In response to the rising costs of diesel and petrol, Nigerian Breweries Plc has announced a significant power purchase agreement with Konexa to transition its operations at two of its breweries in Lagos and Ama Enugu to 100% renewable energy. This move is part of a broader strategy to incorporate renewable energy sources throughout the company’s operations in Nigeria, demonstrating its commitment to achieving carbon neutrality. The agreement not only emphasizes Nigerian Breweries’ dedication to sustainable practices but also addresses the urgent need for renewable energy solutions in a country plagued by frequent power outages and increasing fossil fuel prices.
To fund this ambitious project, Climate Fund Managers, through its EU-supported Climate Investor One fund, will provide development financing. Additionally, Konexa, along with other third-party co-financiers, will also contribute to the financial backing of the initiative. This collaboration between Nigerian Breweries and Konexa is not just a financial transaction; it signifies a substantial step toward fostering renewable energy infrastructure in Nigeria, which is crucial for reducing carbon emissions and operational costs while enhancing energy reliability for businesses.
During the official contract signing ceremony held at Nigerian Breweries’ head office, Managing Director Hans Essaadi highlighted this partnership as a landmark achievement in their pursuit of a fully renewable energy model. He reiterated the company’s ambition to not only lower its operational costs but also to attain net-zero emissions by 2030. Essaadi pointed out the importance of renewable energy in Nigeria, particularly in light of the ongoing issues with energy supply, and expressed optimism about the collaboration with Konexa to facilitate this essential energy transition.
In response, Konexa’s CEO, Pradeep Pursnani, expressed enthusiasm about participating in a project that supports Nigerian Breweries in achieving a more reliable and sustainable power supply. He mentioned that with the backing of Climate Fund Managers, Konexa is advancing vital renewable energy infrastructure in Nigeria, which ultimately facilitates the shift for companies like Nigerian Breweries toward sustainable energy sources. This partnership is critical not only for the company’s operational needs but also serves to set a precedent for other enterprises in the region considering a transition to clean energy.
Climate Fund Managers’ Regional Head of Africa, Darron Johnson, underscored the project’s significance by reinforcing the investment firm’s commitment to aiding Nigerian Breweries in reducing its reliance on fossil fuels. This effort also aims to bolster the resilience of Nigeria’s energy grid, which has been challenged by various factors, including a lack of reliable infrastructure and the volatility of fuel prices. By focusing on financing renewable energy solutions, stakeholders like Climate Fund Managers are addressing both the environmental and economic challenges faced by businesses in Nigeria.
Overall, the agreement between Nigerian Breweries and Konexa reflects a growing recognition of the importance of renewable energy initiatives in tackling climate change and enhancing energy security in Nigeria. As companies increasingly seek sustainable solutions to their energy needs, this partnership exemplifies a proactive approach to transitioning from fossil fuels to renewable sources, which will not only benefit the companies involved but also contribute positively to Nigeria’s broader environmental goals and energy landscape.
