Cormart leads gas energy transition push

Cormart Nigeria Limited, a member of Tropical General Investments Group, says it has transitioned to gas as its primary power source, reducing emissions while shielding its operations from rising diesel costs and grid instability.

In a statement on Sunday, the company said it now operates five gas engines with a combined capacity of 5 megawatts—1.5MW at its head office in Ilupeju and 3.5MW at its production facility along the Lagos–Ibadan Expressway.

“This transition relegates the previously used 2MW and 3.1MW diesel engines at both locations to backup application,” the company said.

The move responds to a familiar challenge for Nigerian manufacturers: high energy costs and growing pressure to meet environmental standards.

Explaining how it achieved the transition, Cormart said its energy infrastructure centres on gas engines supplied and maintained by Clarke Energy, complemented by grid connections and diesel engines that provide backup power.

“The gas-first model prioritises cleaner combustion and predictable fuel costs over diesel’s price volatility,” it stated.

According to Cormart’s Technical Manager, Jawwad Alasa, the shift was driven by operational realities. “Energy costs have risen across the country. Integrating gas with grid electricity has helped us keep production stable without compromising efficiency,” Alasa explained.

According to him, while gas engines require higher upfront investment, they are more cost-effective in the long run. A recent minor overhaul completed at Clarke Energy’s Lagos facility in six weeks returned one engine to optimal performance after 40,000 hours of operation, highlighting the growing capacity for in-country technical support.

Cormart disclosed that it has also deployed energy-efficiency measures such as steam-leak detection systems, regular energy audits, and upgraded lighting infrastructure, further reducing costs and emissions.

Manufacturers in Nigeria have continued to face an energy squeeze, with grid collapses and rising diesel costs, coupled with increasing pressure to reduce emissions, especially for companies serving international markets.

With self-generated power accounting for up to 30–40 per cent of production costs, the firm said gas offers a more stable alternative.

“It is locally available, less exposed to foreign exchange risk, and produces fewer emissions than diesel. With Nigeria’s extensive gas reserves, it also provides a more reliable long-term option,” it stated.

The Managing Director for Clarke Energy in Sub-Saharan Africa, Yiannis Tsantilas, positioned Cormart’s approach within broader food security and economic development objectives.

“While affordable food production is the core of a sustainable food value chain, it is equally important to adopt more efficient and reliable energy alternatives to lower production costs and increase the availability of affordable products for the Nigerian population,” he said.

Cormart said it reports more stable production and lower energy costs since making the switch. The move, it was learnt, has reduced downtime linked to diesel supply disruptions and improved overall operational efficiency.

“Lower operating costs have improved the company’s competitive position in a market where imported alternatives often have a pricing edge. The emissions reduction supports relationship management with multinational clients, who are increasingly focused on sustainability,” the statement added.

However, scaling this model across Nigeria depends on access to gas infrastructure. While Lagos offers relatively strong pipeline access, manufacturers in other regions may face higher entry costs.