Energy

Dangote is seeking to bolster Nigeria’s fuel supplies (Image source: Adobe Stock)

The proposed expansion of Nigeria’s Dangote oil refinery marks a significant step in the West African country’s push to build up domestic fuel production and reshape its role in the continent’s oil industry

An initial public offering (IPO) in the refinery has attracted “enormous” support from investors, according to the group’s founder, Aliko Dangote.

The US$1.6bn IPO is now open in a bid to raise additional funding to double capacity.The Lagos refinery is a key installation to ease energy shortages in the West African country, one of the continent’s biggest oil and gas producers.

The funds will partially finance a massive capacity expansion to 1.4 million bpd by 2029.

The IPO comes as Nigeria seeks to strengthen its domestic energy supply and reduce reliance on imported refined petroleum products, while also positioning itself as a major refining hub for West Africa.

The scale of the expansion also reflects the growing ambitions of Africa’s private sector to finance large, strategically important infrastructure projects through local capital markets.

Dangote told reporters in Kenya, where the group plans a separate refinery, that the outlook for the IPO is encouraging.

“Demand is there, enormous demand,” he was quoted as saying by Reuters.“In fact, I didn’t know the depth of our capital markets until now, really, because we have never tested it,” he added.

The IPO, Africa’s largest to date, is scheduled to close 13 October, 2026.

The Nigerian refinery, located in Lekki, Lagos, commenced operations in 2024, and is the largest single-train oil refinery in the world.

In Kenya, Dangote is hoping to replicate its refining ambitions in East Africa with a planned 700,000 bpd refinery in Lamu, although the project has faced local challenges.

New funding to help unlock Zambia's energy potential (Image source: Adobe Stock)

New investment in Zambia’s energy sector will help fund generation and transmission projects in the country and open up network and trading opportunities across southern and eastern Africa

Bordering eight countries and sitting within the Southern African Power Pool, with growing links to East and Central Africa, Zambia is positioned as a natural hub for regional power trade.

It follows a US$250mn financing deal between Swiss energy and commodities group Mercuria with Africa-focused investor Exergy.

Specifically, the funds will help to finance generation and transmission projects by two Exergy subsidiaries: Lunzua Power Company and Lusitu Transmission and Distribution Company.

• US$250mn investment will boost Zambia’s power infrastructure

• Projects will strengthen regional electricity trade

• Investment supports Zambia’s 10,000 MW power target by 2031

Exergy operates in the power sector through three subsidiaries: Lunzua Power in generation, Lusitu Transmission and Distribution in transmission, and Kanona in trading, balancing surplus and deficit positions.

It trades in the southern African power market and is developing a pipeline of infrastructure projects, including a transmission highway linking Zambia to the East African power market.

“Through its subsidiaries, its pipeline will contribute to Zambia’s target of 10,000 MW of supply by 2031, a central pillar of the Grow Zambia agenda, and to the reliable supply needed by mining, agriculture, manufacturing, tourism, and industry,” an Exergy statement noted.

“Regionally, its trading and cross-border ambitions support Mission 300, the World Bank and African Development Bank initiative to connect 300 million Africans to electricity by 2030.”

The financing agreement, signed in Lusaka and subject to regulatory approvals, marks one of the largest private capital commitments to Zambia’s energy sector, as well as Mercuria’s entry into the region’s power market.

Zambia confidence

According to Exergy, the deal signals confidence in Zambia, in the region, and in the ability of global partners to finance African energy at scale on commercial terms.

The company also added that Mercuria brings more than capital: as one of the world’s largest energy traders, active in over 50 countries, it offers a global view of energy and commodity markets, and of how power, metals and trade connect.

According to Mercuria, Zambia’s stability, growth plan and regional position underpinned its decision to commit long-term capital.

The company “is pleased to play its part in resolving the power infrastructure bottlenecks that have traditionally hindered Africa’s growth,” a Mercuria statement read.

“In doing so, it sought power industry expertise, a disciplined team and an execution-ready project pipeline, and found all three in Exergy—a scalable regional platform it wants to help build.”

Zambia has seen a wave of new investment and projects in renewable energy in recent years, in addition to traditional hydro and thermal capacity (First Quantum diversifies Zambia energy supply).

Private capital

Mercuria added that it sees private capital playing a critical role in developing strategic energy infrastructure, alongside the traditional development finance model.

Both parties credited Zambia’s power sector reforms, including open access in the electricity market, with enabling independent companies to build and grow.

As well as investment in renewables, the country continues to develop traditional energy sources, such as hydro (Anzana Electric nets US20mn for small hydropower) (Globeleq completes Lunsemfwa hydro acquisition).

Green hydrogen and ammonia plant set for South Africa (Image source: Hive Energy)

Técnicas Reunidas has landed an engineering services contract for a large green hydrogen and ammonia plant planned for South Africa

Hive Hydrogen South Africa (HHSA) has awarded the company the front-end engineering design (FEED) contract for a facility that will produce approximately one million metric tons of green ammonia annually in an industrial zone located in Nelson Mandela Bay.

