A memorandum of understanding (MOU) has been signed between Nigeria and an engineering firm to create coal-powered energy in the country.
The agreement, signed by Milhouse Engineering & Construction Inc., is the start of a long-term strategy to reduce Nigeria’s reliance on expensive diesel fuel.
Milhouse plans to mine high-quality coal on 20,000 acres in the Enugu region and process it into usable energy to power 100 embedded mini-plants.
These will be capable of generating up to 5MW of power each with a total of up to 500MW by the end of 2018.
The mini-plants strategy is less expensive than building a coal plant, which could take three years and cost more than $1.5 billion (£0.96bn).
Diesel costs up to 12 times more than coal-based energy sources. The creation of coal-fired power generation will also free up diesel for other uses.
Coal is the primary resource used by major power producers in North America and Europe. Nigeria currently produces no power from coal.