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Dangote invests $280 million in CNG technology to support clean fuel

Investing in clean energy transition

admin by admin
October 28, 2024
in Development, Economy, News
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Dangote invests $280 million in CNG technology to support clean fuel

Dangote CEO, Aliko Dangote

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Dangote has committed more than $280 million to Compressed Natural Gas, CNG, technology and infrastructure, showcasing its backing for President Bola Tinubu’s initiative to provide more affordable and cleaner fuel options for Nigerians.

Arvind Pathak, the Group Managing Director of Dangote Cement Plc, shared that this investment focuses on acquiring a fleet of 100 percent CNG trucks as part of a long-term strategy to transition the company’s entire fleet to CNG. By October, they had already received the first batch of 1,500 mono-fuel CNG trucks, with an additional 1,600 expected, totaling 3,100 by the end of the year.

Pathak highlighted this move as a major milestone in Dangote’s shift towards clean energy, aiming for most of its fleet to operate on CNG by mid-2026.

President Tinubu has been proactive in fostering a favorable environment for private sector investments and expanding Nigeria’s CNG infrastructure to boost energy efficiency and stimulate economic growth. At a recent event, he stressed the urgent need for Nigeria to leverage its abundant natural gas resources in the transportation sector, declaring CNG transportation as an economic necessity. This marks a significant change in the country’s approach to public transportation and energy utilization.

“Utilising natural gas to power Nigeria’s transportation industry is the next way to go,” he stated. As part of this initiative, the president has ordered the distribution of one million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.

READ ALSO : Nigeria targets massive boost in CNG conversions by 2025

Dangote emphasized that its investment of over $280 million not only reinforced its leadership in the CNG sector but also demonstrated its commitment to addressing climate change and facilitating a shift towards a low-carbon economy.

Pathak mentioned: “To facilitate this transformation, we are investing in expanding our CNG fueling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel. By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG.”

He noted that plans were underway to aggressively pursue the deployment timeline, starting from the first quarter of 2025. “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance,” he added.

Pathak highlighted that the company’s investments in CNG infrastructure has positively impacted Nigeria’s transition to cleaner fuels. He pointed out that the CNG station at Obajana, which can refuel over 3,000 trucks, exemplifies this commitment, with a second station under development in Ibese to further support fleet operations.

Aliko Dangote, President/Chief Executive of Dangote Group, stated that the company’s investments in CNG aligns with Nigeria’s Nationally Determined Contribution under the Paris Agreement, which targets net-zero emissions by 2060.

“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the president,” he said.

He reiterated that the company’s early adoption of CNG had positioned it as the largest operator of CNG trucks in Nigeria, stressing that this initiative supports Tinubu’s vision for enhancing the country’s energy independence and contributing to a more secure energy future.

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Tags: Aliko DangoteCNGDangote GroupPresident Tinubu
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