O
O
Our Strategy
We develop clean and cost efficient energy solutions for Sub-Saharan Africa
Solutions
Gas
Natural gas production in Sub-Saharan Africa grew by annual average of 10% over the past ten years. This growth is expected to continue with West Africa expected to account for 81% of it between until 2040. Although LNG exports are the biggest outlet for gas production in West Africa, it is anticipated that a growing share will be made available through pipelines to power projects in the region. According the Power Africa initiative, natural gas, with 26,000 to 30,000 MW, will be the fuel for the largest capacity addition up to 2030. Our Gas-to-Power projects will tap into this potential.
O
O
Dual Fuel (HFO and Gas)
For countries looking to reduce cost of large scale grid-connected power generation by moving away from LFO as fuel source, HFO based generation can achieve significant savings wherever other fuel sources such as natural gas or hydro are not available. The conversion option to gas can be offered in order to take advantage of the availability of natural gas at a later stage.
O
O
Solar
Central and West countries are endowed with irradiation rates between 4.5 and 6.0 kWh/m2/day. Solar plants have the shortest development and implementation cycle going from 2 to 4 years. Sphinx Energy focuses on them in order to provide a cheaper and cleaner alternative to LFO for expansion of grid-connected power generation capacity.
O
O
Containerized systems
Sphinx Energy is partnering with equipment manufacturers to provide countries with power generation solutions that have accelerated deployment schedules. Those solutions are increasingly important in order to avoid load shedding in case of emergency or delayed implementation of capacity addition.
Geographic Focus
Target locations are francophone countries situated in Central and West Africa with fast growing demand where GDP growth is affected by unreliable and insufficient power supply. Sphinx Energy initially focuses on countries where its management has extensive experience working with the Government authorities. The availability of proven gas reserves is also an important selection criterion.
Implementation
Due to the size of capital requirements and limited availability of local resources for power generation, projects are mostly structured as Project Finance transactions. Sphinx Energy closes the technical and transactional expertise gap in origination and early stage development. We partner with large equipment providers, reputable engineering consulting and legal firms whose work is recognized by large investors and development finance institutions. Sphinx Energy leverages its existing project templates to quickly identify key issues that need to be addressed and significantly reduce early stage development costs.
Our typical investments use project finance structures supported by long-term, stable, contracted cash flows. Sphinx Energy seeks availability of political risk insurance, and government support to mitigate risk.