12.2 C
London
Saturday, November 1, 2025

Oti Region Plans 500MW Biomass Power Plant

Biomass Power Plant
Biomass Power Plant

The Oti Region’s set for a major economic transformation with plans underway to establish a 500 megawatt biomass power plant, a flagship initiative under Ghana’s 24 Hour Economy Secretariat that could significantly boost industrialization in the country’s newest region.

The project, unveiled at an investment forum jointly organized by the Ghana Investment Promotion Centre and the Oti Regional Coordinating Council in Dambai, is designed to provide a stable and sustainable energy source to support around the clock business operations. If realized, it’d represent one of Africa’s largest biomass power facilities, dwarfing similar projects on the continent.

Simon Madjie, CEO of GIPC who also represents the 24 Hour Economy Secretariat, said the biomass plant will significantly reduce reliance on traditional energy sources while spurring investment, entrepreneurship, and job creation. The timing couldn’t be more critical given Ghana’s ongoing power sector challenges and the government’s push to establish continuous industrial operations.

“The project will not only address energy shortages but also open up new avenues for agro industrial growth and local business participation,” he said during the forum, which ran from October 29 to 30, 2025 at the Bosatsu Hotel in Dambai.

Madjie revealed that the Secretariat’s collaborating with traditional authorities in Damanko, in the Nkwanta North District, to cultivate between 25,000 and 30,000 hectares of Napier grass, the main raw material to fuel the biomass plant. This agricultural component transforms the project from simple power generation into a comprehensive value chain linking farmers, transporters, and processors.

Napier grass, also known as elephant grass, is a fast growing tropical grass species well suited to Ghana’s climate. It can be harvested multiple times per year and produces high biomass yields, making it an ideal feedstock for power generation. The cultivation of such extensive acreage would create employment for thousands of farmers and agricultural workers in one of Ghana’s least industrialized regions.

Former President of the Oti Regional House of Chiefs, Nana Mprah Besemuna III, also known as Krachi-Wura, endorsed the project, describing it as a long awaited solution to the region’s unstable and inadequate electricity supply. His support matters significantly given that large scale land acquisition for the Napier grass cultivation will require cooperation from traditional authorities who control much of the region’s land.

“This is what we’ve been waiting for,” the traditional leader said, expressing optimism that the biomass facility would catalyze industrial growth, attract new investments, and enable businesses to operate continuously, in line with the government’s 24 hour economy vision.

However, the 500MW capacity figure deserves scrutiny. For context, North America’s largest biomass facility, the Atikokan Generating Station in Canada, generates 205 megawatts. Most biomass power plants globally operate at much smaller scales, typically between 20MW and 50MW, because of the enormous volumes of feedstock required for larger facilities.

A 500MW biomass plant would require staggering amounts of Napier grass, potentially millions of tons annually depending on the grass’s moisture content and energy density. Even with 25,000 to 30,000 hectares under cultivation, questions remain about whether production could sustainably meet such massive fuel demands year round without depleting soil nutrients or causing environmental degradation.

The project’s announcement comes as Ghana’s GIPC intensifies efforts to promote district level investment opportunities across all 261 districts through its Investment Opportunity Mapping Project launched in July 2025. The Oti roadshow represented the initiative’s first regional deployment, with Chief of Staff Julius Debrah delivering the keynote address on behalf of President John Dramani Mahama.

The Oti Region, carved out of the former Volta Region in 2018, remains one of Ghana’s least developed areas despite abundant natural resources. Covering 11,070 square kilometers and bordered by Volta Lake to the west and Togo to the east, the region’s strategic location makes it a potential trade gateway between Ghana’s northern corridor and neighboring countries.

The proposed power plant is expected to create thousands of direct and indirect jobs and strengthen the local economy by encouraging manufacturing, agro processing, and service sector expansion. Stakeholders at the event described the initiative as a game changer for the region, with successful implementation expected to improve livelihoods, enhance energy reliability, and accelerate regional development.

