NamPower is set to commence a more than N$2 billion 40-megawatt biomass power station in Otjikoto, near Tsumeb.

The national power provider signed an agreement with the implementers and funders in Windhoek.

The first and largest Otjikoto Biomass Power Station will generate electricity by the combustion of wood chips from encroacher bush, which will be harvested from the surrounding areas of the proposed project site. 

The power station will enable NamPower to cost-effectively provide baseload electricity and contribute to the expansion of power generation in the country. 

The Managing Director of NamPower, Simson Haulofu, says the abundance of encroacher bush and the national shortfall of electricity create an economic opportunity for bush-to-electricity generation. 

"It is important to highlight that the power station will significantly contribute to reducing greenhouse gas emissions. The project will have a lasting impact on the local farming and agricultural communities as Namibia is challenged by massive bush encroachment that affects over 26 million hectares of farmland, leading to billions of economic losses." 

The government invested N$400 million, the French Development Agency facilitated a loan of more than N$1.9 billion, the Mitigation Action Facility provided a grant of N$500 million, and the French Fund for Global Environment contributed N$60 million.

The power station will be developed as an engineering procurement and construction project and will be owned and operated by NamPower.

Dongfang Electric International Corporation will implement the project.

The suppliers include Nexus Civils JV Africa Biomass Company, Sactos Investment KV Forestry Plant and Equipment Sales, Namibia Biomass Industry Group, and Ultra JV Special Supermarket. 

The project is expected to be completed in 2027.