Dangote invests over $280m in CNG trucks, becomes largest operator

Dangote Cement Plc has invested more than $280 million in compressed natural gas (CNG) technology and infrastructure in Nigeria.

Dangote Cement, in a statement on Sunday, October 27, 2024, said the investment was in a demonstration of its support for President Bola Tinubu’s CNG Initiative, which aims to provide cheaper and cleaner fuelling alternatives for Nigerians.

The company said the over $280 million investment not only solidifies its leadership in the CNG sector but also reflects its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

The Group Managing Director of Dangote Cement Plc, Arvind Pathak, said the investment aims to acquire 100 per cent CNG trucks as part of a long-term plan to transition its entire fleet to CNG.

Pathak said: “This move marks a significant milestone in Dangote’s clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026. As at October, the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting additional 1,600 CNG trucks; totalling 3,100 before the end of the year.

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“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.”

He said plans were ongoing to aggressively pursue this timeline of deployment, beginning from the first quarter of 2025.

“We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance,” he added.

Pathak said that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels, adding that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations.

The President/Chief Executive Officer of Dangote Group, Aliko Dangote, said the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.

“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” Dangote added.

The Star