New capabilities for Mozambique’s Port of Pemba

September 10, 2024

Piergiorgio Evangelista, Renco’s branch manager in Mozambique, talks to The Energy Year about the potential for energy investments in Mozambique and developing transferable skills among workers in Cabo Delgado. Renco is a construction and engineering services company specialising in energy and civil infrastructure.

How does Renco asses and operates in the oil and gas sector in Mozambique
We recognised the potential for energy development in Mozambique early on, particularly in Cabo Delgado, the region we chose for our initial investment. Our first project was a leisure resort, and oil and gas opportunities started to arise when Mozambique Rovuma Venture and TotalEnergies launched their projects.
Over the years we have established a solid foundation for Renco in Cabo Delgado, from where we compete for various EPC projects and develop our own investments.
Our advantage lies in our deep understanding of the Mozambican market, which we gained through our early investments and has helped us secure significant contracts in the area. Unfortunately, most of them are currently on hold but we remain optimistic. Our approach is to invest in our capabilities first and react to opportunities as they come up.

What is Renco’s assessment of Mozambique’s electrification goals?
We believe there is significant potential for waste-to-energy solutions. While large incinerators may not be feasible in all cities due to critical mass limitations, smaller facilities should certainly be considered.
Electrification remains a major challenge. Reaching 100% coverage by 2030 solely through a traditional grid system seems highly challenging given Mozambique’s vast size, which is why an approach that combines mini-grids and off-grid systems is preferable.
We support the energy transition and Mozambique is particularly well-positioned in this regard, with an estimated 90% of its energy production already classified as green. We see significant potential in solar power plants, which can be developed directly and not as a replacement for traditional energy sources, as is happening in Europe. Renco is currently participating in a project, a PV station in Mecúfi, which has a capacity of 26 MW that can be expanded to 90 MW.

 

How does Renco stand out among engineering and construction companies in Mozambique?
We are an integrated company that manages several segments of the supply chain, especially in northern Mozambique. In Pemba, we have an established base of operations, operational assets and accommodation for our staff, and a strong security presence to support the PBT [Pemba Bulk Terminal] project.

What are your expectations for the evolution of the business environment in Cabo Delgado?
The situation in Cabo Delgado is complex, but we are here to stay and have a strong motivation to participate in the province’s development and in building its infrastructure and economy. Cabo Delgado is geographically remote and has infrastructure limitations.
The PBT project will help the transport of goods to and within the province, and have a positive impact on tourism as well. Renco continuously explores opportunities to fuel economic activity in Cabo Delgado, including the development of graphite mining and processing in-country.

What is your strategy to develop the PBT and how can it contribute to the economic development of Cabo Delgado?
Our strategy revolves around building partnerships that avoid aggressive competition, managing risk and prioritising long-term success over short-term gains. We use revenue-sharing agreements to balance risks and align our success with that of our clients.
Our vision for PBT prioritises value creation at the local level. Cabo Delgado currently has a very limited manufacturing base, and by integrating local companies into our supply chain we are helping to develop industrial skills and expertise in the region, in addition to creating jobs.

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