Arla Foods Nigeria, renowned for producing Dano milk, has unveiled an ambitious four-year energy transition plan aimed at establishing a solar power plant for its cutting-edge dairy farm in Kaduna State. The plan’s target is to install a solar capacity of 750KVA by 2027.
Peder Pedersen, Managing Director of Arla Foods Nigeria, revealed this strategic initiative during the inaugural session of the 2023 Nordic Nigeria Connect event in Lagos. Pedersen emphasized that this energy transition plan harmonizes with the company’s sustainability strategy. The vision is to foster a dairy future that not only promotes health but also contributes positively to the world by adopting measures that bolster environmental sustainability.
Currently operating on diesel generators due to its disconnection from the national grid, the dairy farm situated in Damau commenced operations in May 2023.
Akalaka Obazei, Senior Manager of Corporate Affairs, delved deeper into the company’s plans during the energy transition-focused session. The initial phase involves implementing a hybrid solution comprising a standard 250kVA solar system complemented by diesel. This hybrid solution is projected to yield substantial benefits, including an annual cost saving of around 143,910 Euros on diesel expenses. Additionally, it aims to curtail carbon emissions significantly by an estimated 300 to 350 tons per year, with an anticipated one-year payback period.
Obazei outlined the progression of the solar power project, indicating an increase in power generation to a 550kVA installed capacity between 2024 and 2025. The ultimate goal is to achieve a robust capacity of up to 750kVA by 2027, aligning with the farm’s full operational status.
Regarding financing for this pioneering venture, Obazei highlighted that Arla’s 8500 farmer-owners would spearhead the project. This commitment stems from their unwavering dedication to sustainability initiatives, reinforcing the company’s vision of a seamless transition towards renewable energy sources.
