Lapsset Corridor Renewable Energy

PSECC Ltd are aiming for Net Zero emissions by 2048

Kenya Vision 2030

ELECTRICITY PRODUCTION BY SOURCE
IN 2030 IN VISION COMPARED TO BAU – (Business As Usual)

Our PSECC Ltd Vision

PSECC Ltd Energy & Water proposals for the Lapsset Corridor & Kenya and strategic partnerships, alliances, and collaborations that we have established. This includes joint ventures, subcontracting agreements, or teaming arrangements that expand the company’s capacity and capabilities.

Objective – Renewable Energy (Electricity) from Solar Farms, Green Hydrogen, Wind Farms, Hydroelectricity, E-Methanol, Smart Agriculture, Biomass Ethanol, Geothermal, Nuclear – an alternative to Oil usage in transportation.

Climate Change Mitigation – Adaptive Transition.

---

The current Government estimated cost of implementing Kenya’s mitigation and adaptation actions stands at KES 6,775 billion (USD 65 billion) in 2020-2030. KES 6,775 billion – PSECC Ltd estimate on implementing Renewable energy is USD 25 Billion.

PSECC Ltd – what LCDA & GOK need to do in the Lapsset Corridor to meet Net Zero by 2050

Kenya Transition ETIP

The Kenya Energy Transition & Investment Plan (ETIP) 2023-2050 estimates that a significant investment is required for Kenya to transition to a low-carbon energy sector and achieve its Net Zero ambitions by 2050. Here’s what the document specifies:

• Total Investment Needed: The ETIP indicates that around USD 600 billion in capital investment is required between 2023 and 2050 for the energy transition. This represents an additional USD 165 billion compared to a business-as-usual (BAU) scenario.

Investment Breakdown:

The specific breakdown of this investment across different sectors isn’t explicitly provided in a single figure within the document. However, the ETIP highlights that the power and transport sectors will require the majority of the investment.

Financing Sources:

The ETIP acknowledges that capital markets will be the largest funding pool for these investments. However, it also emphasizes the need for de-risking interventions to attract private sector investment. These interventions could include:

• Policy certainty and long-term commitment to clean energy goals.
• Public-private partnerships to share risks and rewards.
• Development of innovative financing mechanisms like green bonds.

Finding the Information:

You can access the Kenya Energy Transition & Investment Plan (ETIP) 2023-2050 here: https://energy.go.ke/sites/default/files/KAWI/Kenya-ETIP-2050%202.pdf

Key Points:

• The ETIP provides a roadmap for Kenya’s energy transition but doesn’t offer a detailed sector-wise investment breakdown.
• The power and transport sectors are expected to require the most significant investments.
• Capital markets are expected to be the primary source of funding, but de-risking strategies are crucial to attract private sector involvement.

Kenya – 2030 vision

The Kenya Vision 2030 document does set goals for the future Energy use and acknowledges the need to transition towards cleaner energy sources. Here are some resources that can help you with the information you’re looking for:

Current Energy Use and Breakdown:

• Energy Sector Overview – Ministry of Energy, Kenya: This webpage provides an overview of Kenya’s energy sector, including information on the current energy mix (types of energy used) but doesn’t give specific figures for CO2 emissions. (https://www.energy.go.ke/)
• Executive summary – Energy Efficiency for Affordability – Analysis – IEA: This International Energy Agency (IEA) report provides an analysis of Kenya’s energy sector. It highlights that Kenya relies heavily on renewable energy, with renewables accounting for nearly 90% of energy generated and consumed in 2021, up from around 75% in 2017. (https://www.iea.org/reports/energy-efficiency-for-affordability)

CO2 Emissions Estimates:

• Kenya meeting the electricity demand of 2030 – DiVA portal: This study explores potential future electricity demand scenarios for Kenya. It mentions that without further action, Kenya’s emissions from the energy sector could rise from around 20 Mt CO2e in 2021 to around 130 Mt in 2050 (Mt CO2e refers to Million tonnes of CO2 equivalent). (http://www.diva-portal.org/smash/get/diva2:1201920/FULLTEXT01.pdf)
• Kenya Energy Transition & Investment Plan (ETIP) 2023 – 2050: This document by the Kenyan Ministry of Energy outlines the country’s long-term plan for transitioning to a low-carbon energy sector. It highlights that under a business-as-usual (BAU) scenario, emissions from the energy sector could reach 130 Mt CO2e by 2050. However, the plan also proposes pathways for significant emission reductions. (https://energy.go.ke/sites/default/files/KAWI/Kenya-ETIP-2050%202.pdf)

Key Takeaways:

• Kenya’s energy mix is heavily reliant on renewable sources, with a significant share from geothermal and hydropower.
• Specific CO2 emission figures might be available in reports by Kenyan government agencies or international organizations.
• The Kenya Vision 2030 focuses on future goals and highlights the importance of transitioning towards clean energy sources to reduce emissions.

