Energy efficiency, simply defined as the use of less energy to produce the same output, is an important factor in boosting the economic productivity of any nation and can significantly reduce the financial costs of energy for production and industrial activities of any country. Unfortunately, due to overdependence on traditional fossil fuels, efficient energy utilization in Nigeria is deficient. Diesel, petrol and similar dirty fuels are not only more expensive but have less efficiency as their better alternative ㅡ natural gas.
At Axxela, we are significantly contributing to efficient energy utilisation in Nigeria’s industrial sector by helping manufacturers and industrial companies switch from diesel and petrol to natural gas.
Natural gas has one of the highest efficiency rates for power generation compared to other fossil fuels as it delivers 92% of its energy to the end-user when converted to electricity with only 8% lost in the process. Its efficiency is also constantly improving as new technologies and natural gas engines are introduced, making it an excellent energy option for industrial usage. Natural gas also produces fewer carbon emissions and other air pollutants for the same energy produced by traditional fossil fuels.
Low-cost Distribution Network
Natural gas is distributed in various versatile and cost-efficient ways. For example, Axxela utilises virtual pipeline technology to reach customers located where pipeline infrastructure is absent. This distribution system involves transporting natural gas through trucks, a much cheaper and quicker way to distribute energy. Another low-cost distribution option that natural gas allows is the small-scale LNG plants which are cheaper to construct and manage and allow customers to have closer proximity to liquefied natural gas across the country.
Natural gas enjoys more stable domestic prices compared to diesel and petrol which frequently see scarcity and price hikes. Industrial users who switch to natural gas have significantly cut energy costs for their operations while seeing an increase in efficient energy utilisation.
As we drive the adoption of natural gas, our vision is to see an increase in efficient energy utilisation in Nigeria and the region that can facilitate rapid economic development and industrial expansion.