NamPower’s biomass plant to contribute over N$200m annually to Oshikoto economy

The Namibia Power Corporation’s (NamPower) 40MW Otjikoto Biomass Power Station is set to inject between N$200 and N$245 million annually into the Oshikoto region’s economy.

The investment will come from the procurement of wood chips from local farmers and contractors, contributing to the economic growth of the area.

“From an electricity perspective, it will provide grid stability as a base load power plant, running 24 hours a day and meeting nearly 7% of the national power demand. Economically, we anticipate annual fuel purchases of approximately N$245 million, with escalation,” says NamPower project manager Titus Haihambo.

NamPower has signed a loan agreement, engineering, procurement and construction contract, and woodchip fuel supply contracts for the 40MW Otjikoto Biomass Power Station.

“Ground-breaking is planned for November. Construction is estimated to take 24 months, with system start-up and commissioning around the second quarter of 2026 and commercial operations commencing in early 2027,” Haihambo says.

NamPower has signed agreements with four fuel harvesters with a seven-year term, ensuring a stable supply of wood chips.

“One harvester is allocated 30 000 tonnes per year, while the other three are each allotted 50 000 tonnes,” Haihambo says.

He explains that the short-term fuel supply strategy, still under development, will include contributions from communal areas and small to medium enterprises.

“The 180 000 tonnes we’ve allocated are designated for long-term fuel supplies, while the remainder will go to short-term suppliers. Additionally, we have secured grant funding of €4 million to support harvesting.”

He adds that allocations for these suppliers will vary between 2 000 and 7 000 tonnes, pending final strategy approval.

“To ease the investment load for smaller enterprises, NamPower will manage on-site chipping,” Haihambo says.

The 40 megawatts biomass power station aims to yield around N$21 billion in microeconomic and macroeconomic benefits.

“The Otjikoto Biomass Power Station offers significant social and economic benefits.

It will create jobs, support resettlement farms and contribute to local and national economic growth,” says Haihambo.
– THE BRIEF