Olam Agri, a leading agribusiness, and Husk Power Systems, a rural clean energy services provider, have embarked on a groundbreaking initiative to install a solar power system at Olam Agri’s rice processing facility in Rukubi, Nasarawa State, Nigeria. This project represents a significant stride towards sustainable agriculture and signifies a broader shift towards renewable energy in the agricultural sector. By transitioning from diesel generators to solar power, Olam Agri aims to drastically reduce its carbon footprint and operational costs while contributing to Nigeria’s renewable energy targets. This collaboration underscores the growing importance of private sector involvement in driving clean energy adoption and showcases the potential of solar energy to transform energy consumption in agriculture.
The core of the project lies in the installation of a 1.3 MWp solar photovoltaic (PV) system coupled with an 860 kWh battery energy storage system. This hybrid system is designed to ensure a consistent and reliable power supply to Olam Agri’s rice operations, mitigating the challenges associated with voltage fluctuations and power outages often experienced with traditional grid electricity. The battery storage component allows for the storage of excess solar energy generated during peak sunlight hours, ensuring a continuous power supply even when the sun isn’t shining. This arrangement not only reduces reliance on diesel generators but also optimizes energy efficiency, leading to significant cost savings for Olam Agri.
The partnership between Olam Agri and Husk Power is structured under a 10-year Power Purchase Agreement (PPA). This agreement guarantees Olam Agri a long-term supply of clean, solar-generated electricity, providing price predictability and facilitating better financial planning. For Husk Power, the PPA secures a stable revenue stream, supporting their continued investment in renewable energy infrastructure. This arrangement fosters a mutually beneficial relationship that encourages the growth of sustainable energy solutions in the region. The project aligns with the increasing focus on environmental, social, and governance (ESG) factors in business operations, demonstrating Olam Agri’s commitment to sustainable practices.
This project is particularly significant within the context of Nigeria’s burgeoning Commercial and Industrial (C&I) solar market. With projections indicating the addition of over 550 MW of new solar capacity between 2025 and 2029, this initiative aligns with the country’s broader push towards renewable energy adoption. It exemplifies the potential for private sector investment to drive the transition to cleaner energy sources and contribute to national climate goals. The project also sets a precedent for other agricultural businesses in Nigeria and across Africa, demonstrating the viability and benefits of transitioning to solar power.
The decision to adopt solar power at Olam Agri’s rice operations reflects the company’s commitment to sustainable development. By embracing renewable energy, the company actively reduces its environmental impact and contributes to mitigating climate change. Beyond the environmental benefits, the switch to solar power also enhances operational efficiency and contributes to long-term cost savings. This strategic move positions Olam Agri as a leader in sustainable agriculture and encourages the adoption of similar practices across the sector.
The partnership between Olam Agri and Husk Power is a testament to the growing momentum behind renewable energy solutions in Africa. It showcases the transformative potential of solar power to address energy challenges in the agricultural sector, improve energy access, and promote sustainable development. The project serves as a model for future collaborations between agribusinesses and clean energy providers, paving the way for a more sustainable and resilient agricultural landscape. Furthermore, the project supports local job creation and contributes to the development of a skilled workforce in the renewable energy sector. The initiative reflects a broader trend towards decarbonising economies and highlights the role of businesses in achieving global climate goals.