Further Research Tips:

• You can search the websites of the Kenyan Ministry of Energy (https://www.energy.go.ke/) and the Kenya National Bureau of Statistics (https://www.knbs.or.ke/) for reports on energy use and CO2 emissions.
• International organizations like the International Energy Agency (IEA) (https://www.iea.org/) and the World Bank (https://www.worldbank.org/en/home) might also have relevant reports on Kenya’s energy sector.

A future Energy source from the Ocean

Over time when this technology is more developed then Kenya could have several plants.

Ocean Thermal Energy Conversion (OTEC) is a process that can produce electricity by using the temperature difference between deep cold ocean water and warm tropical surface waters. OTEC plants pump large quantities of deep cold seawater and surface seawater to run a power cycle and produce electricity. OTEC is firm power (24/7), a clean energy source, environmentally sustainable and capable of providing massive levels of energy.

Achieving Net Zero by 2048 in the Lapsset Corridor is an extremely ambitious target. It would require a rapid and comprehensive transition towards a highly sustainable and low-carbon economy. Here’s a breakdown of key actions GOK (Government of Kenya) could take:

Energy Sector Transformation:

• Accelerated Renewable Energy Deployment: Significantly scale up renewable energy generation beyond the existing solar farm plan. Explore large-scale solar, wind, geothermal, or even hydroelectricity projects (if feasible) to power the corridor entirely with clean energy.
• Energy Storage: Invest in energy storage solutions like battery systems to manage the variability of renewable energy sources and ensure a stable grid.
• Smart Grid Technology: Implement a smart grid throughout the corridor to optimize energy distribution, reduce losses, and integrate renewable energy seamlessly.

Transportation and Logistics:

• Electric Vehicle Transition: Rapidly transition to electric vehicles (EVs) for both passenger and freight transport within the corridor. This requires a significant increase in charging infrastructure and incentives for EV adoption. Explore green hydrogen for long-distance transport if production becomes viable.
• Public Transportation Network: Develop a robust and efficient public transportation system like electric buses or trains to reduce reliance on private vehicles.
• Sustainable Logistics Practices: Promote efficient logistics practices to minimize unnecessary travel and fuel consumption. This could involve optimizing delivery routes and consolidating cargo.

Industrial and Agricultural Sectors:

• Green Industrial Processes: Encourage industries operating within the corridor to adopt cleaner production technologies and processes that minimize emissions.
• Sustainable Agriculture: Promote sustainable agricultural practices that reduce reliance on chemical fertilizers and pesticides. This could involve techniques like conservation agriculture or organic farming.

Land Use and Forestry:

• Strict Environmental Regulations: Implement strict environmental regulations to minimize deforestation and promote sustainable land management practices throughout the corridor.
• Afforestation and Forest Conservation: Launch large-scale afforestation programs to create carbon sinks and offset remaining emissions. Protect and conserve existing forests within the corridor.

Other Measures:

• Carbon Capture and Storage (CCS): Explore the feasibility of CCS technologies to capture and store emissions from sectors where complete elimination is difficult.
• Green Finance: Establish a green finance framework to attract investments towards sustainable projects within the corridor.
• Community Engagement: Actively engage with communities throughout the Lapsset Corridor to raise awareness about climate change and encourage their participation in achieving Net Zero. This could involve education programs and incentive schemes.
• Monitoring and Transparency: Establish robust monitoring systems to track progress towards Net Zero and implement transparent reporting mechanisms to keep stakeholders informed.

Challenges and Considerations:

• Financial Investment: The transition to Net Zero will require significant financial investments. GOK will need to explore innovative financing mechanisms like public-private partnerships or green bonds.
• Technological Advancement: Some technologies needed for Net Zero, like efficient and affordable carbon capture, might require further development.
• Social Impacts: The transition might require adjustments in certain sectors and could potentially lead to job displacement. GOK should develop plans to manage these impacts and ensure a just transition for workers.

Achieving Net Zero by 2048 in the Lapsset Corridor is undeniably ambitious, but by taking decisive and comprehensive actions across various sectors, GOK can put the corridor on a path towards a sustainable and climate-friendly future.

