OREANDA-NEWS. June 26, 2012. U.K.-based Diageo plc, a leading global alcohol beverage company, has once again tapped Clarke Energy, a distributor of GEs (NYSE: GE) Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness breweries in Ogba and Benin City, Nigeria to lower their energy costs and increase production. The two, 3.3-megawatt (MW) CHP plants will each feature a natural gas-powered Jenbacher J620 gas engine and a backup diesel engine from a different supplier.

GE on Tuesday announced the brewery CHP projects in conjunction with the Africa Energy Forum 2012 in Berlin, Germany. The Jenbacher product line supports GEs CHP applications designed specifically for GE Food & Beverage Solutions, an organization dedicated to bringing energy management, CHP and other waste-to-value solutions to the global food and beverage industry.

A suburb of the port city of Lagos, Ogba is located in Lagos State, one of the countrys most economically significant regions. Benin City is about 200 miles east of Lagos and is the capital of the neighboring Edo State. In all, Diageo operates three Guinness breweries in Nigeria. Diageo was established by the merger of Guinness plc and Grand Metropolitan plc in 1997.

Guinness Foreign Extra Stout has been brewed in Nigeria since 1962. Nigeria actually drinks more Guinness than the brands home country of Ireland, making the African nation the worlds second-largest market for Guinness, behind only the United Kingdom.

The new Ogba and Benin City projects represent the fifth and sixth Jenbacher CHP engines that Diageo has installed since 2008 at its Guinness Nigeria plc brewing operations to help lower energy costs and help keep pace with the steady growth in demand for its products.

In 2008, Diageo first installed a Jenbacher J620 cogeneration unit at its Guinness Ogba brewery, where the system was connected to a waste-heat boiler to produce steam for the brewing process. The second installation in 2010 was configured to use the exhaust heat directly into an absorption chiller to provide a source of cooling for the plant. Also in 2008, Diageo installed its first two Jenbacher J620 cogeneration systems at its Guinness Benin City brewery. In addition to producing steam, the Benin City brewerys Jenbacher unit was connected to an absorption chiller to create chilled water from the engines exhaust heat.

GEs Jenbacher Type 6 engines offer numerous advantages: reliability, efficiency and robustness, with high power density and low installation costs. In addition, the pre-combustion chamber layout helps the engine achieve maximum efficiency with low emissions, while its unique design and optimized components support an extended service life and reduce maintenance and overhaul costs. Given the current price difference between natural gas and diesel fuel in Nigeria, using gas to power a high-efficiency Jenbacher engine can save a customer 78 percent compared to diesel fuel.

GEs Jenbacher gas engines are supporting our efforts to incorporate energy efficiency technologies to increase productivity. The performance of our previously installed Jenbacher gas engines, in terms of reliability, productivity and efficiency, has been tremendous, said Henry Ohenhen, electrical/automation manager-Benin, Guinness Nigeria plc. The proven capabilities of GEs gas engines and Clarke Energys comprehensive, local after-sales service support have given us significant competitive advantages, helping us to develop the most modern and advanced breweries in Africa. This latest installation will help support our growth and expansion goals.

The Ogba and Benin City breweries are expanding their existing CHP plants to generate even more reliable electricity and steam while using cleaner-burning, less-expensive natural gas as the primary fuel. The new, ecomagination-approved Jenbacher J620 CHP units are scheduled to be fully installed, tested and in operation by the first quarter of 2013.

This is an opportunity to realize significant operational cost savings, and we can typically expect a gas engine like the one being installed in Lagos to pay for itself within just 18 to 24 months, said Patrick Regan, global sales leader for GE Food & Beverage Solutions. From a financial point of view, the case to use gas as a primary fuel is hard to dispute, given the current natural gas price point versus more traditional fuel sources such as diesel. More breweries are choosing to install gas engines in their facilities as a result of their increased reliability, efficiency and overall return on their investments, not to mention the positive environmental impact of cleaner emissions and reduced CO2 footprint.

In addition to showcasing GEs successful focus on the food and beverage sector, the Diageo projects illustrate how GEs comprehensive suite of distributed power solutionsranging in size from 100 kW to 100 MWare helping customers worldwide to generate more reliable, on-site electricity and heat.

With the upcoming installation of the latest Jenbacher system in Ogba and Benin City, we are pleased to be able to support the long-term growth of Diageos iconic brands, said Alex Marshall, group marketing manager for U.K. and Nigeria-based Clarke Energy, which provides full-service sales, engineering, installation and maintenance services for GEs Jenbacher gas engines product line.

Guinness Nigeria plc, a subsidiary of Diageo, was incorporated in 1962 and the following year opened its Ogba brewery in Ikeja, Lagos. Ikeja was the first Guinness brewery to be built outside of Ireland and the United Kingdom.

Steady growth in Africas demand for Guinness Stout and Harp Lager prompted the opening of more breweries in Nigeria. In 1974, the company built its second breweryBenin Citythat originally produced Harp but was later expanded in 1978 to also make Guinness. In 1982, Guinness expanded its brewery at Ogba to also brew both Harp and Guinness. In 2004, a third Guinness brewery was opened at Aba in Abia State to further increase production capacity.

The CHP projects underscore how GE is helping Nigeria promote economic growth, employment and educational opportunities. Aligning with Nigerias goals for growth through its Vision 2020 initiative, GE and the federal government of Nigeria in 2009 signed a landmark Country to Company agreement to foster partnerships and drive critical infrastructure projects across the country.