Nigeria could generate an estimated $3bn annually from carbon finance under a proposed clean energy partnership presented to the Federal Government by two companies.
Vara Energia Ltd and Canada-based HydroThermIA Inc unveiled the technical and commercial framework during a meeting with officials of the Mitigation Division of the Department of Climate Change at the Federal Ministry of Environment in Abuja on Monday.
The initiative is designed to reduce industrial emissions by capturing gas flared at source and converting it into clean hydrogen and reliable electricity.
Chief Executive Officer of Vara Energia, Segun Aikulola, said the framework would support industrial decarbonisation and green hydrogen production in line with the National Carbon Market Framework and President Bola Tinubu’s Renewed Hope Agenda.
He said the proposal built on discussions at the National Green Growth Dialogue organised by the Nigerian Economic Summit Group in collaboration with the Federal Ministry of Budget and Economic Planning.
Aikulola noted that the government had established climate governance structures, including the National Carbon Market Framework and the National Council on Climate Change, while setting a target to cut emissions by 32 per cent by 2035 and achieve net-zero emissions by 2060.
Vara Energia’s Executive Director for Commercial and Business Development, Ochonogor Uche Zoe, said the project could reduce emissions and create alternative sources of revenue for the country.
He stressed the need to develop local technical expertise and domestic manufacturing capacity to enable Nigerian engineers to participate in the clean energy sector.
The Head of the Mitigation Division in the Department of Climate Change, Asmau Jibril, said the partnership aligned with the government’s climate and green growth objectives.
The companies said the proposed technology could also lower operating costs for heavy industries and upstream oil and gas operators by reducing their reliance on expensive diesel and unreliable grid electricity.
Vara Energia’s Deputy Chief Executive Officer, Victor Ntofon, said the initiative could attract foreign exchange through verified carbon revenue, create thousands of skilled jobs and improve access to international climate finance, including Green Climate Fund resources.
He added that the project could position Nigeria to become a regional and global exporter of green hydrogen and ammonia.
The partners urged the Presidency, the National Council on Climate Change and the Ministry of Environment to support the initiative, while calling on manufacturers and energy companies to participate in the proposed ecosystem.
They said wider adoption could help businesses reduce energy costs and meet emerging carbon compliance requirements, while supporting Nigeria’s energy security and industrial development.
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