The Nigerian Breweries Plc has announced the signing of a Power Purchase Agreement (PPA) with Konexa, a UK-based energy developer and investor, to transition its Lagos and Ama Breweries’ energy source completely to renewable energy. According to the company, this move is in line with its business plan and environmental objective “Brew a Better World”. The company’s nationwide shift to Renewable Energy sources for operations is indicative of its dedication to achieving zero Emissions across all of its footprints. This shift involves the use of solar and hydropower energy, with the goal of becoming completely emission-free by 2030.
Through its EU-supported Climate Investor One fund, Climate Fund Managers (CFM), a mixed Finance Investment manager with a focus on Climate Change and a current Konexa investor, will fund the project’s development. Funding will also come from third-party co-financiers and Konexa. With the support of this finance, a new renewable power project will be developed, providing the two NB Plc sites and other commercial and industrial (C&I) clients with dependable green energy as well as the Infrastructure required to connect to the grid.
Signing of the agreement serves as a critical turning point.
Once fully service, the project is anticipated to yearly offset 46,000 tons of CO2 equivalent emissions, which is comparable to taking 11,000 gasoline-powered vehicles off the road. There will be 35 permanent jobs and 100 Construction jobs as a result of the project. Additionally, the collaboration supports Nigeria’s larger initiatives to boost investments in energy infrastructure and improve the usage of renewable energy. Speaking during the official contract signing event that took place at Nigerian Breweries Plc head office in Iganmu, Lagos, Mr. Hans Essaadi, the Managing Director of the firm, described the agreement signing as a critical turning point in the company’s transition to 100% renewable energy.
Essaadi explained that this collaboration demonstrates the company’s dedication to cutting operational expenses, minimizing carbon emissions, and reaching net zero by 2030. Nigerian Breweries is aware of how important renewable energy infrastructure is to Nigeria, especially in light of the country’s frequent power outages. Given their strong track record in the deployment of renewable energy in Africa, he said that Nigerian Breweries’ cooperation with Konexa shows their commitment to expediting the shift to renewable energy in their operations.
Early adoption of solar energy laid the groundwork.
Speaking at the signing event, the chief executive officer of Konexa, Pradeep Pursnani, expressed the company’s excitement to be involved in a project that will support NB Plc in transitioning to a more sustainable and dependable power source for its operations. In his remark, Climate Fund Managers’ Regional Head of Africa, Darron Johnson, stated that the project’s funding support demonstrates the company’s dedication to supporting NB Plc lessen its reliance on fossil fuels. The company’s energy transitioning move project started in 2021 when it commissioned a 663.6 kWp solar plant in Ibadan.
This facility produces 1 GWh of renewable Electricity yearly, reducing the brewery’s carbon emissions by an estimated 10,000 tonnes over the plant’s 15-year lifespan. The early adoption of Solar Energy created the foundation for later agreements with Konexa and other renewable energy partners in 2022, which further expanded the company’s green energy footprint across more of their facilities. The company’s commitment to setting the standard for Environmental Sustainability in the business was evident from the solar plant’s performance. Recall that Nigerian Breweries Plc and Konexa collaborated on a power purchase agreement in 2022.
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Under the agreement, 100% renewable energy, mostly from hydropower, was supplied to the two Kaduna breweries. This was a big shift for the Nigerian Breweries, which aimed to cut expenses on energy and lessen its dependency on fossil fuels. The company’s carbon footprint has decreased dramatically as a result of the transformation, in line with its objective to achieve zero-carbon emission by 2030. This shift contributes to Nigeria’s larger climate goals by reducing the environmental impact of its activities. Adopting renewable energy helps Nigerian Breweries become seen as a pioneer in sustainability, which can draw in additional Investors and customers who care about the environment.