In its drive for a 100% renewable energy transition for two of its breweries, Lagos and Ama Brewery, Nigeria’s foremost brewing company, Nigerian Breweries Plc, has signed a historic power purchase agreement with Konexa, a UK-based energy developer and investor.
This bold step aligns with its business strategy and ‘Brew a Better World’ sustainability agenda. The transition of the company’s operations to renewable energy across the country reflects its commitment to the journey toward carbon neutrality across its footprints.
Climate Fund Managers (CFM), a climate-focused blended finance investment manager and existing investor in Konexa will provide development funding for the project via its EU-supported Climate Investor One fund. Konexa and third-party co-financiers will also provide funding.
It will be recalled that the company signed a ten-year agreement with Konexa in 2022 to supply clean, renewable energy to its Kakuri and Kudenda Breweries to become carbon neutral.
Speaking during the official contract signing ceremony held at the company’s head office in Iganmu, Lagos, on Wednesday, October 10, 2024, the Managing Director of Nigerian Breweries Plc., Mr. Hans Essaadi, described the agreement signing as a significant milestone in the company’s 100% renewable energy transition.
Essaadi said: "This partnership underscores our commitment to reducing carbon emissions, lowering operational costs, and achieving net zero before 2030. Nigerian Breweries recognises the critical role of renewable energy infrastructure in Nigeria, particularly amidst frequent outages. Our collaboration with Konexa demonstrates our dedication to accelerating the transition to renewable energy in our operations, and we look forward to a successful partnership with Konexa and their sponsors CFM, given their solid track record in renewable energy deployment in Africa."
We look forward to working with Konexa to achieve this transition, especially in the face of the increasing cost of fossil fuels," he added.
Also speaking during the signing ceremony, Chief Executive Officer Konexa Pradeep Pursnani said the company is excited to be part of a project aimed at helping NB Plc move toward a more reliable and sustainable power source in its operations.
"With CFM’s support, we are advancing the development of key renewable energy infrastructure in Nigeria, helping companies like NB Plc’s transition to sustainable, reliable power and reduce their costs. This project is a significant step forward in achieving NB Plc’s, and Nigeria’s, renewable energy and decarbonisation goals," Pursnani said.
In his remarks, Climate Fund Managers Regional Head of Africa, Darron Johnson, said the funding support for the project represents the company’s commitment to assisting NB Plc reduce its dependence on fossil fuels.
"Phase Two of our investment in Konexa is another crucial step forward in the modernization of Nigeria’s power grid. By integrating sustainable energy sources into the grid, Konexa’s platform helps its clients reduce their reliance on fossil fuels, while strengthening the grid’s resilience and driving sustainable economic growth,” Johnson said.