Yet the timeline, financing, and technical feasibility details remain unclear. The announcement provided no information about project costs, which for a facility this size could run into billions of dollars, nor did it identify specific investors, technology partners, or funding sources. These omissions raise questions about whether the project’s at the planning stage or has secured commitments necessary for actual implementation.

Ghana’s experience with ambitious power projects offers cautionary lessons. Several large scale renewable energy initiatives announced over the years have stalled at the planning stage due to financing challenges, technical complexities, or changing political priorities. The 24 Hour Economy Secretariat itself is a relatively new entity under the Mahama administration, and its capacity to shepherd such a massive infrastructure project to completion remains untested.

The biomass power generation model does offer genuine advantages for Ghana. Unlike solar or wind power, biomass plants can provide baseload power, generating electricity continuously regardless of weather conditions. This reliability makes biomass particularly suited for supporting industrial operations that can’t tolerate power interruptions, a key requirement for the 24 hour economy concept.

Furthermore, the agricultural component creates economic opportunities beyond power generation. Farmers cultivating Napier grass would have guaranteed markets for their crops, providing income stability in a region where agricultural commercialization remains limited. The transport and processing sectors would also benefit from the supply chain activities required to move biomass from farms to the power plant.

Environmental considerations will require careful management. While biomass is often marketed as renewable energy, large scale monoculture cultivation can deplete soil nutrients, reduce biodiversity, and require significant water resources. The project’s developers will need to demonstrate that 25,000 to 30,000 hectares of Napier grass cultivation won’t compromise food security or environmental sustainability in the region.

The GIPC’s working in collaboration with the Oti Regional Coordinating Council, Ministry of Trade and Industry, Ghana Export Promotion Authority, Ghana Tourism Authority, Ghana National Chamber of Commerce and Industry Oti Chapter, and the 24 Hour Economy Secretariat on the broader investment roadshow initiative. Whether this multi agency coordination extends to the biomass project’s implementation will significantly impact its success prospects.

For the Oti Region’s residents, the biomass plant represents validation that their area matters to Ghana’s economic future. The region’s agrarian nature, with capacity for cultivating maize, yam, cassava, rice, mangoes, watermelon, cashew, and tomatoes, has long been touted as offering unlimited investment opportunities. However, translating potential into actual development has proven challenging.

Chief Director of the Oti Regional Coordinating Council, Issaka Braimah Basintale, has consistently invited private sectors to take advantage of the region’s huge agricultural potential to create wealth and employment for youth. The biomass project, if successfully implemented, could serve as the anchor investment that attracts additional manufacturing and processing facilities to the region.

What remains uncertain is whether this announcement represents a concrete project with committed investors and detailed implementation plans, or an aspirational vision intended to attract interest during the investment roadshow. The distinction matters enormously, as Ghana’s development landscape is littered with announced projects that never materialized beyond initial publicity.

The government’s commitment to the 24 hour economy concept provides political backing for the initiative. President Mahama featured the policy prominently at the Africa Singapore Business Forum in August 2025, outlining how extended hour operations can boost exports and job creation. International partners including the United Kingdom’s Jobs and Economic Transformation Programme have aligned support to Ghana’s 24 hour policy pillar.

However, political support alone doesn’t guarantee project success. Large scale infrastructure development requires technical expertise, substantial capital investment, regulatory approvals, environmental assessments, and sustained implementation capacity. The biomass plant will need to navigate all these requirements while maintaining support across political cycles that could shift priorities.

For now, the Oti Region biomass power plant remains a compelling vision that addresses real needs: unreliable electricity supply, limited industrial development, and underutilized agricultural capacity. Whether it evolves from announcement to operational facility generating 500 megawatts of power will depend on execution quality, financing mobilization, and sustained commitment from government, investors, and local communities.

The next critical milestone will be identifying actual investors willing to commit capital to detailed feasibility studies and project development. Until then, stakeholders should maintain healthy skepticism while supporting efforts to transform the Oti Region’s economic prospects through sustainable energy infrastructure.

Latest news
Related news