Nigeria’s Geregu Power has signed a memorandum of understanding (MoU) with Germany’s Siemens Energy to expand its power generation capacity by 765MW through a series of interventions.

The proposed projects entail expanding the Geregu 1 power plant in Kogi State from its current capacity of 435MW to 500MW; the establishment of a combined-cycle operation to generate an additional 200MW; and the installation of new lower emission turbines to add a further 500MW of capacity.

The projects would take Geregu Power’s overall capacity to 1,200MW. The MoU was signed on 29 May in Berlin.

“These initiatives are targeted at higher power output, improved efficiency, lower emissions, higher flexibility, longer equipment lifespan and maximising shareholder value through increased earnings,” Geregu Power said in a statement to the Nigerian stock exchange.

The Geregu power plant currently comprises three 145MW simple-cycle natural gas-fired Siemens turbines. It provides about 10% of Nigeria’s total power consumption. In 2014, Siemens was awarded a US$94 million contract to overhaul the plant.

Amperion Power Distribution Company, a special purpose vehicle made up of Calvados Global Services and State Grid Shanghai Municipal Electric Power Company, is the main shareholder of Geregu Power with a 78.6% stake. Some 16.3% of shares are listed on the Nigerian exchange. The company reported a post-tax profit of Naira 16 billion (US$10.8 million) for 2023.