*The Memorandum of Understanding will enable the Rural Electrification Agency of Nigeria and CarbonAi to explore opportunities to finance and develop solar energy projects in unserved or underserved communities

*REA鈥檚 collaboration with CarbonAi is timely, solution-driven. –REA CEO

Isola Moses | 绿帽献妻

In order to identify and develop small-scale solar energy projects Nigeria, CarbonAi Incorporated has inked a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) of Nigeria.

The projects will be funded by proceeds from carbon credits that are generated through CarbonAi-financed and developed flare gas capture projects in the West African country, Sustainable Energy report said.

The source noted that under the MoU, the two parties would explore opportunities to finance and develop solar energy projects in unserved or underserved communities near CarbonAi鈥檚 flare gas capture projects in Nigeria.

The REA is expected to apply its knowledge of Nigeria鈥檚 rural electrification requirements and programmes to identify appropriate project opportunities and liaise with local communities for success.

CarbonAi also, will apply the company’s carbon finance and project development expertise to finance, design and construct the projects. It will also quantify, verify and monetise Greenhouse Gas (GHG) emissions reductions using its proprietary data management platform.

ConsumeConnect reports the REA is an implementation agency of the Federal Government of Nigeria under the Ministry of Power.

The agency is basically mandated to promote and increase consumers’ access to electricity in unserved and underserved rural communities across Nigeria.

CarbonAi as well is a world-leading developer of fully integrated GHG reduction projects and GHG emissions quantification and monetisation solutions. Based in Calgary and Dubai, UAE, the company provides full-cycle flare gas capture services in Africa and the Middle East, from project finance, design and construction to carbon credit quantification, verification and sale, report said.

For each project that CarbonAi develops, it invests a portion of carbon credit revenues to help local organisations develop sustainability initiatives through the CarbonAi Climate Dividend Programme, source said.

Yvan Champagne, CarbonAi鈥檚 Chief Carbon Officer, said “we are excited to work with the REA as our CarbonAi Climate Dividend Programme partner in Nigeria

“We are strong believers in win-win outcomes, and we believe our Climate Dividend Programme captures the spirit of the energy transition by leveraging immediate reductions in today鈥檚 energy system to build the energy system of tomorrow in Nigeria.鈥�

On gas flaring

Flaring of gas is a common practice in oil and gas activities worldwide.

The effort, however, generates high levels of GHGs and harmful local pollutants, often creating serious local air and water quality issues, Sustainable Energy stated.

Nigeria has the third highest number of gas flares globally, but the country has pledged to eliminate the practice by 2025.

Several communities in the high-flaring regions do not currently have access to reliable electricity, according to report.

The parties believe this MOU will be an important step in providing reliable renewable energy to local communities that are currently unserved and underserved, while improving local air quality associated with gas flaring.

Engr. Ahmad Salihijo Ahmad, Managing Director/Chief Executive Officer of the REA, said 鈥淩EA鈥檚 collaboration with CarbonAi is timely and solution-driven.

The off-grid space in Nigeria is undergoing commendable growth. With the resultant opportunities, key stakeholders must take the responsibility to leverage these opportunities to accelerate sustainable impact, nationwide.

This is another strategic and innovative way to finance climate-resilient infrastructure in Nigeria while alleviating energy poverty.鈥�

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