Arla Foods Nigeria, maker of Dano milk, has unveiled a 4-year energy transition plan to build a solar power plant for its state-of-the-art dairy farm in Kaduna, aiming to generate up to 750KVA installed capacity by 2027.
The Managing Director, Arla Foods Nigeria, Peder Pedersen, disclosed this while speaking during the opening session of the 2023 Nordic Nigeria Connect held on Tuesday at the Lagos Intercontinental Hotel, Lagos, with the theme “Innovation for a Greener Future”.
Pederson explained that the energy transition plan aligns with the company’s sustainability strategy and vision to create the future of dairy that brings health and inspiration to the world, naturally, by taking actions that support a stronger planet, thereby improving the environment for future generations.
He noted that the farm in Damau, Kaduna State, has been operating on diesel generators since its inauguration in May 2023, as there is no connectivity to the national grid.
Senior Manager, Corporate Affairs, Arla Foods Nigeria, Akalaka Obazei, while making a presentation in the Energy Transition deep dive session, gave a breakdown of the company’s plan for the implementation of the solar power transition of the company.
Obazei stated that Phase 1 of the project would be a hybrid solution of 250kVA standard solar plus diesel that will lead to an annual diesel cost saving of about Euro 143, 910 while also reducing carbon emissions (CO2e) by about 300 – 350 tons per year with one-year payback period.
She further revealed that the power generation is expected to grow to 550kVA installed capacity between 2024 and 2025, while the full potential of up to 750kVA is expected to be achieved by 2027 when the farm reaches full operation.
On financing for the project, she noted that Arla’s 8500 farmer-owners will be bankrolling the project as they strongly believe in energy transition and in line with their long-time commitment to sustainability. She added that businesses, including Arla Farm, must shift toward renewable energy, mainly due to the increasing cost of fossil fuel and its environmental implications.
