May 13 2015
Milhouse Engineering & Construction, Inc., has signed a memorandum of understanding (MOU) with the Federal Republic of Nigeria and its Ministry of Power to create energy from coal to increase the amount of power that Nigeria generates over the next five years.
The agreement is the start of a long-term strategy to reduce Nigeria's reliance on expensive diesel fuel, leading to a better quality of life and an attractive environment for business investment.
It is Milhouse's plan to mine high-quality coal on 20,000 acres in the Enugu region. It plans to process the coal into usable energy to power 100 embedded mini-plants capable of generating up to 5 megawatts of power each, for a total up to 500 mw of energy by the end of 2018.
The mini-plants strategy is less expensive than building a coal plant from the ground up, which could take three years and cost upwards of $1.5 billion. In Nigeria, which has the largest gross domestic product (GDP) in Africa, an expedited solution is critical to mitigating the potential losses of major foreign companies, jobs and business investments due to exorbitant fuel prices. Diesel costs up to 12 times more than coal-based energy sources. The implementation of coal-fired power generation will free up available diesel fuel for other uses, alleviating the current scarcity problems.
For instance, the estimated energy bill for a 2,000-square-foot home using coal in the U.S. is $300 a month; in Nigeria, using diesel, it is an estimated $1,200 a month.
"By creating a safe, efficient energy source from Nigeria's valuable stores of high-quality coal, the government can cultivate an environment that is appealing to major corporations and investors, and a growing middle class," said Wilbur C. Milhouse III, P.E., president and CEO of Milhouse Engineering & Construction. "Our approach will bring relief to hundreds of thousands of Nigerians, and create jobs and contracting opportunities for local businesses."
Coal is the primary resource used by major power producers in North America and Europe. In the U.S., about 45 percent of the energy is powered by coal. Nigeria, a country with the land mass of Texas and Oklahoma combined, currently produces no power from coal. Nigeria currently produces between 3,000 and 4,000 megawatts of electricity. Whereas in New York, coal is used to produce 20,000 megawatts of electricity.
With coal, the Nigerian people will gain access to economic opportunity and business growth enjoyed by citizens in countries with stabilized power.
"I'd like to thank the Nigerian government and the Ministry of Power for the opportunity to bring this important growth industry and its economic benefits to its citizens," Wilbur Milhouse said. "Milhouse Engineering & Construction is committed to adding value and to making a difference in improving the quality of life for people around the world."