By 2050, achieving Net Zero in the Lapsset Corridor becomes more feasible. Here are the actions GOK could take in addition to those mentioned for 2025:

• Invest in Large-Scale Renewables: While the 300MW solar farm is a good start, GOK should explore building large-scale solar, wind, or geothermal plants to fully power the corridor’s activities.
• Carbon Capture and Storage: For emissions that can’t be eliminated, GOK could explore investing in Carbon Capture and Storage (CCS) technologies to capture and store the emissions underground.
• Public Transportation and Green Logistics: Develop a robust public transport system within the corridor to reduce reliance on private vehicles. Additionally, encourage the use of electric or hydrogen-powered vehicles for logistics within the corridor.
• Forestry Programs: Implement large-scale afforestation programs to create carbon sinks and offset remaining emissions. Protecting existing forests would also be crucial.
• Community Engagement: Achieving Net Zero requires community buy-in. GOK should encourage sustainable practices among residents and businesses within the corridor through education and incentives.
• Green Finance: GOK could create a green finance framework to attract investments towards sustainable projects within the Lapsset Corridor.
• Monitoring and Transparency: Regular monitoring of emissions and progress towards Net Zero is essential. GOK should establish transparent reporting mechanisms to keep stakeholders informed.

By implementing a combination of these strategies, GOK can put the Lapsset Corridor on a path to achieving Net Zero by 2050.

This will be possible for Lapsset Corridor – both eMethanol plants and

Green Hydrogen plants together with Solar Farms, Wind Farms, Hydroelectricity Dams, Geothermal and Nuclear Energy plants

The first two projects for Lapsset Energy should be one 300MW solar farm at Isiolo, operational by June 2025 and another 300MW solar farm with Green Hydrogen plant at Lamu Port operational in September 2025.

GOK will be putting in 30% Equity funding, Afri Fund Capital 35% Equity funding into Lapsset Corridor. The GOK and Afri Fund Capital will also contribute the same proportion of funding into Energy projects within the Lapsset Corridor. PSECC will then source the remaining 35% Equity investment.

• 
  Prioritize Renewable Energy: The Lapsset Energy website mentions a plan for a 300MW solar farm by June 2025 -b GOK should expedite these projects and consider additional sources like Nuclear, Hydroelectricity, wind or geothermal to maximize renewable energy use within the corridor.
• Green Hydrogen Integration: The website also mentions a solar farm with a Green Hydrogen plant – Green hydrogen production using renewable energy can be a future strategy for clean transportation within the corridor.
• Sustainable Construction Practices: GOK should ensure all construction projects within the corridor adhere to rigorous environmental standards. This could involve using recycled materials, minimizing waste, and adopting energy-efficient designs.
• Electric Vehicle Infrastructure: Encouraging the use of electric vehicles within the corridor would significantly reduce emissions. GOK could invest in charging stations along the route and incentivize electric vehicle adoption.
• Sustainable Land Management: The Lapsset Corridor traverses various ecosystems. GOK should implement sustainable land management practices to minimize deforestation and promote habitat restoration.

Some of our collaboration partners

An early video on Lapsset Corridor project

PSECC Ltd will ensure a COP28 compliant flagship project

Source: The Landscape of Climate Finance in Kenya-On the road to implementing Kenya’s NDC-March 2021

Proposed new Renewable Energies for Lapsset Corridor

Funding via Afri-Fund-Capital – Credinvest – UK Export Finance & PSECC Ltd – COP28

Energy generation has increased and Country CO2 emission can be reduced with the correct energy deployment mix.

Below is the PSECC Ltd table of all Kenya target Energy proposals and Lapsset Corridor recommendations subject to Feasibility Studies and Government approval.

In Total the new generation capacity for both Kenya, including the Lapsset Corridor could increase by 16.752 GW at a total cost of US $25,525,000,000. The exact funding and MW generation for the Lapsset Corridor will be determined from Feasibility studies and Energy Strategy planning.

We will work closely with the Ministry of Energy, Ministry of Environment and also Kenya Renewable Energy Association to take advantage of in country Renewable Energy projects that have already been brought to a Ready-to-Build stage (RBT) within the Lapsset Corridor as well as developing the above identified new projects for funding. COP28 mechanisms will be brought into play to ensure adherence to those agreements.

CO2 Emission reduction

In Total the CO2 Emission reduction (lower limit) – 65.70 million tons per yearCO2 Emission reduction (upper limit) – 85.18 million tons per year

Detailed Feasibility studies will give exact emission reduction, which can form part of the Kenya stocktake.

Lower limit

Upper limit

PSECC Ltd Initial Concept reports

Renewable Energy videos

USA & China view on Africa

https://youtu.be/SrmsQzRQPPw

Carbon Capture & Storage – not the answer

Difficult & expensive and can double the cost of the electricity. 80% of CO2 stored is then injected into oil fields to obtain further oil.