NB Plc signs agreement with Konexa to support 100% renewable energy transition in Lagos, Ama Breweries

AMADI UGO

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.

 

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 9 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.

 

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.

 

Climate Fund Managers (CFM) is a climate-focused blended finance investment manager operating across Africa, Asia and Latin America. CFM raises and deploys blended climate finance funds, working in partnership to deliver climate-resilient initiatives at scale and pace. CFM’s funds are supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital. CFM manages two USD 1bn EU-supported emerging market infrastructure funds focused on renewable energy, water, sanitation and oceans infrastructure and has multiple funds under development targeting energy transition, green hydrogen, renewables and power transmission. CFM’s funds utilise a combination of development, equity, debt, and guarantee instruments, enabling investments across the project lifecycle from development to construction and operation. Established in 2015, CFM is a joint venture between the Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group of South Africa, with offices in The Hague, Cape Town, Singapore, Windhoek and Bogota. For more information, see www.climatefundmanagers.com.