The Dominovas Energy Corporation (DNRG) said it has already signed Power Provider Agreements (PPAs), totalling 200MW, to supply electricity through its innovative fuel cell technology to the Democratic Republic of Congo (DRC) and will raise US$ billions to supply more over the next five years.
Dominovas Energy’s steam is fueled by the magnitude of opportunity in the Obama administration’s Power Africa Initiative. Power Africa was launched in 2013 to increase access to electricity in sub-Saharan Africa, where more than 600 million people currently lack access, by adding 30,000 megawatts (MW) of new, cleaner electricity generation capacity.
By July 2015, the Power Africa partnership of private and public sector entities brought projects with the capacity to generate over 4,100 MW of new, cleaner power to financial close.
Power Africa has attracted huge financial resources and backed by an initial investment of US$7 billion from the U.S. government, its over 100 private sector partners have committed more than US$20 billion toward specific projects.
The Overseas Private Investment Corporation (OPIC), the U.S. Government’s Development Finance Institution, has been the forefront in mobilising funds for Power Africa.
It announced, in November 2015, that it had exceeded its 3-year target of US$1.5 billion. OPIC had, by that time, approved US$1.6 billion in finance and insurance committals, which will support the installation of about 1,500 megawatts of new power capacity. OPIC expects to add another US$1 billion in financing and insurance support for Power Africa in the near future.
Other U.S. government agencies have joined the charge. The United States Agency for International Development (USAID), through its Development Credit Authority, has mobilized US$171 million in private finance in support of power projects, with a pipeline of over US$300 million in upcoming projects. And the Millennium Challenge Corporation (MCC) expects to commit nearly US$2 billion by the end of 2015, nearly doubling its original US$1 billion pledge.
MCC is implementing power compacts in Ghana and Malawi, and it’s developing energy sector programmes in Benin, Liberia, Sierra Leone, and Tanzania.
The MCC, created by the U.S. Congress in January 2004, is an independent U.S. foreign aid agency that is helping to lead the fight against global poverty.
Adding to these forces is the Government of Sweden’s commitment of US$1 billion, the World Bank Group’s promise of US$5 billion, and the African Development Bank’s pledge of US$3 billion.
In a power partnership that includes Goldman Sachs (NYSE: GS), Barclays Africa (JSE: BGA), and Citigroup (NYSE: C), the British bank Standard Chartered (LON: STAN) has emerged as Power Africa’s largest private sector contributor.
After reaching its initial commitment of US$ 2 billion in 12 months, the bank increased its pledge to US$ 5 billion.
The Dominovas Energy Corporation is an energy solutions company dedicated to delivering clean, efficient and reliable electricity on a multi-megawatt scale. The company has developed a cutting-edge solid oxide fuel cell (SOFC) which it has named RUBICON™. A fuel cell generates electricity by oxidizing fuels in a chemical reaction rather than by combustion. Its byproducts are heat and water.
Dominovas Energy has already entered into two multi-year 3MW Power Provider Agreements (PPAs) to provide electricity in the Democratic Republic of the Congo (DRC). The first will provide power to the City of David, a public-private partnership (PPP), between the government of the Democratic Republic of Congo and a private enterprise, which will comprise 3,000 homes, a hospital, health clinics, schools, malls, parks, food markets, sports centers, police stations, and waste treatment facilities across 8,000 hectares.
The second PPA is for the provision of electricity to the Somico Mine which has one of the largest certified concentrations of diamonds, gold and iron ore in Africa. Together, these two PPAs are expected to generate more than US$107 million over their multi-year terms.
With so many opportunities ahead, Dominovas Energy promises to be a powerhouse of a company.