The project will utilise local renewable electricity to produce green hydrogen, which will subsequently be converted into green ammonia for domestic use and international export.

“Our aim remains to produce the lowest cost green ammonia globally,” said John Nutt, Hive’s technical director.

Following completion of the engineering work, and once a final investment decision is made, the FEED contract is expected to be converted into an EPC (engineering, procurement, and construction) contract for the actual construction of the plant.

The green hydrogen and ammonia facility is being developed in the Coega Special Economic Zone, adjacent to the Port of Ngqura, in Eastern Cape Province.

According to HHSA, the projected investment for the production plant would reach US$1.8bn.

The scope of work Técnicas Reunidas will carry out under the FEED contract includes hydrogen production electrolysers, air separation units, and the green ammonia production loop; a desalination plant; storage systems with a capacity of over 100,000 metric tons; pipelines to the port of Ngqura; and auxiliary facilities.

Gonzalo Pardo of Técnicas Reunidas said the company is delighted to have been selected by Hive.

“Leveraging our deep technology expertise and end-to-end EPC vision, we look forward to delivering a successful FEED and contributing to Coega’s role as a benchmark for Africa’s sustainable industrial growth,” said Pardo.

“Furthermore, this award is perfectly aligned with the strong focus on services projects that Técnicas Reunidas is currently implementing as part of its…strategic plan.”

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GE Vernova will extend the operating life of five gas turbines at three Egyptian power plants by up to 15 years. (Image source: GE Vernova)

GE Vernova has signed a services agreement to provide Rotor Life Extension (RLE) solutions for five of its 9F gas turbines operating at the Kureimat, Nubaria and Cairo North power plants in Egypt

The agreement has been signed with affiliates of the Egyptian Electricity Holding Company (EEHC), including Upper Egypt Electricity Production Company (UEEPC), Middle Delta Electricity Production Company (MDEPC) and Cairo Electricity Production Company (CEPC), and has been endorsed by EEHC.

Under the agreement, GE Vernova is expected to extend the operating life of the five gas turbines by 13 to 15 years. Together, the turbines represent approximately 1,250 MW of generating capacity, with the relevant services scheduled to be carried out between 2028 and 2035.

Extending gas turbine operating life

The gas turbine rotor is a core component of a power plant and requires scheduled maintenance as part of its lifecycle. GE Vernova will apply its expertise to assess the full residual life of components as part of the Rotor Life Extension programme, with the aim of supporting more efficient and effective operation.

The agreement builds on the ongoing collaboration between GE Vernova, EEHC and its generation company affiliates. By focusing on the long-term integrity of the gas power assets, the initiative is intended to support the reliability and efficiency of Egypt’s electricity generation.

“This agreement reflects EEHC’s continued focus on preserving the long-term performance and reliability of important generation assets across our fleet,” said Eng. Gaber El-Desouki, Chairman of the Board of Directors & CEO, Egyptian Electricity Holding Company (EEHC). “By working with GE Vernova and our generation companies, we are taking practical and proactive steps that can help protect strategic assets, support efficient and reliable power production, and contribute to Egypt’s broader electricity and energy objectives.”

“Extending the life of these gas turbines across our generation companies is expected to support grid stability and the continued availability of dispatchable power, while helping us increase the value of existing infrastructure and avoid premature, capital-intensive replacement,” said eng. Mahmoud Al-Naqeeb, full-time board member for Electricity Production Companies Affairs.

Egypt’s evolving power sector

Egypt’s power sector is balancing rising energy demand with efforts to improve operational efficiency and integrate a growing share of renewable energy.

Thermal power generation, primarily based on combined-cycle gas turbines, continues to play a central role in the country’s electricity system, accounting for approximately 80% of Egypt’s electricity production.

“As Egypt’s electricity needs continue to evolve, maintaining and modernizing existing gas power assets, such as those at Kureimat, Nubaria, and Cairo North, is essential to support reliability, improve fuel use, and strengthen energy system resilience,” said Joseph Anis, president & CEO, Europe, Middle East & Africa, GE Vernova’s Gas Power business.

“This agreement reflects our continued commitment to working closely with EEHC, its affiliates, and other stakeholders in Egypt to support energy security through reliable and more efficient power generation. By helping extend the life of critical gas turbines, we aim to support our customers’ long-term operational priorities, optimize the value of existing infrastructure, and contribute to the continued development of Egypt’s power sector.”

GE Vernova supports Egypt’s power fleet

The latest agreement follows GE Vernova’s ongoing work to support the modernisation and long-term performance of Egypt’s power generation fleet.

In April 2026, GE Vernova announced an order from MDEPC for modernisation work at the Banha and Nubaria power plants. The project includes Advanced Gas Path upgrades and multiyear services agreements.

The latest initiative builds on more than five decades of cooperation between GE Vernova’s businesses and Egypt’s power sector, supporting the country’s electricity infrastructure through technology, solutions, local talent development and project financing.

GE Vernova currently supports customers in Egypt across power generation, transmission, software and services. Its installed base in the country includes more than 60 gas and steam turbines, with a combined generating capacity of approximately 10 GW.