Nigeria’s largest brewer, Nigerian Breweries Plc has signed a historic power purchase agreement with Konexa an integrated energy development and investment platform to deliver 100% renewable energy that will fully cover the electricity needs of its two breweries in Kaduna State.
This bold step is in line with its business strategy and ‘Brew a Better World’ sustainability agenda. The supply of clean, renewable energy to its Kakuri and Kudenda breweries will take the company one step closer in its quest to becoming carbon-neutral in future.
Under the terms of the ten-year agreement, Nigerian Breweries Plc has outsourced the power supply for its critical loads for its breweries, converting from fossil fuels into a full-service renewable energy solution, using hydro-power sources.
This project is co-funded by Climate Fund Managers and Konexa.
Speaking during the official contract signing ceremony held at the company’s head office in Iganmu, Lagos, on Tuesday, May 17, 2022, the Managing Director of Nigerian Breweries Plc., Mr. Hans Essaadi, described the agreement as another significant milestone for NB Plc, saying – “By 2030, we want to become a standard reference point in Nigeria when it comes to sustainability and efficient use of resources. Under our Brew a Better World agenda, we are taking several bold steps to become a carbon-neutral company. This agreement represents another significant step in our journey, and we are excited to partner with Konexa to reduce our energy costs and cost of production”, Hans said.
In his remarks during the signing ceremony, the Commercial Director at Konexa, Joel Abrams, explained that the agreement is part of Konexa’s commitment to supporting industry, national governments, and utilities to achieve clean and reliable 24/7 power in Nigeria and beyond. He added that the partnership anchors Konexa’s confidence in the Nigerian power sector and will bring long-term investment and world-class operations to support the sector’s sustainability by improving reliability, quality of service, and job creation.
“We are very pleased to be part of the energy transition that Nigerian Breweries Plc. is leading. This agreement is particularly significant in the current context of increasing energy costs from traditional fossil fuels. This type of solution can apply to many businesses across Nigeria, allowing them to obtain cost-effective power from a reliable partner while focusing on their core business,” he added.
The Chief Investment Officer, Climate Fund Managers, Tarun Brahma, said: “We are proud to support Konexa and look forward to actively supporting Nigerian Breweries Plc. as they demonstrate leadership in driving the decarbonisation of their operations in Nigeria”.
It would be recalled that in 2021, Nigerian Breweries Plc commissioned its 663.6 KWP solar power plant at its Ibadan brewery, which supplies 1GWh yearly to the brewery while reducing its carbon emissions by 10,000 tonnes over a 15-year lifespan of the plant.
Press contact: Corporate Affairs Director, Sade Morgan firstname.lastname@example.org
About Nigerian Breweries Plc
A member of the HEINEKEN Group, Nigerian Breweries Plc is the pioneer and largest brewing company in Nigeria. Incorporated in 1946 as “Nigerian Brewery Limited,” the company made history in June 1949 when the first bottle of STAR lager beer rolled out of its Lagos brewery bottling line. Today, it has a rich portfolio of 19 high-quality brands (such as Heineken, Desperados, Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend) produced from nine breweries which are distributed nationwide. Nigerian Breweries is also a recipient of several awards and recognition in other areas of its operations, including product quality, marketing excellence, productivity and innovation, health and safety, corporate social responsibility, and sustainability.
To learn more, visit the Nigerian Breweries website: www.nbplc.com
Konexa is a Sub-Saharan Africa-focused developer and investor specializing in renewable energy generation, electricity distribution, last-mile reticulation, and off-grid energy solutions. Konexa’s management team has in excess of 30 years of experience working in the investment and development of energy generation, transmission and distribution infrastructure, and technology. Industry Capital is an investor in Konexa alongside its founding management team.
About Climate Fund Managers
CFM is a leading blended finance fund manager dedicated to securing a sustainable future through investing across global emerging markets. CFM has a long-term vision to structure cutting-edge financing facilities around thematic areas of climate change mitigation and adaptation, including renewable energy, water and oceans, sustainable land use, and sustainable cities. CFM is established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa.
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