Endeavor Energy nears close on Africa power project

The Denham Capital-backed power producer expects to reach financial close before year-end on its Songon Power Project which will initially add 375MW to Côte d’Ivoire’s power grid.

Independent power producer Endeavor Energy has significantly advanced the thermal power plant it is developing in Côte d’Ivoire and expects to reach financial close on the initial phase of the project in the third quarter of this year, the Houston-based company said in a statement.

Located outside Abidjan, Songon is a multi-phase combined-cycle power generation project which will have a generating capacity of 1,200 megawatts (MW) once completed. The first phase of the project will add 375MW of power to the Sub-Saharan country’s power grid. In addition to power generation, Songon will also comprise LNG import infrastructure and a floating storage and regasification unit (FSRU), which will be completed in phase 1 of the project.

Endeavor Energy, which is also a sponsor of the US initiative “Power Africa“, said it has secured the site, obtained local environmental approvals and is in advanced discussions with the government of Côte d’Ivoire on the importation of LNG. The environmental and social impact assessment for the power plant has been approved, while the environmental assessment for the transmission line and LNG infrastructure is pending but expected to be completed by the second quarter of this year.

Endeavor is developing the project with Starenergie 2073, an independent private power producer, in which the Houston-based company owns a majority stake and which is in charge of the construction of Songon. The company has not yet decided on how many phases the project will need to reach the total 1,200MW of generating capacity, nor has it yet determined a definitive timeline, a spokesperson told Infrastructure Investor.

According to Endeavor Energy’s website, the company will be responsible for commercial management of the power project as well as providing construction management and oversight of the engineering, procurement and construction (EPC) contractor for which the company will issue a request for proposals (RFP) in the coming months.

Denham Capital, an energy-focused private equity firm based in Boston, formed Endeavor Energy in June 2013 to invest in thermal and hydroelectric power projects in Africa. “Denham is seeding the enterprise with an initial commitment of $100 million from its $3 billion Fund VI raised in 2012 and will obtain co-investment from other financial investors and project level equity partners in the future,” the private equity firm said at the time. It is not clear how much equity Denham Capital currently owns in Endeavor Energy.

Denham Capital has more than $8.4 billion co-invested and committed capital across seven funds in the oil and gas, power and renewables and metals and minerals industries. From its offices in London, Boston, Houston, São Paulo and Perth, the firm invests globally, with current investments in Africa, the Middle East, the US, Canada, South America, Australia, Europe and Asia.