relevant aspects. The forum will be a vehicle for raising the profile of the LNG terminal project within Sierra Leone.
Conducting the Guinea Demand Assessment: Detailed work is required to understand the depth and breadth of demand from the Kamsar-Boke bauxite corridor in Guinea as well as potential thermal power and industrial demand in and around Conakry. In the mining sector, K&M will assess both short-term demand for LNG-to-power and medium-term demand related to mining equipment (diesel to LNG conversion) and alumina refining. As there may be some level of industrial and commercial demand for LNG in the Conakry area, K&M’s demand assessment will cover this area as well.
Establishing a Virtual Guinea Miners LNG Users Forum: K&M, working with the Guinean mining and industry associations, will create a virtual Guinea LNG users forum, with an objective of convening potential users and facilitating the exchange of information. The key mines are bauxite operations in the Kamsar-Boke corridor; currently there is a market for LNG in power and ore drying operations, and this may grow significantly as operators invest in alumina refining.
Undertaking a Thermal Power Generation Demand Assessment for Liberia Electricity Corporation: Anecdotal evidence suggests that there is an immediate need for up to 50 MW of LNG-fired power in Monrovia that would be used to complement hydropower and serve as a load-area reserve for LEC. K&M will explore this possibility in its demand assessment.
Carrying out a Liberia Mining Demand Assessment: K&M will carry out a high-level assessment of LNG demand in the Liberian mining sector, extending beyond demand coming from the significant Arcelor-Mittal operations in the country.